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When a Brokerage asks you to Pay to Play is it right?

By
Home Inspector with Certified Structure Inspector IOS #1730, EA #30

Some Brokerages are asking Home Inspectors to pay a fee to be in their “Preferred” list or to be able to speak at their offices. Is this ethical and should it be allowed?  What about calling the local Home Inspector to “Sponsor” training, would this be the same?

Why do Brokerages do this? Is it to generate income, limit the amounts of request by vendors, or to find the best businesses to be associated with? I think this way of operating eliminates the last suggestion. Do agents really care who’s on the list or do you seek out your own?  I would be interested to know what people think about this topicpay to play.

Comments(2)

Hank Spinnler
Harmony Home Inspection Services of GA - Hoschton, GA
Atlanta Home Inspector

Here's the straight dope on the subject coming from a fellow inspector:

A paid vendor program where money is exchanged for the anticipation of referrals violates the ASHI Code of Ethics and possibly other associations' CoE. Is it currently enforced by the associations? I don't know the answer. No one on the broker side cares about our dilemma because quite simply, it's all about the revenue. The other vendors are doing it, so they can't understand why the inspector shouldn't be compelled to participate. 

Silver, Gold, Platinum level membership, whichever, each level gives the vendor an extra benefit such as more access, more publications or a timeslot for a presentation. Revenue from vendors helps fund programs for Realtors related to events, training, internal donations and outside charities. 

While Realtors may be strongly encouraged to utilize the preferred vendors, they typically are not forced to do so. Many Realtors have personal preferences when it comes to closing attorneys, pest control, mortgage, service contractors and inspectors. In exchange for the fee, the preferred vendors are granted access to the office and agents for drop-by's, meetings, and events. This in contrast to the one not on the list that the Realtor uses, as they are excluded from official office activities. 

I have found that there is no criteria in the selection process other than sponsorship from a single Realtor or broker. As a result, inspectors who hold no meaningful certifications gain access to the club because they have paid up. Once inside, the proficient marketer has a chance to proliferate the number of referring Realtors. Realtors who won't bother to check the individual's credentials because they must be okay if they were approved.  

 

 

 

Feb 09, 2012 02:05 PM
Rob Ernst
Certified Structure Inspector - Reno, NV
Reno, NV-775-410-4286 Inspector & Energy Auditor

Hank thanks for the great comment. 

Feb 10, 2012 03:43 PM