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Should realtors recommend
home inspectors to their clients? Not unless they recommend every
home inspector in the area. Choosing some inspectors that they prefer
or excluding some that they do not prefer could result in a problem
of ethics. The problem is not as much with the realtor as it is
with the home inspector. All home inspectors have their literature
in the realtors office. We are all hoping that when the realtors
client indicates that they want a home inspection that the realtor
will pick out our card or brochure and give it to the client and
say “Here’s a good home inspector”. Sounds innocent enough, doesn’t
it? But why did the realtor pick us when there are a dozen others
to pick from? Can it be that we have never done an inspection that
caused the realtors clients to back out of a deal? Is it because
we want to be a realtors favorite inspector and in order to do this
we sweeten our reports, more to please the realtor than the client?
Do we compromise our inspection report to save the deal? It is not
in the best interest of the client to have their prospective home
inspected by an inspector that is on the realtors recommended list
or that is a realtors favorite home inspector. Realtors that are
ethical will hand the client the phone book when they indicate that
they want to have a home inspection. The last thing a home inspector
wants to be labeled is “A Deal Killer”. The home inspector, like
the realtor, has a fiduciary relationship with the client. The buyer
is trusting the home inspector to disclose all defects within the
home so that they can make a logical decision concerning the home.
Approximately 15 to 20% of home buyers will back out of the deal
as a result of the home inspection report. When a buyer backs out
of the deal, the realtor immediately labels the home inspector as
a “Deal Killer”. When the real problem is the home seller and the
listing agent. Because realtors are afraid and don’t want to offend
sellers they are willing to take listings on houses that are full
of defects. Hoping that the buyer or his home inspector will overlook
the problems. A good realtor will encourage the seller to make repairs
before the home goes on the market, pointing out that the home will
sell faster and at a higher price when it is in good condition.
How do we know so much about this? I held a real estate license
in California some years ago.
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