If a real estate agent ever tells you to skip the home inspection. . .
Filed under: Real Estate, Consumer Complaints
A reader recently asked Inman News a complicated question about communal property in condominium associations, but what really caught my attention was this part:Next, we have a home inspection question. When we bought our condo, our Realtor advised us not to hire a home inspector. She said that the areas in need of inspection were covered by the condo board.
I have put the offensive part of this question in bold, italics, and underlined it -- because I want all of our WalletPop readers to remember what I'm about to say: If a real estate agent ever advises you not to hire a home inspector, run away, find a new agent, and complain to the supervising broker at the agency where he/she is employed.
There are two reasons for this: You should always have a home inspection because it costs so little money (on the condo I recently purchased it was $200) and there are always problems that it could uncover in any unit: fire hazards, building code violations, mold, termites, and other things that might need repair -- and that you might be able to negotiate to have the seller pay for.
The risk/reward ratio of hiring a home inspector is so skewed in favor of caution that no real estate agent with his client's best interests at heart would ever suggest that you skip the home inspection.
The second reason you should fire the agent is that no agent with your best interests at heart would ever suggest that you skip a home inspection. A home inspection costs him nothing and protects him from a tremendous amount of liability.
If he advises you not to have the condo inspected and then you move in and it turns out the house has a defective Federal Pacific panel and it blows up and you suffer third-degree burns, guess who's going to get the crap sued out of him? The real estate agent and the broker charged with supervising him.
Only a real estate agent desperate for a quick buck would recommend that you skip an inspection -- and those are exactly the kind of agents you want to avoid. Always get a home inspection and hire anyone who tells you not to. You should also consider filing a complaint with the local board of Realtors.
Reader Comments (Page 1 of 1)
6-04-2009 @ 8:56PM
Donovan said...
Home inspection? DO NOT BUY A HOME WITHOUT HAVING ONE DONE.
It was only a year ago that I found my dream in the Florida Keys, after 12 years of looking. Yep, I found it on the internet Real Estate listing site. Within 24 hours I made an offer, contingent on my personally being able see the home, within 14 days after the seller accepted my offer. The Realtors description, the photos, the house itself sounded and look perfect. I finally found my dream home in paradise. So off I go to the Keys, meet my Realtor, and we go see my prospected new home. Looked even better in person, but needed a little face lift, and updating here and their cosmetically. Other then that it was the house I had been searching for, for over 12 years. UNTIL, the inspection took place. I met the home inspector at the house Saturday morning. Well, that $450.00 inspection fee, saved me in excess of $80,000 in major repairs. Toxic mold saturating the majority of wall insulation, a quick paint job to cover up rotted siding, sofetts, and facia boards, a complete new roof. And eleven open county permits carrying fines from $250.00 to $500.00 each, and these open permits follow the property owner. It doesn't matter if their 15 years old, you buy the property, their your permits and code violations, since the county never did a final inspection and sign off/close out the permits. And this home was not expected to be a major fixer upper, with an asking price of $700.00. So, always have a home inspection clause in your contract, and get the inspection done. It could save you thousands and thousands of dollars. And if toxic mold is found, the inspection could save you, your family and pets, from very serious illness's.
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6-05-2009 @ 1:36AM
Kris Yates said...
Zac is correct. Our web site www.loantactics.com deal with this from time to time. I wish to add that the inspector should not be someone the Realtor is buddy with, Nor should the inspector also have construction services included in their business. This would be a conflict of interest as you can see. And it happens many times.
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6-05-2009 @ 11:51AM
Alan Arnfield said...
I am a licensed New York State real estate associate broker. I fully agree with the article that anyone buying a home should have a home inspection done prior to signing contracts, but I also want to comment that at least in my 20+ years in real estate I have never heard of an agent advising a buyer to not have a home inspection done, even with properties that are being sold as-is. To send a message to your readership that that is a common practice among realtors would be unfair in my opinion. Buying a property is one of the most significant investments a person can make, and having a qualified home inspection of the property being purchased is highly recommended.
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6-05-2009 @ 6:36PM
Wayne said...
I am so happy this article was published. I'm a well respected, leading ASHI Certified Inspector in my state. This thing about Realtors telling Buyers they don't need an inspection is disturbingly common. Numerous inspection clients have told me that their Agent told them they didn't need and inspection, which set alarms off in the Buyers mind. The smart ones call their own inspector, we do the inspection, and low and behold, find real issues. Here is a recent, perfect example of one I was called to do:
A first time Buyer (young girl) called me for her inspection- a ground floor unit in a hi-rise. Her Realtor was a family member; he told her she did NOT need an inspection. Her instincts said otherwise, and she called me. I did the inspection and found over 30 very real concerns including wet walls, a Federal Pacific EP, tile failures in the tub stall, other electrical concerns, failed appliances, unit security issues, structural movement evidence, and so on. I wonder how her Realtor feels now. She did NOT buy it, and thanked me for helping her avoid disaster.
It is of equally great concern when a Real Estate Company gets into the home inspection business. There's one in my state- a major player, with their inspection company / franchise operating under a sub-level front company. Why on earth would they want to do that? I'll take a guess. They want the revenue stream- and they want more control on the inspections. By steering or rewarding their Agents to THEIR inspectors, they keep us thorough reputable inspectors away. What a disgrace, and I have made it very clear to the owner of that operation I object. You know, no one in that company has sent one referral to me since they started this, and my credentials, report, and experience are superior in every way. The main company has 15 complaints of record; I have none. I imagine they will get sued eventually. It goes further, they even advertise this inspection company in their company specific magazine, without disclosure of the direct relationship to the company owner.
There are many great Realtors out there who deserve your business. Avoid the unethical, unprofessional ones. Do your research.
So Caveat Emptor... Let the buyer beware
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6-15-2009 @ 2:41AM
Lance Pitt said...
Inspecting the physical condition of a house is an important part of the home-buying process. One or more professional inspectors should look for defects or malfunctions in the building's structure, such as the roof, plumbing, or foundation, and detect pest infestations or dry rot and similar damage. Before you finalize your house purchase, be sure the house is in good condition.
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