Thread: Say It Ain't So! A Realtor against home inspections?

Why, I never heard such a crazy thing!

Daily Herald | A Realtor against home inspections? (Barry Stone)

Excerpts:

Originally Posted by Listing Agent

. . . This agent represented a buyer for one of my listings, and the three of us were together at the property. The buyer had waived the right to a home inspection in the purchase contract. So I asked her, "Are you sure you don't want a home inspection?"

A few minutes later, the agent cornered me in another room and said, "Don't you ever say that to one of my clients again!" She was visibly angry and let me know that home inspections create nothing but trouble.

Originally Posted by Barry Stone

. . . As for the "buyer beware" cliché -- it is outmoded and unjustified. In essence, it declares that "I, your agent, am here strictly for the commission check. It is your job, as buyers, to protect your own interests; so don't look to me for assistance in that pursuit. I'll smile warmly, shake your hand, and give every outward appearance of working on your behalf, but as far as I'm concerned, you are totally on your own. If you discover major defects after the close of escrow, don't call me. It's not my problem. It was your choice not to hire a home inspector. Never mind that I advised you to make that choice."

In another respect, however, the "buyer beware" policy has some validity. It should be invoked as a warning to beware of agents who say, "buyer beware." Whether they realize it or not, they are jeopardizing the financial interests of their clients while exposing themselves to possible litigation.

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I'm not saying anything good about the buyer's Realtor but the fault does fall completely on the buyers. They need to do their research. The Realtor can advise them on what to do but they are adults and can easily insist on a home inspection or they need to look into it before signing that contract.

If the buyers becomes upset by the advise of the Realtor, then they should chalk it up as a learning experience and do not use that Realtor again.

Like many long time inspectors I was considered "picky" and a certified "deal buster" by agents who had the same outlook as the one representing the buyers in Barry's article. However, again like most LTs when it came time for them to buy a home for themselves or a family member guess who they called? I gave up a long time ago trying to understand such ignorance coupled with greed and if one has any desire to see it up close and personal I recommend a trip to DC and watching our law makers in action. Argh!

The Daily Herald serves my area. I don't know if the reader asking the question is also from our area. I do however talk to agents who have had very bad experiences with very bad inspectors and whether this was the case I don't know. We are flooded with unqualified inspectors who are quite adapt at tarnishing our image.

When I come across an agent who has negative feelings about inspectors I try to see if it was do to a moron. If so I try to explain how she/he can screen out inspectors and find competent ones. Of course if it was a competent inspector who turned her/him off then she's/he's likely a lost cause and my inspection would only confirm her/his views.

Did I cover the genders adequately?

The things that fly out of an agent's mouth during an inspection just amaze me. As inspectors we're much more aware of the liability thing... Certainly, because we're there to 'check out' the house in a couple hours but also because of the shear numbers.

An agent does a dozen or two transactions in a good year... An inspector, a couple hundred or more... Just plain statistics makes us much more likely to encounter a problem... Point being even if a realtor runs around putting themselves in harm's way regularly there's a pretty good chance nothing will come of it... or at least not for awhile.

Last week after giving the 'ungrounded three prong outlet speech' to a buyer I was heading outside only to hear the realtor say "Okay, there are some things the inspector has to say to cover his butt but now let's talk reality...."

I about fainted.... I think a lot of agents think about their liabiliy like a lot of us think of bigfoot... it's something you hear a lot about but doesn't really ever happen.

Another gem from last week... I was explaining the need for anti-tip brackets on ranges and the agent pipes in and says "Oh, come on, that doesn't ever really happen" - I'm not the type to argue or even get excited over stuff like this.... I don't really care if I convince the agent.... I have the last word in my report and more often than not the buyer hears you loud and clear.

However, again like most LTs when it came time

LTs ??

Jim,

Maybe its "Licensed Thieves"

Originally Posted by Kevin Luce

If the buyers becomes upset by the advise of the Realtor, then they should chalk it up as a learning experience and do not use that Realtor again.

Kevin,

If I understand you correctly, I have a problem with your statement. We are not talking about something that an individual does daily. Many people buy a house once or twice in a lifetime. It is a huge investment and more than just a "learning experience". It is something that an individual has to live with for years, can cost a lot of money, peace of mind and even health. We have read the articles to understand this.

My feeling is that a home buyer should put a lot of effort into researching real estate agents and should choose an agent with the same level of care that they would choose a doctor or dentist. Most of us cannot afford a "learning experience" that could potentially cost us tens of thousands of dollars. The agent is not released from responsibility just because their client did not do adequate research.

Gunnar, I think you misunderstood what I was trying to say. I'm saying that there is tons of general information about buying a house and having a home inspection. If the buyers/adults do not want to take the time (being active) about the home buying process (which includes helping them find a good Realtor and home inspector), it is their fault.

There are times that you have to rely on somebody else but there are plenty of times that a person can educate themselves enough to make better/good decisions. Its surprising how a buyer/adult is a passive buyer until something goes wrong, then they become active - and boy, do they learn a lot.

When it comes to the "learning experience", there are times when things did not go right and you have to look at yourself and say, "I'll never do that again", and move on. But NO, now you have the blame game.

From the information I read not too long ago, the average person moves every 7 years (I'm at my third house now). When I bought a couch a few months ago, he talked about people buying new furniture every 7 years. Do they go hand in hand? Maybe.

I just think that the buyer deciding not to have a home inspection happened for one of two reasons.

1. They did their homework and felt a home inspection wasn't needed (for whatever reason).
2. They did no homework at all and completely relied on the Realtor (they probably didn't do any homework on finding her and more likely hiring a bad home inspector).

The first is great! The second is the buyer's fault.

Note: Sometimes I think people do more research on buying a TV then buying a home.

On the other side of the coin, what kind of service is the buyers' agent providing the buyers? Wouldn't it in their (the buyers') best interest for her to recommend a home inspection, especially when she is aware that a home inspection may uncover unreported defects? (Oh, that's right. It may not be in HER best interest for those defects to become known.)

Kevin,

Yes, you are correct, I did not understand you.

Perhaps, as a home inspector, I am somewhat more educated regarding the real estate process than the average person. Consequently, I would not hesitate to fire an agent that was not representing me. But, I would do so prior to close of escrow.

I must admit that I spent quite a few hours researching my DVD player. I think that they retail for around $100 now. Pretty silly, given what a house costs around here.

One benefits of a slower market is that it culls the weak, part-timers, inept and plain stupid real estate folks out of the industry.

When the market was hot I saw a lot of soccer moms, retirees, laid off telecom works, etc. enter the market. Some became Realtors, some mortgage brokers and some home inspectors. (In full disclosure I myself left Hi-Tech) Some of the folks made a good living for a short time until things cooled. During that time I observed behaviors and practices that surprising. Realtors strong arming clients through the inspections, Low income folks who were receiving 10K back at closing to move and make a few payments to get them started and just bad business.

I was talking to a successful REALTOR today who is in the Boulder, Co. and asking how it was, his response was "well half the office had a great year and the other half is crying the blues". I can say the same here in Washington. The pros are out making a good living, the other are wondering how they will get through the next 4 months.

I am in my second full year of business in Washington and we grew by 22% over last year. My goal is to grow again by 30%. Will I make it? I don't know but unless you set goals you will never know how successful you can be,

//Rick

How many Realtors I know that can still be in Realty even if they don't have one single sale in a year. I know a few home inspectors that I can say the same. I was just talking to a home inspector I know and he told me the only reason he is staying in business is because how much his wife makes.

Don't get me wrong, they feel the pain. But will this stop them from doing home inspection/Realty? Not likely.

A potential client asked for a quote for a 5800 square foot home in foreclosure. When I stated my fee, he said "that sounds like a lot of money." I asked "compared to what?" He admitted that he had made no other calls and appeared to put little value on the home inspection industry. "If you want to save some money," I replied, "skip the inspection altogether." I thought that someone who would spend $1.3 million on a home is sensible enough to question the absurdity of my statement.

His Remax agent called me the next day and said his client took my advice. He passed on the home inspection. We both shared a head-shake and a laugh. Maybe I will do the inspection next year when this chump is the SELLER.

I haven't thought about this much but if the state requires E&O insurance, would that knock out many of the home inspectors?

I would think it would separate the home inspectors that don't have to spend much $ but also doesn't have to make much $. Then the home inspectors that do take home inspections serious can charge more. I would think it would prevent the newbies/some home inspectors from charging soo little.

It would be nice to hear from the home inspectors that live in states that require E&O insurance.

I'm for home inspectors to be responsible for their actions but not necessarily through E&O insurance.

One benefits of a slower market is that it culls the weak, part-timers, inept and plain stupid real estate folks out of the industry.

I hope your right. I've seen experienced Realtors be much worse since they know how to walk that line without crossing over.

I had a new Realtor mis-inform the buyer on which home inspection company they can use. They called me up and then called back wanting to use us. When they informed their Realtor, the Realtor informed them it had to be from the list they had. The buyer called us back questioning what her Realtor said. I ended up doing the inspection.

What got me was the Realtors comment. During the inspection, she informed me that she was new and that she was still learning. Can you imagine a home inspector saying the same thing back to the Realtor in front of the buyer. How do some of these Realtor get away with it is beyond me.

O'well.

It's almost 12:30 am and Santa is going to be placing the gifts next to the tree in a few minutes. You all have a great day!

Originally Posted by Kevin Luce

----When they informed their Realtor, the Realtor informed them it had to be from the list they had. --------------How do some of these Realtor get away with it is beyond me.

Kevin,

They this is not the first time this Relator's Office has pulled this"Misinformation".(Policy)

They get away with it because No One Files a complaint.

I filed the complaint but it didn't fall under the realtors' organization criteria for the grievance committee to pursue it.

The first complaint I ever filed is when the seller's Realtor was there and flipped out when I went over the arbitration part of the contract with the buyers. Again, the complaint did not fall under the Realtor's organization criteria to pursue it.

Kevin, are realtors licensed in your state?

Yes. But the state has no teeth unless the problem becomes known to the community.

Kevin- The great Comm of Mass. since 5/01/01 has required E&O Ins. It is part of the HI license requirement. I do not know how that has affected the quantity of HIs in Mass. Go Pats!

Originally Posted by Kevin Luce

Yes. But the state has no teeth unless the problem becomes known to the community.

.

The State has no teeth because the lobbyist convinced the legislative not to insert any.

I think both can be correct statements.

Originally Posted by Kevin Luce

I think both can be correct statements.

Agreed,

A lot of our laws are passed (or amended) with out public knowledge.