I do not mind at all. In general I learned some of my referal problems may not be related to my reporting style, but how I approach the agents when handing out my card and brochures. I do not see a lot of agent participation at the inspection, but when I release the report my client and the agents are talking in their office. I cannot stress the importance of meeting face to face with the client when possible. I do inspections for clients buying a second homes that do not live in my local area, in a lot of cases they do not participate in the inspection and communication is limited. As for my report it needed to be fine tuned, it was a little rough on the eyes and a little boring in the begining. It seems that some of us do not like summaries, When reading the report it becomes a little redundant to read the same comment multiple times. I tend to agree. I guess if i generated only the summary at the time of inspection, and a report the next day this would be okay. However I do not, so the summary and the report at the same time may not be necessary. On a similiar conversation what items show up on the summary was questioned. I had made a comment about, the lack of AFCI breakers. I had marked it as red so it appeared in the summary, maybe it’s not necessary to include some items in the summary. Again I agree.
I have been using the check boxes (good,fair,poor,ect) I include a key expalining the meaning of the boxes. Some have questioned WHY do i need to explain what the box means. I am considering the idea of not using these boxes, and writing a narrative that not only explains the condition but helps balance my report(good as well as defects). Remember when writing a comment, to explain it in a way that can be understood by those who don’t know what you are talking about, explain the consequences of the condition if it goes unrepaired. This is the real value to the client. Some items i explained well, and some items i did not explain at all.
Simple mistakes can have an impact on how your client views the value of your report, but may not have anything to do with getting referals from RE agents. If your client expresses satisfaction to the RE agent, you might get more referals from them.
To some extent the old saying “if it’s not broke don’t fix it” May apply to new home inspectors. If the RE agents have a good inspector that they like why should they change?
Some new marketing plans I have do not include the RE agent at all as this is like preaching to the choir. Advertising to the buyer/seller directly,for sale magazines, Websites, newspaper, vehicle signage, ect. I think the best thing learned is patients, and to ask for help when you need it.
Very nicely stated Chris. You should do well when you implement your fixes.
I agree Jeff, Chris will continue to be an asset to his local area, it takes time for the other aspects such as referral sources to develop.
Nothing wrong with lots of information as long as it is easy to navigate.Just work on social aspects of the inspection and how you interact with those present.
Cut down a little and make it efficient is all.
I am looking into the photo add portion of the summary section myself as a way to split recommendations,materials and tips from the meat.
Thanks Chris…
Here is my thoughts and this is from someone who has been on this board for close to 5 yrs now and asked “thousands” of questions and still ask them ;).
– Summary is important. Place it at the bottom.
– Only use red when it’s a safety issue and if you want to list expensive items. All other defects are listed in blue. With hip I reversed where I added my narratives. Now red items are listed only in the meat of the report. The summary list all my blue items. I also use black for typical comments made by me.
– Use your contract instead of your report to explain a majority of your disclaimers.
– Get rid of the check boxes. They make hip reports look basic IMO.
– Keep your font readable not large not small. Verdana 10-12 works great.
– Learn how to use text and invisable paint blocks to align your static text in your reports. Presentation is very important. HIP out of the box looks horrible to me. You have to alter things to make it look like it should.
– Get rid of the standard company title on your report. Create a logo that flows well. Remember your main page is what people first sees. Make it sharp.
Well start there and I’ll tell you more if you want. I have do more work on my site for the millionth time now. Remember this keep an open mind. You will fail at somethings and other things will work like a dream. Just keep a list so you don’t waste time doing them again. This business is very hard to get going but once you do it will pay off. And always ask questions and don’t listen to anyone who cracks at you thinking its stupid. You’re here to learn and increase your business not to impress anyone. Keep it up you’re on the right track.
I am impressed, Billy, you actually listen to what is said.
Chris, Billy said it about right. If the check boxes are still used a lot in your area then that what Realtors expect, so use them.
if you want, send me a copy. We are in the same boat, we get to meet a whopping maybe 10% of our clients. This is their second home and they live elsewhere. I will help if I can.
I do know this, my report style has proven what I do is right 4 times this week.
Example, seller stated that I am incompetent because his pool heater operates well and I did not turn the breaker on is why it did not work and laughed at my “incompetence”.
Not only did my report show the panel with the breaker in the on position, it showed the “LF” light illumninated indicating that it had a “Low Flow” issue. How could it show a error message when the power was not on? Haven’t heard back from the seller, wonder why?..
I’d agree with some of the things that Bill said… but I also feel that a good report stands on it’s own… and can nearly describe itself. There’s good reason to describe your services in a heading as well as well as ensuring that you reference your standards… whichever you use, be it nachi’s, your states or whatever, the referenced standard should be clearly stated in a report.
Don’t end up in a situation where someone else rather than your client is relying on your report, which albeit may be quick and concise, but lacks reference of your service… if a dispute arises, it’s possible to then have someone decide a standard for you. I realize we all put confidential report / for buyer etc… but there will come plenty of times that the person calling and asking why something is afoul is not your client. Not only that, when communication comes about later, and the buyer has a question or two, you are both reading the do’s and dont’s so to speak.
Sure it’s fine to place all the disclaimers in a contract for the sake of a cleaner report, but it might not serve you or your client well… these reports can be referenced some time later. Nuff of that.
Traditionally, a summary is listed at beginning of report, but I guess it matters not.
Rather than a Blue/Red/Green/Yellow items in a summary, if you are Recommending something… say that, or if the impact of a defect is significant and bears an unreasonable risk to property or occupants… say that. That’s the standard you’re using and the standard of the buyers contract (in most states at least). We can opine all we want, but should remember that a component nearing the end of it’s service life may not represent a defect, per se.
I’m not crazy about narratives or summaries that are monotone in a sense where the reader doesn’t understand “what’s in it for them”… or what is the impact of said defect. A buyer rarely wants to know or understand many aspects of an electrical defect, but should understand if the defect presents an immediate risk of safety/property as well as being advised of what to do next, or what trade may be contacted.
Lastly… a well written narrative should be able to convey a clear message, and while it’s nice to be able to “prove” with pictures… our narratives are commonly copied and pasted in a repair request, without the show and tell aspect.
The 'Show and Tell" has saved me more than I can count. Your word means nothing and there is NOTHING, I mean NOTHING like a picture that PROVES your point, all the rest is just he said she said…
Don’t worry about that issue- don’t depend on REA’s for the bulk of your work…a bad practice and probably soon to change in your area. Two juristictions, Massachusetts and British Columbia, now ban REA’s from recommending HI’s. I can see this catching on in other areas as politico’s/bureaucrats smarten up and see the conflict of interest.
REA’s are in a conflict of interest position even when they recommend 3 HI’s (which is required by many RE associations). When recommending 3 HI’s, the REA limits the client’s choices to 3 HI’s that work to the constraints/standards of the REA’s personal expectations (not a long inspection, basic SOP report, not a “deal breaker”, etc).
Here’s some interesting text from the IHINA:
***What’s Wrong With A Real Estate Agent Recommending A Particular Home Inspector To A Prospective Home Buyer? ***
Most real estate agencies work on an average commission of 5% paid by the seller of the property. On a house selling for $350,000 there is a potential commission of $17,500. (FYI, real estate commissions are negotiable.) Sometimes a selling agent will recommend particular home inspectors to a prospective buyer, sometimes a list of three is given out. Who are these recommended inspectors? How did they “qualify” to get on the “approved” list of the agent? Is the agent recommending a thorough non-bias inspector or is the agent recommending someone who will help protect the potential $17,500 commission? Unfortunately, for the prospective home buyer, some real estate agents view a thorough and non-bias home inspection as a threat to their sales commission.
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Do prospective home buyers have the right to use an inspector of their own choosing?
If a real estate agent tells you that you cannot use an inspector of your choosing, or insists that you use one of their “recommended” or “approved” inspectors, you should contact your attorney. A real estate broker or sales agent who tries to get you to use an inspector of the agent’s choice is trying to control the home inspector selection process. Prospective home buyers must keep in mind that real estate agents who receive a commission from the property seller, are working in the best interest of their client, (the seller.) As the prospective home buyer, you are a customer of the agent, not a client. As the prospective home buyer, shouldn’t the home inspector you’re paying for, be working in your best interest?
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*What Is A “Deal Killer”? *
The derogatory phrase “deal killer” is often used by real estate agents to describe independent home inspectors who give buyers objective information in an inspection report, which may lead the buyer to renegotiate or to look at other properties. Many real estate agents view independent home inspectors as a challenge to their ability to generate income. They view these “deal killers” as foes and will use a number of tactics to control the inspector selection process to make sure that the prospective buyers do not retain independent home inspectors.
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*How Does A Real Estate Agent Control The Inspector Selection Process? There are many tactics used, some subtle and some not so subtle. The agent may discourage the potential buyer from using a certain inspector by making comments like: “That inspector is a deal killer”, or “that inspector takes too long” or “we’ve had trouble with that inspector” or “we don’t allow that inspector to inspect any of our listed properties” or “that inspector is too expensive.” A twist on the fee tactic is to advise the prospective buyer that they should expect a home inspector to charge around $250 or $300. By advising home buyers to expect these low (unrealistic) fees, agents are trying to steer home buyers to certain inspectors, because the prospective home buyers might limit their search to the “arbitrary” price range set by the real estate agent.
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The tactics used to encourage a prospective buyer to use a particular inspector include: “We’ve had good luck with this inspector” or “this inspector has the lowest fee” or “we use this inspector all the time” or “this inspector only takes an hour and he gives you a report right on the spot.” For instance, in the first stage of discussion about having the home inspected, the real estate agent may recommend to the buyer a “good” home inspector with whom they have worked with for several years. Some agents may have a list of three inspectors who have been carefully screened not to be deal killers. The list, however, will be long enough to protect the agent from any referral liability should the buyer want to blame the agent for any inspection mistakes. This gives the agent the perfect combination of: A) No liability for the referral; B) The buyer “chooses” an inspector the agent prefers; and C) The buyer’s choice is limited to home inspectors who will not hurt the sale.
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If There Is A Potential Conflict Of Interest With Sales Agents Recommending Home Inspectors, Why Doesn’t The Government Do Something About It? *
A home inspector licensing law was passed in Massachusetts and became effective May, 2001. This law, to some degree, does address the potential conflict of interest of real estate agents referring home inspectors. The new law amended Chapter 112 section 87YY](http://www.malegislature.gov/Laws/GeneralLaws/PartI/TitleXVI/Chapter112/Section87YY1~2) of the MA Real Estate Broker and Salesperson Licensing Law. It prohibits real estate brokers and salespersons from directly recommending a specific home inspection company or home inspector. Instead, upon request, the agents must provide a complete list of licensed home inspectors prepared by the Board of Home Inspectors. (So far, MA is the only state which has this provision.) The prohibition does not apply if there is a written agreement between the buyer and real estate broker that the broker is acting exclusively for the buyer as a buyer’s broker. Potential buyers must still be aware that regardless of who the real estate agent claims to be working for, his or her commission is still coming from the successful closing of the sales transaction.
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*Why Don’t I Read About This Conflict Of Interest Situation In The Newspaper? *
Very simple answer, money! Look at the real estate section of any local or regional newspaper, lots of houses being advertised by real estate agents. Those newspapers don’t run those ads for free. How many home inspector advertisements do you see in the newspapers? None. Do you think a newspaper is going to bite the hand that helps feed it?
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Why Don’t Home Inspectors Organize And Change The Current Control Real Estate Agents Have Over The Inspector Selection Process? *
You would think inspectors would welcome the opportunity to allow prospective home buyers freely choose a home inspector. Unfortunately many inspectors rely upon real estate agents to steer clients their way. This is especially true for large multi-inspector firms. As you can see from the number of Independent Inspectors listed on this site, less than 1% of all home inspectors claim that they do not solicit real estate agents for client leads. In a free marketplace, companies that offer a poor product or provide a poor service eventually go out of business. In the world of home inspection, there is an artificial marketplace *controlled by real estate agents. This allows “agent friendly” inspectors to stay in business, regardless of their inspection abilities.
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What About Inspectors Who Claim To Be Independent, But Don’t Belong To IHINA? *
Many inspectors who claim to to be independent are not willing to sign the *IHINA pledge](http://www.independentinspectors.org/articles/IHINA%20pledge.pdf). An inspector who claims to have no real estate agent affiliations doesn’t necessarily mean they do not solicit real estate agents for client leads. The best way to qualify the relationship is to ask the inspector whether he or she solicits real estate agents for client leads. If you find that the inspector or inspection company maintains brochures in real estate offices or if the inspector or inspection company is on the real estate agent’s “recommended” list given out to prospective buyers, this should tell you something.
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*Why Doesn’t The American Society Of Home Inspectors (ASHI) Code Of Ethics Prohibit ASHI Inspectors From Soliciting Real Estate Agents For Client Leads? *
Good question! This question has been raised and discussed with ASHI National. The response has been that ASHI does not want to dictate to its members how they should obtain their client leads. However, several years ago ASHI embarked on a “branding” campaign spending millions of membership dollars to educate real estate agents that they should refer only ASHI inspectors. This was unfortunate for the home buying consumer. The following paragraph has been taken directly from the ASHI web site: "ASHI is your professional partner for home inspections. Your customers rely on you for your advice on which service professionals to use in the buying or selling process. You can trust that ASHI inspectors will deliver exceptional service and expert knowledge, enabling smart decisions and peace of mind to your customers, thus helping you in your role as a trusted resource.
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"Do you want an inspector who “helps” the real estate agent earn a commission or do you want an inspector who is going to fully disclose the condition of the house?
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What Can Be Done To Prevent This Potential Conflict Of Interest? Contact the Representatives and Senators of your own state. Send them e-mail with a link to the: Independent Home Inspectors Of North America web site. Do not ask the real estate agent for the name of an inspector. Do not accept any short list or recommendations from the agent. If the state you’re buying in requires home inspectors to be licensed, obtain the list of licensed inspectors. Do a little research and choose your own inspector. The best source for referrals will come from people who do not have a vested interest in the sale, this includes your attorney and past clients of the inspector. Remember, it’s your money and your potential future home. Choose your home inspector wisely!
I agree.
This is the reason purchasing my Android Camera was such a big deal for me.
Pictures have saved me many times over.
It is against arizona law for realtor to refer a specific inspector. I am sure that realtors in my area do say things to persuade buyers desicions when they choose a inspector.
“Mr./Mrs. Buyer, here is a list of home inspectors from our area. This guy I know, this guy does a pretty good job, but this one I know very well, and have used him alot” as she points to his/her non-alarmist inspector.