In a recent thread found on Trulia, a local inspector responded to my assertion, that if you're looking for an inspector, your Realtor can be a good resource for finding good inspectors. He replied with:
"Asking your Realtor is NOT a great way to find an inspector. Your Realtor gets paid only if the home sale goes through. Many good inspectors are called, 'Deal Killers' by R.E. agents and will not appear on a list of inspectors that are referred to home buying clients."
I suggested that most Realtors are highly ethical and interested in the best interests of their clients, and he suggests that there's too much of a conflict-of-interest in the Realtor / Inspector relationship, and we're only interested in the quick commission check.
I contend that I want any of the inspectors who are found on my recommended list to seek out and find any of the problems that exist in the property we're looking at. I want any deficiencies found, as I may be called upon to represent that property in it's next resale, and I want as clean a property to resell as possible.
Now, I do want an inspector who finds the problems, but isn't someone who "panics" the client, rather explains carefully what the problem is and it's potential solution. Is this a $50 problem, a $500 problem, $5,000 problem, or is this so severe that it compromises the structural integrity of the building.
Not to mention that I really am trying to look out for the best interests of my client. I take a perverse pride in walking my clients carefully through the minefield that is a real estate transaction.
He then quotes, nationally syndicated columnist and inspector, Barry Stone who writes:
"The trunk of the problem is this: Agents do not get paid until the sale is completed, and defect disclosure can make buyers change their minds about the sale. Since the best home inspectors disclose more defects, a large number of real estate agents regard the best home inspectors as “deal killers” — not because those inspectors actually kill deals, but because their thoroughness engenders the fear that they might kill a deal. As a result, some agents do not refer the best inspectors to their clients. Meanwhile, unwary clients assume that they are getting top-notch home inspection referrals from their agents.
On the other hand, there are many excellent agents who truly represent the interests of their clients; who recognize the value of total and unabridged disclosure. Those agents are the shining stars of the profession, the ones who recommend only the most thorough and qualified home inspectors to clients. Realtors of this caliber deserve praise and recognition for the exemplary work that they do.
What we have are two dissimilar groups of agents — the compromised and the committed — separated by an ethical divide that tarnishes the public image of the real estate industry, while jeopardizing the financial interests of trusting homebuyers. "
I like to think that the majority of agents (Realtors included) are looking out for their clients best interests. I also think that the majority of certified inspectors are doing the same, independently of any visible or invisible pressure from the agent to give the property a clean bill of health.
Clearly he's presuming the opposite, that the majority of agents are in collusion with the majority of inspectors, who give the property a quick once over, and any inspectors who do otherwise are quickly ostracized and blackballed from doing further business with those agents.
Alan, great post. Thanks for sharing. I believe as Realtors part of our job is to recommend reputable inspectors, insurance agents, title companies, lenders, etc. to our clients. I have never believed in the "here's a list of 3 inspectors - choose one". Our clients depend on us to help them find a professional, reputable person to do the service. And as Realtors, I think most of us know our fiduciary duties and won't just recommend an inspector that we know "won't kill the deal". This was very interesting to read. Thanks for posting.