Because they can potentially make or break a sale, home inspections can be a nerve-wracking part of the home buying or selling process for agents and for their clients. Buyers may choose to walk away if major flaws are discovered in a home. At the very least, the sellers and their agent may need to re-negotiate the terms of the sale.

According to some industry professionals, one out of 10 home sales fall through after the home inspection, although other factors, such as a buyer's waning interest in the property, may contribute that statistic.

In any case, the inspection is a critical part of the home buying process because it allows the buyers to identify any issues or needed repairs in the home before finalizing the purchase – and many agents are unsure what their roles are during this process.

Here is what agents need to know about navigating the home inspection:

• Typically, the buyer pays for the inspection, so the buyer and their agent chooses the inspection company. In most states, home inspectors are certified, although some states do not require certification. However, choosing a reputable licensed inspection company with years of experience almost always ensures a qualified inspection and a thorough report.
• The inspector’s job is to examine the structure from the roof down and identify any issues. He or she will inspect the attic, the vents, the foundation, the plumbing, the kitchens, baths, and electrical systems. They will look for mold, siding cracks, adequate caulking, check in, under, and around the home – more than 1,600 items in all, according to the National Association of Home Inspectors.
• The buyer’s agent can and should attend the inspection. The buyer may also attend so the inspector can point out such things as the electrical panels, the HVAC system, ventilation switches, and water shut-off valves the seller may not have pointed out.
• Before the inspection, the seller’s agent should be sure the utilities are turned on, if possible, and urge the seller to remove any clutter that might impede the inspection.
• During the inspection, the inspector should be informed of any issues the seller has disclosed. For the most part, those in attendance should be respectful and allow the inspector their space. But questions may be asked about any concerning issues such as visible cracks, stains, or missing roof shingles.  
• After the inspection, both the buyer’s agent and the lender will receive copies of the report, which, if permitted by the contract, can then be used to negotiate with the seller about any recommended repair items. Depending on the terms of the contract, the seller can typically choose to make the repairs, pay the buyer an allowance to fix them, or renegotiate the terms of sale to exclude those items. The buyer’s agent may also help the buyers decide if the repair items are worth asking the seller to fix, or if they would rather finalize the purchase and do the repairs themselves after closing.

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