An Ugly Inspection Report Can Freak Out Your Buyer—Here’s How to Handle It

In my blog last week, you learned what to do as a listing agent when the buyer makes requests for repairs.

Now for the flip side of that conversation…

What to do as a buyer’s agent when the inspection report comes back not-so-clean.

A lot of what you’re about to read will look very familiar because these two conversations are essentially THE SAME—you’re delivering bad news to your client and helping them make an informed decision about how to move forward.

Before, the client was a seller and the bad news was the request for repairs. Now, the client is a buyer and the bad news is an ugly inspection report.

In both situations, you approach the conversation the exact same way, using Tactical Empathy to make them feel understood and find out what they’re thinking BEFORE offering any opinions or advice.

1️⃣ Prepare your Accusations Audit.

As you learned last week, an Accusations Audit is just a series of labels calling out the negative things the other person might be thinking or feeling in this situation.

Focus on all of the fears that may be surfacing for your buyer when they hear that there is anything at all wrong with the property they’ve just chosen…

Am I buying a lemon? If this thing is wrong, what else may be wrong? Did the inspection catch everything? Are there other hidden faults? These are the issues right now, but what else might come up in a year or two or five? Did I make a mistake in choosing this property? Would another house be a safer, better choice? How difficult and expensive is this home going to be to maintain? I can afford the house, but am I going to be able to afford the repairs? Is this a money pit?

Keep digging. What about the concerns connected to your buyer’s specific circumstances? 

Was this a multiple bid situation? Did they already commit to paying more than they originally hoped? Are they first-time buyers? Are they already nervous about making this large financial commitment? Are there other people in their ‘buying committee’ (the other decision-makers, advisors, influencers in their inner circle)? Are they concerned about what their buying committee will think about this? Will they feel embarrassed admitting to their committee that they’ve chosen this house with these issues? Will they receive pressure from their committee to push for repairs or credits?

Think about what type of negotiator the buyer is. 

How did they approach coming to their purchase price? Are they Assertives for whom this will be a clear, bottom-line decision? Are they Accommodators who fell in love with this property and will be dealing with heartbreak at the idea of potentially having to walk away? Are they Analysts who will need to sit with all this information and take some time to think it through?

Take the time to evaluate the situation from your buyer’s perspective in as much detail as possible, and then write down your Accusations Audit.

Remember to structure your Accusations Audit using the most visceral terms you can think of and compose your list from most potent to least potent. It may sound something like:

You’re probably going to want to walk away from this deal.

You’re going to think these sellers are crooks.

You might want to fire me for having brought you to this property to begin with.

You’re going to think this house is a money pit.

You’re probably going to wonder how you’re ever going to be able to afford this.

You may decide you don’t even want to be homeowners.

You’re probably going to want to reach through this phone and strangle me.

2️⃣ Address the situation as quickly as possible.

Do NOT sit on this any longer than necessary—that will only make things worse. 

As soon as you’ve prepared your Accusations Audit, get on the phone OR reach out via text or email to secure a time to speak on the phone: “There is something we need to discuss that you are not going to like. Would it be impossible for us to get on the phone?”

3️⃣ Deliver your Accusations Audit.

Once on the call, brace them for bad news:

We’ve received the inspection report.

It is going to break your heart. / This is going to piss you off. / You are going to be shocked. (choose what fits best for your buyer’s personality type)

Then, deliver your Accusations Audit in a slow, even, calm tone, just as you learned last week. Let each statement stand on its own. Don’t stack them together with “and.” Don’t negate what you’ve said with “but.” Don’t explain what you’ve said with “because.” All those additional words ERASE the intended effect.

Deliver each statement, and then let it sit for 2-3 seconds, giving your client time to absorb it. A great measure of time is to take one, slow, deep breath before you proceed to the next. 

Continue delivering these until your client stops you, until you hear something definitive like, “Enough already, get to the point!” or “It can’t be that bad, just tell me. You’re making me nervous!”

4️⃣ Deliver the news, then LISTEN. 

Deliver the inspection results without making any attempt to downplay or sugarcoat what you’re relaying.

Then, STOP TALKING and let them respond.

They may have a big reaction. Listen without interrupting. 

When they pause and are clearly looking for a response from you, use Mirrors and Labels to make them feel understood and draw out more information about what they’re thinking and feeling.

That may sound something like:

Client: This is really scary. It seems like the house is in very bad shape. This is going to cost so much more than we planned.

Agent: It sounds like this is really unsettling for you. It seems like you might be unsure about moving forward with this purchase. I know this is a huge number for you to wrap your minds around.

Client: That’s right, it is. OR Yes, exactly.

5️⃣ Ask how they'd like to proceed.

Once it seems that they have said all they need to say, and it’s clear that you have made them feel understood, ask this simple question: “How would you like to proceed?”

They may respond with something like, “What do you think we should do? We’re looking to you for advice.”  

In that case, reassure them that you will give them your opinion, then ask them to first share what they’re thinking. That might sound something like this:

“It sounds like you’re really interested in my opinion/guidance. I will be happy to share that with you. Before I do that, would you mind sharing with me what you think might be a good idea?”

Hear them out, whatever they have to say. It doesn’t matter if what they say is a "good" idea or a "bad" idea. It doesn’t even matter if they don’t have much of an idea at all. The effect will be the same. You will have extended that Tactical Empathy olive branch to them. They will feel heard and respected, and they will be willing to extend the favor back to you. 

Also, they will have aired their thoughts and cleared their minds so that they are now able to be as smart as you need them to be as you lay out your thoughts for them to consider. 

Before you share your perspective, get permission to do so:

“Would you object to me sharing some options you may want to consider?”

Once they give you permission, walk them through what you see as their options. That might sound something like this:

“You have options. You can request that the seller make all or some of the repairs. You can request that the seller offer a credit at closing to cover some or all of the repairs. You can renegotiate your offer price. You can walk away from this deal and look for another property. What would you like to do? (OR What feels best to you? OR What is the most comfortable course of action for you?)”

As you can see, everything you’ve just read is ALMOST exactly the same as what you read last week.

The approach and structure of the conversation hasn’t changed.

The only real differences are in the actual content of the conversation—your Accusations Audit, Mirrors, Labels, questions, etc. 

So it shouldn’t surprise you that in this conversation, you want to beware of the same 2 pitfalls I warned you about last week.

→ Don’t minimize or sugar coat the issues that have surfaced.

As an agent, the inspection report may be one of the cleanest you’ve ever seen. But this may be the only inspection report the buyer has ever seen—and it’s certainly the only one that matters to them.

You may feel like there is nothing to be concerned about. You may think the costs for repairs are minimal. Remember it’s not your headache and it’s not your money.

→ Don’t skip the step of asking them to share their thoughts first.

When a client is asking for your opinion, it’s tempting to jump right in with it. After all, they asked you! If you provide your opinion first, you lose the benefit of letting them clear their minds first. You lose the benefit of gaining greater understanding of how they may be thinking about the situation. You lose the benefit of making them feel understood and gaining their trust.

As I always say, you don’t need to think for them. You need to understand what they’re thinking.

If you have questions about anything you’ve just read, reply to this email and ask! We’ll be happy to point you to the right resource to help you master these skills.

Have a great weekend,

Laurie

PS - If you want more Tactical Empathy in your life, join us in the Daily Accountability Calls! You can test drive the program for FREE for 14 days—click here to start your trial.