Inspector Selection: A Real Estate Agent's Duty

By Nick Gromicko

Former REALTOR

Founder, International Association of Certified Home Inspectors

     The seller has accepted your clients' offer and now, with your help, your clients must

choose a home inspector. Should you steer them toward the inspector who writes the

softest reports? Should you steer them toward the inspector who pays to be on your

office's preferred vendor list? Should you help them find the cheapest inspector? The

answers to these questions are of course no, no, and no.          

     You have a fiduciary duty to your client and, therefore, must recommend the very best

inspectors. If you recommend a patty-cake inspector, an inspector who indirectly pays

for your recommendation, or a cheap inspector, you violate your fiduciary duty to your

client.                                                     

     The National Association of REALTORs defines your duties in their Code of

Ethics. Article 1 requires you to protect and promote your clients' interests. Article 6

requires you to disclose any financial benefit you may receive from recommending

related real estate services (this also includes any benefit to your broker).

Because most real estate agents get paid only if the real estate transaction successfully

takes place, your personal interests and your fiduciary duties already conflict. Don't

make your situation any worse. The best way to avoid negligent referral claims, to

operate ethically, and to fulfill your fiduciary duty is to help your client find an inspector

based solely on merit. And although no real estate agent can guarantee the thoroughness

of any particular inspector, there is a strong correlation between an inspector's fees and

his/her competence (in other words, you get what you pay for). Helping your client find

a cheap inspector for the purchase of their lifetime is a violation of your fiduciary

duty. When in doubt, shop price, and seek out the most expensive inspectors for your

clients.