Intention is everything in negotiations. We lose buyers and buyers lose houses for good reasons, and sometimes for reasons that have everything to do with failing to focus on intent.
The inspection contingency is intentional. There was a time not so long ago when there was no mention of a contingency to inspect a property in the WB Offer, and rarely found on company created addenda. Once the concept found its way onto the conversation of potential contingencies for the state approved form the work of making the contingency work began. First question for the committee might have been, “Who is this for?” and the second probably was, “How will it be abused?”.
The opportunity to inspect is first a benefit to the buyer. In essence the inspection slows the process, gives the buyer the chance to get an informed opinion of the condition of the property with some limited ability to renegotiate or possibly part ways. As advantageous as this is to Buyers it’s high risk for the Seller. Inspections will identify some issues and given the chance to ask for something in concessions people tend to ask, and asking takes time. The standard offer inspection contingency gives the seller the leverage to end the conversation if they are pressed by the buyer to make concessions. That’s a necessary authority to keep everyone honest, and allow sellers the opportunity to move on when demands are unacceptable.
Of course we’re all smart and can see how the opportunity to end the conversation is powerful in the hands of the Seller. So we did what is expected of a Buyer Agent: we tweaked the contingency to flip the leverage to the buyer to the detriment of the seller. The person on the receiving end who does not comprehend the difference in the wording will discover the difference when it’s too late.
Time waiting for the contingency to be satisfied is pressure on the Seller. Pressure is stress. In negotiations the person feeling the stress is the one who knows they are at a disadvantage. Whomever has the leverage in the inspection contingency has the advantage in creating or eliminating stress.
Knowing exactly what process the inspection contingency creates is one area where any licensee can be a difference maker in negotiations. When you know who has the lever and what has to happen to get to contingency satisfaction, your client will have the information to make smart choices.
The words matter. The intent of the words is to give one side or the other leverage. Leverage is power, control, and stress inducing. Be intentional. Know the intent.