Economic inspecting?

I happen to be a licensed real estate broker in Wisconsin. In one of my CE courses the instructor, a very sharp and knowledgeable person, mentioned that the biggest items in home inspections are: safety, structural, and economic threats to the property being inspected. The usual litany of legal threats and E&O coverage needed were mentioned for economic threats. In other words, failure to inspect for economic factors in the physical vicinity was cause for litigation.

Of course, I asked about this and was given some examples:

  1. during an inspection of a property, failure to report that an office building is coming up next to it is a big miss, as the building may bring down property values, and interfere with the solar power installation in the property. Plus increase in traffic.
  2. Not reporting a clinic for homeless people in the same block.

You get the idea. Honestly, I never heard of this and nobody ever asked me to take a look at this side of things. If true, and enforced, it moves the inspector into additional areas that will affect length of inspection, research needed, and price of the inspection.

Has anyone of the readers ever heard of this? Is this person floating bunk ideas? He claims this particular item is in the books.

These items are covered by the seller and agents in every sales agreement around here.

Non-issue for inspectors, huge issue for agents!!

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This has absolutely nothing to do with a home inspection.


Coincidentally, this was a case on Judge Judy today. Only not against an inspector.

What course was this in?

Tony F.: The point of the man’s narrative was that it is part of an inspection. I never heard of it, though.

Christopher: It was in one of my continuing education courses for Real Estate.

:thinking: Hmmmm…


Thanks. The instructor may have been confused between the appraiser and the home inspector. What you described is definitely out of a home inspection SOP.


Chris, good possibility

I agree with @ccurrins the SOP defines a home inspection.


Arnold, nothing in our SOP in WI requires us to comment on the economic impact of anything regarding an inspection. I am also a licensed broker in WI and this would fall more under adverse facts that as a licensed broker you would be required to disclose to parties in a transaction. I’m not sure where your instructor is getting his information.

Always keep in mind to not mix and match your professional roles. If you’re performing an inspection, stick with the SOP and leave your broker hat at home.:slightly_smiling_face:

Perhaps your instructor was referring to an agent’s duty to inspect

Hi Arnold,

FYI - Wisconsin Law states:

Wisconsin Legislature: SPS 131.33

(3) A home inspector may not report in writing or verbally on any of the following:

(a) The market value or marketability of a property.

(b) Whether a property should be purchased.

(000001.ildoc) (


Thanks for your email, Joe. The point of my question was asking if anyone knew about this, as I had never heard of it. I’d be the last to advocate for it.

Thanks again.

ARGO Technical Inspections
Mobile (414) 795-6297

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Rediculous idea that this is part of a home inspection. Cant see how that would even fall within the domain of an appraiser. The first example tries to predict the future and the second is probably an illegal redlining practice.

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