Preferred Inspectors: Buyers Beware

Preferred Inspectors

As a licensed home inspector, our goals at Home Fax Inspections are often similar to other inspection companies in Michigan and throughout the nation. One of the important goals involves becoming the "preferred inspector" for as many real estate agents, Realtors, agencies, and lending institutions as possible throughout our local and non-local coverage areas. Inspectors strive for "preferred inspector" status, often investing months if not years, of time, commitment, money and resources to achieve this goal. From an inspectors standpoint, there are many advantages to becoming a "preferred inspector", but why is this important for you to know and understand as a buyer?

 

Choosing your agents recommended inspector

Recently we've spoken with several buyers who have chosen their buyers agents (or dual agents) "inspector recommendation." As a result of some recent information obtained from these buyers, it is important for anyone looking to purchase a home, now or in the future, to understand the implications and background on "preferred inspectors" (or "recommended inspectors" as buyer and seller agents like to describe it as). 

 

Buyer Beware 

Some of our competitors may describe the following as futile, but at Home Fax Inspections our primary goal is for you to be informed and Know the Home Before You Buy, not for us to become preferred inspectors: 

• Although a "preferred inspector" is technically working for you as the buyer, the time, money, commitment, and marketing resources vested in obtaining "preferred inspector" status leaves a less likely chance that areas will be thoroughly inspected and reported upon to you as the buyer. 
• What does this mean? The inspectors risk of losing their "preferred inspector" status with your agent is not worth the cost (to many inspectors) of informing you of defects, or systems and components that may be near the end of their service life.
• Why? Buyers and sellers agents earn their income based on commission from the sale price (generally 3% to the buyers agent and 3% to the sellers agent). The more thoroughly a home is inspected, and defects are reported upon, the more leverage you have as a buyer to request or require components be replaced, fixed, or upgraded by the seller prior to closing. Often times, in exchange for not completing these updates, sellers may decide to cut the purchase price for the buyer to make up the difference. 
• As a result of a decreased purchase price, the buyer and sellers agent earn less commission. Therefore, if a buyer believes that the agents "recommended inspector" is one that is known to weigh heavy on defects or observations noted within the report, they're frankly naive.
• Often times, agents and realtors may even identify 2-4 inspection companies with one "recommended inspector." Even these individuals have an established relationship with your agent, and as they're also attempting to gain "preferred inspector status," ask yourself who these inspectors are truly working for...You as the buyer (who they'll probably never see again) or the agent that they've vested their time, money, and commitment in?

Although there are many other points that could be noted regarding preferred inspectors and relationships to buyers and agents, we'll take a look at how to effectively hire your own independent inspector during the next segment of this Preferred Inspectors topic. See how else Home Fax Inspections works for YOU, the buyer, at www.HomeFaxInspect.com See you next time!