Realtor looking for advice

**Educating the buyer is certainly required and and proper disclosure up front is critical to responsibly serving the client. I have every respect for the professional HI and would never assume that I can, nor would I want to, take the place of a professional HI.

I’ve been involved in many deals that fell through because the roof is toast, the furnace is to spent or there is a rotten sill somewhere. What I’m trying to avoid is waiting on the HI to tell us whats obviously wrong with the house when I already have the ability to see most of it myself. After the glaring problems are addressed and the contract ratified, a HI is called in to solidify our findings and find everything else missed that could be just as crucial or dangerous for the homeowner, but hopefully smaller and easier to negotiate than say the foundation issues I may have found earlier.

Buyers can’t afford to get into a pissing match 30 or 45 days into a deal over these repairs. The lending process is highly time sensitive and nobody needs to tie up earnest monies in a deal involving a house with substantial problems so it only makes sense to address this before the contract is signed if at all possible.

Doing some initial IR work on the home is a way of progressing my profession and offering the customer information that could be very pertinent to there future in any given dwelling. If the home has no insulation in the walls whatsoever, I need to know about it. In a town that had little to no insulation requirements before 1982, I think it only makes sense. Can I figure this out in a few minutes with an IR camera? I would hope so…

Our housing market tanked in part due to adjustable rate mortgages and the increased monthly expense involved in keeping their homes.

I submit that energy cost could do the very same thing. If the average homeowner’s power bill were to double, many households would be forced into a cash flow trauma that could push them very close to the financial edge and foreclosure.

Understanding the energy efficiency of any given structure is the future of real estate from where I sit and I’m just trying to find a way to address this need in a timely, effective manner. If I’m working on a deal that is “hot” so to speak, there may be little time to coordinate with other parties so having some elemental information in the same day may be a luxury in the future I can’t live without.

Hopefully, anything that I find at my level would encourage the homeowner to seek further advice from a professional which I will never claim to be. Good, yes, Professional, probably not.

Again, I appreciate everyone’s time.**

**I hope I haven’t been misunderstood here…

I have the utmost respect for HI. I don’t think I’ve ever met one I would call a liar but if you’re 5’10" and weigh 300lbs, there’s no way you saw much of a fairly tight crawlspace or attic.

I too have met many an agent who would sugar coat situations in order to make a sale…my experience has shown they typically don’t have the skills required to discover or understand the truth on their own…they will be weeded out in the long run. I can’t tell you how many I’ve worked with that won’t answer the phone during Oprah or before 10am…

Again, I have no intentions of marketing myself as an inspector. But on the flip side, I have no intentions of sinking my buyers earnest money into a deal that may not close because the home has substantial problems when I have the ability (and I do) to identify much of it up front.

Thanks again!!

**

BTW…I’m in Charlotte and look forward to meeting you local guys!!!

I’ll be taking the annual update in April so I’ll have to fill you in then. Sorry!

Ken -

Like you I’ve been a real estate agent / broker. I was also a home builder contractor AND I’ve done residential and commercial inspections for over 32 years. You sound like you really want to be good at what you do.

Thats great.

Having said that, what I find so personally embarrassing as a past agent and broker myself, is the huge amount of agents I come in contact with that seem to choose a home inspector based on the lowest fees and a lack of thoroughness (if an inspector is fast, cheap and blind / hes great).

That gives a bad rap to all the really dedicated GREAT agents.

Good luck.

Ken, not trying to bust anyone’s chops. You are exactly right though. I personally know some inspectors who have never been in a crawl space or an attic. They are as you said, lazy. Take 45 mins to do a full home, hand the buyer a four page report of nonsense handwritten on notebook paper or a memographed form with questions like “Driveway - Yes / No” But unfortunately this is the guy the Realtors, Mortgage brokers and Realtor schools likes to recommend. He is fast, does not create any problems for the realtor or sellers, is cheap as dirt, rolls up in his 30 yrs old beater pickup truck in shorts and dirty sneakers and T shirt. You may think I am kidding…I am not. Both sides makes these guys successful to the detriment of the buyers.

BINGO!!!

We all know there are professionally useless members on both sides of the fence but I’m hoping that the market “correction” we’re experiencing will render most of these folks obsolete…

I’m banking on the consumer demanding more out of the professionals they hire…as the world demands more of our resources, it will become an economic imperative to buy smart, not easy…

thanks again guys!

Ken, please do not construe my comments as being mean or slamming you. Not my desire of intent. But you have to be informed on a few things. My comments, below.

I would council you against this. The reasons are clear, if you take the time to look at and understand them fully.


Hope this helps;

Ken, call me if you want to have lunch or something some time.

I agree Will. Nicely said.

I appreciate your time! I reread my post to see if i portrayed myself as an incompetent “schemer” but i just didn’t see it… In the interest of moving forward, i’ll address your concerns to make sure i haven’t missed something.**

Yet, that is exactly what you seem to be trying to do. If you are, properly, educating your buyers, you would do well to have them hire a professional to do these inspections.

**You can’t afford to pay an inspector to look at every home you offer on. A homeowner can offer on multiple homes looking for a deal and you can’t afford to pay for inspecting every one of them. I contend that the offer price should be based, to some extent, on the homes condition before you offering on it.

As an agent, i don’t want the liability of persuading a client to purchase a home based solely on my opinion. I’ve said it several times…after the contract is*** ratified***, all inspections are called for and, based on the input i’ve received here, we can possibly extend the inspection contingencies to include a satisfactory energy audit report.**

****My point is that, contrary to what you wrote, above, you DO NOT have the “ability to see most of it” yourself. If you did, you would be a home inspector, not an agent or broker.

**Speaking for someones ability, whom you’ve never met, is shallow and short sighted to say the least.

I don’t think most agents work as hard as most inspectors and i feel they make more money so call me idiot if i continue brokering.**

**I don’t know what state you do business in, but in most of the HI licensed states, you would also be breaking the law. In Illinois, the ONLY people who can do home inspections, as part of a Real Estate Transaction, is a state licensed home inspector. Not code officials, Architects, Engineers or Real Estate Agents.

So as an agent i’m supposed to walk in a house and not look at anything or form opinions about what i’m seeing? I have every right to inspect a home and offer an ***informal ***opinion on it’s condition for the sake of establishing a realistic offer price.
**
**What 30 - 45 days? I do inspections and produce the report within the 5 - 7 day inspection window that most of the contracts around here specify. If the house has “substantial problems” the buyer can easily and quickly determine whether they want to walk away with their earnist money. I don’t see where you get 30 - 45 days.

Some lenders don’t require an inspection report so to minimize my clients potential loss on a deal, i’ll wait until the appraisal is in and the lender is happy with it before calling for an inspection. If they don’t pass that hurdle, i’ve done them no favors sinking them in an inspection for a home they can’t buy…**

“Progressing my profession…”? Your profession is being a Real Estate Agent, not an inspector. You are simply not qualified to do this without a great deal of specialized, and expensive, training, including field work.

So you’re saying i’m not competent enough to use an IR camera to tell whether or not a home is insulated or not? I guess you’re right though…I dropped out of the mechanical engineering program half way through thermodynamics…

****Our housing market tanked because of a bubble caused by the government forcing lenders to provide loans to people who couldn’t afford them. Pure and simple. Good advice to your clients is not to enter into a deal that they can’t afford. I would give you the same advice with regards to this IR scheme you are proposing.

**Adjustable interest rates rose, my house payment increased, I couldn’t afford my home anymore. Parallel to that train of thought…we unknowingly bought a house with no insulation, we had an energy crisis, my power bill doubled, i can’t afford my home anymore.
**
I would submit to you that if you “don’t have the time” to do your own job (being an agent) then you certainly won’t have the time to do thermal imaging (properly) either.

**Again, i must have missed it, but i don’t see where it was stated i had more work than i can handle. Fortunately, i have a good work ethic so i don’t feel spending the extra hour or two looking closely at a home to earn a 3% commission it outside the realm of “doing my job”. I would actually call it ***doing my job.

***Again, thanks for posting!

Understanding the energy efficiency of any given structure is the future of real estate from where I sit and I’m just trying to find a way to address this need in a timely, effective manner. If I’m working on a deal that is “hot” so to speak, there may be little time to coordinate with other parties so having some elemental information in the same day may be a luxury in the future I can’t live without.

This is exactly why every home should have an energy rating.

Home buyers today need to know what it costs to operate a home and this should be understood before the offer even goes on the table.

Please the excuse my tone, but you’re joking right?

Isn’t this the whole purpose of an inspection contingency? That’s like saying your client needs to know the age of the roof before the offer goes on the table. Sure it would be nice to have, but not likely in most cases. And if the seller is doing it ahead of time, then the buyer isn’t going to trust in anyway. Besides, understanding an energy rating for a home isn’t near as important as other issues such as health and safety.

Getting a deal through quickly is not near as important as making the right deal. In my experienced option, you need to slow down and think this through.

Your giving your client a half assed quickie thermal scan in order to close the deal quickly puts you into a different category of agent than your initial post lead me to believe. Based on some of these posts it is clear that you are not interested in taking the time to be thoroughly trained yourself in the use of the technology. Therefore do you clients a favor and don’t go there.

If you truly believe that you are putting your client first, then build a network of professionals you trust to work with. If the deal can’t afford a couple of days for the proper inspections, then it’s not worth the risk for your client PERIOD. And if you think that is likely to happen before an offer is made, then you are wrong. The only way that will happen is if you or your client hire an EXPERIENCED and TRAINED professional to look at the home ahead of time. That is, UNLESS you take the time to become an expert in the field. And as you said, time is of the essence. You as an agent/broker will have a much easier life if you learn the art of contingency negotiation instead of trying to take multicolored pictures, because without knowing what you are doing, that’s all you’ve got.

Here’s a piece of business advice… Do what you do well, to the best of your ability. Be the best in your field if you can be. You can not do everything well, or be the best at everything. Therefore surround yourself with people who are best at what they do (especially if they can do it better than you.) Remember, it’s NOT what you can do personally for your client that is important, it’s what value you can provide to your client.

As my friend Will said earlier.

I hope that helps.

I appreciate everyone’s time…

My point is that, contrary to what you wrote, above, you DO NOT have the “ability to see most of it” yourself. If you did, you would be a home inspector, not an agent or broker.

“Progressing my profession…”? Your profession is being a Real Estate Agent, not an inspector. You are simply not qualified to do this without a great deal of specialized, and expensive, training, including field work.

**Will, these statements officially make your input insignificant. Anyone that will make such derogatory personal and professional judgements about someone they’ve never met can’t possibly add intelligently to the discussion.

Mark, you’re input isn’t much better but at least you didn’t call me an incapable schemer…allow me to address your concerns…**

Isn’t this the whole purpose of an inspection contingency? That’s like saying your client needs to know the age of the roof before the offer goes on the table. Sure it would be nice to have, but not likely in most cases. And if the seller is doing it ahead of time, then the buyer isn’t going to trust in anyway. Besides, understanding an energy rating for a home isn’t near as important as other issues such as health and safety.

**In NC, an earnest money deposit can’t be returned until it is released by the seller. Not only can renegotiating a contract take a significant amount of, getting the earnest money released after sometimes tense negotiations can be a timely process that can often cripple a buyers ability to move on to something else. Better to go into a deal educated, if not fully at least partially, than to go into it totally blind.

**Getting a deal through quickly is not near as important as making the right deal. In my experienced option, you need to slow down and think this through.

Your giving your client a half assed quickie thermal scan in order to close the deal quickly puts you into a different category of agent than your initial post lead me to believe. Based on some of these posts it is clear that you are not interested in taking the time to be thoroughly trained yourself in the use of the technology. Therefore do you clients a favor and don’t go there.

**Think about what you’re saying here. If all i wanted to do was get the deal closed, i wouldn’t go to the extra trouble to do anything at all. And i don’t think i would have to be thoroughly trained to see whether or not the home is insulated at all or not. That doesn’t mean i don’t think nor would i seek proper training.
**
If the deal can’t afford a couple of days for the proper inspections, then it’s not worth the risk for your client PERIOD.

Using your insight, isn’t that what inspection contingencies are for…

Thanks again!

Maybe you should take some time to read before you speak. WTF!!!

Ken,

I would disagree with your comments regarding Will’s advice. Maybe you don’t like his advice. Maybe you don’t like the tone. But that doesn’t mean that it isn’t good advice.

It is good advice.

It is not possible to be both the listing agent or selling agent AND “inspect” the home. It just doesn’t make sense - regardless of your qualifications.

Mark

Will’s advice is crap. I’ve read plenty of his post and it’s clear the man has an excellent grasp on the mechanics of building dynamics and I respect that but to come out and tell me I’m an incapable schemer is ignorant.

I get the feeling that some of you can’t read or comprehend the written word so I’ll just give this a rest…But just know I have no intentions of dragging my clients through a deal totally blind about the condition of the property.

I have every intention of using TI to do this so hopefully we’ll learn to work together. Any perceived reluctance to invest in training and certification is strictly financial but rest assured, none of this is out of my grasp.

Thanks to those of you who contributed. I look forward to working with those who feel that improvements can be made on both sides of the deal and that our interest are really one and the same!

Thanks again!