There is no conflict of interest in a consumer needing representation when they sell nor a real estate agent getting paid for their work. Commissions are how they get paid.
And yes, InterNACHI uses agents who recommend our participating members when we buy back a home (commission check #2) and then again when we re-list the home for sale (commission check #3). Why wouldn’t we?
This post has brought a lot of clarity about the Buy Back Program. Nick, even if I hated this program which I don’t, I would have to applaud your creative marketing idea. I don’t understand why people who dislike it or disagree with it can’t just walk away without complaining.
In defense of those who feel deceived by the program I have to admit I did not understand the “plain English” used for the fine print. I understood “The home must be listed with a licensed real estate agent.” to mean at the time of the initial listing not upon resale to NACHI. Nick, when I joined the program I exchanged emails with you several times about whether I had to pay fees on various inspections and I don’t remember exactly how I phrased it but your 1 line responses seemed vague so I only promoted the guarantee to agents listing homes or to clients purchasing homes that were listed with agents. It never occurred to me that the fine print applied to the sale of the home to NACHI, not to the current sale. I just called an agent friend of mine and she said the same thing. She thought is applied only to homes listed by agents that I was being hired to inspect.
You asked previously if the fine print should be re-authored. The answer is absolutely!
“The home must be relisted with a licensed real estate agent when purchased by NACHI.” or something to that effect.
I still question whether I need to register pre-listing inspections because the seller doesn’t need a guarantee. Thoughts?
I am still a fan of the program as I think it is a great marketing tool. For those that say that it lowers the bar for those inspectors or inspections under this program because they can fall back on the Buy Back program, I disagree to a point but also use the same argument to back my abilities. I will often discuss how thorough I am as an inspector and the association that backs me with their guarantee does so because of my thoroughness. They have the peace of mind of having an inspector who’s work is guaranteed by an association that stands behind that inspectors work because he is a certified professional with high standards!
Sure that glass could be half full but I have found in life that a half full glass is just a perspective challenge. BTW, I did raise my rates when I added the guarantee and never looked back. Sure NACHI gets a piece, but I get a bigger piece and my clients are satisfied.
I also wanted to share that I did have one client who could have been a candidate to use the BB program. A client that was relentlessly unpleasant. She thought the whole world was against her and that she was buying worthless house. During a re inspection she asked about the BB program and I knew she was already considering before she even closed. She was such a difficult person the that seller had threatened to sue if she didn’t close and she wanted out of the contract. I was very direct and told her that NACHI would purchase the home from her but that she would need to document a concern that I had missed in the home first. That was the end of that. Sure, she could have created a problem but direct communication takes care of most issues.
Your choice. We don’t make you register seller inspections.
Does he still need to pay the standard inclusive fee as for **ALL **inspections??
Only if he opts to do it for that seller’s home.
One question I have is: if the consumer opts to use the buyback and they pay the 6% commission… does Internachi also have a buyers agent or does that original agent (and his broker) get the whole 6%?
On a side note, like others, I did not understand (by reading the fine print) that the listing of the home had to be done in order to sell to Internachi. I thought it was in regards to the home being listed with an agent when you inspected it.
That part could stand to be clarified in the fine print IMO.
I personally think it’s a great marketing piece but until I read all the posts today, did not fully understand the program and WAS NOT marketing it properly.
Commission split 4 ways typically.
The “Fine Print” should be changed- I have had to explain to all my agents why I no longer offer the “buy back”- everyone is confused with the plain English- maybe it should be in text format as plain English is clearly confusing. I am just glad to be out of that system… unfortunately it lost me several realtors due to the broker of one of my best offices was dealing with this process and Nick was very vague in his emails back and forth- We were all confused with the process and relied on snippy email responses and an annoying client that acted like the sky was falling. I tried to get better understanding of the “system” and really had to ask the right questions but everyone should understand now how the system works by reading this thread. I would like to know why in the hell no other inspectors that used the buyback explained it in a thread better. All I ever seem to read is “we bought back another home” yay!!!
Why are you made at Nick because agents want to get paid for their work? These agents have no need to complain, because all they have to do is waive their fees. Problem is solved.
Read the “Fine Print” - 6% is required. I am not mad at anyone- merely getting the word out- It is a great program if you explain it correctly and everyone is aware of the costs involved- it was going to cost my buyback client over $30,000 to utilize the program- Now, if I was a shotty inspector or my clients needed out due to buyers remorse (in my opinion my reason for using it recently) maybe that’s a good deal- NACHI is still on the hook for the same amount but the clients have some skin in the game which makes it way less likely for the system to be used- just make sure you explain it correctly and you won’t loose any relationships.
I will reserve some of my comments about the fine print of the program at this time.
I do agree with the removal of this requirement.
The home must be listed with a real estate agent licensed in the jurisdiction where the home is located with a commission of no less than 6% split between listing and buyer brokers.
I have an agent that I work with frequently that had previously offered to assist any buyers at a discount
After reading these requirements he has opted to not participate.
In some cases a buyer has gathered all of their resources to make the home purchase.
$100,000 home at a 10% downpayment
Finance around $90,000.
Now they wish to use the buyback so InterNACHI agrees to pay the $100,000 for the house.
Owner pays off their $90,000 and retrieves the $10,000 down, of which $6000 ends up in the Realtors pocket. (honestly how much work did they need to do to get this house sold)
Now the client only has $4000 to put down on another house.
The buy back program offers something to the agents.
When a client uses the buy back program they are presented with a possible guarantee sale, and the ability to locate the client a new home. That is 2 sales handed to them.
Remove the 6% requirement and allow the agents to offer a solution to the client whether it be a flat fee of $1000, or a lowered commission
Possibly the original agent and broker that sold the house would be willing to step back in and assist with the sale for a guarantee to be the buyers agent on the new home.
John, correct me if I’m wrong, but that’s exactly what we agreed to do for your client today. We let your client’s agent handle both sides of a Buy Back for 1%. Yes?
We also have informed the agent that we are going to re-list the property with him as soon as we close on it. The agent couldn’t be happier.
Nick, can the language of “no less than 6%” be removed? I would understand “no more than 7%” language, but if the agent does not want to take a commission or a reduced commission that should be their decision.
that is 100% correct Nick. I did not want to jump the gun or step out of line at this point and detail what is going on in the our current process ahead of you.
that being said… the language that is in the fine print regarding the 6% did cause the client to refuse to work with 2 previous agents prior to the above agreement.
As I told my clients and would like to reiterate to anyone else in this forum.
You do not know what the options are unless you talk to Nick and InterNACHI.
Ask the questions that you want answered Nick is a very helpful person.
Interestingly Shady… Again I am not complaining just stating facts with my experience. Put yourself in client and agent mind set- my goal is to help others understand: Here’s my scenario:
-Seller is pissed for whatever reason and you tell them We’ll buy back your home- Nick says to “put your house back on the market” with no paperwork whatsoever from Nachi-
“Paperwork from InterNACHI” isn’t required to put a home up for sale.
Yes, but that’s true for whomever buys a home. It isn’t something specific to only when InterNACHI buys a home.
Not true. The home merely has to be listed. We don’t care who the seller lists their home with. None of our business.
InterNACHI doesn’t have a psychoanalyst on staff.
How would I know ahead of time? A lot of factors go into deciding what agent to use. Typically we try to use the agent that recommended our member. And what business is it of the listing agent anyway? The listing agent doesn’t get to choose which agent InterNACHI decides to have represent InterNACHI.
We are flexible on that, we only ask that the seller list it for 6% to keep the agents happy. We just did John’s for 1% and let the agent keep it all. And when we list the home, we’ll list it with a 6% commission going to the agents and InterNACHI pays that entire 6%! We just had a discount broker send in a listing agreement where they asked for very little commission and were joyfully surprised to learn that InterNACHI told them to raise their own commission to 6% and that InterNACHI would gladly pay the entire 6% in full.
Yes, most of the issues are total B.S. and InterNACHI often still buys the home back, so your comment is a compliment. Thank you.
It goes down just like any real estate transaction. Nothing different. We’re just a buyer like any other buyer, where sometimes our agent will do our side of the deal for free.
Once we take possession of the home, we are just like any other home seller. We are not obligated to fix anything. Maybe we will, maybe we won’t. Our choice just like any other home seller’s. Your client is long gone with our money so why should he/she care what we do with our home.
It does. Thank you.
I don’t know why, but using the program scares me. I would like to offer it, but in RI, it seems there is always someone looking to get something for nothing, and this just seems like an invitation for people to play games as they are always looking for an angle.
Please set me straight, but in my mind, if a claim was made and the house is bought back, isn’t the finger going to point at the inspector for missing something, whether that is accurate or not, and result in bad press rather than good?
Allen C. Potter
RI Real Estate Inspection Services
Bad Press where?
How do you see bad press being publicized in this scenario that would look bad on you?
Homeowner: Inspector missed xyz in the insepection, InterNACHI buy my house back please.
InterNACHI: OK
In the process the homeowner is required to sign a release of the inspector for any further issues.
We are human people, we are going to make mistakes.
There is not an inspector in the industry that has never missed an issue or made a mistake.
If you believe that you are one who has not, then you also should not need to carry insurance.
The BuyBack program is not actually “free” for the buyer (your client) to use. They are required to pay the 6% RE commission, which could be several thousand dollars.