Thread: Realtors paying inspection

I am unable to verify the truth of this, but, the story relayed to me is that the realtor is paying for the inspections if they are allowed to pick the inspector. Anyone heard about this???

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• inspector paying the agent!?

Richard, did you hear this from a client of yours?

The info was 2nd hand from an aquaintence of a cancellation client!!!

Originally Posted by Richard Stanley

I am unable to verify the truth of this, but, the story relayed to me is that the realtor is paying for the inspections if they are allowed to pick the inspector. Anyone heard about this???

I am not quite sure what you are saying. A Realtor can pick an inspector if their client is not availabe or does not want to deal with it if the client asks them to. They are not suppose to pick favorites if that is what you mean. As far as whether or not the Realtor has to pay just because they picked the inspector out of a list or even directly picked the inspector or called the first one she saw on the internet I am not sure if you are saying that they must be the ones coming out of pocket. If they chose to pay for the inspection for the client because of some kind of arrangement then so it is.

Again, not quite sure what you are saying

Originally Posted by Richard Stanley

The info was 2nd hand from an acquaintance of a cancellation client!!!

I see

If the Realtor literally ordered the inspection and there was a cancellation your acquaintance thinks that the Realtor should be liable for the wasted time being the loss of a morning or afternoons work.

I would say that it is more than likely your friend is SOL.

Realtors will set up an inspection with me for the client on many of occasions such as mine this afternoon. The client did not want to deal with it. If I get a call on my drive there the Realtor would not be liable for money, the client would be. Just because the Realtor handled it for him does not make them the liable one.

If you are talking legally then who knows. Maybe so. Morally and ethically I would say not. Unless it is the Realtors absolute screw up then she should at least buy you a coffee or something

Some folks take a credit card so they can charge away for the afternoon or mornings loss for doing nothing for the afternoon. Should you get something....sure...I don't think it should be an inspection worth. It is not like it happens more than once in a great while. That's business.

Originally Posted by Richard Stanley

I am unable to verify the truth of this, but, the story relayed to me is that the realtor is paying for the inspections if they are allowed to pick the inspector. Anyone heard about this???

I'm sure it has happened before and it will happen again.

I'm not so sure I would want that buyer as a client if they are so stupid as to let their agent buy them an inspection with that agents inspector who might just be a little bias.

Don't let it worry you..

Don't worry about it. Let the courts sort it out when the agent's drive by inspector leaves them with a crap storm.
Most ethical brokers around here will nix that idea. Can anyone say conflict of interest?

I get lots of referrals from agents. Some agents refer me regularly and some only once. The ones who refer me regularly want a good inspection and the ones who use me only once don't. The shady ones weed themselves out which is fine with me cause I only do one kind of inspection and it is brutally honest. Who pays really is not an issue with me.

If the inspection was cancelled and a NO-SHOW charge assessed to the client, due to the REALTOR cancelling, or not showing up to allow access, then YES the realtor may well be PAYING for that No-show charge, or reimbursing the client for the MISSED inspection, so that the Client can re-engage the inspector to return and perform the inspection.I see no problem with that, and Yes I have heard of it. The client should only have to pay once for the primary inspection of a particular property, if through no fault of HIS or HER own, the realtor cancels or fails to appear to provide access so that the inspection can be performed in a timely manner, and as arranged and previously aggreed to by said realtor.

However, IIWU I wouldn't accept any payment directly from the Realtor. Let the Realtor reimburse the client for the first failed/missed inspection. I'd only accept payment from the Buyer.

Otherwise, it is a dicey and slippery slope, not unlike the unscrupulous mortgage broker who advertises a FREE appraisal or some other kickback if client uses a particular appraiser, reeks of potential fraud and implied less than independant work.

An interest in the outcome realtor (and in example mtg broker) has in the progression of the sale (commission), for the realtor to pay outright for the inspection, and only if said realtor selects said hi, further makes it seemingly APPEARING to be in confict with ethical conduct.

In most cases (like our work) there's really no payment due until there is a signed contract. There's an implied contract and payment due once goods/services have been rendered in some business transactions... for example, you go into a restaurant and order food.... you have to pay for it even though you haven't signed a contract.

There's not a court in the USA that would award any money if a HI got cancelled before it started.... unless a contract had been signed with a provision for a cancellation. Yes, it sucks but it's just a part of our business. If it really gets to you send out a contract when each appointment is set and get a credit card number and clearly state a cancellation policy.... otherwise, as someone else wrote.... you're SOL.

I have seen coupons at RE web sites, where an agent will pay up to $xxx for the inspection... Whether or not they can have the soft-report-specialists every time, I'm not sure. But, go figure.

Originally Posted by Scott Patterson

I'm sure it has happened before and it will happen again.

I'm not so sure I would want that buyer as a client if they are so stupid as to let their agent buy them an inspection with that agents inspector who might just be a little bias.

Don't let it worry you..

Ditto.

We need to develop good relationships with our clients. Being hired by an agent who gets to choose the inspector is a bad way to begin an inspector/client relationship.

I can pretty much guaranty that every inspector on here has had an inspection handled solely by a Realtor. Whether it be a Realtors friend, out of state client or just for a client that did not want to or had a bad time dealing with anyone about anything.

Yes it has happened with every inspector and the longer one is an inspector the more it has happened over time. Some folks just have great faith and trust in your realtors. And on top of that, as much as I dislike having to deal with realtors, there are some realtors that are extremely trustworthy and will handle the whole deal for the client.

Originally Posted by Richard Stanley

I am unable to verify the truth of this, but, the story relayed to me is that the realtor is paying for the inspections if they are allowed to pick the inspector. Anyone heard about this???

I've had a few cases where the realtor covered the cost of the inspection, maybe as part of their marketing speil. I don't know who decided to get me to do the job. I still get the contract signed by the client, and ignore the realtor just like I always would. It's not ideal from a legal standpoint I'm sure, but nothing bad has ever come of it.
If it was up to me, the client would pay and the realtor could reimburse after closing, or at least after I drive away.

Originally Posted by James Duffin

I get lots of referrals from agents. Some agents refer me regularly and some only once. The ones who refer me regularly want a good inspection and the ones who use me only once don't. The shady ones weed themselves out which is fine with me cause I only do one kind of inspection and it is brutally honest. Who pays really is not an issue with me.

Brutally Honest - all the time - every time !!!