You are buying a home. You think you can rely on your REALTOR® for sound advice concerning your choice of a Real Estate Inspector.
Surprise! The Inspector you ended up hiring is not even licensed. It may be that the Inspector was never licensed, lost his license to disciplinary action, failed to take the required continuing education classes, or was sued so many times that his/her insurance provider would no longer provide coverage.
Should your REALTOR® be held liable for an inspection that is the direct result of the REALTOR®’s recommendation or ‘inspector-steering’?
The answer is….It depends.
Over the years, consumers have had to deal with many methods of being ‘steered’ toward a particular Inspector or type of Inspector.
Little has changed. Let’s take a look at some of the ways that a real estate broker or agent ‘steers’ you to the Inspector they want you to use.
The agent fails to mention that the Inspector they are recommending has past or pending lawsuits related to failure to disclose material defects in a past inspection or in multiple past inspections.
The agent fails to mention that the only reason that the Inspector is on the agent’s ‘Inspector List’, is because the Inspector has insurance. Insurance that protects the agent.
The agent fails to mention that that the Inspector’s Insurance Policy ‘covers’ the agent in the event that the Inspector is sued for performing a shoddy inspection.
The agent fails to mention that the Inspector has paid fees to the Broker to be on the agents ‘Preferred List’ of Inspectors.
The agent fails to mention that the ‘List’ of Inspectors doesn’t contain the names of Inspectors who are known to the real estate community to be “too thorough”.
The agent ‘helps’ you to find the ‘cheapest’ Inspector, and doesn’t tell you that the ‘cheapest’ Inspector is often in & out of the house in an hour or less, schedules 5 or 6 Inspections a day, and is often the least experienced Inspector. The Inspector that your agent has ‘steered’ you to, may not even be licensed.
As a homebuyer, do your homework. Homes don’t come with a warranty. The so-called ‘Home Warranties” and ‘Structural Warranties’ have more disclaimers than Swiss cheese has holes. You have more rights and a better warranty when you buy a toaster or blow-dryer.
Your best protection, as a homebuyer is to do research on the Inspection company you a contemplating hiring.
Honest and fair REALTORS®, Brokers and Sales Agents alike, recommend a Home Inspector who has the reputation of being extremely thorough and knowledgeable. These agents know that when they recommend a highly qualified and thorough Home Inspector, and that Inspector saves you tens of thousands of dollars in grief, they are providing a valuable service to you, their Client.
Quality real estate agents know that when they give you good advice and direction, you will reward them with referrals. How many times has ‘your’ agent, or the ‘seller’s agent, (or their broker) been sued as a result of bad advice?
