Hi Jane. I can understand your frustration with the situation. However, your broker is correct and is protecting the brokerage as well you. All material items must be disclosed, and given the buyer canceled due to the report, we must assume there were items contained material to the transaction. Irregardless of who paid for the report, it must be disclosed. Non-disclosure is the biggest cause of real estate violations, fines and law suits, so you'll want to take care to disclose.
I suggest the following:
1. Make all material repairs (in the future you may want to pay for an inspection prior to selling. For all my investment properties, I do this in advance to ensure I'm aware of all items. It always pays for itself in the end).
2. One option is to outline what you consider material errors in the report and document them, asking the inspector to correct the errors and provide an updated report. Another option is to leave the errors if they are not material, and just rather 'sloppy' and write a response to the report to attach for prospective buyers. It could be good for them to see the more unprofessional report, as it may indicate lack of credibility.
3. Get an inspector with a great reputation (ask your agent and do your own research too). Provide both reports to prospective buyers, with an attachment documenting the items that have now been addressed.
4. I don't recommend finding a new broker, as they will follow the same procedures in terms of disclosure. But if you do want to select a new one, yes you can on occasion work with your broker to come to an agreement to part ways. You will need to document your expectation and how your needs were not met. In my opinion, the reason would need to be more than not disclosing the report in order for them to consider releasing you as they have invested time and likely money as well.
Well done on passing on the lower quality rental tenants - I have found vacancy is cheaper than a bad tenant every time (damages/eviction/etc.)
On your question about listing it as a flip - you can note that property is being sold as-is, but the downside is some people will think this equates to big investment and you may not sell at your optimal price. Have you looked into working with a wholesaler to sell it off the MLS? Due to the low supply at present, I have found wholesalers particularly eager to obtain properties.
Although we are experiencing a market shift at the moment, we're really only seeing properties sit a few weeks longer on the MLS (remember 30-45 days was typical before 2022). So try not to get discouraged if it's not selling quickly. If you proactively make repairs, you'll likely find a buyer on market who places value on a home where they don't need to make repairs in an environment with labor shortages and price increases on supplies.
Best of luck.
