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16 Comments on RE Agents/Conflict of interest
Steven: These are my feelings on the situation. I prefer to have my clients find me on their own, via telephone book, internet or from referrals from others that I have done inspections for.
However, after being in the business for any length of time your name gets out in the community. Many of the Realtors have a list of inspectors they give out to the buyer for them to pick the inspector. Again, this is the preferred for me. There may be a few Realtors that do make referrals but I see that happening less each year.
Our association also has a list of inspectors on the internet; therefore the buyer can reference that information on their own. There are many avenues to find an inspector other than coming from the Realtor referral.
Thank you for your good blog.
Carl,
Our "preference of reference" mirrors each other and to tell you the truth, when I speak to an agent, I'll quite often give them my card and ask for referrals.
I get different responses from them. Most say that they give a list of HI's to their clients and don't recommend any HI in particular. But some ask if I am a "deal Killer". at which point I explain that "I have killed a few, but it is the house that kills the deal... not me". I tell them I am an honest man and report what I see, but I also add that I realize that no house is perfect and I don't jump up and down screaming "fire" when I see something that is simply a common everyday fault.
I went through a very difficult inspection not too long ago... it was challenged by the seller. It just so happens that the agent was "storybook". I was accused of being overzealous and a "deal killer". They had their own inspector do a counter inspection. When the re-inspection was performed (I was there along with my client), at first I got the feeling there was am attempt at sugarcoating, I didn't accept vague statements and insisted upon specific answers. In the end, the other inspector agreed totally with everything I reported. Had I not been there to question the "sugar", would it have gone that way? Hmmmm???
I'm sure the other inspector wasn't happy that he was unable to "save the day". The best feeling that was the relief that I was hired directly by my client and wasn't enamored to the agent in any way.My favorite statement was... "my report stands".
It was on that day that I realized the problem with referrals when there could be a conflict of interest. Even if you are a stand-up guy, it's still not a pleasant situation to be in.
Steven: Nicely said. I truly don't run into many unpleasant situations. Sugar coating will only cause problems later. Call it as you see it. That's why I like my client to attend the inspection so I can point to items that may need attention, the Realtor also if they want to attend. This is why I recommend a "pre-inspection" before listing so the seller can address items that may need attention.
Active Rain Group: Hill Country Inspector (would welcome your membership)
Steve every inspector would like a law against,but I noticed you said the buyers agent works for the seller.
What did you mean by that?
Howdy Steven
I would also like to know what you mean by that ?
Have a good one
Who pays the agent... either agent?
In essence both agents work for the seller.
I seem to recall that in my state and probably some others there is an affidavit that must be signed by the buyer that they have been notified of this fact.
This is copied from a Walter Jowers article.
"Just to add my personal-and professional-opinion, based on 20 or so years of home-inspection work: find a real estate agent who is independently wealthy. You don't want one who has to make her next sale to keep the lights on at her own house. You want one who will be financially secure until her death, even if she never sells another house. If you're lucky enough to find such a real estate agent, she might just refer you to a home inspector who will tell you the whole truth".
If you want to read the whole article click here
Steven....I have read that article. It's entitled "The Fox in the Henhouse." Here are the sad, political facts of life. There are far fewer Home Inspectors than there are Realtors. All the HI organizations together couldn't match the legislative clout of the NAR. The NAR has its own interest. Thus, in lots of licensed states, the HI legislation is practically written by the NAR and its lobbyists. Is there a potential for conflict of interest? Yes, like a big, wide barn door wide and tall enough to drive a combine through. If you check the NAR COE, there is nothing specific about who, how, or under what circumstances a realtor should or should not recommend a home inspector, or any other vender, except for some vague language about monetary interests. Crafty. Is it surprising that HI's in your state and mine operate under the Real Estate Commission? Not only not surprising, but expected.
Since HI organizations are too busy fighting each other, the NAR can easily fill the power void that exists when it comes time to crafting laws. The subtle message is that if you wish to remain in business, you will play the game the way we (the NAR) has crafted it. This is almost, but not quite, an admission that conflict of interest exists on a large scale. I know it. You know it. Everybody in the real estate game knows it, but it's rare you have anybody on the sales side actually admit it. The only way it will ever be overcome is a massive public relations campaign to educate consumers and shame the NAR out of its fox-guarding-the-henhouse position. After all, I have met very few who are actually qualified to determine what actually makes for a good inspector, yet the position is taken that realtors are the moral guardians of consumer interest.
As Gomer Pyle would say, "Shame, shame, shame!"
It's true what you say, especially about RE's political clout and the HI's associations not banding together. It would be great if they could all have a summit a couple of times a year and discuss certain common interests that would become common projects.
I also think that educating the public is the best way to promote this idea. It would be on hell of an ad campaign.
the associations may never agree on much of anything.
Have you guys been checking out Google slapped at all.I assume your trying to stay out of it.
That thread was ending on a fun note till We We came in.I am considering banning anonymous comments over there at ask the inspector.
Seems this moron picked on two of your posts Steve.
I can only delete the whole thread, so will let you do the honors.
LOL!! Steven, are you trying to stir the pot a little bit? I thought this thread was wore plumb out. It seems to me to be a migration toward the competent inspector in this part of the world in these bad times. Hard times makes everyone think, agents and inspector alike.
Hey, Bob. I live, I thrive. More time on the road leaves me with less time to spend with my buddies at AR and "The Boards."
Hi Jimmy we miss you, and you are missing the peice of spam that Joe Lang is speaking of as Steven has deleted it.
Look at the dates and you will see the posts are about the spam.
My comment looks pretty silly now, but some yahoo had put a comment about the service they provide that was totally unrelated to the post. Steven apparently deleted it (and rightfully so).