I read the article How Agents Can Limit Their Liability with Regard to Home Inspections. This is of real interest to me because I am also a Licensed Professional engineer and do Wind Mitigation reports.
I’m writing this post for the InterNACHI Code of Ethics Course. I suspect it would be a violation if I was working for the seller of a home and he asked me to overlook certain damage or deficiencies for extra money. Clearly this would be a violation of the InterNACHI could of conduct and an ethical violation. It would also be a violation of regulations in the state where I work.
Hypothetical Conflict of Interest
I know several different realtors and I contact each one to let them know I am now a home inspector. I go on to offer them a 50$ spiff for every inspection they send my way. I would most definitely say this would be a conflict of interest since they would be paid to use my company.
I was asked if I would accept payments beyond what a customer would pay me in order to ‘forget’ to write down things I had found wrong with a house. I explained to the real estate agency that I can not allow such actions to take place, and that I will always make a full report on everything I find wrong with a residence so my customers walk away knowing that they know everything possible about the property they plan on purchasing.
InterNACHI Code of Ethics Course
The conflict of interest has come when Agents have asked me to go easy on the clients and not to scare them. In other words the Agents do not want me to clearly explain the issues that the structure may have in order to save the deal. On the flip side, I have been ask by the client to exaggerate the severity of an issue so they can ask for a reduction in price on the sale of the property. Both of these situations are in violation of the Code of Ethics.
To whom it may concern,
At the conclusion of my inspection of the property of 629 East Ada Avenue Glendora California, the buyer’s agent approached me and asked me to falsify my report and add additional problems so that their client could negotiate the purchase at a lower price in the buyer’s favor.
I responded by notifying them that I am a INTERNACHI qualified home inspector and conduct my business in accordance with the INTERNACHI code of ethics that I support and uphold and will deny their request and will in addition notify INTERNACHI of their attempt to have me modify my report illegally.
Sincerely,
David
Review topic essay:
I reviewed the framing diagrams. Each picture made it very easy to understand each dimension and part of multiple parts of framing. Roof, stairs, walls, beams, trimmers, king studs, joist, trusses, bearing walls and non bearing walls. I now find it so much easier to identify each structure clearly and feel confident in identifying possible problems as well as positives associated in this area.
Library of Inspection Articles: Evaluating Structural Framing
There are a variety of different framing methods and different ways the load could be transferred. Searching for signs of failure visually will help with what cannot be seen behind the drywall. Although experience is ultimately the key when examining structural framing, we’re not all structural engineers and I can further my knowledge by studying on the InterNachi site.
I believe that one of the most common conflicts of interest that I will see in the inspection field will pertain to realtors asking for certain topics within an inspection report to be toned down, and that if in fact they are, more business and potentially compensation will come my way. This is perhaps the greatest threat to conflicts of interest that we face, because some of the best business we receive comes from referring real estate agents. It is important however, to keep in mind that we do not work for the real estate agent, but instead work for the client and act on behalf of the client’s best interest, and not in the best interest of the real estate agent and the sizable check that they may or may not receive.
The article above was very critical to the understanding of how to get business from realtors and how to ensure that they know who we are, what we can do that will bring the most value to our clients, and how we can most importantly get in front of these realtors. By selling ourselves to these professionals who work with buyers and sellers every single day, we can put ourselves in a better position to earn referrals by doing a quality job, and by earning additional business in an ethical way through our actions and service we provide. This article can make any inspector a lot of money over the course of their career if diligently applied on a consistent basis.
The article I read was 15 Tools Every Homeowner Should Own, and I think it was very insightful. However, I did notice that a few items listed, many homeowners don’t have. This article mentioned that homeowners should have a hacksaw, torpedo level, and a respirator. Although these would all be helpful to have, I think these are the top 3 that everyone lacks.
InterNACHI Code of Ethics Course Essay
Several possible conflicts can occur in this line of work. One possible scenario would be if I was hired to perform a home inspection on a property that a friend or family member owns. The family member could potentially want me to over look a flaw to help sell the house. I would have to disclose to the client that it would be a potential conflict of interest for to do the inspection myself and ask that they may want to hire another inspector.
10 Easy Ways to Save Money & Energy in Your Home
I think home inspectors can serve their clients really well when they point out the energy loss deficiencies in the home and make recommendation that will help them save on their energy bill. Finding gaps in insulation, windows or doors with bad seals leads to higher energy costs.
I was passing out flyers for a promo I was running for the home inspection. I met with many real estate professionals, but one named john asked something that startled me. I was explaining my service benefits as I with the others and was cut short mid-sentence.
He says “you know we send a lot of referrals to the home inspectors, with a sly smile. I reply “and I would love to be a part of your referral network.” Do you have any requirements to being listed?” There is just one he says.
I ask what could it be? I’m sure I meet them all. He says not the $2000 referral set up cost. I was shocked and told him I would get back with him once I confer with my peers.
At my regular workplace (I’m in facilities/maintenance), I was asked for a thorough inspections of some houses. That was done and reports were generated using my home inspection business’ tools, software and license. Since I performed the assessments on company time, I did not charge the agency any fees as I would for regular inspections.
Would this be an issue with the code of ethics?
Violation of the interNachi Code of Ethics
A Certain Real Estate agent offered me exclusive referrals from the agency to all their clients for a fee per referral, He further offered that he could make the inspection report a requirement of sale should I be willing to increase the fee per inspection.
The agent offered to include this inspection requirement into the contract that he sign with his clients looking for a house to buy.
He further offered a mandatory inspection to home sellers and said he will convince them that this will be a good marketing tool and requested that for an increased fee for the inspection I must give the home seller a “favourable” report on the property.
Hypothetical Essay
I inspected a home that had a series of horizontal cracks on the interior of a basement exterior foundation support wall. This is usually an indication of lateral pressure on the wall. It is typically a red flag for homebuyers and both realtors were concerned that it would break the deal, so one of them called me up and asked me not to use harsh language on the inspection report because the cracks were just cosmetic. I told the agent that the only person that could determine if the cracks were cosmetic was a structural engineer and that I never use harsh language. The only language that I used was professional and required by the State of North Carolina. Here is what wrote:
There are horizontal cracks in the east basement exterior
foundation wall. These type cracks are usually indicative of
lateral pressure against the foundation wall. This condition may
eventually result in structural damage and/or failure at this location.
A structural engineer is recommended to further investigate the
cause of this condition, the overall condition of the foundation wall and
to determine the corrective action.
Needless to say, this didn't go over very well with both agents, but I wasn't too concerned about losing them as referrals, because I only like to do business with honest people. The engineer recommended a simple drainage system along the exterior foundation wall due to the expansive soil in the area and simple reinforcement of the interior of the wall. It did cost the homeowner some money, but the house sold in the end and my client was very appreciative. (True story, btw.)I was contacted to do a home inspection.I arrived at the property and proceed to perform the tasks on my inspections list.I come across a sinking roof line that has standing water.I can tell the water has been sitting a long time and that is potential problem for any potential buyers of this home.I take pictures and make a note of the roof damage and continue the inspection as I am inspecting the attic area I notice that some of the wood supports.Have been damaged and I see termite eating at the structure.Another red flag I observed that can be a potential expense for a buyer agin I take pictures and take down notes.I do the rest of the inspection without finding any more problems.As Im walking out I’m approached buy the selling stating that he knows about the roofing and the pest problems but want to offer me 3000 to keep my findings out of my final report.Me accepting an offer like that would be in violation of our code of practice.
I was able to finally get a meeting with a local realtor whom owns the agency that does the majority of home sales in my area.
Through casual conversation, we discussed that the majority of his home sales were for people who transferred to the area for business, and that is why he is so busy. Looking at this as a great potential, I finally received my first referral call from one of his clients to do an inspection and put it on my schedule. The evening before my inspection, I received a call from the realtor that I needed to ensure that this inspection went smooth as his client needed to move asap.
An obvious violation of our code of ethics.
I just enrolled into the code of ethics course and im starting my requirements. Something I learned when searching the library for this course was crawlspace hazards. I chose this hazard because being in some crawlspaces already i was naturally cautious. First thing, i noticed that crawlspace can be inherently nasty and may have fungi, pests, standing water, possible structural collapse hazards. Just be alert and aware!