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HOME INSPECTIONS: A LAW THAT NEEDS TO BE TWEEKED.

By
Real Estate Agent with Bill Cherry, Realtor 0124242

I've been thinking about Home Inspectors.

This past year, several of my clients lost the sale of their homes, and in each case it was caused by the report and verbal rhetoric of the home inspector the buyer had retained.  And the bad stuff that hurt the sales turned out to be the home inspectors aberration, not a reality.

Of course, as you can imagine, each of the inspectors picked by the buyers were not chosen because the buyer knew them, had used them before, or a friend had recommended.  It was by a pseudo-lottery.

In one case, the market in the area was falling.  We lost the sale because the inspector reported that one seperation of a 10 foot drywall tape drop in a corner was caused by foundation problems.  A licensed structural engineer, then hired by my homeowner client, came out and said there were no foundation failures.

But the buyer was so spooked by his inspector's report that he did not exercise his option to buy.  By the time we had another contract on the home -- less than two months later -- the value had dropped by nearly $50,000. 

So the inspector had collected his $350.00 fee and all was well with him.  The homeowner not only lost a sale because of false testimony, but $50,000 because of the falling market that took place between the two contracts.

So last year, home inspectors' faulty reports ruined four of my clients' sales, and they cost me about $60,000 in commissions.  How can that be equitable?

PROPOSAL

So I began wondering the other night if the law shouldn't be changed to require each party -- the buyer and the seller -- to be represented contemporaneously by an inspector of their choice.  In my plan, the two inspectors would go through the property together, then write a single opinion.  Differences would be listed and defended. 

If we have become so paranoid about dual agency, why aren't we paranoid about one inspection?

BILL CHERRY, REALTORS

DALLAS - PARK CITIES

Our 45th Year

214 503-8563

 WEB

Comments(9)

Deborah Byron Leffler BzyBee Real Estate Lady!
Keller Williams Realty Boise - Nampa, ID

Wow BIll that is a huge bummer ....I know when i am representing a buyer and their home inspector over exaggerates a report it is the last time his card is given out.....I want a fair inspection...when i say fair I mean that I want all the findings reported and discussed but I want the proper perspective assigned to each item.    If it is a suggestion  then note it....if it is a huge problem then please note it....

 

Mar 18, 2010 11:17 PM
Roy Kelley
Retired - Gaithersburg, MD

Thanks for sharing your thoughts on home inspectors. Sounds like the inspector saved their client $50,000. Sometimes it pays to get a pre-listing inspection that is available for prospects.

Mar 18, 2010 11:17 PM
Randy Chapman
Randy J. Chapman FL Lic. Real Estate Broker - Hutchinson Island, FL

One of my sellers just lost a sale because of a septic inspector. His report did not mention anything wrong with the system - just that it failed. He then called a septic company that he works with and they quickly wrote an $8000 plus quote.

Here's the kicker. We had a contract on the home that did not close because of financing. However, the septic passed. The seller immediately called another company that we do not have a relationship with for an inspection and it passed again.

The selling agent scheduled the inspections and went on the property and entered the home without ever notifying me. That's just not right.

If she had contacted me, myself or the contractor who did the home renovation would have been onsite. This would have given us a chance to question the inspector about his findings.

Now, when a home goes under contract, I remove the key from the lock box. No realtor, no appraiser or no inspector goes on the property without me being present.

Mar 18, 2010 11:25 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I like the idea of the two inspectors doing the inspection together.

Mar 18, 2010 11:25 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Here we don't do pre-listing inspections and they would be "suspect" by buyers since they are not the norm.  We call in the _expert as you did....but the suspicion by the CYA home inspector has already cast the doubt...it's tough...not sure that another opinion will help a buyer who is already convinced that THEIR inspector is right.

Mar 18, 2010 11:30 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good points Bill.  We have a procedure for this in Florida where we can challenge the inspection and hire one ourselves.  If there's still disagreement a third one can be hired by both parties.  Of course, in an as-is contract it doesn't help if the buyer walks.  In our standard contract, we can dispute the inspection.

Mar 18, 2010 11:36 PM
Scott Coslett
National Property Inspections - Berwick, PA

Bill -

Sorry to hear about your difficulties with recent inspections.  As with any industry, you're bound to find some unscrupulous folks across this country in the inspection business.  What you describe is simply unacceptable and an insult to all those inspectors who get up every morning wanting to provide an honest service.  As an inspector I would encourage anyone with such a problem to contact the applicable state organization responsible for licensing inspectors.  I believe in the case of TX, your organization is TREC?  In addition, I would encourage you to contact the professional organization holding the offending inspectors membership (ASHI, NACHI, NAHI).  Finally, I know it is probably not much of a consolation, but the word about such monkey business always finds a way of 'hitting the street'....especially if the proper organizations are contacted.  If the inspector is in fact making an issue of loose drywall tape,  I would venture he or she will be in a different line of work shortly.

Have a great day.

Mar 19, 2010 12:19 AM
Mary Strang
Viroqua, WI

I have had one particular inspectors crash several sales of mine because of prior disputes we had with each other. He caused some damage to a listing and refused to own up to it. It is really bad business when it gets to that level. I just pray now that he does not get hired again on any of my listings.  I think the sellers you are blogging about might have some rights to sue, maybe refer him to an attorney and see?

Mar 19, 2010 04:29 AM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

We always encourage sellers to get their own home inspection, so they will know what to expect when a buyer comes through.  They can share that inspection with the buyers if they want.  In the case where the buyers also get an inspection, the buyers can weigh both of them and decide for themselves.

Apr 05, 2010 02:20 PM