Realtor / Inspector Question

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1

Originally Posted By: Gary Hammerlund
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I am a realtor, and new to this forum. I am considering becoming a home inspector. Are any realtor / inspectors out there. If so would you be willing to share any challenges you faced becoming a home inspector, as well daily challenges you face being in both professions.

2

Originally Posted By: eporter
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Gary,


Many of the inspection organizations do not allow active Realtors to be home inspectors as it creates a genuine conflict of interest. icon_eek.gif


I think that you would be putting yourself in some serious ethical situations.

You may want to check with your local Realtor organization to see if that is even possible.

My two cents.

--
------------------------------------------------
"Inspecting this home like I'm buying it myself."

Ed Porter
Cornerstone Home Inspection Services, Inc.
Grand Haven, MI

3

Originally Posted By: lmartin
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Hello Gary ,


Iam a realtor here in Maine , it is a conflict of Interest only with properties when you work with a buyer or seller. but I do many inspections for banks , or other agencies, keeping very busy. feel free to e-mail me and ask questions , Les

4

Originally Posted By: dbowers
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Although many people misunderstand their own Association’s COE, and think you can’t hold a real estate license and be a HI. WRONG!


What you can't do is be involved in the same transaction as both, etc.

Over 20 years, I've known many inspectors in groups such as ASHI or TAREI that were a HI and a real estate agent. Examples include:

Commercial RE Agent / Does 1 family HI's
Appraiser with RE license / Does 1 family HI's (not on same property)
Individual who has RE license to buy/sell his own propertys / Does HI's

Someone who has a degree in real estate / but not active in RE sales, etc but have no intention of giving up his/her license because it took too much effort to get it in states like CA or TX

Many people disclosed this when joining a HI Assoc.

Dan Bowers

5

Originally Posted By: jfarsetta
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ASHI prohibits members from being active realtors. NACHI does not.


I hold a real estate license in NY, but do not sell homes. I could, however. I should not inspect what I sell. That would be a conflict. No financial interest in the property to be inspected is standard fare, these days.

--
Joe Farsetta

Illigitimi Non Carborundum
"Dont let the bastards grind you down..."

6

Originally Posted By: rray
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jfarsetta wrote:
ASHI prohibits members from being active realtors.


Joe, can you provide us with some documentation to back up that statement?

Perhaps I'm reading their COE wrong or interpreting (interpretations. . . now that's what usually gets people into trouble) it wrong, but I can't see anything prohibiting members from being active Realtors. Everything I read simply says disclose, disclose, disclose.

We do have some Realtors here who are also home inspectors. To the best of my knowledge, though, they are not inspecting the homes they are selling.

If I were a Realtor making on a 20/80 me/broker split with a 3% commission on a $396,000 property (our average price for last month), I sure as he11 would not be doing something as "menial" as a home inspections. I would be putting every effort of mine into getting more of those 20/80 me/broker split with a 3% commission on $396,000 properties!

![icon_twisted.gif](upload://xjO326gspdTNE5QS3UTl0a0Rtvy.gif)

--
Home inspections. . . .
One home at a time.

7

Originally Posted By: dbowers
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Joe - ASHI’s COE says they prohibit it but reread my post they don’t. Over the 20 years I spent in ASHI, I knew literally dozens of HI’s with real estate licenses including several National Presidents for exactly the reasons I included in my original posting.


Dan Bowers

8

Originally Posted By: rray
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From ASHI’s web site, ashi.com


Quote
Code of Ethics
American Society of Home Inspectors, Inc.?
Effective January 1, 2000
Honesty, justice, and courtesy form a moral philosophy which, associated with mutual interest among people, constitutes the foundation of ethics. The members should recognize such a standard, not in passive observance, but as a set of dynamic principles guiding their conduct. It is their duty to practice the profession according to this code of ethics.

As the keystone of professional conduct is integrity, the Members will discharge their duties with fidelity to the public, their clients, and with fairness and impartiality to all. They should uphold the honor and dignity of their profession and avoid association with any enterprise of questionable character, or apparent conflict of interest.

1 The member will express an opinion only when it is based on practical experience and honest conviction.

2 The member will always act in good faith toward each client.

3 The member will not disclose any information concerning the results of the inspection without the approval of the clients or their representatives.

4 The member will not accept compensation, financial or otherwise, from more than one interested party for the same service without the consent of all interested parties.

5 The member will not accept nor offer commissions or allowances, directly or indirectly, from other parties dealing with their client in connection with work for which the member is responsible.

6 The member will promptly disclose to his or her client any interest in a business which may affect the client. The member will not allow an interest in any business to affect the quality of the results of their inspection work which they may be called upon to perform. The inspection work may not be used as a vehicle by the inspector to deliberately obtain work in another field.

7 An inspector shall make every effort to uphold, maintain, and improve the professional integrity, reputation, and practice of the home inspection profession. He or she will report all such relevant information, including violations of this Code by other members, to the Association for possible remedial action.
Unquote

I'm not reading anything in there that prohibits one from being a Realtor and a home inspector. Maybe my comprehension has been affected by too many margaritas? ![icon_lol.gif](upload://zEgbBCXRskkCTwEux7Bi20ZySza.gif)



--
Home inspections. . . .
One home at a time.

9

Originally Posted By: ekartal
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I have a realtor/inspector friend who told me he cannot be an ASHI member and an active realtor.


Erol Kartal

10

Originally Posted By: rray
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Did s/he say why? Maybe it’s in the Realtor Code of Ethics for your county or state rather than in the ASHI Code of Ethics.


Maybe lots of people are interpreting things differently with no specific guidance from any specific organization.

![icon_twisted.gif](upload://xjO326gspdTNE5QS3UTl0a0Rtvy.gif)

--
Home inspections. . . .
One home at a time.

11

Originally Posted By: psabados
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Erol


Prior to the ASHI changes of the COE on Jan. 2000, I do believe that they did prevent members from being involved in Real Estate.

It appears that they have lightened up a bit. Must be a motivation point for increased membership

Paul

12

Originally Posted By: jhagarty
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When would a good Home Inspector find time to sell Real Estate?

–
Joseph Hagarty


HouseMaster / Main Line, PA
joseph.hagarty@housemaster.com
www.householdinspector.com

Phone: 610-399-9864
Fax : 610-399-9865

HouseMaster. Home inspections. Done right.
13

Originally Posted By: jremas
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I have a real estate agent in my area who is also starting up a HI company thanks to a new membership with NACHI. Nice to have an “IN” with your buddies because you know how important it is to not have the deal fall through. I think it should be a violation of our COE and we should ammend our COE to reflect that. The HI industry needs more than anything to distance themselves from the real estate agent community to ensure a more honest, un presssured inspection. It is my OPINION that a real estate agent should not be a HI and a HI should not be a real estate agent. completely unfair and biased…


Geez, sorry the home i inspected for you fell through, BUt look at the nice one I just listed last week!

--


Jeff Remas
REMAS Inspections, Inc.
Northeastern PA & the Poconos
www.NEPAinspector.com

570-362-1598

14

Originally Posted By: jfarsetta
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Prior to ASHI revising their COE, active realtors could not be members. Ask Mr Gromicko why, as owner of Peach Inspections, he was prohibited from being an ASHI member. icon_rolleyes.gif


Jeff, I'm working on a very special COE that only pertains to what you believe and what you think is fair and just, and tailor made for what you want to do...

--
Joe Farsetta

Illigitimi Non Carborundum
"Dont let the bastards grind you down..."

15

Originally Posted By: rray
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With full disclosure, I think anything is possible, even among such people as, say, politicians, actors, and, yes, even political actors and acting politicians.


![icon_twisted.gif](upload://xjO326gspdTNE5QS3UTl0a0Rtvy.gif)

--
Home inspections. . . .
One home at a time.

16

Originally Posted By: Guest
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Point of Clarification: Candidates and members of ASHI may NOT be actively involved in brokering RE deals. Many HI’s are former RE agents and still hold licenses in that field, but don’t do that kind of work anymore. Thus is has always been.


Jim Morrison

17

Originally Posted By: Guest
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It’s a conflict of interest. There is no gray area here. If you want to hash this about for twenty years it’ll still be a conflict of interest.


Even Nick Gromicko realizes that it's a conflict because as of January 26th he turned in his Real estate license and is no longer a Realtor. Right Nick?

18

Originally Posted By: rray
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Can you provide some documentation? It seems there are lots of gray areas simply because of the way things are worded and the fact that “full disclosure” seems to make everything okay.


California is a very litigious state, but we let a lot of people do a lot of things as long as there is full disclosure. That's one of the reasons why Realtors can represent both buyers and sellers for the same purchase transaction. That, to me, is the ultimate in conflict of interest, but no one seems to mind as long as the Realtors disclose that they might not be working in the best interest of Client A because they also represent Client B. I mean, how can you get the highest price for Client A and the lowest price for Client B? Doesn't make sense.

Pest control is the same way. They disclose that they "might" cause some damage. Yeah, right. They come out, cause damage, and present an "estimate" for repairing all the damage they caused.

I just think that some Realtor lobbyists and pest control lobbyists are very good. The home inspection industry, on the other hand, has no lobbyists. Only certain trade associations have any lobbyists at all, and they're only interested in what's best for them, not what's best for the home inspection industry.

![icon_twisted.gif](upload://xjO326gspdTNE5QS3UTl0a0Rtvy.gif)

--
Home inspections. . . .
One home at a time.

19

Originally Posted By: ralph smith
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The way I see it there is no grey area whether it is written in a COE for any profession or not! It is a conflict of interest plain and simple.

20

Originally Posted By: rray
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If there was no gray area, we wouldn’t be having this discussion. Plain and simple. Life is not all black and white.


![icon_twisted.gif](upload://xjO326gspdTNE5QS3UTl0a0Rtvy.gif)

--
Home inspections. . . .
One home at a time.