Active Question
-
Do you think there is a conflict of interest when a real estate agent recommends a home inspector? 
In Mass. it is illegal for a real estate agent to recommend a home inspector due to the inherent conflict of interest, yet in all other states it is legal.
Tags: New York, NY
Show me another question! | Report Abuse
Asked by Homeinspectionli from Smithtown, NYAnswered 15 years ago.
68 Answers
-
There is always a potential for an interest conflict when anybody recommends anybody. As a courtesy to my clients, I maintain a list of experienced inspectors. I don’t recommend any particular person because I don’t want any appearance of impropriety and I don’t want my reputation to depend on the service that another person provides. I encourage my clients to be diligent and select the inspector they are most comfortable with, whether they are on my list or not.
Answered by Expert Realty Services, Inc
Lemont,
IL, 60439,
630-257-1432
(Novice with 11 pts.)
Answered 15 years ago. -
I'm an agent in Virginia. Because I get nothing except a thorough and fair inspection from the inspection company I recommend, I don't believe there is a conflict of interest at all. I do always make a point to tell my buyers that I have used XX company before with great success but that they are free to use any that they choose. Now, if I received something in return for each referral (even something as innocuous as a restaurant gift card), that would be a conflict. However, the home inspector I recommend does not, nor do I expect him to, reward me in any way for referring him except to tell me 'Thanks' and once in a while I'll receive a greeting card in the mail.
Once again, because there are those agents out there trying to get a pluck for every referral and because there are companies and contractors who try to buy referrals, the need has arisen for laws to stop it (at least in Mass.).
Why can't everyone just be honest and ethical? I guess that will only be in a fantasy world.
Answered by Angie Harrington, REALTOR®
703 Thimble Shoals Blvd. Suite C-4,
Newport News,
VA, 23606,
757-817-4646
(Novice with 17 pts.)
Answered 15 years ago. -
Well this has certainly turned out to be a hot topic. The biggest problem that I see here is that people are so lazy to do the right thing and the state has to step in an decide. That is probably the biggest problem with the country as a whole. We all need to make informed decisions about who we trust. It should be well and good for an agent to make a recommendation as long as it treated as just that, a recommendation and the buyers have an obligation to themselves to check out all recommendations from all sources as to whom would be the best for them. Too many people just dump everything on the agent to handle everything and then cry foul when a problem crops up later that the agent abused or neglected. It's your house and your hard earned money and you should treat it as such. Also I have a BIG problem with agents that want to take over a transaction and control every aspect of what goes on. I think if anything that is who the state needs to go after. Really though, if you put your complete trust in somebody and get burned then you only have yourself to blame. We all need to be responsible adults instead of sloughing off our responsibilities to others and not taking account for our own actions in doing so.
Answered by Complete Detailed Reports
11250-15 old st augustine rd,
Jacksonville,
FL, 32257,
904-910-0297
(Mentor with 310 pts.)
Answered 15 years ago. -
I give my clients the name of a couple of inspectors for them to call and decide who they are most comfortable with. I represent them so I give them the names of people that I believe will give them the most honest feedback about a house. If an agent is representing their client in the right way then there should be no conflict of interest.
Answered by Dave Ruwe | WestEdge Realty
297 Douglas Ave.,
Holland,
MI, 49424,
616-502-0880
(Novice with 1 pts.)
Answered 15 years ago. -
I have to agree with many here. I really think it is a conflict of interest inwhich and agent should stay out. You can provide a vast list of known inspectors in the area but for an agent to select a preferred one, I think that is a no, no. Although, I hear many in the industry pass along the preferred one.
An agent should step aside and let each person work in there specialized field and stop worring so much on pay day. This also happens when agents think they are appraisers. Shame on them.
Answered by Marlene Bienes-Realtor First Ecobroker Certified at Keller Williams Town & Country Realty
Serving Thomasville, Cairo, Moultrie and Pavo,
Thomasville,
GA, 31792,
229-289-0139
(Novice with 28 pts.)
Answered 15 years ago. -
It seems I see a lot of Agents trying to defend their position to pick the inspector for the home buyer. It is time to get honest with yourselfs. Are you fooling yourself? Are you honestly picking the best home inspector for the buyer that is thorough? Honestly? Realtors that wear two hats as a sellers agent and a so called buyers agents should never be picking an inspector. Now a true buyer’s agent that is a buyer’s agent only 100% then maybe. Otherwise home buyers need to do their own research and pick their own inspector. That way there is no potential conflict of interest. I know for a fact and from my experience that many agents try to stack the deck in their favor. They want to make the sale and make the money. It called greed. It is ok to make money but do it honestly. Even if you lose a sale here and there you will have a good reputation.
I have had agents that complain because I took longer than an hour to do an inspection! I have had agents that try to control me, and tell me they want a copy of the report before getting permission from my client! It is against Oklahoma law for me to give a report to anyone except my client unless I have written permission to do so. It seem like agents think they have the God given right to control everyone, even bankers, contractors, & appraisers. Where do they get this idea from? They are home sales people only. Stick to sales let everyone else do his or her job!
If an agent is civil with me I will treat them with respect but if they get cross with me I will tell them real quick where I stand and where they stand! I am working for my client the buyer 100% and nobody gets between me and my client. My clients love my work and word of mouth goes a long ways. A good honest Agent will realize the value of my work. I however do not solicit Agents at all it goes against my ethics and is a potential conflict of interest. I however will not turn down an inspection recommendation from an Agent as long as they understand I am there to do my job for my client and to do it to the best of my ability. I don’t kill deals, and I don’t write up silly things like stain on the carpet. I do not report cosmetics. But I am very thorough in other areas that are important.Answered by Lake Home Inspection 2127 Garden St, Ponca City, OK, 74601, 580-762-1125 (Mentor with 309 pts.)
Answered 15 years ago. -
Williamsburg Golf Properties says “No, it's not a conflict on interest. The real estate agent is representing the buyer, and it's his/her job to make sure a good inspector is recommended (one that is known to do a thorough job).”
I beg to differ on that. The Real Estate Agent is really looking out for him or herself to make the sale and collect a commission on that sale. That is the bottom line. No one should trust and Agents that is going to profit from the sale to pick the inspector….never!
To the buyers out there use your brain, use some common sense trust no one.. Do you own research on the inspectors you choose? Ask questions; find out how many inspections they get from Agents. If it is more than a handful you may want to look elsewhere. Here is one good place to look. http://www.independentinspectors.org/Answered by Lake Home Inspection 2127 Garden St, Ponca City, OK, 74601, 580-762-1125 (Mentor with 309 pts.)
Answered 15 years ago. -
I kind of agree with Sandra to some extent except for this “I think it is a conflict if only one inspector is being provided.” What if 2 inspectors were being provided or may 3? You see if a limited list is provided it would still be a conflict of interest. You said only if 1 was provided as if anything above 1 would be ok. If you provided a list it must be a complete list of inspectors or none at all. Another thing I hear is some Agents may provide a list then say things like “This inspector finds too many problems, or we like this one he does a good job and so on” That in itself is a form of manipulation and should not be done. Let the buyer choose 100% and do not try to steer them in one direction or another.
Answered by Lake Home Inspection 2127 Garden St, Ponca City, OK, 74601, 580-762-1125 (Mentor with 309 pts.)
Answered 15 years ago. -
In the event you are acting as a "Buyers Agent" and are ask by your client to recommend a home inspector, and you know through experience that the inspector in question has a proven track record of conducting a thorough inspection of homes he has inspected in the past and in fact is the best available to your knowledge; I'm not sure you could do otherwise. Acting as the "Buyers Agent" requires you use all of your knowledge to assist your client. To provide a list of inspectors without making your client aware that one of the inspectors has proven in the past to provide a much more detailed and complete inspection than others on the list appears to me to be contrary to your duties as a "Buyers Agent". In my opinion it all boils down to being ethical; and the bottom line is you are ethical and doing your best for your client; or you are just looking to close the deal and collect a commission.
[img][/img]
Answered by Kennedy Land & Homes (KLH)
1300 North Bridge St., 2nd Floor,
Elkin,
NC, 28621,
336-526-1900
(Novice with 22 pts.)
Answered 15 years ago. -
This question seems to be popping up a lot in my e-mail. There seems to be a lot of disagreement and I see most of the Realtors on here are making all kinds of excuses why they can recommend an inspector. I will repeat this again. Realtors or Agents have no business picking inspectors, that is a potential conflict of interest and in most cases it is. I know this by experience and have seen how many crooked Agents operate. The only Agent that should be allowed to choose and inspector (that is a little questionable) are a true 100% buyers agents. I have met one such man that is a true buyer’s agent and that is all he does. He does not wear two hats as many agents do. He picked me to do an inspection and he was very picky and wanted me to write up a lot of things. I was impressed. He has had problems trying to educate other Realtors on this issue of home inspections. There has been two much control and abuse of power by Agents too long. We need checks and balances to keep everyone honest. If any one group or company becomes too powerful there is always the temptation to abuse that power for money. It is called GREED!
You agents are two short sighted. Let the best inspector do his or her job. If you pick an inspector and if they miss something big you could end up in court and it has happened. Stay out of the inspection business! Do your job listing homes, showing homes, talking with your clients, and making the sale. Do not get involved in the inspection process! Do not manipulate appraisers, pest control companies, carpenters, roofers, plumbers, electricians, bankers, etc. That is none of your business and it is not your job!Answered by Lake Home Inspection 2127 Garden St, Ponca City, OK, 74601, 580-762-1125 (Mentor with 309 pts.)
Answered 15 years ago.
