Quality work protects agents from liability, buyers from 'terminal problems'
Dear Barry,
I've been a Realtor for nearly 20 years and for the past five years our office has been recommending one of several inspectors for our buyers. Recently, a client insisted on using a certain inspector not on my list – someone we consider to be a "deal killer." To my rude awakening, his inspection was the most thorough I've ever seen. Among the defects he found, some were quite serious and in places my recommended inspectors never even check. The seller refused to make any repairs and refused to renegotiate the price and my client opted not to buy the property. Now if I had only heard about this, it would have confirmed this inspector's "deal killer" reputation, but having been part of the inspection, I consider my buyers fortunate. That house was a disaster waiting to happen and had we not used this inspector, I fear my clients would be stuck in a house with terminal problems. Three days later, my buyers found another home, we used the same inspector and despite the defects found, the sale went through. Considering how we gave this inspector no referral business in the past, I feel I've done a disservice to both this inspector and my past clients. Funny how in the inspection industry the more thorough you are the worse it is for your business. Just though I'd share this and ask for your comments. — Dotty
Dear Dotty,
You've dredged up on one of the touchiest and most controversial subjects in the home inspection business: the conflict of interest affecting home inspection referrals and the ominous and unfortunate epithet, "deal killer." Your letter reveals an important truth: Faulty conditions and safety hazards in homes are the true deal killers, not the home inspectors who reveal those problems. This is one of those cases where the proverbial messenger is blamed for the message, and the ill effects of this misplaced blame can be far reaching: The "deal killer" loses business for reasons that are not justified; buyers are denied the benefits of the "deal killer's" services; and agents lose the liability protection afforded by the "deal killer."
Another observation you made also warrants comment: There probably isn't another profession where quality, integrity and professionalism may discourage business (with the possible exception of great statesmanship.)
Fortunately, there is a positive light that illuminates this picture: The response to home inspection that has occurred in your immediate circle is not the ruling principal of the real estate profession. In fact, many Realtors welcome the services of home inspectors with reputations for thoroughness. This is probably why the "deal killer" in your neighborhood is still in business. While those in your office were afraid to recommend him, other agents must have been keeping him busy. Fortunately, you have now joined the ranks of the prudent ones.
Acceptance of home inspection by the real estate profession has been slow and gradual and is now nearly complete. Home inspection, as you recall, hit the real estate world by surprise in the 1980s, and there was considerable resistance to it at first. Since that time, the majority of agents and brokers have come to recognize the inspection process as immeasurably beneficial to all parties concerned. Buyers benefit from foreknowledge of the properties they are purchasing, while sellers and agents enjoy reduced liability because fewer problems are discovered after the sale.
Now you can recommend the best home inspector in your area, confident that you are benefiting your client while limiting your own liability. Keep up the good work, and please send my best regards to your "deal killer."
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