RE agent recommending an inspector

Recently, I asked the receptionist at a large Real Estate office if I could leave some flyer's about my inspection business. I was told that to be on the office "approved" vendor list or part of their "Connoisseurs" program it would cost $600. I was surprised and said no thanks. Imagine that this list of "approved"inspectors is not necessarily the best in the area but only the one's who were willing to make a financial investment in this office. Many inspectors and companies are willing to pay in order to play. As an inspector I report on the facts of the property to my buyer client and if my inspection and report happen "to kill the deal" so be it. Imagine what happens if 2 weeks later my client again declines another purchase because of my inspection. Will my name remain high on the "approved" list, lowered to the bottom or maybe removed. Will the office manager contact me "suggesting" I improve my reporting methods. If I have this financial investment in this office, I can not afford to kill many deals in-order to remain in good standing. Yes, I have many agents refer their client's because of the superior service and satisfaction guarantee we provide to our client's

The American Society of Home Inspectors (ASHI) Code of Ethics states, "Inspectors shall not directly or indirectly compensate realty agents, or other parties having a financial interest in closing or settlement of real estate transactions, for the referral of inspections or for inclusion on a list of recommended inspectors, preferred providers, or similar arrangements."

As I did some research on this topic I discovered a lawsuit in New Jersey some years ago when a buyer sued their inspector and his franchise. Problems in his home were not reported and/or glossed over. In court it was proven by his attorney that this franchise required their inspectors to maintain a "Double Standard" and to go easy for agent referred inspections. The inspection & franchise lost and were required to pay the homeowner with penalties added.

 
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161 Comments on RE agent recommending an inspector

Paul,

 Good article... The practice in our office is to give the names of three Inspectors and have the clients contact them directly. This takes us, Realtors, out of stirring anyone to a peticular person. I personally only show up at the end of the inspection to meet with the clients and inspector to see if there is anything major I should be aware of..

Again, good article..thanks for sharing your thoughts..

Pat

02/28/2008 12:14 PM by Pat Enterrios (Coldwell Banker SkyRidge Realty)


The cozy - cozy realationship between parties in a real estate transaction - does not serve the client (homebuyer).  Appraisers right now are being accused of being in the pockets of lenders - willing to over value to faciliate deals.  And there is a push to remove the lender from cherry picking the appraiser for loans to be acquired by Fannie Mae / Freddie Mac.  And to possibly not allow a lender to have staff appraisers or appraisals be done by corporated owned divisions of the bank. 

It is very similar with the inspector  -  in order to do your job correctly  -  you can not be in a possible position to produce a false report to keep the realtor happy who recommended you. 

Beverly A. Bayer, SRA  appraiser 

02/28/2008 12:17 PM by Beverly Bayer (BAYER APPRAISALS)


Is that legal to charge to be on the list???  Phew, the things I hear about on Rain scare me to death sometimes.  If you were in my kneck of the woods I'd get you on lists for a cerveza and a hand shake.

Look me up in Texas!

02/28/2008 01:40 PM by Nathan Scott (TBD)


This has been a topic for a while now.

It is a low life practice in my opinion, in which they get venders, (in this case inspectors) to pay upwards of $2,000 in order to have a small square of advertising in their precious rag.

This is how they skirt the law and get suckers to pay for referal which may or may not ever occur.

I heard about this practice early in my career, and it may very well be what helped me decide to get my referals thru the internet rather than thru these offices.

I would love to get a full list of any of these slimball offices and publish it for buyers to see whom they are trusting .

I am starting a Real Estate consumer protection site soon, and just maybe there will be a list in the future.

Stay tuned

02/28/2008 03:59 PM by Rich Jacobson ~ ActiveRain Community Builder (ActiveRain Corporation)


Paul this was a double post so I deleted the other one since there were no comments on it anyway

02/28/2008 04:06 PM by Bob Elliott (Chicago Property Inspection) (Elliott Home Inspection)


At least the office gives you a heads up about their integrity.  It used to bother me but not anymore.  Move along and find real business relationships.

02/29/2008 05:05 AM by Joseph Lang - Southern California Home Inspector (Pillar To Post Professional Home Inspection)


You know every time I think of this kind of thing, it just makes me shake my head in wonder. I will probably catch a rash of crap about what I'm about to say, but I have come to the conclusion that I just really don't care what anyone thinks anymore. (must be an age thing).

It amazes me how some Real Estate agents think they are the "almighty" when it comes to the home inspection business. Some of them somehow think that they hold our fragile businesses in the palm of their hands. Can't you just see the fat cat with the large head and the big mouth opened wide laughing..HA HA HA....as the little home inspector is in their hands on his hands and knees begging and pleading for a referral so he can get something to eat. Since I began in the home inspection business, I have run into these types of offices and agents on a daily basis and it just makes me sick to my stomach. They are sooooo worried about using an inspector that will wind up "killing" their deal, that they use these unethical practices to find the inspectors that won't. Think about it, if an inspector pays to be on one of these "preferred lists", what does that say about his or her ethics. Those unethical real estate agents know that, and if an inspector would pay such an outrageous fee just to be on this list, imagine what he would do to in order to stay on it?  I can only thank god that the public is FINALLY starting to become aware of these types of practices (much in part to the Internet and blogs like these) and are starting to do their own research on home inspectors, instead of just taking the real estate agents word on everything. I would LOVE to see every state in the country adopt a law such as Massachusetts that supposedly prohibits them from using these kinds of practices. Too bad it will probably never happen due to all of the unethical people in this business, but it sure is a nice thought.

Now after reading this you might think that I have some pretty strong opinions towards unethical agents, and well...I do. I know they are not ALL like that, but in my experience alone, it would have to be AT LEAST 60-70% that are.

To any consumer that happens to read this comment, please do your research when it comes to selecting a home inspector. Remember that the home inspector is supposed to be on YOUR side and your side only. The inspector is there to point out any potential problems with the home you are about to spend THOUSANDS of dollars on. Buying a home is a huge investment, isn't it worth it to have someone who is really on your side and looking after YOUR best interests? If you would like to learn more about what I am talking about concerning the conflict of interest between inspectors and real estate agents, I urge you to check out www.ihina.org.

I have said my peace

Mike Chamberlain
MC2 Home Inspections, Indiana
www.mc2inspections.com

 

 

02/29/2008 07:11 AM by Mike Chamberlain MC2 Home Inspections, Indianapolis (MC2 Home Inspections)


A large number of folks do "Pay to Play", they look at it as advertising.  As long as the list is not closed to a couple of inspectors, I personally do not have a problem with it.  Would I do it?  Nope, not a chance.  I have had to rebuild my business after relocating to the Nashville, TN area.  I found many real estate offices that had a "Pay to Play" list, but they were open to as many folks that wanted to pay to be on it.  I chose not to go that direction and focused on my website and personal contacts.

As for the MA law.  It looks good on paper, but what most do not realize is that it is only for the sellers agent or dual agency.  Buyers agents can refer all the want in MA.  Now a days most buyers sign a form that their agent is working for them as a "Buyers Agent".

Personally I do not care how or where the referral comes from.  I treat all of my clients the same regardless if it is an agent referral or they found me on the Internet.  This is the key to be successful and getting out from under the agent referrals.  If you are dependent on agent referrals you will slow when they slow and when you make them mad they will dump you and get the next one in line.  Diversify your referral base and business and you will make it during the slow periods.

02/29/2008 09:26 AM by Scott Patterson - Middle TN Home Inspector (Trace Home Inspections)


The last blog by Mike Chamberlain really makes me furious!!!  I AM a proud Realtor licensed in the state of California for over fifteen years and have been helping clients find, purchase and also sell properties in Lake Arrowhead, Ca.. We Realtor's are governed by a larger "Code of Ethics" than any home inspector could possibly have.. I don't know if a Real Estate Agent is different in Indiana but we REALTORS here in I would say most of California are very ethical in our practice of helping clients. I resent the fact that Mike lumps (AT LEAST 60-70%) of agents together in such a bad light. I feel sorry if this is his attitude concerning a very big part of his business. We ethical Realtors do provide a list of inspectors and let the clients do the leg work checking them out. I personally feel that the more we BASH each other in the real estate industry the more it hurts all of us..... I could go on and on about this subject, but as I said I'm truly upset about this mean and hateful blog... Maybe, Mike should move to West and see if he gets a better perspective of what a true REALTOR is like and how we are there to help not hurt people for the almighty buck!!!!!!!!!!!!!!

02/29/2008 09:35 AM by Pat Enterrios (Coldwell Banker SkyRidge Realty)


Excellent advice Scott. I get almost all of my clients from the Internet and personal referrals. I have had a few agent referrals, but very few once they see how thorough I am.

I'm not sure that the inspectors that "pay to play" actually look at it as advertising. Maybe they do, I don't know. It seems to me that would not be a very smart or logical way to advertise, if you are spending 600.00 to be listed in just one office. I paid 600.00 for an entire year to be listed on yellowpages.com and that has paid for itself 10 fold. To each his own I suppose.

I was not aware of the MA law being only for the sellers agent (that figures), I will have to go check that out again.

Thanks for the info!

02/29/2008 09:42 AM by Mike Chamberlain MC2 Home Inspections, Indianapolis (MC2 Home Inspections)


Pat,

 When I said 60-70%, I did clearly state that is from my experience alone. I am not "lumping" agents or REALTORS throughout the country into one big pile of garbage. I am stating my personal opinion, based on my personal experience. I also stated that I do realize that ALL are not like that. Good for you for being one of the good ones, I am sorry if I offended you or any other agent or REALTOR, that is not my intention. However being in this industry, it is an unfortunate fact that you see A LOT of unethical practices. I apologize if you think I was bashing you.

 

P.S. I lived in Arizona for 20 years, and it isn't much different there

Peace 

02/29/2008 09:49 AM by Mike Chamberlain MC2 Home Inspections, Indianapolis (MC2 Home Inspections)


Mike,

Thank you for this clarification! It is a very hard profession to be in today with so many things being said about our ethics. Sometimes, I think I know how "used car salesmen" must of felt when all the jokes went around about their jobs. Anyway, I'm new to AR and upon checking the site even before getting ready to leave my home to go to the office, I saw your blog, and  it just hit me the wrong way. I apologize for jumping the gun on your opinions,,,, but being a Pollyanna by nature I always try to look at the good things not the bad.  So, again thanks for your reply.. 

02/29/2008 10:57 AM by Pat Enterrios (Coldwell Banker SkyRidge Realty)


I knew this subject would get a big response as it always does.

Not all Brokers offices can be lumped together as neither can Lenders or Inspector associations.

All of these places have good and bad as people are people .

Fact is around 87% of clients get their inspectors off a Agent referral.

In a perfect world all Inspectors would like to see that number reversed.Nobody likes to think their way of life is controlled by outside influence that May not always be benefical.

Mike belongs to the independants which is a group which promises not to market to Real Estate offices for instance.There are a large group in our profession that do seem to be bitter towards Agents, which may be mis-placed but it is understandable to a certain degree.

As Mike stated he is not one of them.

I belong to NACHI which actualy has benifits that can assist Inspectors in marketing efforts.

Marketing is limited to web and referals for me, but I do reserve the right to market if I wish to do so.

I've never been able to justify shutting myself out of 87% of potential work in the future should I ever decide to go that route.The big problem is some Inspectors go straight to that market and soft sell the defects they find in order to keep getting referal's.This is the real world.This is done out of desperation.

These are not the good Inspectors yet they grab a certain percentage of clients that hard working guys sometimes wish they had.

It 's all about ethics and any office that has pay to play should lose their license in my opinion.

I have met fantastic Agents lately that actualy help me during the inspection and point out defects before I get to them.These are the good ones.

Some times I get the bad ones such as this Fall when I showed up and the Agent answered the door by telling me I was not needed, and had a hand picked Inspector standing right behind him.

I pushed the door open and introduced myself to my client.

The Agent said he was trying to help the client by paying for the inspection.

Hahaha...my client turned to him and said good you can PAY FOR BOB.

So what I get out of this subject is the law in every state should be for Agents to give a list of Inspectors to the client and inform them of alternate ways to hire one.

Anybody whom has a problem with that is I am sad to say not on the up and up.

This by the way would be better for the Brokers office , and would eliminate liability.

When clients ask if I know a good plumber etc; I decline and do not worry about making a mistake.

I tell them how to find one which is what they really want.

 

02/29/2008 12:38 PM by Bob Elliott (Chicago Property Inspection) (Elliott Home Inspection)


I agree, and that is very well put Bob. The only real problem I have is this...

Why does the agent have to hand out a "list" of inspectors to the client at all? That would be fair ONLY if that list included every single Home Inspector in that particular city. We all know that is not the case. The number on that list is almost always the same,  the magic number 3. So how is it right that those 3 Inspectors (whoever they are) get first dibs on those potential clients? Would it not be more fair for the agent to verbally tell their client, "if you would like a home inspector, you have X amount of days to do so" Then that client can look for their inspector via the yellow pages, internet, etc?

Food for thought

02/29/2008 01:25 PM by Mike Chamberlain MC2 Home Inspections, Indianapolis (MC2 Home Inspections)


Mike I understand what you are saying but I also understand the Agent or Broker viewpoint.

Remember some say they give three recommendations(though I have no idea where the arbitrary number came from)

Sometimes the three is a honest list of different inspectors that may have been worked with or not.

Sometimes the three is three out of the same Inspectors office which has a unwritten rule to be gentle in finding things that are wrong.  yikes

Personally the way I see it they should have a folder with report samples and statements or testimonials from all Inspectors that make the effort to stop by.

Why not, lots of junk e-mail from newbies to be sure but the guys whom know what the are doing can always drop off some formal package and this would cut down on the junk.

Just an idea of many which is why many of these things are still being ironed out.

In the long run many people are becoming more and more savvy as to what they should do.

When Zillow came out Agents feared all would go INTERNET as commissions became more negotiable.

What was feared never really hurt them as much as the economy.This market is cyclical and most clients realized that with out Agent assistance they could not sell.Now there is the foreclosure market with it's own set of challenge.

Inspectors , Agents Brokers, Lenders ,Appraisers have dropped like flys but we on AR show the fortitude to ride it out.

 

Thanks

 

02/29/2008 01:51 PM by Bob Elliott (Chicago Property Inspection) (Elliott Home Inspection)


The agents who recommend my company to their client's know they they depend on the accurate reporting, superior service & inspection we provide. Most agents are happy if the inspection kills the deal as they move onto another property.  An agent who suggests they pick an inspector from the phone book or Internet is not, in my opinion,  providing good service to their client's. How many folks would pick a heart surgeon from the yellow pages?

02/29/2008 03:08 PM by Paul Luczyk, ASHI ("A" TEAM Home Inspection, Inc.)


Paul, I couldn't agree more!!! I've always felt that if a deal falls apart because of a Home Inspection then you're  better off letting it happen instead of trying to keep it together and end up in a law suit because of it. The better the inspector, the better the Realtor.. we all work on referrals and past clients so if we all do our jobs right the first time around our pipe line continues. It all get down to relationships and if you know your inspector is doing an amazing job for your clients, why not be happy to pass that name any any others on..

02/29/2008 03:21 PM by Pat Enterrios (Coldwell Banker SkyRidge Realty)


Plain and simple Real estate agents should not recommend home inspectors. It is a conflict of interest. And if an individual can not find a good home inspector maybe then are not qualified to buy a house.

If an inspector only had to rely on client referrals maybe they would do a better job. If not they wouldn't stay in business.

 

03/01/2008 10:54 AM by Mitchell Captain Home inspections in Broward, Dade, and Palm Beach (AllSpec Professional Property Inspections Inc)


Mitchell,

So when your client calls to book an appointment and informs you that he got your name from an agent so say, "No thanks, I can't help you." Agents who recommend their client's to me want the SUPERIOR inspection we provide to their client's. I love my competition who hate Real Estate Agents .

 

Was it your part of Florida that folks had problems filling out their ballots a couple of years ago? 

03/01/2008 11:50 AM by Paul Luczyk, ASHI ("A" TEAM Home Inspection, Inc.)


Hey Paul,

 "I love my competition who hate Real Estate Agents ."

With all due respect, I must comment on this yet again. I do not think that anyone here is saying that they "HATE" Real estate agents. And personally if I get a referral from one, that's great, I certainly will not complain about it. HOWEVER, I completely agree with Mitchell in that it is a MAJOR conflict of interest any way you look at it having the Real estate agent recommending ANY home inspector. I understand that you do not feel this way so I would ask you, how many of these "lists" are you on? I would venture to guess that the real answer would probably explain your last comment.

Also I am not sure if your "Heart Surgeon" analogy is very relevant in this topic. But lets just use your analogy for a second....There are many good Heart Surgeons throughout the country...as there are Home Inspectors...some Heart Surgeons are better than others...as with Home Inspectors...When selecting a Heart Surgeon, I would hope that the patient really does their homework on the surgeon and not just take someones word for it......the very same could be said about selecting a home inspector.

 The real question is this...How is it fair that only a few select Home Inspectors get to be on this "list of three" that agents hand out? It is not a question of "SUPERIOR" service, it is a question of fairness in our industry. I would say that I offer "SUPERIOR" service too, but I refuse to rely on agent referrals to put food on the table.

Peace

03/01/2008 12:27 PM by Mike Chamberlain MC2 Home Inspections, Indianapolis (MC2 Home Inspections)


Paul

Any agent that does recommend me, only recommends me, no list, you call this one guy me. Why because they know I do a good , a very good job. But that doesn't mean it's not a conflict.

In a court case Hosuemasters vs Horner (I think ) The court ruled in part you can not serve two masters you can  only serve one . Another words you can't court the Real estate agents and then say your working for the buyer of the house.

There are too many agents (not all ) that are just concerned with making a sale. And their are too many (not all ) inspectors that will make that happen.  

Pay to play is disgusting.

No, it wasn't our county that had trouble with filling out the ballots we had trouble punching holes in the ballot.

03/01/2008 04:09 PM by Mitchell Captain Home inspections in Broward, Dade, and Palm Beach (AllSpec Professional Property Inspections Inc)


As to the old heart surgeon  analogy  , would you use the heart surgeon that  your insurance company tells you you have to use  to be fully covered?  

03/01/2008 04:12 PM by Mitchell Captain Home inspections in Broward, Dade, and Palm Beach (AllSpec Professional Property Inspections Inc)


Mike,

I learned long ago, life is not fair. When I got started 1994 I was on no one's list. It was tough but I didn't cry about it. But I worked my tail off and went beyond what other inspectors were NOT doing in my area. I found out what problems were causing grief to agents at that time (LP siding). I studied the problem and became "The Expert" in my area. Schools today teach you how to be a good inspector but not how to market yourself. Over time I got on many lists and sometimes the "Deal Killer" list but you learn you can't please everybody. Eventually, I made it to the top of many lists.

I emphasize experience counts when looking for an inspector unless they are price shopping. The experienced lawyer, surgeon and inspector will usually get the job. Being an ASHI certified in my area adds credibility to my credentials.

I love my competition.

Paul 

03/02/2008 12:00 PM by Paul Luczyk, ASHI ("A" TEAM Home Inspection, Inc.)


How did I know you were going to come back with the "life is not fair" phrase? I learned that a long time ago myself. I have learned much in my tender 42 years.

 You did however prove my point "making it to the top of many lists" and that fully explains your position on this topic. I would imagine that all of the other inspectors who "made it to the top of many lists" would feel the same as you do. I on the other hand do not and never will. Fair or not, it is still WRONG.

I suppose there will never be total agreement on this subject until such "lists" are eventually done away with. Oh it will happen sooner or later. It's only a matter of time my friend. Until that time I hope you enjoy your ride.

Peace out

03/02/2008 01:27 PM by Mike Chamberlain MC2 Home Inspections, Indianapolis (MC2 Home Inspections)


Paul

No offense but by you marketing to the Real estate agent you are doing what the court said was wrong. Who is your client the agent or the buyer. You must separate the two.

So explain to me why when I franchise moves into the area with a "no experience inspector" they get on the Real estate agent lists. And get referrals . 

03/02/2008 05:14 PM by Mitchell Captain Home inspections in Broward, Dade, and Palm Beach (AllSpec Professional Property Inspections Inc)


This is the US of A, and unless lists interfere with free trade or discrimination, they are likely to continue.  I don't know of any lists that you have to pay to be on, but I do know that most agencies have lists of inspectors created by the agents in the various offices based on the agents experience with those inspectors.  I know of one agency in the Seattle area who has me on their list and I have no idea how I got on it and their are agents in the office that I know would never use me----except for maybe their own purchases:).  Newbies naturally want to just be immediately on such lists, but I guarantee that if you work hard, have something to offer, do great inspections, produce great inspection reports----you can make these lists in the process of just doing your business.  That said, I really don't know how important it is to be on any list.  It is not so much about fairness as its being "the way that it is."  As with any business---ultimately, you have to deliver.  As an analogy I don't think being on these lists is nearly as important as: showing up to the inspection on time, creating a lasting impression and inspection experience for your buyer, and getting the report to them when you say you will.

03/02/2008 05:47 PM by Charles Buell, Seattle, WA, Home Inspector (Charles Buell Inspections.com)


Hi Paul

Good post with the only difference being more people seem to be looking for a NACHI Inspector in my area.

03/02/2008 10:20 PM by Bob Elliott (Chicago Property Inspection) (Elliott Home Inspection)


I cannot believe an RE office ever charging for someone to distribute flyers to the office agents. That is certainly not an office I would want to associate with. There are plenty of other offices out there, and agents who truly value an inspector that only serves the needs of the client first!

03/02/2008 11:42 PM by Rich Jacobson ~ ActiveRain Community Builder (ActiveRain Corporation)


Rich... there are shady people in every profession.

Thanks for stopping by.

03/03/2008 12:38 AM by Bob Elliott (Chicago Property Inspection) (Elliott Home Inspection)


Bob

That's funny because in my area most intelligent buyers are using independent non affiliated inspectors.   

 

03/03/2008 08:19 AM by Mitchell Captain Home inspections in Broward, Dade, and Palm Beach (AllSpec Professional Property Inspections Inc)


Rich

Many years ago, I walked into a multi location Real estate agency. In order to put my brochures in their office their was a charge. They had three different tiers for vendors and each one gave you more exposure to their clients and each one cost more that the others.  If I ever find their application I will post it. But I believe it hit the round file very quickly.

And thanks for this site. 

03/03/2008 08:24 AM by Mitchell Captain Home inspections in Broward, Dade, and Palm Beach (AllSpec Professional Property Inspections Inc)


I f any of you guys have a personal experiance please list the name and address of the broker right here.

Cockroaches scatter in daylight.

03/03/2008 04:06 PM by Bob Elliott (Chicago Property Inspection) (Elliott Home Inspection)


Geez Paul

 

You sure do popular posts!  How many points do you get for this one?

 


Rick Bunzel, CRI
Pacific Crest Inspections


NPSAR Affiliate of the Year 2006-2007
WWW.PacCrestInspections.com
360-588-6956
Fax 360-588-6965

Toll Free 866-618-7764

 

03/05/2008 08:52 PM by Rick Bunzel (Pacific Crest Inspections)


Rick, the question should be how many big logos do you put on popular posts.  lol

 

Glad to see you back posting Mitchell, you old controversial dog.

03/05/2008 09:44 PM by Bob Elliott (Chicago Property Inspection) (Elliott Home Inspection)


That's a tough issue.  Without a recommendation or personal referral, a person is then just looking blindly for an inspector in the yellow pages or elsewhere.  I know that we all feel we are qualified and the customer's BEST choice for their inspection and so they would not get a real idea of how qualified or experienced we are by our own admission.  So, I personally think a realtor's referral is appropriate as they have personal experience with that inspector and would refer them due to the quality work they do, just as you would recommend a plumber or heart surgeon that took good care of you.  I agree that a realtor sending a client to the yellow pages is not doing their job.  If you are good, your phone will be ringing!

03/06/2008 09:47 AM by Glen Kotulek~Home Critique Property Inspections~Austin TX Home Inspector (Home Critique Property Inspections LLC)


Glen,

Most inspectors who have been in business awhile & have a good reputation get referrals from Realtors. I do because I provide superior service & inspection compared to others in my area. Some posts here think it's not fair that the new guy doesn't get a chance. Yes, life is not fair. Imagine if NFL if rookies were given a free pass to make the team every year. As an expert witness I have been retained in a court case against an inspector who made a rookie mistake.

Washington State is close to getting a decent inspector licensing law (Senate Bill B6606) this year.  A coalition of of ASHI, NAHI, independents and franchise inspectors have been working hard to get this billed passed into law. There is some resistance from another association because they feel it's to restrictive. The law will require the passing of a nationally recognized test, like the NHIE, for all inspectors. The law will restrict the inspector from doing any repairs or work on the property for 1 year after the inspection. The law will have no restrictions about Realtor referrals. No state laws have restrictions on agent buyer referrals. 

03/06/2008 12:23 PM by


To the unknown poster

Not to be rude but the point here for many is that the new inspectors get the referrals. Why, because it's easier to mold a new guy. When I was new I had as many referrals as I wanted from real estate agents but realized quickly that agents and I disagree with what was fair and balanced.

Needless to say I haven't solicited agent referrals in a long time. Oh, and before I forget I get along great with all agents we just don't necessary agree.  And if I wanted to go back to getting referrals from agent I could easily succeed knowing exactly what they want.

03/06/2008 12:39 PM by Mitchell Captain Home inspections in Broward, Dade, and Palm Beach (AllSpec Professional Property Inspections Inc)


Mitchell, frankly I am shocked---this must be a regional thing.  Definitely not my experiece here.  I can't imagine an agent choosing to use a newbie because they will be able to "mold" them when it is highly likely that their risk will be higher using a "newbie."  Certainly no one ever tried to mold me.  My experience from the get-go has been that agents want good reports and as little liability as possible.  I would have to say that without exception the agents that refer me know that the more information the more everyone is protected.  When I first started I used to hear stories like you talk about---but I have just never actually seen it.  As Dylan said:  "These times are a changin'"

03/06/2008 12:52 PM by Charles Buell, Seattle, WA, Home Inspector (Charles Buell Inspections.com)


Charlie , Charlie ,Charlie

Please, you can,t really be that naive.

Not a slap , since you are right that most Agents and Brokers are up and up, however to give the opinion that it does not occur at all is a form of sucking up.

Say it like it is and not what prints better.You say times are changing , but human nature don't.

History repeats itself and there are a hundred stories in the naked city.

03/06/2008 01:03 PM by Bob Elliott (Chicago Property Inspection) (Elliott Home Inspection)


So Bob, are you saying I don't know what my own experience is?  I am certainly not pretending to know what your experience is.  Now I am really confusedsmiley

03/06/2008 01:17 PM by Charles Buell, Seattle, WA, Home Inspector (Charles Buell Inspections.com)


Charles

Can you explain to me how a new franchise with a new inspector can come into a town and get a lot of agent referrals? 

03/06/2008 01:35 PM by Mitchell Captain Home inspections in Broward, Dade, and Palm Beach (AllSpec Professional Property Inspections Inc)


Mitchell,

 I guess that's why they pay big bucks to be part of a franchise and get 2 weeks of training.  

03/06/2008 02:12 PM by Paul Luczyk, Mukilteo, WA


Mitchell,  I don't want to rip franchises because I know a lot of franchise inspectors that are great.  But the point you bring up has way more to do with franchises than agents.  Agents are recommending the reputation of the franchise---not the inspector, so to speak---and a lot of them fall flat on their faces in spite of the backing of the franchise and the huge bucks it takes to buy a franchise.  It may be too bad---but that is the way it is.  Capitalism sooner or later weeds out incompetent inspectors.  I feel worse for the poor consumer than I do for the disgruntled inspectors.

03/06/2008 02:23 PM by Charles Buell, Seattle, WA, Home Inspector (Charles Buell Inspections.com)


You got my point the consumer. This profession should be protecting the consumer and it is not. If we eliminated all agent referrals it would, it would be a layer of protection. It would IMHO make inspectors know that their client is their client.

There is this franchise operator who brags that he gets 90% of his business from agents. Now after 10 years in this profession don't you think he would get more client referrals?  

03/06/2008 04:29 PM by Mitchell Captain Home inspections in Broward, Dade, and Palm Beach (AllSpec Professional Property Inspections Inc)


What exactly is wrong with a brokerage charging to have ancillary vendors place their material in the office?  Should the RE office allow anyone with a pulse to walk in off the street and put there materials in the office without any screening?

03/06/2008 04:38 PM by Rob Gerhart (Keller Williams)


I really don't see how making people go to the Internet or yellow pages "protects" the consumer.  Agents, for better or worse are in the best position to help protect the consumer by referring really good inspectors.  There will always be "bottom feeder" agents and inspectors I suppose----just ignore them---they will go away.  Just do good inspections and take care of your buyers.  Educating agents to assist them in making even better recommendations is more likely to help protect consumers than cutting consumers off from agents all together.  I myself, get less than half of my inspections as referrals from agents and when the market slows the percentage drops even further.  By the time I have done my inspection intake, performed the inspection, and submitted the report my buyer's have no question as to who I work forsmiley.

03/06/2008 05:03 PM by Charles Buell, Seattle, WA, Home Inspector (Charles Buell Inspections.com)


What exactly is wrong with a brokerage charging to have ancillary vendors place their material in the office?  Should the RE office allow anyone with a pulse to walk in off the street and put there materials in the office without any screening?

03/06/2008 04:38 PM by Rob Gerhart

From your viewpoint, nothing is wrong.  But, do you really think that by charging a home inspector or any other vendor to place brochures in an office is a form of screening?  It all boils down to the almighty dollar.  Brokers that do charge like you are saying are also the brokers that nickle and dime the agents that work for them.  They are milking every dollar that they can get out of anyone they can.

03/06/2008 05:05 PM by Scott Patterson - Middle TN Home Inspector (Trace Home Inspections)


Mitchell, all that says is that Mike has had his experience and I have had mine.

03/06/2008 05:09 PM by Charles Buell, Seattle, WA, Home Inspector (Charles Buell Inspections.com)


Charles

You said that it must be a regional thing  Well Mike is in your region. No other point. 

03/06/2008 05:36 PM by Mitchell Captain Home inspections in Broward, Dade, and Palm Beach (AllSpec Professional Property Inspections Inc)


I have told the story before , but the shortie is that I had a few RE recommended inspectors come in and give a canned report on site with half the comments not even pertaining to the house I was in.

They over looked important issues.

These guys were hired to come in and give a soft report.It is what made me become an inspector.

If most of your biz is RE referal and you have been doing this a long time I would have my suspicions as I see more and more coming to me from past clients and so should they, if they are doing more than just walking through to collect the check.

03/06/2008 05:51 PM by Bob Elliott (Chicago Property Inspection) (Elliott Home Inspection)


Pay for Play.  Isn't this mostly about access and revenue.  The Inspector is usually granted access to the office and the office increases revenue for that.  Just because you are granted access does not necessarily guarantee you will have your name forwarded to Clients.  It is still necessary to "sell" yourself to the Client. 

The other issue to think about is what your competition is doing.  Last I heard WIN franchises had an agreement with Keller Williams to be listed as a vendor.  If the franchises are doing it with their group ad dollars, it puts the process on the table.

That said, Pay for Play is just another form of advertisement.  It is up to each of us to decide where to spend our advertising dollars.  If you get better return for your advertising dollar at another site, go for it.  The free market should level things out.

Richard

03/06/2008 07:18 PM by Richard Acree - Home and Commercial Building (HABITEC Home and Building Inspections, LLC)


I wonder how much Rob charges to screen his inspectors? I know of 1 office that requires $1200/year for a "Screening". It must be a thorough screening. Richard,  how much are you willing to pay to play? 

03/06/2008 07:59 PM by Paul Luczyk, ASHI Certified, Mukilteo, WA


"I really don't see how making people go to the Internet or yellow pages "protects" the consumer"- Charles Buell

 

Really? I mean really you don't? Wow.

I don't see how the nepotism laden relationship between a Realtor and an inspector  benefits anyone but the  realtor and inspector. Even if there are no improprieties going on, there  certainly is the opportunity for and appearance of an impropiety.

The consumer is smart enough to have the means to buy a house, hire a realtor, get around town to look at houses; certainly they can also manage to shop for, and select a home inspector on their own.

We are more evolved than a medusa and a snail. 

03/07/2008 07:19 AM by Chad Fabry (StructureSmart Home Inspections, Inc.)


So this "consumer that is smart enough to have the means to buy a house, hire a realtor, get around town to look at houses"shouldn't trust the agent's recommendation about a good inspector?  You would have him go with some guy that can afford to have a full page add in the Yellow Pages that may or may not have done an inspection in their life?  If you needed to have a house inspected, how would you find one?  I would call any Realtor I know (or a friend knows) and ask them:  "so who is a good, thorough inspector?"  I would go to the Yellow Pages if I was desperate.

03/07/2008 08:54 AM by Charles Buell, Seattle, WA, Home Inspector (Charles Buell Inspections.com)


How about if a Agent gives the potential Client a list of Inspectors, with report samples and a standardized resume type file listing services and what is done at the inspection.

How about if the consumer calls a few and speaks to them.

There may be no real solution , but if an Agent states an inspectioin is not needed or only gives one person for referal, that is a problem, unless you are on the receiving end of the gift giving.

I think the comments here leave no doubt as to whom that might be.

I just picked up a couple of inspections this morning and a request to speak to a group of first time investers based on my dealings with past clients and my web site.

The people whom call cold learn alot in talking to me and are always hesitant at first, but are able to tell I am going to do a good job by the end of the chat.

People will normally make a few calls on there own and are savy enough to realize the conflict of interest on there own.

Perhaps our job is to find a way to get the word out to the public that there is a conflict of interest.

If you are an inspector and the only way you can stay afloat is through a symbionic realationship with Agents, then shame on you.

Referals are nice, but do not make them your bread and butter.

 

03/07/2008 10:32 AM by Bob Elliott (Chicago Property Inspection) (Elliott Home Inspection)


If the implication was made that Charlie is a soft inspector, who is cahoots with realtors, that is dead wrong. He is the toughest, yet most informed, inspector I have ever met. Take a look at some of his sample reports. He calls out the facts and does not go easy. He is a gentleman, writes rationally without creating a panic, but anyone thinking he goes easy to snag realtors just flat has no clue what they are talking about. Period!

03/07/2008 06:22 PM by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection)


Yes, Referrals are nice but after 13 years they are not my bread and butter. Anybody who depends on the yellow pages for their business is likely depending on bottom feeders. 

As we are getting close to having decent Washington State home inspector regulations signed into law by the Governor only NACHI seems to have a problem with the new law. I wonder why? Two of their members were part of the coalation at one time but after missing most of the meetings finally quit last fall.

03/07/2008 06:32 PM by Paul Luczyk. ASHI Certified EVerett, WA


Pretty wide divide in thinking on this one!  Almost like politics!  You can see where our passions are. 

Keep up the good fight boys;  the fight to protect our clients that is!

03/07/2008 08:59 PM by Glen Kotulek~Home Critique Property Inspections~Austin TX Home Inspector (Home Critique Property Inspections LLC)


At Bellingham Technical College we too are pleased with the new law and the role we had in helping draft it over the past three years. I think that once the state law kicks into place all the inspector organizations are going to have harder going because bottom line is one will need state certification not necessarily affiliation with any of the national groups. That is bound to hurt membership. The inspector organizations in Bellingham are feeling that crunch right now, even before the law kicks in.

03/07/2008 09:11 PM by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection)


Steven, I must disagree a I assume CE classes are going to be needed if it is similar to Illinois law.

NACHI has a good strong local with discounts on classes that make membership worth the price of admission.

I would never dream of quiting and losing educational opportunity.

03/07/2008 09:28 PM by Bob Elliott (Chicago Property Inspection) (Elliott Home Inspection)


I have three criterion for my home inspectors:

1) Are they licensed contractors.  In Florida, there is a recovery fund for those hurt by general contractor's actions.  Unfortunately, ASHI and others are just too easy to come by now, but if you add a contractor's license it gives the buyer more leverage than just getting their fee back.

2) Do they use a checklist, do a good job, and have they been in the business for a while.  Experience is the key to a good inspection in my opinion.

3) Finally, are they objective, and can they communicate well.  Inspectors should give an inspection for function like the appraiser gives an inspection for value.  The appraiser never says, "Hey I wouldn't buy this house for that much."  He says the value is $XXX and then the buyer can compare that to his/her sale price.  Likewise, an inspector should say "the roof has no economic life and will exceed $XXX," not "this roof looks terrible" or "I have never seen a roof this bad."

If an inspector fits this mold I can recommend him, but I would never just let an inspector place his cards on my counter.  That is tantamount to endorsing them, and I wouldn't do that unless I had used them a few times first.

03/07/2008 09:31 PM by ERA Heavener Realty Co.


Not a x in the box fan, but I suppose it makes things uniform for a company.

Scott talking about the roof being toast I am sure was in jest for this thread, if you were referring to that comment.

03/07/2008 09:43 PM by Bob Elliott (Chicago Property Inspection) (Elliott Home Inspection)


Bob,

You might be right about the CE classes. However, if they end up doing it like WSDA does with our present structural pest inspector licenses, the state itself offers many, to almost all, of the approved classes in the field that are required for license renewal. Currently, in this state, bottom line is to do a legal inspection you have to be licensed as a structural pest inspector. That is changing with the new law however, in practice, I plan to keep both licenses and I think most of us intend to do that.

03/07/2008 10:40 PM by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection)


Not familiar with your state law , but I am sure Scott will jump in since he is more active as is ASHI when it comes to the State licensing thing.

My State test I understand is basically an ASHI test.

I would hate for the State to do the CE as I am not so sure it would be a good enough class.

That being said I am sure that some of the private CE providers are not so hot.

We are just lucky to have a lot of compitition in Illinois ,which forces them to be good.