Ethical Home Inspector Loses Referrals
Wednesday, August 8th, 2007Inman News recently featured an article entitled, “Ethical Home Inspector Loses Referrals”. It focused on real estate agents who are more interested in their commission than recommending a thorough, experienced home inspector who may uncover defects that could give reason for renegotiating or at times withdrawing from the transaction. A home inspector named John says, “I’ve inspected homes in the Midwest for more than 15 years and have performed more than 7,000 inspections. My reputation for thoroughness is widely known among local real estate agents, but this has not been good for my business. Instead of referring me to their clients, most agents have labeled me as a “deal killer.” The inspectors they prefer are not nearly as experienced or qualified and tend to miss many of the defects that I routinely include in my reports.“While it may be somewhat understandable that a seller’s agent would not want to recommend an inspector who may “kill the deal”, it is imperative that a Buyer’s Agent is recommending a thorough home inspector. In Massachusetts it is illegal for a seller’s agent to recommend a home inspector to a buyer because of the evident conflict. Only a buyer’s agent may recommend. That clearly makes sense from a fiduciary perspective.
Our company has been recommending specific inspectors with a proven track record for years. But today, most of the agents in our state are designated buyer’s agents. Many are told they may not recommend a specific inspector. If they are going to recommend at all, they need to provide a list of inspectors for the sake of risk management. Consumers should know that a good buyer’s agent will not hesitate to refer specific inspectors who will do the best job.
Barry Stone, known as the House Detective, is the author of the article. Barry says, “The highest expression of true representation is to provide total, complete and unabridged disclosure. When a buyer asks an agent to recommend a home inspector, the actual question, regardless of how it is stated, is “Who is the best home inspector available?” Agents who recommend someone they do not regard as the best are not representing the client’s interests and are thereby guilty of misrepresentation. I say Amen to that.
Barry also maintains that even seller’s agents should think carefully about making a poor home inspection referral. He points out that every defect that is overlooked by a marginal inspector is a potential lawsuit at some time in the future, and such suits are commonly filed against agents who compromise the interests of their clients.
In a perfect world agents would recommend good inspectors. But given the world we live in, a buyer is smart to pursue this question with diligence. Typically, an Exclusive Buyer’s Agent is willing to go out on a limb to recommend an exceptional home inspector.
