FAQ

Are you in the process of buying a home? It's no secret that this journey can bring about its fair share of stress. While a home inspection is intended to offer reassurance, it might sometimes have the opposite effect. You'll find yourself absorbing a wealth of information within a relatively short span. This can include a written report, a checklist, photos, environmental assessments, and insights shared by the inspector during the examination. Coupled with the seller's disclosure and your own observations, this wealth of information can feel overwhelming. So, what's the best course of action?

Take a moment to relax. Much of the inspection will revolve around maintenance recommendations, expected lifespans of various systems and components, and minor imperfections. While these insights are valuable, what truly matters often falls into four key categories:

1. Major Defects: These are significant issues, like a structural failure, for instance.

2. Issues Leading to Major Defects: Smaller concerns that, if left unaddressed, could lead to more substantial problems.

3. Factors Affecting Financing, Legal Occupancy, or Insurance: Matters that could hinder your ability to finance, legally reside in, or insure the home.

4. Safety Hazards: These are potential dangers, such as an exposed live buss bar at the electrical panel.

Anything that falls within these categories should be dealt with.

Often, even serious problems can be rectified inexpensively to safeguard both life and property, particularly within categories 2 and 4.

It's important to note that most sellers are sincere, and they may be surprised to learn about defects uncovered during the inspection. It's crucial to realize that sellers aren't obligated to repair every issue highlighted in the report. No home is without its imperfections, and maintaining perspective is key. It's unwise to jeopardize your deal over matters of lesser importance. Demanding that a seller address deferred maintenance, conditions already disclosed by the seller, or minor details might not be appropriate.

This message is intended for real estate professionals.

Your clients' offer has been accepted by the seller, and now, with your guidance, they're faced with the task of selecting a home inspector. Should you lead them toward an inspector who provides overly lenient reports? Should you assist them in finding the least expensive inspector? The answers to these questions are clearly No, No, and Absolutely not.

Your primary responsibility is to your clients, and as such, you must recommend the most exceptional inspectors. If you suggest a less thorough inspector, one who indirectly compensates for your referral, or a budget-friendly option, you are neglecting your duty to your clients.

The Code of Ethics laid out by the National Association of REALTORs outlines your obligations. Article 1 mandates safeguarding and advocating for your clients' interests. Article 6 calls for disclosing any financial gain resulting from recommending related real estate services (this also encompasses any advantages for your broker).

Given that most real estate agents are only compensated upon the successful completion of a real estate transaction, your personal interests and your fiduciary duties are already in tension. It's crucial not to exacerbate this situation. The most ethical way to prevent claims of negligent referrals, operate with integrity, and fulfill your fiduciary duty is by assisting your clients in selecting an inspector based solely on merit.

Though no real estate agent can ensure the extent of any specific inspector's thoroughness, a notable connection exists between an inspector's fees and their competency (essentially, you tend to get what you pay for). Encouraging your clients to choose an inexpensive inspector for such a momentous purchase is a breach of your fiduciary responsibility. When uncertain, prioritize quality over cost and seek out the most qualified inspectors for your clients.