Thread: Money back if short sale is declined

I just got an email from a realtor that there's an inspector in our area that is offering to do an inspection at the time the short sale agreement is sent to the bank, but will refund the price of the inspection if the short sale offer is not approved by the bank. He was wondering if I'd offer that service.

Just wondering if any other inspectors are doing this (and why!), or if you've run into anyone offering this service.

I let the realtor know it didn't seem like a good business move for me, but I'm curious to hear other's opinions.

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Originally Posted by Jon Errickson

I just got an email from a realtor that there's an inspector in our area that is offering to do an inspection at the time the short sale agreement is sent to the bank, but will refund the price of the inspection if the short sale offer is not approved by the bank. He was wondering if I'd offer that service.

Just wondering if any other inspectors are doing this (and why!), or if you've run into anyone offering this service.

I let the realtor know it didn't seem like a good business move for me, but I'm curious to hear other's opinions.

Sounds like a hungry inspector that's asking to go broke . He needs to get his head out of the sand and take Brians cost of doing business course.. Or a nickie certified that took some nicki "free' " training dreaming up ways to get into a real estate office.
If short sales close in your part of the country like they close in AZ [ 6 months or never with the origional buyer ] he will have a less than a 30% chance that the buyer will wait for the home to close.

That is against the law in NC.

Originally Posted by Jon Errickson

I just got an email from a realtor that there's an inspector in our area that is offering to do an inspection at the time the short sale agreement is sent to the bank, but will refund the price of the inspection if the short sale offer is not approved by the bank. He was wondering if I'd offer that service.

Just wondering if any other inspectors are doing this (and why!), or if you've run into anyone offering this service.

I let the realtor know it didn't seem like a good business move for me, but I'm curious to hear other's opinions.

If you were in a licensed state that would be illegal under most of home inspector license laws. It is called a contingency fee and that is a no no.. Since you are an ASHI member is is also not allowed under the ASHI CoE.

Sounds kind of crazy and reeks of an inspector who is hungry and in dire straights.

That's nuts. The dude must be starving for work.

The fact the realtor asked if you'd match this lunacy is mind boggling as well.

Actually, the realtor wasn't asking me to match -- he was just curious if I offered that service.

Scott -- that's good to know about the ASHI Code of Ethics. I wasn't considering offering that service, and now I know I can't as an ASHI member.

I did look the guy up and he is a NACHI Certified inspector -- is this not part of their code of ethics?

Originally Posted by Jon Errickson

.

I did look the guy up and he is a NACHI Certified inspector -- is this not part of their code of ethics?

That I do not know, but since most associations copy what ASHI has done I bet that it is also against their CoE. Really makes little difference as they do not enforce anything from what I have seen.

In Pennsylvania, I'm pretty sure our state home inspection law prohibits us from performing home inspections for free.

stick a screw driver in my eye please--what yee say about this LISA

CVF

Originally Posted by Vern Heiler

That is against the law in NC.

Texas, too.

Originally Posted by CHARLIE VAN FLEET

stick a screw driver in my eye please--what yee say about this LISA

CVF

Charley, I think you will have to PM Lisa and give her permission to answer your question. She may be afraid to answer you because her answer could be considered spam

AZ also.