(WA. Legislation) Email from Larry Stamp of the WHILAG

Now THAT is the best description of the state licensing effort that I have yet to read. Good post, Nick.

Interesting points

What’s harder for a newbie?

To go up against the experienced inspector who already has strong market dominance that he has developed over many years?.. or… pass the kindergarten NHIE?

Thank you Nick

I would like to go against someone right out of school with a new license

rlb

It all depends on how complacent the old geezer is or how large his dunlap has gotten Nick.:smiley:

The Judiciary branch of our government has Rules, published, written down, placed on the internet, and available to all, the NACHI ESOP Committee on the other hand have no rules that the general membership have seen, and the Committee has demonstrated that what ever rules they follow are variable. You have one of your committee members accusing another member of being a Convicted Sexual Criminal on a public Message Board, how does that work?

Your guy with 20 years must not have to loyal of a following if realtors and others who refer him abandon him because of licensing. Most of the public already believe Home Inspectors are licensed, most are suprised when they find they are not.

Many of us have already seen that, and quite often it’s the New Nachi Certified Inspector that is offering the $100 Inspection, me I’ve followed your advice since I started, price high, I even used your quote on my website for quite awhile, the one about NACHI Inspectors being worth more so we charge more.

There are also many highly respected NACHI Members in regulated States that disagree with you and defend their States Regulation, Will Decker, John Bowman, Brian Kelly…Gerry Beaumont did a poll a while ago, on the Members Only Forum, the last I looked it was nearly 3 to one in favor of HI Regulation.

Tests, whether its the NACHI, the NHIE, or any other entry level exam are just that, entry level exams, minimum standards, if they are of no use then why do NACHI Members have to pass the test to be Certified?

Going up against the experienced inspector of course, but licensing won’t change that, I’m very seldom asked what association I belong to, but I am often asked “How Long Have You Been Doing Home Inspections”, do you think that question disaapears when licensing takes effect?

Back to the Tests, NACHI vs. NHIE, according to your numbers a higher percentage of those who take the tests fail the NACHI Exam, I don’t disagree with your numbers, but you never answer when I ask if you don’t think those percentages would change and the people taking the NACHI Exam would be more prepared if they had to pay $225 as they do to take the NHIE.

The only knock I have against the NACHI test is that anyone can take it under anyone else’s name, out of 10,000 members I’d say that has been done, rarely but done. A Proctored Test would give it much more credibility.
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I don’t know how much attention the Senators will be able to give the Home Inspection Bill. They have far more important things on their plates…pun intended… :wink:

http://www.leg.wa.gov/pub/billinfo/2007-08/Pdf/Bills/Senate%20Resolutions/8607-Potato%20industry.pdf

The other aspect of “so-called” experienced inspectors, at least in this area, is that the inspections that many of them do, and I have seen a lot of their reports and inspected the same houses behind them, are designed to get as many referrals from realtors as possible. They don’t make waves, the do softball reports and miss major issues.

I’ve heard that said alot David. I’ve read recently that the best inspectors often are the hungry, newbie inspectors. The more “experienced” inspectors already know what things make waves and what don’t, and write their reports accordingly as to not lose the referral base they have.

Does anyone know what is happening with SB5788 now that it has been referred to the rules committee?
I have been trying to figure out what the rule committee actually does. Do they debate the bill, and make additional changes? Or are they just determining when in goes to the house floor for debate?

They are proposing an action. It had it’s first reading and now it’s been sent on and approved for it’s second reading which is in front of the rules committee.

If it makes it past the scrutiny of that committee, then it will be voted on by the entire legislature.

Legislation that is TRULY written to protect a consumer will make it illegal for real estate salespeople to be involved in the process of referring and/or scheduling home inspections.

This conflict of interest transcends the boundaries of experience, test scores, education or other arbitrary means of setting a level of competency for an inspector.

The most educated, most talented, and most experienced home inspector whose business relies upon referrals from salesmen of real estate has as much of a chance of writing a report that misses an important issue — as one who lacks competence.

In the sale of a $400,000 home where a salesman has $24,000 to $28,000 at stake, he is not expecting the inspector that he refers to cost him a deal.

Are there exceptions? Maybe. Just like there are exceptions in the areas of competence based upon experience, test scores, and education.

No one who TRULY wishes to protect the consumer will exclude addressing this conflict of interest from their legislation. If they do, they are simply writing a law to protect their interest in the market share.

There you go James, one of the few things we rarely agree on.

It would be very hard to get that into an original HI Bill though, it would be easier a year or so after the Bill is enacted to offer and push for an ammendment to the HI Bill, little steps

I thought “licensing solved nothing”…I like that mantra better.

Is there any state laws enacted that include restrictions on referalls to inspectors from realtors? Honestly I don’t believe there is, but I may be wrong.

I know of only one inspection association that goes as far as requiring that their members pledge to not actively solicit realtor referalls. And even though most of my inspections come realtor referred, I still could meet the requirements of their pledge. http://www.independentinspectors.org/inspection-pdf-files/pledge.pdf
I don’t give presentations at realtors offices, drop off doughnuts, cookies, etc., or offer realtor rewards, bonuses, etc… I have lots of agents who have used me for years, and newer ones come to me through word of mouth.

I believe the IHINA concept was more of a marketing tool which really didn’t work. Inspectors are not running to IHINA and knocking down the doors, like they are here at NACHI. They have two inspectors in Washington State, NACHI has way more here than I would like to take the time to count.

I can’t speak for everyone, but I know that I have no problem providing my clients with a thorough inspection and report, that covers the defects in the home. My inspection findings are not altered to make an agent happy.

My responsibility is to my clients, and they are the ones that are going to call me when they are unhappy about the inspection. The costs are way to great too “softsell” a home, and for what? To maybe get another referall or two, or three… from an agent this year? It just makes no sense.

I see no conflict of interest when the inspector is working dligently and adhering to his NACHI SOP and COE.

http://www.mass.gov/legis/laws/mgl/112-87yy.5.htm

“This prohibition shall not apply if there is a written contractual agreement or a written agency disclosure between the buyer and the real estate broker specifying that the real estate broker is acting exclusively for the buyer as a buyer’s broker.”

So in Massachusetts it is OK to refer HI’s if they are the buyers agent and the buyer has signed an agency disclosure to that effect. That exception seems to nearly nullify the rest of the law.

It would be interesting to hear from someone under this law, how things really work there in Mass.

So lets’ say for a minute I am a buyer, and my realtor hands me a list of 50 inspectors to choose from. Overwhelmed because I have no clue which one to choose. I look at him/her and ask “Who would use to inspect your house?” This assumes that I have built a relationship with the realtor, and have confidence in their professionalism. I know there are bad apples, but their are alot of good ones too. Just like us home inspectors.

You challenged that there was such a law.

Now, you challenge the law.

In any event, it is this conflict of interest that has inspectors at all levels of experience and expertise writing soft reports. Any law addressing the consumer’s interest that excludes it, is bias.

Would you like to see somelawsuitsdetailing the fraud and collusion between real estate salespeople and home inspectors? There are more of these than lawsuits alleging incompetency.

James,

Interesting links, especially the one to the Housemaster lawsuit. Kind of a nightmare scenario.

There is more legitimacy and documented evidence to support consumer protection by barring referrals from salesmen than for requiring the NHIE.

Dig this. In Manhattan, where a house can easily sell for $800,000…a home inspector can lose his license if he inspects a house for his daughter. Why? Because she has a financial interest in the outcome of the inspection.

But the salesman of the house…who has a $48,000 commission on the line…can pick (aka “refer”) the inspector???

This law in New York protects the consumer from nothing.

James
You are very confusing at times…most of the time you state that “licensing solves nothing”…and you campaign for less regulation on business from government, and now you are saying that you need a law to protect consumers from home inspectors and realtors.

What I am saying about the Mass law is that if HI’s and realtors are dishonest about fraud and collusion it is going to happen regardless of any laws.

Laws just keep us honest people …well honest.