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Whose Client Is It, Anyway?

By
Home Inspector with Precision Home Inspection

Recently, I had a conversation with a Realtor that I have just started working more frequently with. 

I'm always excited about the chance to work regularly with Realtors, since it allows me to get to know them a bit better and make sure that my services and reports are helpful to them in serving the clients.  The better I know them, the more familiar I am with what report format they like to use, whether they like PDF or online versions, follow us during the inspection, or wait for a summary of findings, etc.

In the end, it produces a more complete product, and better service for the client - which is (of course) the ultimate goal (or at least it should be).

The Realtor mentioned that they started using me after the inspector they have used for years went "rogue" on them.  After years of working together, the inspector suddenly began pushing the Realtor away during the inspection, making editorial comments (like "oh, no - that's bad) over issues that didn't seem to warrant it, and offering advice about what the client should negotiate for and how to do it.

When contacted by the Realtor about his new "approach" after one particularly difficult inspection, the inspector got combative.  He responded that he was protecting his client and that the Realtor should appreciate it and not involve themselves in the inspection process.

It was the inspector's reference to "his" client that ultimately drove the Realtor away.  I have heard this attitude from many inspectors over nearly a decade in the business, and it made me think:  "Whose client is it, anyway?"

Many times the client finds me on their own, with no referral or prompting from their agent.  I am paid by the client.  I have contrctual obligations with the client.  I am bound to follow the specific instructions of the client (especially with regard to providing the report to other parties).  So, doesn't that make them my client during the inspection?

In short, no - it doesn't. 

It doesn't negate the countless hours the Realtor put in researching and showing properties, walking the buyers through the process to the point where they were able to submit an offer and reach the inspection stage of the process.  It doesn't trump the Realtor's fiduciary responsibility to the client that also exists during the inspection.  And it doesn't overrule the Realtor's relationship with these clients.  But those factors don't make make the buyer the Realtor's client exclusively, either.

The real answer is that they are OUR clients - together.  We are a team of professionals working on the clients' behalf to jointly protect their interests and provide the best service possible. 

There are times where personalities clash (Inspectors, Realtors, and clients), but even those times don't prevent me from being able to work together with the client and their agent to get the best result for the client.  (OK, sometimes the client can't get out of their own way, and that makes it much harder to do, but even then I can still find a way....)

In the end, the client is the boss at the inspection and has selected each of us for our respective skills and expertise, trusting us to work for them.  I try never to forget the 4th through 8th words in the sentance above.

Irene Kennedy Realtor® in Northwestern NJ
Weichert - Lopatcong, NJ

Joseph,

My favorite home inspector and I have always worked as part of the buyer's team. One troublesome buyer decreed the inspector and I were to have no interaction directly; buyer even refused to let the inspector send his own attorney a copy of the report.  And it is the deal from hell, so the buyer is hurting himself.

My client, your client - being the team that helps the buyer reach the goal is the way to go!

Jan 24, 2011 12:04 AM
Joseph Michalski
Precision Home Inspection - Lansdale, PA
PA Home Inspector

WOW!  I never expected this volume of responses...thank you all for stopping by to add your own personal views.

I will try to drop by each of your blogs for a comment, and will also try to respond to those of you who offered your thoughts.

It seems that everyone can agree that we all have specific and individual roles to help the client, and most seem to get my point that working together (rather than being combative) produces a more effective and useful result for the client. 

I can see that a few inspectors still have resentment towards Realtors (I can't even begin to understand that), and some Realtors prefer to divorce themselves from the inspection process (this, I can understand, and many times I hear it is for liability reasons.)

But the vast majority of comments agree that we can work together to produce the best result for our mutual client.

One point of clarification - the teamwork approach I use (and most Realtors I work with seem to favor) isn't making the Realtor a part of the inspection itself, that's my function - just like I don't try to tell the client or agent how to negotiate.  But the Realtor will use my report to form the reply to seller, and by helping them understand the nature and extent of the problems, and potential cures, they are better prepared to negotiate on behalf of the client, and have a better understanding of the home.  Teamwork and communication.  Simple concepts, but highly effective in helping OUR client.

Jan 24, 2011 12:10 AM
Joseph Michalski
Precision Home Inspection - Lansdale, PA
PA Home Inspector

By the way, I apologize for the poor grammar - I just realized the title should be:  "Whose Client Is It, Anyway"

Jan 24, 2011 12:17 AM
Jeff Coon
Annie Mac Home Mortgage - Toms River, NJ
Branch Manager

Great post, Joe.  I think the team concept is important to remember in this situation, and there needs to be a way for each member of the team to do a thorough job, but at the same time not disparage or interfere with the other members of the team.

As a mortgage originator, I get most of my clients via realtor referral, but once I begin doing my job, I am advocating the best I can for the client.  I view this also as 'our' client.  There are times where we must give bad news ( lately, it seems like more often than not ) but this can also be handled in a professional manner, and need not put people at odds with one another. 

We realize that an agent who has landed a client who wishes to move ahead with a transaction represents a future payday for that agent, and the natural tendancy is to protect that payday.  Attorneys, home inspectors & loan officers all have the potential to derail the deal, or so it seems. But if the deal is to be derailed, often, it was not a 'real deal' to begin with.

Communication is always the key.

Jan 24, 2011 02:29 AM
Alan Wells
Iron Valley Real Estate - Lebanon, PA
Residential and Commercial Sales

Great post. You are right the agent and the inspector need to work together to give the client a good experiance. If things go wrong it reflects on both parties.

Jan 24, 2011 03:05 AM
Anonymous
Bill Beschman

Excellent post, Joe.  I do agree that Realtors and Inspectors (and loan officers and attornys and you name it) are all co-joined at the client.  We do work together, and the better the relationship, the better and quicker the outcome.  In my practice, however, clients are encouraged to select their own inspector.  This is my attempt, however feeble, to distance myself from the liability of a sub-par inspection.  Also, if the deal falls through and I have the opportunity to show the same house to a different buyer, do I really want to know everything (from a disclosure perspective)?  Personally, I do like to know so I can save the next buyer(s) - and me - time and expense of pursuing a property that will ultimately be rejected.  The obvious advantage of not knowing a defect is that disclosure is not required.

Jan 24, 2011 03:51 AM
#65
Chris and Berna Sloan
Group 1 Real Estate - Tooele, UT
Tooele UT

Well said! This process is a series of steps, any one of which is capable of tripping it up. We're in it together. Thanks for the post!

Jan 24, 2011 04:40 AM
Brad Hornshaw
Brad Hornshaw Realtor Lynnwood, Bothell, Everett - Lynnwood, WA
Realtor, Listing Agent, Buyers Agent, Investments

Hi Joseph         

I am going to have to agree with you a 100% on this the cliient is the boss and we are all there to get them through a tough process.........Brad

Jan 24, 2011 05:39 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I agree.  It sounds like that inspector may have got burned by not saying what he should have at some point.  There is a balance between truth and good bed side manner.

Jan 24, 2011 06:27 AM
Susie Johannes
Keller Williams Arizona Living Realty - Lake Havasu City, AZ
SFR

Fantastic post, Joe! It takes a team effort to get from opening to closing, and that includes the client, both Realtors and the Inspectors! The client becomes "all of ours", to guide and protect throughout the process.

Jan 24, 2011 07:17 AM
Vince Santos
StepByStep Home Services LC - Canton, MI
Southeast Michigan Home Inspector

 

When I am hired I think about the buyer as MY client and the only person I am obligated to serve. But I also understand I am not the only party involved in the overall transaction. In the end I am part of a team of professionals with similar goals in serving the best interest of the client.

Jan 24, 2011 09:54 AM
David James
ReMax Real Estate Services Columbia South Carolina - Columbia, SC

Inspectors- I WANT you to find any problem with my sale.  It not only decreases my liability, it increases my buyers' trust in me.  I do not want my client buying a defective house.  If I have a defective house under contract, your thorough inspection may cost me a sale in the short run, but the trust my client will gain or affirm will pay me dividends well into the future.

Jan 24, 2011 11:15 AM
Anonymous
Kelly Dix

As a Realtor or an Inspector, it's our job to provide information to our client.  It is ultimately their decision to decide if they want to go through with the deal or not.  I had an inspector tell my client to try to negotiate a lower price because of some items on the inspection.  The inspector didn't have any idea what the sales were in the area, how good of a price we already got on the house or what other terms we negotiated.  It really was difficult for me afterwards.  I respect the inspector, I would like them to respect me.  I don't tell my client that what the inspector found was not really a big deal or that they didn't know what they were talking about.  The client can do that for themselves.  They are paying for the inspector to do a service for them.  I agree that we should work together.  Sure, I am disappointed if a deal falls through because of inspection, but ultimately, I want my client to be happy.  It will pay in the long run.

Jan 24, 2011 11:58 AM
#74
Carol Tunis
Florida Homes Realty & Mortgage - Saint Augustine, FL
Carol Tunis...a "HouseSold" name!

I agree with David above.  I want the buyer to know exactly what they are purchasing and what near future expenses they need to prepare for.  What I object to is the inspector injecting their "advise" to the buyer on how to negotiate.  That should be left to the Realtor and the buyer.

Jan 24, 2011 12:05 PM
Brenda, Ron, Lee Cunningham & Tara Keator
West USA Realty - Phoenix, AZ
Realtors, Homes for Sale - Phoenix Metro

The buyer has hired the inspector making the buyer your client.  I do believe that an ispector should do his best to explain (I like the poise and calm remark above) all the items he finds in the inpsection without drama and advise as to buying the home.  He is your client when it comes to the home inspection.  He is not your client in regards to what he does with the information given in the report.  When it comes back to the purchase process then he is back in the hands of his Realtor who has the fiduciary responsibility to assist the buyer with the buyers concerns regarding the home and to assist the buyer with the BINSR

Jan 24, 2011 02:18 PM
Mike Henderson
Your complete source for buying HUD homes - Littleton, CO
HUD Home Hub - 303-949-5848

Yep it is both as well as the mortgage brokers as well.  I'm not aware that the client ever sold their soul to the relator.

Jan 24, 2011 04:58 PM
Karen Steed
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton - Tallapoosa, GA
Associate Broker Haralson Realty

Great post.  In todays market, we all need to work together to make the transaction work.  I'm not saying things should be hidden or not reported...I'm saying we should be realistic about what needs to be done, and who needs to do it.

Jan 24, 2011 05:35 PM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Well said - that buyer is your client, the realtor's client, the loan officer's client... and maybe a dentist or a car mechanics client. Just all for different reasons and functions.

Everyone needs to do their own job and not try to do someone else's.

Jan 24, 2011 06:46 PM
Jason Burkholder
Weichert, Realtors - Welcome Home - Lancaster, PA
Associate Broker, Realtor, e-Pro, CMS

Great post, an inspector and a Realtor need to work together to the mututal benefit of the client

Jan 26, 2011 04:47 AM
Bill Morrow
Keller Williams of Central PA - Mechanicsburg, PA
Bill Morrow, Associate Broker

Joseph,  Great Blog....and great observations by all.  Any inspection, in my not so humble opinoin, is a fact finding mission by a DISINTERESTED third party.  If the inspection process uncovers a situation that needs to be addressed it should be properly noted in the report.  Every transaction is different and any resulting negotiations to be considered need to be left up to the buyer and their agent.  Regardless of the motivation for the inspection, the inspector has no background as to what negotiations or agreements have taken place to bring the transaction to this point and should keep his findings totally objective as to not compromise them. I always allow the inspection to proceed with out my influence, knowing the importance of that"third set of eyes" , as the inspector should allow the same courtesy to the Realtor.

Feb 04, 2011 03:21 AM