Special Announcement: ASHI/NACHI agree!

[wforsyth]

Originally Posted by gromicko

It is unethical for him to do more than one job on the SAME property... and the whole world including NACHI, ASHI, and every home inspection legislation adopted and/or proposed agrees it is unethical. Scumbag NAHI is the lone hold-out.

I agree. But some would have them not wear anymore than one hat period and that isn't rational.

[Nick Gromicko]

It is even more unethical for inspectors to set up sister (as Dan Bowers calls them) repair companies to circumvent the spirit of the laws of their state.

[Nick Gromicko]

Wendy... I don't know anyone on the planet earth that has suggested home inspectors can't have other businesses including contracting businesses. They just can't offer their repair services to their home inspection clients. It is illegal in every state that adopted home inspector licensing... for good reason.... it is wrong. And setting up sham sister companies to circumvent the law and use the home inspection industry to drum up repair work is a violation of the spirit of the law.

[wforsyth]

Last year when I started work on my Realtor's license I was slammed repeatedly on this board for it and received several email warnings about the impropriety of it, even though I made it very clear that I would never think of inspecting a home I had listed or was selling, or a client of mine was buying.
But they got all up in arms anyway.

[rstrahan]

Originally Posted by gromicko

NACHI members who offer legitimate, impartial (as they should be) WDO inspections have to compete with Orkin and Terminix and all these other WDO inspection companies that offer their inspections for FREE knowing that they will get a certain amount of the repair work. This is what allows them to give away WDO inspections for free.

Not exactly. The big treatment companies here in BubbaLand will inspect for pest problems, but most will NOT issue a WDI certificate. For ANY amount. Too much liability.

Lending has gotten so loose in recent years that WDI's are out of the spotlight. I don't issue a certificate unless the buyer asks for it (maybe 1/10).

I remember a decade ago when mortgage money was tight, an underwriter would call with WDI questions once a week.

Sub-prime lending is about to foreclose a lot of houses, so this worm will probably turn again soon.

Russell

[rstrahan]

Originally Posted by dbowers

I think you're missing something real important. Many inspectors I've known over the years in VARIOUS ASSOCIATIONS including ASHI & NACHI simply sit up 3rd party corporations - then they do inspections - while sis's company can do the repairs. Two separate legal entities - totally legitimate. Done all day long even in licensing states prohibiting repairing what the inspector has inspected.

Thanks for posting that Dan. Somebody needed to say it. That is the essence of American business practice. The other manifestation I see in my practice is management companies that are silent partners in the maintenance contractors they hire. It is truly the warp and woof of effective business strategy.

While working on ethics rules in Texas we were AMAZED how players could find ways to circumvent ANY rules much faster than we could adopt them. Gotta love capitalism.

Also while working on the ethics rules we reviewed RECLA pretty carefully. The realtors and title companies have a work-around that makes the whole system toothless. Basically, parties to a transaction are not barred from pay-offs as long as it is for "marketing purposes" at reasonable rates. Whatever that means.

My overall impression is that inspectors (and engineers ) are generally very ethical, to the point of being overly idealistic. But real estate in general is corrupt beyond even the most cynical of perceptions.

Too much money, VERY large, organized players in lending, title insurance and brokerage.

In a nutshell, it's why they pick up 6-7% of every transaction and we get 0.1%. But guess which phone rings when the consumer feels ripped-off. We are the patsies.

There are too many inspectors in honest competition to make much money, but not enough of us to organize and meaningfully affect the regulatory systems.

Sorry, had cold eggs for breakfast.

Russell in BubbaLand