Stay with me for a minute or two as this can get kind of confusing:

 

Broker "A" represents seller "1" who is also buyer "1" represented by Broker "A".  
      Seller "1"s house has been on the market for several months..

Broker "A" represents seller "2" who is also buyer "2" represented by Broker "A".

Seller "2' (aka Buyer "2") decides to buy seller "1"s house.

Broker "A" recommends that seller "2" (aka Buyer "2") have a home inspection done and happens to know just the person to do it.

Who is it??

Why Inspector "A" (a licensed home inspector) who also happens to be a real estate agent (Agent "1") working  for???

You guessed it!  Broker "A". 

Buyer "2" either didn't see the problem or didn't want to offend Broker "A" because Inspector "A" did the inspection.

Too top this off, Inspector "A" (aka Agent "1") is accompanied to the inspection by his wife who is also a real estate agent [not an inspector] (Agent "2") working for???

You guessed it!  Broker "A".

Strangely, the only person who apparently saw the potential for a conflict of interest in this scenario was Seller "1".

Do you think Inspector "A" would mention the "little foundation problem" that could cost several thousand dollars to fix, thus killing the deals for Broker "A".

Your thoughts??

Is this a red flag for you??

Did your inspector bribe your real estate agent?

Erby Crofutt
B4U Close Home Inspections & Radon Testing
www.b4uclose.com
www.kentuckyrdon.com
502-570-4054

 
This post has been included in Kentucky Information
Post is included in group: Ethics and the home inspector

7 Comments on Kentucky Home Inspector on Ethics

Erby,

Wish I had started AR sooner than August.  This one is an obvious conflict of interest.  Everyone from the same brokerage gets all the slices of the same pie if the broker orchestrates it right.  Is it really that large of a community that they can go unnoticed by even the escrow office?  Broker "A" should be doing everything ethically possible to protect the brokerage.  This opens up concerns of possible misconduct.  All anyone needs to do is raise that red flag.

Very interesting scenario.  Did it really happen?  Surprised no one ever commented on it either.

11/24/2007 08:46 PM by Wes White in Crescent City, CA (Lucky Star Realty)


Wes,  welcome to AR.  It's a wonderful place to learn and get exposure.

Yes, it happened locally.

Broker A made out good.

11/24/2007 09:13 PM by Erby Crofutt, Central Kentucky Home Inspector (B4U Close Home Inspections & Radon Testing)


Howdy Erby

I had not seen this post of yours. I do know of one agent in my area that does this. My lady gave a co-worker of hers one of my business cards, so she could call me to do the inspection of the home being looked at. Her agent talked her out of useing me to do the inspection. The agent told her she knows an inspector that would do the inspection for $150.00.

 I know this inspector and the way he does inspections. My lady and I useed him many moons ago. Before I started my business up here in NH.

 You could see that the basement was a wet one, but he wrote it up as being a dry basement. There where also 4 open unprotected junction boxes where not wrote up. I could give you 8 to 10 more things that where not wrote up like they should have been. After we got the repot and read it, I told my lady that I was going to start doing inspections again.

Have a good one

Dale

 

11/25/2007 09:23 AM by Dale Baker, Home Inspector- in NH & VT (Baker Home Inspections and Consulting Service)


Hey Dale,

Thanks for stopping by.

Each person must decide on their own personal ethics.  They are the ones that have to live with the results of their choice.

Each inspector must also choose their price point.  Low ball or quality.  There is always a market for both.  I prefer to stay with quality service at a fair price.  I have a wife I have to keep happy.  Going broke by low balling prices just won't let me do that.

 

-

11/26/2007 07:16 AM by Erby Crofutt, Central Kentucky Home Inspector (B4U Close Home Inspections & Radon Testing)


Howdy Erby

The only way to run any business is to give top quality service at a fair price to folks.

Have a good one

Dale

12/09/2007 01:23 PM by Dale Baker, Home Inspector- in NH & VT (Baker Home Inspections and Consulting Service)


But there's always someone out there who wants the cheapest inspection they can get.

And a person to give them that level of service.

Yeah most of them regret it later, but by then it's way too late.

Live and learn.  Buyer beware!

12/10/2007 08:48 PM by Erby Crofutt, Central Kentucky Home Inspector (B4U Close Home Inspections & Radon Testing)


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Inspector: Erby Crofutt, Central Kentucky Home Inspector (B4U Close Home Inspections & Radon Testing)
Erby Crofutt, Central Kentucky Home Inspector
Lexington, KY
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