Another fine article for the consumers in the crowd:
http://abuyersinspector.com/buyers.htm

The real estate agent’s recommendation, why question your agent’s recommendation of an inspector? M-O-N-E-Y. The real estate agent only makes a commission if you, the buyer, actually purchase the house. This can, and does cloud their thinking. While there are many honest and conscientious agents in the real estate world, there are too many unscrupulous agents. Pay careful attention to why and how you stand to be duped and otherwise harmed by the agent’s actions. What follows is list of ways ‘your’ agent will ‘lead’ you to a particular inspector that will ‘help’ the agent to convince you to actually purchase the home after it is inspected. The agent simply says “Call this inspector, he is really good” or “I use him all the time”. When you rely solely on this recommendation, you are putting your trust in the person who only makes a commission ($) if you buy the house.

Or…the agent gives you a ‘list’ of 10-20 inspectors for you to choose from. This is fine if the city or town you are purchasing a home in only has 10-20 inspectors. If the city has 100-150 inspectors and you are being given a list of 10-20 inspectors, be very concerned. No matter whom you choose on the list, that inspector is one of a group that the agent wants you to choose from. The list of inspectors may have a disclaimer on it that says ‘This is not the complete list of inspectors available in this area’ or something similar. However, make no mistake, you are being steered to one of the inspectors on the list. Why? There are many reasons why. We’ll talk about a few of them here. It could be that the inspector, without premeditation, performs a sub-standard inspection. He/she is just not experienced or lacks the skill-set to perform an inspection that protects you, the homebuyer. It might be that the inspector is an ‘agents’ inspector. This is the inspector who performs a minimal inspection and verbally downplays their findings so that they can continue to get recommendations from real estate agents. There may be a subtle, yet substantial, financial benefit to the agent. Agents have often recommended an inspector or provided a list of inspectors that have

errors & omissions insurance (E & O). This is a clever way for the agent to recommend a poorly performing inspector that won’t ‘kill their deal’ and then be able to say “Call your inspector, he’s got insurance” when the inspector does, in fact, do a lousy job at the inspection. What your agent won’t tell you is that many inspectors carry E & O insurance that protects the agent in the event of a lawsuit. How does this work? If you ‘choose’ an inspector who has an E & O insurance policy and the policy has a ‘rider’ or provision that pays for the agent’s E & O insurance or deductible, the agent can recommend an underperforming inspector and know that in the event of a lawsuit against the agent, for recommending the inspector and causing you, the buyer, to be led down the path that resulted in you buying a house with defects, there will be no costs, no financial penalties for having steered you to a particular inspector.

Yet another way agents steer homebuyers to or away from a particular inspector is to make verbal comments that the inspector is “not very good”, or “doesn’t know what he/she is doing”, or “he/she is an alarmist”. If you ever have your agent tell you this, ask for them to put this in writing and to give you the name of one or more of their past clients who actually hired the inspector the agent states is “not very good”.

A few hours ago

All of these issues can and do come up in the engineer's report. Unless the problems are structural, or there are problems with the heat, electricity, water, air conditioning homeowners in my area do not fix them. Items such as gfis no installed in homes built when they are not required are noted, but homeowners will not be installing them in order to sell. Our code recently added hurricane strapping. Most homes don't have it. Unless the items are required by the town in order to sell. Homeowners do not remedy them. Many homes here were built in the 1800s. They certainly were not built to today's code.

Earlier today

I've been buying and selling real estate for 29 years ... It's not me you need to convince ... it's the rest of the planet.



Excellent article......

How to Deal with Difficult Realtors and the Requirements of Disclosure
by Justin Watts of American Dream Home Inspection
01-05-2008

-- Some realtors do not understand that we are doing our job as home inspectors to disclose defects we encounter and to educate our clients on a properties condition is our duty. Home inspectors do not kill deals, buyers and sellers failing to negotiate the terms of the sale is what kills the deal.

As a home inspector in Southern California, it is in the nature of our profession to encounter difficult realtors, the ones that do not believe in full disclosure when it comes to discovering defects on a property. It is important to educate realtors on the ethical and legal requirements to disclose defects when we are inspecting and reporting them to our clients. Many realtors do not understand the legal ramifications for not reporting defects when observed, and real estate is a very litigous business. There are constructive methods with handling difficult realtors, here are some examples and actual conversations with some realtors....

-- Realtor's question: "The Sellers House was constructed in the 1950's and GFCI outlets were not a code requirement then, why are you stating in your report they should be installed?"

My answer: My clients' safety is my number one priority, and although a home inspection is not a code-compliance inspection, I always recommend the latest new construction code safety requirements including GFCI's on every property and year of construction. It is my duty to inform my client of these safety features, so they can make their own decisions.

-- Realtor's question: Why are you reporting on moisture stains on the garage ceiling that appear to old and are dry and this is going to cause problems for my deal?

My answer: It is my duty to my client and the buyer to report moisture stains that could imply a previous roof or plumbing leak, and they should have any suspicious stains further evaluated by a licensed specialist or obtain information from the sellers regarding any previous repairs, etc. It is my job as a home inspector to observe and report. Stains on drywall may also require destructive testing, meaning removing the drywall to determine the cause of the leak and additional moisture intrustion damage or mold could be present.

-- Realtor's question: You stated in your report, that all the Asbestos ducts confirmed tested and present should be removed from the home and be replaced with newer ducts, this is going to kill my deal!

My answer: My clients safety is my priority, and because asbestos is such a litigous issue, I always recommend that they be futher evaluated by a licensed asbestos abatement contractor. The Environmental Protection Agency states that if asbestos is not damaged or duct material is not friable then it (may) be safe. Since I am not a licensed asbestos contractor, I am unable to make this determination and it is my opinion as a home inspector to recommend the replacement of asbestos ducts for obvious safety reasons. It is my clients discretion and choice to decide what should be done.

In summary, always advise realtors that the buyer is also your client and you have a duty to protect them and protect "everyone" in the transaction. Failure to disclose defects plagues the real estate industry with lawsuits that will result in costly damages that can far surpass any commission. Choose to do business with ethical realtors, ones that prefer full disclosure and whenever in doubt... Just remember these magic words... Disclose, Disclose, Disclose!
Justin Watts, owner and inspector of American Dream Home Inspection based in Rancho Santa Margarita California has inspected over 10,000 properties since 1997 as a City Building Inspector and private Home Inspector. He is certified with the National Association of Certified Home Inspectors and is an ICBO Certified Building Inspector. Justin has also testified as an Expert Witness in home inspection standards of care cases. His motto is, "Inspection For Your Protection". Visit his company website athttp:// www.americandreamhomeinspection.net


: ^)

Earlier today

If you're this Knight in shining armor, you won't care if your buyer has Stephen Hawking flown in to do the inspection - yes.?
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Never claimed to be a Knight in shining armor, but thanks. And no, I don't mind if a client wants to fly Stephen Hawking in (although he's probably not a licensed and certified inspector)...

"The problem" is your suggestion that simply because I gave the client a list of inspectors to choose from, that somehow I have an ulterior motive, (and am in collusion with the inspector) which is solely to line my own pockets as quickly as possible, probably to my client's detriment.

If you truly believe that's how most agents (and inspectors) work, I suddenly understand why you have such an ill view of the industry, and clearly, I won't be able to change your mind, so I'll stop trying.

Earlier today

Please, lets stop the drama class ... worrying about a potential "maybe, perhaps, could be" buyer in 5 years is going to be one of the very last things on an agents mind .l.o.l.. they're looking at the calender and seeing when their mortgage payment is due..
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Generalize much?

Earlier today

>>>I have no problem if a client wants to bring in an inspector they found themselves>>>



Please, lets stop the drama class ... worrying about a potential "maybe, perhaps, could be" buyer in 5 years is going to be one of the very last things on an agents mind .l.o.l.. they're looking at the calender and seeing when their mortgage payment is due..

So they're thinking the fastest and easiest way from point "A" to point "B" ..

How fast can they get to closing ... they don't want the deal held up for 5 minutes, let alone another 5 days waiting for the right inspector with the "right" information - and possibly throwing the dice because something was found - and something needs fixed ...or... the buyer gets cold feet.

If you're this Knight in shining armor, you won't care if your buyer has Stephen Hawking flown in to do the inspection - yes.?

If there is no problem, then whats your point..?


: ^)

Earlier today

Bbpp said: "...some listing agents want to be your dual agents and therefore he/she gets dual commission while you loss the advantage to negotiate better price assuming you were saving the buyer's commission fee."
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I've worked both sides of many deals and never done it as a dual agent. My seller client would have to agree that I would represent neither party, and act as a mediary. They're paying me so they want me to represent THEM not no one.

Earlier today

tman, there are only a limited number of inspectors that work in our area, and over the years I've worked with them all. So by your suggestion, the buyer shouldn't use any of them.

I have no problem if a client wants to bring in an inspector they found themselves (that purportedly has no ties to me... but chances are good that I've worked with them before).

I don't agree with your statement that we (Realtors) try to bring in the inspector that will find only "some" stuff. It's to my client's best interests... AND MINE... to find as much as possible... that allows us to not only know what the buyer is up against, in home-ownership, but to negotiate any of the repairs or credits required.

If the inspector should find "terrible" things (ie: a major foundation or structural issue) that makes the house a bad purchase, it gives us the option of pulling out of the deal. I know.. you're going to say that goes against a Realtor's logic... but follow this to it's conclusion.

One day (maybe a year, maybe five years from now), that buyer will become a seller... and they're going to call me and ask me to help them sell that home. I want my client to buy/own a home that I'll be happy to list. NOT a home with a major structural issue... so this is also in the best interest of the Realtor (since I know you won't accept that the Realtor is truly interested in the best interests of the client).

Earlier today

We're not speaking about you .... we're speaking about the consumer getting their own, with no ties with the buyers agent or the listing agent.

Tman:

In my area, it's tough to be a home inspector. There are 2, just 2 that I know of that speak Spanish. I speak Spanish too. I often have buyers who are more comfortable with Spanish speaking attorneys, home inspectors, lenders, etc. If they don't know of a Spanish speaking professional, is it OK if I give them the names of those I know? Or should tell them to find their own?

Earlier today

Bbpp said: "...some listing agents want to be your dual agents and therefore he/she gets dual commission while you loss the advantage to negotiate better price assuming you were saving the buyer's commission fee."

Ridiculous! The seller is paying the entire commission either way: if you don't hire a buyer's agent, or if you do. You can't "save the buyer's commission fee." You can't put in an offer that says "Seller, sell it to me for less since you are not paying the buyer's commission fee." The listing brokerage gets the entire fee regardless of whether you are represented or not.

Bottom line, either you hire a buyer's agent to help you (who gets paid 1/2 the listing commission) or you buy it through the listing agent. If you have a buyer's agent, you get knowledge and experience and he/she gets 1/2 the commission. If you don't have a buyer's agent, the listing agent makes the entire commission. You can't offer a lower price or save yourself any money by not hiring a buyer's agent; you just cheat yourself out of someone advocating for your interests.

Earlier today

We're not speaking about you .... we're speaking about the consumer getting their own, with no ties with the buyers agent or the listing agent.

Earlier today

That's why it's usually a better idea to find the one with the most experience, best reputation that the agents - "don't use".
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I should find an inspector with experience and a good reputation that no one uses? How did they get this stellar reputation if no one uses them? After about 5 closings I probably started running into the same inspectors over and over. There are only so many inspectors. And as I said, I don't pick them and I rarely get asked for names.

Earlier today

>>>Correct, and my clients expect me to be there>>>

That goes without saying.



That's why it's usually a better idea to find the one with the most experience, best reputation that the agents - "don't use".

..commission can be spelled many ways....

: ^)

Earlier today

I forgot to touch on this earlier. Not having your buyer agent at the inspection IS ridiculous. (However, selling agents are not always present...it can be a liability if they discover something and don't reveal it later to future potential buyers). I have only had two deals where I was not at the inspection with my clients, and I can say that without a doubt, those were the two worst negotiations I have ever been involved with. In both cases, the buyers asked for further repairs/compensation based on the results, and having not been there myself, it was like a game of telephone. The inspector said something, my buyer tried to remember (the notes on the report aren't always enough) and relay that to me...things were lost in translation. The listing agent wasn't there either so it became: "my client said the inspector said this" and no one could be certain about anything.
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Correct, and my clients expect me to be there.

Earlier today

I forgot to touch on this earlier. Not having your buyer agent at the inspection IS ridiculous. (However, selling agents are not always present...it can be a liability if they discover something and don't reveal it later to future potential buyers). I have only had two deals where I was not at the inspection with my clients, and I can say that without a doubt, those were the two worst negotiations I have ever been involved with. In both cases, the buyers asked for further repairs/compensation based on the results, and having not been there myself, it was like a game of telephone. The inspector said something, my buyer tried to remember (the notes on the report aren't always enough) and relay that to me...things were lost in translation. The listing agent wasn't there either so it became: "my client said the inspector said this" and no one could be certain about anything.

Again it all comes back to this: IF YOU DON'T TRUST YOUR AGENT, GET A NEW AGENT.

My buyers are always free to use whomever they want for inspectors, lawyers, mortgage brokers...but the deals are ALWAYS less stressful when they use people I recommend. Because they're in my pocket and put my clients best interests at risk just to close the deal? No...because they are honest, trustworthy people who are available when you need them. That's why I recommend them.

Earlier today

Be careful not to let the buyer's agent or seller's agent appear during the inspection, because they may know each other or they have deal with each other.
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Who is going to be present at this inspection? No one except the inspector and the buyer? This is ridiculous.

Earlier today

Agents like to keep the "some" things inspectors on the "A" list ...

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It doesn't matter what list I have inspectors on. The buyers pick them, usually on the advice of friends or their own attorney. I've RARELY had a buyer ask me to suggest someone. And I never give one name.

Earlier today