Are Home Inspectors Deal Killers ?

Home » Inspections » Are Home Inspectors Deal Killers ?

Published: May 18, 2016 Last Updated: April 8, 2024

“33% of real estate contracts get terminated due to issues discovered during the inspections while only 11% are terminated due to issues with the appraisal.”

*According to FREA (Foundation of Real Estate Associates)

So Are Inspectors Really “Deal Killers?”

At times an inspector can be a deal killer because of how they present or report the defects or issues in the home. They may not have a good bedside manner, or they fail to explain the level of seriousness in a way that the buyer understands and things can get blown out of proportion.

In reality, most inspectors try very hard to tactfully disclose defects and issues so that the buyer, agents and seller understand the issues and the level of importance.

The Main Reasons For Deals Falling Apart

The Condition of Home

Generally, it’s the condition of the home that kills the deal, not the inspector. Sometimes when the buyer sees the home in a more objective light or considers the time and cost that may be required to get the home in the condition that they would like, it can change their desire to buy it.

The Appraisal

Every seller wants to get as much money for their home as they can. They will often list the home high or at an unrealistic price, just to see if someone will go for it. Surprise – some buyers will. They just fall in love with the home and forget that it must appraise outright if they want a loan. The appraisal unfortunately is not based on how much they love the home, but what the lender/appraiser values the home at.

The result is that it doesn’t appraise for the needed value and the deal falls apart.

Buyer’s Remorse

Buyers, after they have thought things over or saw another house that they like better, start looking for a way to get out of the deal. One of the easiest ways is to use the inspection issues as the reason for walking from the deal.

This is one of the biggest reason for deals to fall through, and one of the hardest to identify.

What Skilled Agents Do

Horse drinking water

They know that you can lead a horse to water, but you can’t make him drink.

In other words,

You can show a buyer a house, but you can’t force them to buy it.

Top agents, don’t try to force their buyers into buying a home that they do not want or later will regret. Great agents will often say, “If this isn’t the right home for you, then I will find the right home for you.” By doing this, an agent may lose a particular deal, but they won’t lose the client or the next deal.

Get the facts

First, top agents get a true understanding of the issues since if you don’t know the facts and importance of an issue, it’s very difficult to solve the problem. Ask questions, get cost estimates and study the pros and cons. The better an agent understands the issues, the better they can deal with them.

Analyze and negotiate

Next, they study where the buyer and seller are coming from mentally. Then they try to work out the issues and concerns through negotiations.

In the end

After this, If negotiations fail, they are able to keep the client and find the right home for their client


Some listing agents recommend a “Pre-listing Inspection” to help reduce surprises that may come up at the buyer’s home inspection.

Pre-listing inspections have more value than most thought; (Read more about pre-listing inspections, sometimes called a seller’s home inspection)

Bottom Line

It’s generally “buyers remorse” or the condition of the home and the buyers and seller’s willingness to negotiate a price that falls within the appraised value, not the inspector that causes a deal to fall apart.

Additional Resources

Notify of

Inline Feedbacks
View all comments

Would love your thoughts, please comment.x