Originally posted by GailSusan:
Perhaps it wasn't raining at the time. Only a home inspector who is a licensed roofing contractor should be stating that a new roof is needed. Otherwise, most of our E&O insurance require us to leave such recommendations to those licensed in those other professions.


Originally posted by GailSusan:
And I think that's where Realtors and home inspectors clash.

Realtors should let home inspectors sell their services. Realtors should not be selling the services of home inspectors. After all, home inspectors don't sell the services of Realtors.

Too many times I get a prospective Client who calls to book an inspection. After getting certain information that determines my cost, I inform the prospective Client of the Cost, to which he replies, "My Realtor said it would only cost $200." Well, now why would a Realtor be telling someone how much my services cost?

Of course, most Realtors state something like, "Home inspections usually cost about $200 [or whatever number]." But that still does a great disservice to home inspectors. A more proper method would be to tell the Client to call the home inspector (or two or three) to find out how much it costs.

I had a Realtor last week who called to find out how much the inspection would be. He is one of those controlling Realtors. Since he gives us a lot of business, I gave him the price and emailed him a $50 gift certificate to give to his Client to make himself look good. Well, he had told the Client that the inspection would be $300, when it was $349 ($399 minus the $50 gift certificate), and the Realtor tried to force me to honor his quote of $300. I refused. I told him in front of his Client that the inspection price was stated on the contract ($399) and that I provided him with a $50 gift certificate. Where was the gift certificate? He had it in his briefcase. I told him that since I already had provided his Client with a $50 discount, I couldn't go any lower. I have to make a living. However, I invited him to pay the other $49 if he wanted to. And while I didn't state it, he could see the look in my eyes: "You're working both sides of the deal on an $850,000 house, making $50,000. I'm making $349. And you want me to lower my price? Puh-leeze."

He does this quite often, and I don't know what to do about it other than to quit doing business with that Realtor which, I think, ultimately will happen. That's the advantage of being self-employed--one doesn't have to work with people one doesn't want to work with.

But let those professionals who provide additional services sell their services. Don't try to sell them, or unsell them, to your Clients.

I never thought I'd be able to sell the $5,000 inspections, and all the Realtors I talked to said their Clients wouldn't go for it.

Interesting that once I'm able to sell my own services by talking to prospective Clients, I can sell just about anything I have a desire to sell.

If a Client is paying Realtors 6% commission for filling out a lot of paperwork and disclosures (and I know that's simplistic; you and I both know you do much more), then I'm failing to understand why a home inspection--especially a good one that provides knowledge to Clients and keeps Clients, Realtors, and home inspectors out of court weeks, months, or years down the road--is not something of value.

I'm with you on the comprehensive home inspection. I think clients should be willing to shell out the money for a team of experts to inspect a house. I don't usually get involved in who my clients choose for their home inspector unless it's a first time buyer who has no clue and is turning to me for advice.

I can't imagine putting pressure on a home inspector to lower his price. I'm sorry you find yourself in that situation.

Trust me, I'm not the only one.

Just check out inspectionnews.com and nachi.org message boards for some real interesting horror stories told by home inspectors about their relationship with Realtors.

And, of course, Realtors have their own horror stories to tell about home inspectors.

But I must admit that the home inspection industry is the strangest industry of which I've ever been apart in my 40 years in the business world. In no other industry did I market to people who did not pay me. Here I market most heavily to Realtors hoping, sometimes beyond hope, that they will refer their Clients to me so that I can make a living. But when many of them quote prices for my company that are so low that I can't pay my bills, much less employee salaries, I know there is something wrong somewhere. I know what is wrong; now I just have to work diligently at correcting it.

Preinspections are becoming one of the most important things a seller can do to not only sell their home faster, but to get a higher price.

Gone are the days of "list it, wait and lower the price".

The real estate consultants of today are beginning to see how to BEST position their sellers to get where they need to go on time.

This involves several things:

Cleaning and Decluttering is a MUST

Removing personal items, photos

Touch up painting at a minimum

Removing most custom decorating, such as deep colors, wallpaper, printed or colorful carpet

Staging - using sellers own furniture OR some agents use their own/add some of their own inventory

Giving explicit directions for showings - lights on, no "smells" such as perfume, potpourri, air freshener (makes the buyer think something is being covered up)

Let's say all those things are done perfectly and the buyer walks through. Oops, there is a crack in the foundation wall - is it from the house settling or is it serious? Better take $8000 off the price for that (just to be safe, even though we have no idea yet what is wrong).

Several windows won't open, and it might be because they are painted shut, but who can tell for sure? Better take off the cost of new windows in the price offered.

Those mechanicals look like the original units in this 15 year old house, so better allow for their replacement in the offer price.

After all these mental and exaggerated deductions, we probably won't have a happy seller.

Try this scenario:

Listing agent makes it part of their personal professional policies to have every home they list preinspected by a whole house and a pest inspector. The report details issues from minor to major, and the seller makes some choices. He is able to fix the minor things and due to lack of funds until the house sells, he can put a note on the MLS or at the house that "whatever it is" will be paid at closing, held in escrow, however it is done legally in your state.

Since the listing agent always stages the homes they list, the owner got advice from an accredited stager on what needs to be neutralized in terms of walls (paint and/or wallpaper removal), how to set the stage in the kitchen and bathrooms, recommends adding lighting in many of the rooms - the most common mistake a seller can make. How to open the drapes, rearrange the furniture and "sell" the view. The stagers in our area also give curb appeal tips as well.

Try as they might, the buyer just can't find too many if any "problems" to lower their price. Sitting right there on the table is the entire inspection binder, plus any receipts for any repairs done by licensed contractors, all giving the buyer peace of mind.

As that listing agent, I always tell my sellers that we WANT the buyer to get their own inspections if they desire, we did not do this to prevent their getting one. There just simply won't be any surprises.

Inspectors are licensed and bonded and are putting their rear ends on the line. I don't know of a single inspector who would "overlook" something and not include it on the report, just to make the seller happy. Most sellers have no idea something is wrong, are mortified when they find out, and are soooooooooo glad that no one else had to know, certainly not the new buyers.

It is possible that the buyer would not have gotten inspections, so why would the seller want to do them? Just because a buyer didn't get inspections doesn't mean they won't sue or try to seek damages if they move in and find something really wrong that was not disclosed. It isn't a place many people want to go, even if they are innocent. Tons of stress.

An important factor is this: What you do for one client it is advised you do for all. Don't get caught giving preferential treatment. Don't view the profit from each individual sale as the determining factor on whether or not you an affor to preinspect that home.

If getting a home sold faster and for higher money is your result, you will find more and more referrals headed your way. Look at your "overall" budget. Some houses you will make a killing and in others, you will not. But in the end, all looks great.

How many of you have dreaded the inspections and had anxiety over what will happen if major things are wrong? That purchase agreement negotiation just went poorly and the deal is barely hanging by a thread. Doesn't have to be that way.

Agents who do not believe in or won't encourage preinspections hopefully are preparing the seller ahead of time regarding the inspection process, how much time the buyer has, what the buyer can ask for, etc.

We all need to put our sellers in the minds of the buyers. What does a buyer see and think when they walk through this home?

Don't forget to see if you can work something out with a few trusted inspectors - if you send them all your business, perhaps they will give you a lower rate. That is how it works in my area.

For the curious, I recommend you give it a try and just see. If no one is doing these in your area yet, this is a great way you can stand out and differentiate yourself.

Some good common sense advice that more and more people are following toward full disclosure.

"I've had the house inspected. I fixed these things, I haven't fixed these things but took them into consideration when I set the price. Don't ask me to adjust the price for anything I've disclosed to you."

My clients regularly get three or four times, or more, of the price of the inspection knocked off the price of the home because the sellers and their agent didn't see the wisdom of a seller's inspection.

That doesn't even address the negotitating & stress issue for the seller's and their agents about whether or not the deal will still go thru.