A few weeks back an agent I know told me she was bothered by the fact that her buyer was approached about purchasing a Home Warranty through the inspector that SHE (the agent) had recommended. Unbeknownst to the agent, her inspector was also selling home warranties. Oops.
Realtors have referral relationships with inspectors, lenders, title companies, home warranty reps & all kinds of tradesmen. Personally I suggest 3 different home warranty companies to my buyers. That said, I would never refer a home inspector who tried to pitch this extra service. I also feel strongly that buyers should not obtain their loan from a Realtor who is also a loan officer. The two pieces should be separated for obvious reason. As it is, Realtors have more hats to wear than the most people realize, adding the task of "also doing the loan" is typically seen as foolishly opportunistic. But that's MY opinion. I'm sure there's a few 1 Stop Shops around town that I've yet to meet.
But back to the shenanigans of inspecting the home while also offering "the home warranty." Anytime an inspector tosses in this added service it tells me they are doing more than being creative with a potential revenue stream then they should. I am pro-profit, but I am more interested in doing YOUR job well. I don't believe you can do your job well if you own a Home Warranty Company and inspect houses at the same time.
Inspectors who also push Home Warranties are knowingly or unknowingly stepping on the feet of fellow co/marketers. Routinely around town vendors will circle together to sponsor Real Estate events for Realtors. Some of the sponsors include: Title Reps, Inspectors, Home Warranty Reps and loan officers. You can can see how the relationships could be damaged from this example. In addition to this, Realtors like to be the one to offer "THEIR BUYER" the referrals for these types of services.
What are your thoughts and why?