Bill Siegel asks:
We’ve bought back 11 homes and two more are likely to be purchased soon. I don’t know anyone who has lost 6%.
Because real estate agents want to be paid for their work. I can’t represent the seller in their real estate deal, I’m not a real estate agent.
Bill Siegel complains about agents:
Well, Zillow seems to be trying to eventually put an end to real estate agents, but I think we’re 20 years from that in America. There are 2 million real estate agents in the U.S.
Bill Siegel suggests:
How does an inspector find “buyer’s remorse?” That’s what is clearly going on in most of these cases. Who would pay for it and why?
Bill Siegel complains about real estate commissions again:
What do agents in your area typically charge? Many of these buy backs are $100K condos. After the 6% is split 4 ways the agent is only getting $1,500 less her costs for taking the transaction to closing.
Robert Sheppard says:
I have to agree with you. I also see what’s going on. You figured it out as well.
Bob Elliot figured it out too:
Correct. And as we see, it still doesn’t weed out everyone. 6% is much less than the hit InterNACHI takes to flip these properties. The difference $$$ InterNACHI is losing is going somewhere.
David writes:
No, that’s incorrect. A home inspector’s SOP only defines what the inspector has to do and what the inspector doesn’t have to do. It doesn’t prohibit an inspector from doing or offering more.
Furthermore, the Buy Back program dramatically reduces liability in our industry. It has all but eliminated these huge dollar lawsuits we used to see as the consumer’s damages are capped with the Buy Back program. That’s why we see E&O insurers quietly offering better rates to participating inspectors.
In summary, Robert S. and Bob E. figured it out. The program is most often being misused by consumers who want out of the property for other reasons and so they stick a screw driver in a GFCI and sell the home to InterNACHI at full price.
Our requirement to list the property with a real estate agent (which BTW couldn’t be more clearly stated at www.nachi.org/buy ) prevents some of this malarky, but not all of it. InterNACH lost way more than 6% on every one of these deals and the 6% didn’t go to us to offset those losses. It went to the agents that recommend participating inspectors.
Every action has an opposite and equal reaction. So if InterNACHI loses, who wins?
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The inspector winss. He/she doesn’t get sued, doesn’t get defamed on social media, doesn’t have his/her E&O insurance rates increase, and doesn’t get reported to a state licensing board. The agents who recommended him/her earn more money and so recommend that inspector again and again.
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The consumer wins. Obviously if a consumer sells us back the home it is because it is in their best financial interest to do so, even if they have to pay agents to do their work. The get a full-price offer from InterNACHI. InterNACHI doesn’t demand anything be replaced or repaired. InterNACHI allows the consumer to take their time and pick their closing date.
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The agents win. They don’t get sued for negligent referral, they get a second commission check when we buy the property back and a third when we list it with them.
It’s the biggest Win-Win-Win in the entire history of real estate inspections.
As I participate in the thread I want to make it clear… do with what you want. It’s your choice, its all legal as far as we know. To each their own as they see fit.
With that said when I was ‘‘new’’ in the industry I already figured out or decided that I would not sell or participate in selling 3rd party vendor products. I did just fine without them and am doing fine to this day.
This product will not ‘‘pry’’ (love that Nick) any Agents ‘‘pet’’ (LMAO) inspector anymore than whatever else you drum up. Top agents do give a flip about this or any other 3rd party vendor service. I can just speak from experience and from here. I have 2 of the top 3 agents in GA use my services. I’m not going into all the details but I assure you then don’t care about 3rd party vendor services that comes along with the home inspection.
Furthermore, my wife is a seasoned agent. I don’t want to drag her into this, but many of you know she’s a realtor. She does a good bit of volume, has 3 team members under her and an full time assistant. I could tell you just about every angle, technique and attempt from inspectors (and other industry service providers) under the sun and then some.
It doesn’t matter really what I say. I understand the system here and the business. Some will figure it out, others wont. Some need that trial and error to find what works for their business model. I just personally don’t want to see our industry ruined by greed or bad apples or have a major change in the way we do business. I don’t want to ever have to be forced to offer 3rd party vendor services, kinda like the government telling me I have to purchase health care insurance exactly they way they see fit oh and if I don’t, well @#$% you its a tax penalty.
One of the country’s largest buyer agencies: https://youtu.be/IQFOFidUiBg
It’s a marketing tool. If you don’t need to market, it’s not of any use to you. Don’t participate.
Might not be applicable but I ready somewhere in this thread all agents (firms) charge 6% for the sale. The realtor (brokerage firm) in that YouTube video only charges 1% on the listing side. Anyways, there’s discount brokerage firms allover here, frowned upon. Most sellers don’t realized basically they represent themselves. Its a pain for all other parties involved.
That agent in the YouTube video seems to ok, but certainly not one of the ‘’ country’s largest buyers agencies’’ per sales volume. I have several agents that refer me with that amount of sales volume.
In a mid to large size brokerage firm (take your pick) you have around lets say 100 agents. The bottom 1/2 are lucky to crack 1 million in sales. The middle 1/4 are 1-5 million in sales and it goes up from there to the top producing agent. Most top producers have teams, this counts for their sales volume. A good agent will produce 5-10 million in sales. Its not uncommon for a top producer to come in north of 20 million to 50 million.
The key I’ve found is to align yourself with agents that are ethical and have their client’s best interest. That’s a no BS inspection. Don’t focus on the bottom 1/3 of agents as 90% will be out of business in 3 years anyways. They tend to not understand the whole real estate transaction process and can cause unnecessary work, drama or devalue your services.
Try to focus on the top 2/3 or even aim higher for the top 1/3. There are tools you can use to find these top agents in any market. Not all top agents will gel with your personality. But hard work, determination, grit, putting the clients best interest first will go a long way.
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Agreed. Most discount brokerages = you represent yourself dude.
Since you’re using the same agent that the buyer used to buy back the house and then relist it, why not ask them to lower the commission on the buy back for the benefit of the client?
Because as you see, the program is misused by consumers already. So doing that would further encourage misuse, not decrease it.
Furthermore, why would we financially punish agents by asking them to do double work for a lower fee? We want to reward agents for recommending participating inspectors.
Furthermore, as Ray T. points out, if you cut commissions you cut the services those agents can afford to provide.
And lastly, the purpose of the program was never to provide consumers a way to test-drive homes and buy and sell them willy-nilly just because InterNACHI covers all their costs. That was never and isn’t now the program’s intent. Yes, InterNACHI has a few silly members who argue the program should work like that, but those members are few and simply haven’t thought through what the effect of such absurdity would mean.
The Buyback can be great, The “fine Print” is deceiving and unfortunately I had to learn the hard way- If any other inspector markets themselves with the buyback just be up front with the 6% loss and you will be fine. My bad for trusting in anyone else to be up front and ethical about marketing. Like a few of the realtors I have called to inform have said- “if it sounds to good to be true…then it is”. Sad day when you get let down by someone you actually trusted! Don’t be that guy. Good luck to all Buy back inspectors. I will follow through the month with my dues since I touted the program and pocket $5 extra an inspection starting next month.
…this is on top of your $499.00 a year membership? Each inspection?
Sweet knights of Columbus…
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So Anthony, those are two complaints we should look at.
I understand the “fine print” is “deceiving” in your opinion. How would you author the find print listed at the top of www.nachi.org/buy so that it is more forthright. We worked with a leading expert in Plain English so that there isn’t any legalese in there. Our line at the top of www.nachi.org/buy which says “And now for the fine print” was kind of tongue-in-cheek because it’s really not fine print at all. It’s 5 clear sentences written in Plain English.
I understand you think the $5 is expensive in your opinion. First off, the Buy Back program gets you more inspections and allows you charge more for those inspections. It’s a marketing tool that should be making you money. It also pays for all your marketing. Participating members can order as much printed material as they like and have them shipped to themselves for free. But if you’d rather “pocket” the $5, I recommend using a masons jar instead of your pocket. Do this: Each time you do an inspection, put $5 in a masons jar. Use the money in your masons jar to pay for all your printed marketing pieces. If you ever get a client who is upset about your inspection or simply wants out, use the rest of the $5 bills in your masons jar to buy their house back.
Maybe add something like the participating client “seller”, is obligated to pay the 6% Real Estate Agent Commission to the sentence below.
The home must be listed with a licensed real estate agent.
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I never said it was expensive, I just said… I’m out and now I will pocket $5 more. What you guys do is over the top- Just wish I didn’t get burned on it! Have a great day!