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Dual Agency... And "I" Blew the Deal

By
Home Inspector with Jay Markanich Real Estate Inspections, LLC 3380-000723

I did an inspection.  I do them now and again.

This one involved a dual agent - she "represented" both sides of the deal, buyer and seller.

She did not tell me that prior to the inspection.

It would not have made a difference anyway, but she should have been upfront.

The house was a flip.  It was seriously remodeled.  The term "severely remodeled" could also apply.

There was much done to this house, and VERY unprofessionally.  During the inspection, I used the word "unprofessional" a lot.  There were electrical things done that were "unprofessional."  Plumbing "unprofessional." Drywall "unprofessional."  Siding "unprofessional."  Floor tiling "unprofessional."  It went on.  Who knows what multitude of sins were covered by unprofessional work.

Then I used another word, a four-letter word really, I said, "This work was almost certainly done without a permit."  That bodes other issues - legal, county, insurance, breakage, leakage, hidden unknowns, future fixes, etc. 

Mr. Rogers at this point would say, "Can you spell e-x-p-e-n-s-i-v-e, boys and girls?"

The whole time, and unknown to me, this agent was fuming.

Quick side note -->  All the inspectors reading this now are nodding their heads - they may even have a headache at this point from such nodding.  Take a teaspoon of honey - the headache goes away quick...

Back to the post -->  She called me the next day.  "YOU blew the deal up!  YOU have no right to proclaim work to be unprofessional!  YOU were way out of line!"   And on and on...  spitting, scratching, a bit of clawing, curved back, straight tail...  conjure your own image.

Here is the kicker, "And YOU offended the seller!"

I let her have her say.  Why not?  I have known her for years.  My turn, "C'mon Looloo Belle, I did not blow the deal, the house did.  I have been a general contractor, in addition to being a home inspector, for three decades, so I have every right, as a professional, to proclaim unprofessional work to be unprofessional.  And exactly why would a person who is NOT a professional be offended at being called such?  He could not qualify for a permit if he filed for one!  Would you buy that house for your kids knowing about it what you know now?"

No answer.

She has not called back since.

Her buyers did though!  They were very grateful for my frank assessment.  They were disgusted with that agent and had a different one for the next inspection, which they asked me to perform.  They referred me to two different friends, for two more inspections, who's realtors I picked up as clients as well.

What a happy ending!

Sigh...  I'm feeling so good right now I'm going to make some hot chocolate!  Maybe I'll check into the Bristow Bistro   http://bristowbistro.blogspot.com/

My recommendation:  Hire a freaking professional to do your remodeling!  BE a freaking professional no matter what you do!  Get a freaking permit!  And cover your freaking hind end with the Golden Rule! 

Wow, I feel so much better now!  Thanks for listening, Doc.  See you next week?

Posted by

Jay Markanich Real Estate Inspections, LLC  

Based in Bristow, serving all of Northern Virginia.

Office (703) 330-6388   Cell (703) 585-7560

www.jaymarinspect.com


Comments (93)

Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Russell - "non-standard" is a very good word!  The standard around here is sinking somewhat, however, so that bar might be lowering over time!  Eventually it might just change to no standard, which probably brings us back to "unprofessional."   That seems too philosophical to consider at this point!

Jan 20, 2009 10:59 AM
Charles Buell
Charles Buell Inspections Inc. - Seattle, WA
Seattle Home Inspector

Sometimes these really egregious faux pas need to be deflected with humor in order to keep everyone involved with the deal from freaking out unnecessarilly.  I have seen properties with so many issues that the following statement might be appropriate, "the idiot that did this should be made to lay naked in the sun covered with honey for two days."  While most of the time I would be more likely to use, "the work is less than professionally done."

Jan 20, 2009 11:13 AM
Mike Hughes
Hughes Residential - Newton, MA
Services Newton, Brookline, Lexington, Waltham & W

Hi Jay,

Although I absolutely agree that an inspector should help the buyer better understand property deficiencies and uncover mechanical and safety defects, it is often carried too far.  Frankly, in this difficult market, I expect that we will see sellers going after inspectors who might have "blown" up a deal - due to misrepresentation or stating opinion as fact.

Bare in mind.  As an agent, we can't even say "walk to parks" in our ads due to strict fair housing laws.  So, here's my thoughts:

- The agent has no duty or obligation to anyone other than his/ her clients.  Your client (the buyer) would be responsible to explain the deal if that an important factor to you performing your duty to your client.

- In MA, there is no such thing as "unprofessional" (although it's said all the time) with regard to plumbing, electric, etc.  It's either "to code" or not.  Anything else appears to be opinion of craftsmanship.  Be careful not to end up in a "trade war."

- Permits.  Oy!  I hate this part.  Obviously, it's the seller's responsibility.  But what if the current seller bought from someone who did not follow the proper process?  I would see great value in an inspector who would offer to help clear this type of issue ... or at least provide very clear instructions on how to do so.

Best regards,
Mike

Jan 20, 2009 12:38 PM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Charles - I had a "remodel" a few weeks ago with three additions (kind of, anyway) to an original structure and so scary the client did not even want a report.  She wisely walked away!  I jokingly thought, wow, a couple of hand grenades and about $150K would sure go a long way here!

I enjoyed the phone call!  I'll get back to you.  You're what, four hours ahead of me right?  My wife did not know prior to that call that I actually put the frog on the site!  I'll have to do something more with that frog.  Give it some notoriety...  Then, maybe THEN, she will find a place for it!

Your "appropriate" statement above - wasn't that some form of punishment in ancient Persia?  It's kind of a long phrase, but I think I can make it work instead of "unprofessional."

Jan 20, 2009 12:40 PM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Hi Mike - good stuff!  I don't think inspectors get into "codes," as there are too many to keep track of.  I do inspections in 14 different jurisdictions, each with its own codes in addition to national ones.  They change all the time.  The National Electric Code has as many as 1,000 changes each year.

I am not sure that if someone buys unpermitted work from another and then turns around years later to sell it that it is not the seller's responsibility.  When you buy it, you take responsibility is my position.  Around here the county is reluctant to inspect things after the fact because it is not possible to see the skeletal.  They do, on occasion, force people to rip stuff out!

Jan 20, 2009 12:49 PM
Charles Buell
Charles Buell Inspections Inc. - Seattle, WA
Seattle Home Inspector

I think that frog could be your AQUAFIED home inspection assistant!

Jan 20, 2009 12:49 PM
Sonya Loose
Modern Realty - Beaverton, MI
Helping Buyers & Sellers of Waterfront Property

It does make you feel better to just type the whole story out doesn't it?  But, I agree with you; the house blew the deal not you.  I am sure she was just frustrated that the deal was falling apart.  But, she needs to remember that she is not representing herself in this transaction and her commission is not what is most important here.

Jan 20, 2009 02:02 PM
Paul Howard
Paul Howard, Broker, Paul Howard Realty 856-488-8444 - Cherry Hill, NJ
Paul Howard Realty, 856-488-8444

Jay, there is another point on the permit issue.  If work is done without a permit the assessor for the town doesn't know about it. That means the property is under assessed  and the taxes lower than they should be. If someone buys such a property eventually it will get found out and they will end up with an unexpected higher tax bill.  

Unlike a poster above, I think the word 'unprofessional' is used far too little.  Realtors that try to scare inspectors away or minimize their findings, for example, are unprofessional.  

 

Paul Howard, broker

NJHomeBuyer.com Realty

Cherry Hill NJ 08002

MEMBER: National Association of Exclusive Buyer Agents (NAEBA)

Jan 20, 2009 02:24 PM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Sonya - well, the story isn't exactly cathartic for me, but it is fun to have seen what people all over the country think!  I felt badly too, but I also made points during the inspection about some really well done stuff!  The finish carpentry was excellent.  The question in my mind - did it cover the lack of insulation around windows?  Wait until you see my post today about an old lady's roof...

Paul - for sure.  I mentioned the county as one of the problems in the post!  You are right, people try to avoid taxes for themselves but are willing to sell the potential future problem to someone else's pocketbook.

I have thought about the use of the word "unprofessional" and Rosemary's comment and really think it is the word to use.  "Not well done" is very subjective, "less than professional" is more objective and good, "non-standard" is good but kind of code related (and codes are the minimum standard anyway).  Unprofessional can also apply, as you suggest, to more than just work done to a house!

Jan 20, 2009 10:00 PM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Charles - so you have Raven, Steve has Nutsy and you want me to weave the frog into my posts?  Or come at you and/or Steve, or anybody I guess, with frog comments?  Ventriloquists have dummies that can say things which are silly or jests or whatever and get away with it because it was the dummy saying it not the polite, upstanding comedian. 

So my "Aquafied Assistant" - should we call him "Amphibio" - can croak "the idiot that did this should be made to lay naked in the sun covered with honey for two days," and I can get away with it?

I don't know Charles.  That would require creativity, thought, clever wording and would reveal my juvenile, silly side that only special people, like, perhaps, my Boy Scouts or Sunday School class, get to witness on a regular basis.  And it is a truly SILLY side!

Steve is so good with Photoshop, and you with the emoticons - I am computer obtuse.  About the best I could come up with would be an inserted photo of Amphibio with some feeble croaked line.  It might be best to keep the club to Raven and Nutsy!  They are very good at what they do...

Jan 20, 2009 10:25 PM
Jack Gilleland
Home Inspection and Investor Services, Clayton - Clayton, OH

Jay good post.  It is good to have someplace to let it out.  Glad it worked out for you.

Jan 21, 2009 06:40 PM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Jack - this has probably happened to all of us, in one way or another.  It was a little surprising that it was an agent I had know for so long.

Jan 21, 2009 09:29 PM
Jack Gilleland
Home Inspection and Investor Services, Clayton - Clayton, OH

With the way things are, agents and inspectors sometimes have a short fuse.  Sometimes from what I've seen lately it even carries over to their posts.  Difficult to hold them accoutable when their trying to feed the family.  Not an excuse, but true.

Jan 22, 2009 05:32 AM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Jack -  You are right and I would give her that, but her husband is feeding the family very well.  My house could fit under their deck, or in the media room...

Jan 22, 2009 07:44 AM
Jack Gilleland
Home Inspection and Investor Services, Clayton - Clayton, OH

Then no reason.  I've run into that bi-polar thing with people I know and it is like a reflextion of the person you thought you knew. 

Jan 22, 2009 01:59 PM
Benjamin Clark
Homebuyer Representation, Inc. - Salt Lake City, UT
Buyer's Agent - Certified Negotiation Expert

Another experience that proves how a dual agent really cannot remain neutral. Had she been the Buyer's agent and ONLY the Buyer's agent she would have been extremely glad that you found the problems you did, just like the Buyers were.

And I'm glad to hear that even though you were supposed to be neutral (Were you? Or were you hired to look out for the Buyer?) you remained true in your review of the home's condition.

I am glad when a home inspector "blows" a deal because it means my Buyer didn't just make a HUGE mistake.

Thank YOU, Jay, for being a PROFESSIONAL.

My Recommendation: Hire a professional to do your home inspection! (You left that part out!)

Jan 26, 2009 06:27 AM
Benjamin Clark
Homebuyer Representation, Inc. - Salt Lake City, UT
Buyer's Agent - Certified Negotiation Expert

Paul,

Worse than paying a higher assessment, around here the city may force you to tear something down completely. (Garage. Addition. etc.)

Jan 26, 2009 06:30 AM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Benjamin - they can force people to tear out things here too.  I work for the buyer, whom I represented there.  And I did imply to hire an inspector ("professional, no matter what you do..."). Thanks!

P.s.  Houses blow deals...

Jan 26, 2009 08:18 AM
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

About the only thing that could have been worse was if the agent & seller were one and the same. Congrats on having a happy outcome.

Feb 19, 2009 09:36 AM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Pat - I don't think I have ever run into that!  One day, maybe, one day...

Feb 19, 2009 05:04 PM