Partnership with Real Estate Company

Had a meeting yesterday at one of our local real estate offices. They are a major player in our market owning about 35% of the local market share. In order to do business with them you MUST “Partner” with them at the tune of about 500.00 per month. For this they will list you as a “Preferred Vendor”, Encourage their Realtors to use your services, allow you to place marketing material in their offices ect. My question is… Would this volatile the InterNACHI Code of Ethics Section 6 sub -part c.

I say yes.

Definitely.

Why are you asking if you’re not a member of InterNACHI?

Use your own “common sense ethics”. if you must pay (to play) be on a “preferred list”, what do you think?

Who are you?

It makes sense to me with so much pressure being put on home inspectors within NACHI to sell client data, pay money to real estate brokers to “advertise” and such … that someone would want to ask their questions anonymously.

Emails to Joe Farsetta, the Chairman of the ESOP Committee, would probably be more discreet and provide less invitation for controversy … and would get a direct answer, as well.

Here’s Joe’s info and email (Click “CONTACT” on the left column of the forum main page and scroll down.):

Visit nachi.org/code_of_ethics for Code of Ethics.

Joe Farsetta (New York)
Advanced Professional Services Group, Inc.
Pearl River, NY  10965
InterNACHI cell phone:  (303) 591-9919
jjf10965 @yahoo.com
About Joe Farsetta

From Contact InterNACHI - Int’l Association of Certified Home Inspectors (InterNACHI) http://www.nachi.org/contact.htm#ixzz2t4N3PFUm

Thank you Larry… Just sent him an e-mail.

“at the tune of about 500.00 per month”…“they will list you as a “Preferred Vendor””…“Encourage their Realtors to use your services”

Yes, the COE specifically disallows paying to get on a preferred list and paying for referrals. Both of your above descriptions sound identical to those COE restrictions.

Mr Unregistered is most likely a NACHI member feeling guilty and has already paid the bribe money but came here hoping to feel better knowing there will always be a few shnooks doing the same to pat him on the back it is OK.

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While every national home inspection association prohibits this act … even those inspectors who do not belong to national associations can … and should … abide by an ethical standard.

Crooked and dishonest lead brokers who have no ethical standards will insist … publicly and privately that “Crime pays”. For slugs like Thornberry and others who look for the fast buck … it’s true.

Only the most vile and dishonest businessman would attempt to persuade a home inspector to violate an ethical standard … and only the worst of them, the most gutless of cowards, would even attempt to dissuade and inspector from seeking his ethical advice from the chairman who helped write and enforces the standard.

Thornberry is on his way out but there will always be the sleazy way of doing business, which he promotes and represents.

No home inspector should have a “partnership” … financial or otherwise … with a real estate company and no honest businessman would ever disagree.

Thornberry preaches: "Perhaps.

Here’s what I would add OP:

You need to make a business decision. If the ROI on that $500 is huge, and not being at the game is detrimental, you have three choices;

  1. Don’t do it.
  2. Don’t join InterNACHI or cancel your membership.
  3. Go to the sales manager at that office, tell him you’d love to offer your support but their affiliate program that works fine for title companies has a fatal flaw when it comes to inspectors and their associations. Work a deal where if they want to put you on the list, fine, but they can make that determination. You’re paying for sales meetings, office access, inclusion in a newsletter, etc.

I worked many of those deals in my days marketing home inspections and we booked over 7,000 appointments per year. I would ask anyone you seek this advice from what their volume is and take it with a grain of salt. Joe Farsetta for example has a full time job and is a part time inspector. Jim Bushart isn’t even in the business anymore. While their advice will certainly keep you out of trouble with InterNACHI ethics in a overly conservative manner, you can comply with the COE and still see success way beyond what they’ve experienced.

At the end of the day you need to sleep at night, so analyze, strategize, then implement what you feel is best for your business.
[/quote]

While every national home inspection association prohibits this act … even those inspectors who do not belong to national associations can … and should … abide by an ethical standard.

Crooked and dishonest lead brokers who have no ethical standards will insist … publicly and privately that “Crime pays”. Simply pay the money, refer to your payoff as “advertising”, and you have somehow done something ethical — at least by their low standards. For slugs like Thornberry and others who are not in it for the “long term” look for the fast buck … it’s true. They will be off on some other scheme by the time most people discover they’ve been taken.

Only the most vile and dishonest businessman would attempt to persuade a home inspector to violate an ethical standard … and only the worst of them, the most gutless of cowards, would even attempt to dissuade and inspector from seeking his ethical advice from the chairman who helped write and enforces the standard.

Thornberry is on his way out but there will always be the sleazy way of doing business, which he promotes and represents.

No home inspector should have a “partnership” … financial or otherwise … with a real estate company and no honest businessman would ever disagree. Home buyers need to be assured to the contrary … that their inspector is INDEPENDENT from … not in PARTNERSHIP with … the real estate agent who referred him.

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I guess I hurt his feelings. LOL.

Once more … your source for “what is ethical” should NOT come from a crooked lead broker who has been expelled from a national home inspection association for his ethical violations … or a crooked vendor who has had “cease and desist” orders issued against his scams by government entities … or who has used false quotes and misappropriated seals of approvals to promote his products — like Thornberry.

Ask your question to the Chairman of the Ethics Committee … and appreciate that it is people like Thornberry that ethical standards are designed to set you apart from.

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See what I mean? LOL

See what I mean? LOL

Keep in mind … my only “offense” here was to recommend a person with a question about “ethics” to the Chairman of the Ethics Committee. When that advice offends a vendor … that should tell you something about the vendor.

He will respond with the correct answer. Best of luck.

Gentlemen PLEASE… I just asked a simple question. I had no intention of starting such a debate. As to the question about my “Membership”… No, I am NOT a member of this organization but have been debating if I should join. I have 30 plus years experience in construction and construction management and have done everything from simple remodels to MAJOR apartment building construction. I have close to 100 PAID inspections filed so I am NOT a newbie to this industry. I DO adhere to my own “Code of Ethics” but am always willing to learn from others, thus my question. IF I have offended anyone for posting a simple question, I am sorry and will bow out gracefully…