How Do You View Home Inspections?

As a buyers agent I want to see it all, with that said, I want to controll the communication with my client on the summary, I do not want the inspector to kill the deal for me when they blow it out of the water.  In the beginning I explain to my buyers that the inspector sees a shack and he is hired to find it all.   That way they are prepaired

As a listing agent, do not give me the BS small stuff you want to negotiate hit me with large items if any.

I think they are essential!  But then, I would think that!

My job is to observe and report, therefore everything goes on the list.  What they select from that list to ask to be repaired is not my purview.

My report has never killed a deal.  I have inspected a lot of houses that have killed deals, however.

I generally use two different inspection companies and assign them on their strengths.  If I am working with a nervous nelly who has heart palpatations over the smallest thing, I use my good old southern boy who has a smooth and calming presence while explaining the things he finds.  For my Mr. & Mrs. Excel Spread sheet buyers I use my pocket protector guy who is precise, exact and very serious in delivering his findings.  For everyone in between I just rotate the two.  The third inspector I used to use became too doom and gloom.  Not in what he found so much as the way that he would deliver it.  You would think that missing caulk was the end of the world and that if water was even turned on in the upstairs tub the entire floor below would flood.  Every little fault became a major disaster and we just had to part ways.

I think that home inspectors have a very tough job and I appreciate all they do to get my houses sold.  But, like every profession, some people just don't have the communicative skills to work well with others.  So, I choose the ones who can get their point across without causing heart failure.

Holly - I agree with you 1000%! A home inspection should show all the warts, and then it's up to the buyer to discern (with their agent's guidance) as to what is most important (usually safety concerns) as to what is on the repair request list. I've had buyers walk after the inspection was done, and if the house has that many issues, better to be done sooner rather than later.

I think you must have a home inspection and let the buyer completely decide what is important to them and help them thorugh the process in order to achive a level of satisfaction with the process. Too much interference will only be viewed as you, the agent, trying to get the deal done.

I recomend that every buyer have a home inspection. It is the biggest purchase that most buyers will make in their lives - till they buy another home.

Holly, What I do with my home inspections is to separate the maintenance items from the critical items.  That way everything is shown but it makes it easier for the Realtor to determine what issues is more serious. 

Holly,

I educate my buyers in advance so by the time they get the report they know what to expect. I want all the detail and opinions we can get.

Ms. Weatherwax;

I like your article and mean no disrespect to you or your profession, but I have always had a nagging question.  Why in the world would questions about a home inspection (how thorough, what is in the report, who does the inspection, how much does it cost, etc) be of any concern to an agent?  Why do agents continue to believe that they should, somehow, be between the buyer (or the seller, for pre-listing inspections) and the home inspector.  Why is it that the NAR always wants to have members sitting and setting standards on state HI licensing boards?  Should there be home inspectors overseeing the licensing and qualification requirements for real estate agents?

Agents (and brokers) do their thing and serve their purpose for the client, and you guys get paid good money for it (your commissions are WAY larger than we make.  3% (typical) vs. < 1/10th of 1%).  Why do agents think that they should have any business trying to lower an HI inspection fee?  Why do agents call me, all the time, and ask me how much I charge and comment that my fee is too high? Most times, I will refuse to deal with the agent in setting up an inspection, preferring to only talk to the client.  When I do this, I get agents who are all huffy, saying "I am just representing my client's best interests".  Really?  "Your" client?  Aren't they also my client?

Most states have HI licensing and requirements with regards to reports and systems that must be inspected.  Why do agents even thnk that they should have any say in thess matters?  Agents, typically, do the showings and take care of the paperwork requirements, that is their job.  Why do agents believe that they have any business "educating" their clients with regards to the house's condition or "what to expect" in the report.  Why do agents have to "go over" the report with the client?  Why can't the inspector do this?  Should the inspector be able to go over and check and explain  the terms of the contract of sale or other documents with the client.

How would agents feel if home inspectors started criticising the work of agents?  What if the national Home Inspector associations started black balling certain agents or agencies? What if we commented that a 3% commission was too much?  If we did any of these things, it would be the height of rudeness.  Why do agents see what they do as somehow different?

I see agents and mortgage brokers and home inspectors and RE lawyers as all part of a team that works for and represents the interests of the client.  Why is it that agents have come to believe that they are the coach of that team, with authority over some of the other members.

Don't get me wrong.  I work with many agents who are good and ethical and fair.  But I also have had many agents who tried to run things.  I slap them down, quickly.  I work for the client and not the agent.

Sure, in the old days may home inspectors fell into the trap of believing that the only way that they could get business was to suck up to agents, and therefore be subserveant to them.  This is no longer the case.  Many times, I get calls from clients who want me to refer them to an agent (which I do).

While working together and, hopefully, learning and growing professionally together, the idea that RE agents are, somehow, higher in the pecking order or in some position of authority over home inspectors is an idea that must be well and truely killed.

Thank you for allowing me to state my position.

Hope this helps;

Holly;

First, I know Jim and he means well and is really a very good inspector.  However, he works in a state where the Realtor community is a) not very ethical and b) has really kicked around the inspectors with various rules and liability assumptions.  He is not very trusting of the real estate arent community and I can understand why.

I can understand that you are a good agent and want to provide your client with added value and all that, but my points are still valid and you should, at least, give them some thought and consideration.  Why do real estate agents think that they are or should be the center of the real estate transaction process.  In some areas, like here in the Chicago area, the role of the agent is lessened by the use of Real Estate lawyers, although, as I understand it, this is a rare occurence in the U.S., as a whole.

I also understand that various RE companies have tried to market themselves as "one stop shops", making themselves more useful to the client and helping to provide mortgage, inspection and other services (the so-called "concierge" service), but there has been federal court cases aganst these practices and convictions, because of conflict of interest problems.

I understand that, many times, the client just wants someone to "take care of everything", I run into this myself when the client keeps asking me if they should buy the house.  For me to answer that whould a) be a violation of state law in most states and b) harmful to my client by allowing them to avoid their own due diligence.  When we do things for our clients that they, by all rights and duties, should be doing for themselves, we actually do them a disservice.  People must complete their own responsibilities for themselves.

Besides, if any one whould go over the issues of a home inspection report with the client, it should be the inspector, not the agent.  When explaining the relative seriousness and expense (not the same thing, by the way) of defects in the property, the agent is simply unqualified to do this.  Likewise with determining inspection fees, length of the inspection or what should and should not be reported and how it should be reported.  For a real estate agent to become involved in these questions is, at best, presumptuious, and at worse, completely unethical and, most likely, willfully neglegent.

Sorry if the tone of this seems harsh, that is not my intent.  But I do think it is important for both our professions to develop and enforce a strict wall of responsibilites in these matters.

Thanks for your time.

Hi Holly

Very professional answers by you.

Do a search and you will see Agents putting up posts stating that Home Inspectors kill the deal which always leads to much nashing of teeth and pulling of hair as we get frustrated everytime we hear that somehow it is our fault a roof is leaking and should have not reported it (at least that is our take).

One source of frustration to add here is often it is stated "my guy " as if it is up to the AGENT whom the client uses.

True that clients put in an offer and at least in the Chicago area often need to get the inspection done in 5 days leaving the client to ask for a referral from the Agent so this puts a burden on your end of while at the same time causing Inspectors to feel Brokers/Agents have far too much control .

Sure you are there for the client in a consultant capacity but at the same time there are some whom will hire (notice I said hire) a guy who runs through and helps the sale go smoothly.

Oppisite end is that there are some Inspectors that have the client afraid to purchase over small issues that can be easily fixed.

Many may even know of an easy way to remedy an issue but are afraid to put it in the report due to the fact if there is an underlying cause they will be sued.

Lost count how many times I had an Agent ask in front of the client if I would provide a price list of item correction.

Not sure about where you are but as I explain to my clients an average Ranch style single family home roof tearoff can go anywhere from $3,000 to 12,000 depending on the contractor.

Now another problem with estimates is "what if there is no attic access"?

The roofer may find all the sheathing rotted or cut rafters that I had no way to see and the same goes for other systems which may be buried in walls not found till the drywall is removed.

Inspectors walk a fine line and even though we should all have the same report items communication with the client is very important and that is where the difference is between Inspectors if all else is equal.

My advice to an Agent if really trying to do a good job is to inform a client to start shopping for a Home Inspector even before they find that special place.

The above will serve their interests and protect you from liability if you had dictated who they should use.

Always a good idea to give a list of at least 3 Inspectors IMO.

Unfortunatly I get emails from Brokers like the one last week that requested I should donate $500 to a Holiday party in order to be allowed a chance to talk to the Guys and gals in the office.

Here is an excerpt........

Here is what your $500 corporate sponsorship will get you      

• Your corporate logo on the flat screens inside of the ----- Room
• Entry plus one guest
• Opportunity to network with our 26 experienced Real Estate Brokers plus invited brokers
• Acknowledgement of Sponsors throughout program.

Please send $500 made payable to-------- Realty, Inc. and please include your company logo by Tuesday December 13, 2011 and we look forward to seeing you at the event.

Last but not least I am so tired of the same thing coming out of both the listing and and buyers Agents on my arrival.

I walk in the door and it is inevitable one or the other will pull me to the side and say....

It is being sold as is !

I need to know right now how that would change the way I inspect???   lol.

Actually it makes for an even longer report as I am in essense thinking my client wants a punch list of all the weekend warrior DIY fixes that will be be performed in the future.

My normal protocol is to ask if they want stuff like the missing wood stain on the edge of the baseboard.

I am always happy when someone calls a year later and thanks me for the detail.(Hey, I have a summary for the Lawyer and Agents at the bottom)

Thanks for reading if you made it this far Holly.

Have a Great Christmas and I wish you nothing but numourous commisions and a healthy year ahead.

One point that Bob brings up, and I realize that different areas of the country have different ways and customs, but Home Inspectors paying for any type of referral (including advertising) from Realtors is a violation of the code of ethics of ALL three of the major Home Inspector Assocations AS WELL AS the National Association of Realtors.

Last year, I received two such "opportunities" from RE offices.  I called, got names and such and reported them to the State NAR chapter AND the state licensing agency.

Sorry if this seems harsh, but enforcing ethics in the industry is everyone's job.

Please keep this in mind.

Holly, I understand your position, which may not be the case with every home inspector. I get that you have been with "the client" from the first meeting when they came to you wanting to buy a home, until the day of closing when they are handed the keys. I pop on to the scene at a critical and important time in the transaction. I spend just a few hours with the client and generally give them anxiety :) 

Deals can most certainly be killed by poor home inspectors, but more often than not the house commits suicide.

I will agree with the view that very generally speaking home inspectors should not be dictated to on how to perform inspections. The one area where I see inspectors tending to cow under to pressure, real or perceived, is inspection length.  The statement I have heard from inspectors through the years again and again is, if you take too long, you will not get referrals. 

Inspections take what ever time they take. I can tell you from personal experience, my taking whatever length of time to complete an inspection hasn't hurt my business. Rushing through a house is not going to get you repeat business. It will also only attract a certain type of agent. 

In the end the home inspector is also a business owner. How he or she decides to model their business is their choice, just like a real estate agent. As we know there are good and bad in every business and it's easy to focus on generalities and lose sight of what is important, the clients satisfaction. 

I think you're focus is dead on.

Holly,

This was a very interesting dialog. I think you seem to have a good sense of what is right and trying to help your clients.

As professionals we should all conduct ourselves that way. I am with James on what his position is.

I provide a lot of detail in my reports, this is to help the home buyer on the condition of the home and to educate them on how to take care of their investment.  But that is my business model.

I also understand perfectly your position on a Home Inspector, If your clients do not have anyone to choose from then it is obvious they would ask you for suggestions. This is human nature.

If everyone is ethical then there is no issues. I have contractors that I know that if asked I would give them as a referral. They are ethical honest tradesman. I always tell them to talk to several to make their own judgment. But at least it gives them a start.

This will always be touchy subject because there are those out there, Home Inspectors, Realtors, Contractors etc... that do not have the best interest of their client at heart. But that is in any business.

Have a very Happy New Year and a prosperous 2012 ; )