No More Home Inspections in Kansas

[James H. Bushart]

Originally Posted by gromicko

I am not at liberty to explain how I know this, but RESPA is revisiting home inspector/agent relationships and is close to breaking all ties between the two, by Federal law.

This means our industry becomes an all out marketing race.

How does this effect used house salesmen sitting on HI Licensing boards?

[Nick Gromicko]

It diminishes their interest in our industry.

[Brian E. Kelly]

Originally Posted by gromicko

I am not at liberty to explain how I know this, but RESPA is revisiting home inspector/agent relationships and is close to breaking all ties between the two, by Federal law.

This means our industry becomes an all out marketing race.

RESPA has their hands too full with Lenders and Appraisers to worry about what Home Inspectors are doing.

[Nick Gromicko]

I'll have a show on this subject which includes the RESPA revisit, we already shot the show and Valerie already edited it, I just can't air it yet.

[Dan Bowers, CMI]

But if my good buddy the used house commissioned sales person doesn't guide the buyers to me because I'm speedy, cheap and don't make waves -does this mean I might have to really work to get business??

Ouch ............

[John Onofrey]

I don't understand why some of you are so eager to throw the baby out with the bathwater. Like it or not, agent referrals represent a significant revenue stream within the inspection industry. This notion that it is only the rare inspector that can resist the impulse to write soft reports to satisfy the evil desires of Real Estate Agents is skewed in my view and not supported by data. My experience with the inspectors that I know along with the statements of many members here supports the opposite viewpoint.

It is not a good thing to lose a revenue stream of any type. Suggesting that inspectors would somehow be better off by spending more time and money for marketing to make up for losing agent referrals is counter productive.

I make these statements as someone that spends most of his advertising dollars marketing directly to consumers. The agents that refer my company have largely come my way as a result of my success marketing to consumers. These are good and successful agents. The type that consider inspectors the experts and defer to their opinions. I choose to have a professional relationship with them because of that.

We should not be picking a fight with the Real Estate Agent community. We should figure out a way to make inspections mandatory.

[James E. Braun, CMI]

The experience here in central Missouri is some brokers are forcing their uncertified inspectors on to their agents. Most of the brokers I know only see the dollar signs.
I have found marketing to the consumer gets me more business than the Realtors. If the Realtor is honest he will eventually stick you on his list if enough customers rave about your inspections to them. It may cost more to market to the consumer but you are less likely to be dragged into a lawsuit when a Realtor screws up.

[Joe Farsetta]

Nick,

With all the problems with the housing industry in this country, and how it is draggng down the economy, I seriously doubt the Feds have any "relationship" issues with home inspectors and realtors anywhere on the radar.

In fact, I suspect that all eyes are on Fannie Mae and co, including the latest laws which will NOT help anyone stay on their home or be able to borrow money.

No, the RESPA issue and realtor/inspector relationships will be NOWHERE to be found. In fact, in many cases, sme of these cozy deals may be in violation of RESPA and state guidelines, yet we all know that enforcement is almost non-existent.

But, getting back to Jim B's post and John M's response, the issue is NOT that realtors wont be recomming INSPECTORS in Kansas. Jim's point is that the trend will be to not recommend INSPECTIONS, which is much different.

Realtors still hold the key in many, many cases. They are generally still regarded as the most trusted one in the RE transaction, and remain in control in many instances.

RE-read Jim's posts.

Realtors will recommend roofers, electricians, plumbers, etc. Those reviews DO NOT qualify as a HOME INSPECTION, and the art will no longer be recommended with those with the biggest financial interest in the transaction. Federal laws are slow to change, especially when the issue of a voluntary home inspection is dwarfed by all the other problems in the housing sector.

This aint about marketing, folks. It's about survival.

[Gary Farnsworth]

You are right, Joe. How in the heck will the new Kansas Home Inspection board enforce there own regulations, and the law itself? Where is the State going to get the money? The Kansas Dept. of Agriculture requires you to be certified to perform termite inspections. In the past several years, I think they only got one guy in rural Kansas that was doing termite inspections with no certification, and they chased him for months. I see no enforcement of the new Kansas home inspection laws in any form. Who will police the lists that the RE will still give to consumer/buyers? How will inspectors get these lists? Dan, inspectors still pay to be on these lists, in the from of "advertising" or "marketing fees". It will be considered, in my opinion, a "referral fee". But, how do you enforce/prove this happens in RE offices state wide?

[Nick Gromicko]

Joe, REALTOR.com already making changes to their site in anticipation. Watch the upcoming show with the VP of Closing.com

[James H. Bushart]

Joe is correct.

The three page "disclosure" document lists a dozen different inspections that are recommended by the agent, including a permit search, without any mention at all of a "home inspection".

This is how they plan to kill the monster they created through their moronic legislation they bribed through their state congress.

[Nick Gromicko]

Good point.

Kansas agents also going to refer contractors for certain portions of the inspection.

[Gary Farnsworth]

And they will also do the repairs, needed or not. Roofers, electricians, plumbers, HVAC do not need a license to operate in the state of Kansas. What will keep one RE from doing a roof inspection, another to do a plumbing "check", another RE to check the A/C, and so on. Yep, it works. Yep, no leaks. Everything looks okay. Boy, the consumer will lose on this one. A house rep in central Kansas performs home inspections, and owns his own HVAC company. The Kansas bill is simply, a joke. Our only hope is to get some board members in there with some teeth, and perhaps change some of this language. That will probably not happen. Follow the money.

[Joe Farsetta]

Its high time for InterNACHI to have a rock-solid policy regarding HI licensing. That position should be that we DO NOT support it. We shouldnt support ANY of it.

It matters not that ASHI and the NHIE are no longer mentioned. It's WAY beyond that. Where licensing is enacted, I defy anyone to show where it has helped a single consumer or protected anyone.

In the case of both Kansas and Missouri, there is absolutely no licensing of builders and no enforceable codes. They license inspectors. They pick on us. Under the watchful eye of ASHI. Now, with inspectors being spiked out of our jobs by realtors now recommending contractors, we are fighting for our survival. Guess what? We're losing that fight.

Attorneys from Kansas acknowledge the realities of liability of the law, and how bad it is. We need $18k to launch a lawsuit to challenge the current law and force them back to the drawing board. Think its worth the investment? You tell me.

Kansas is lost. Missouri is next. Michigan aint far behind. So went Oklahoma. So will go the rest. Under the thumb of the realtors.

Yet we sit idly by and allow states to fall to this bogus BS one by one.

NACHI should remember its roots. We were once regarded as the Hell's Angels of HI Associations. I think we forgot where we came from and what helped make us so great. Time to grab the bull by the BALLS, folks.

NACHI is the leader. We need to lead.

The time is NOW!

[Dan Bowers, CMI]

Its 8:15 PM central standard time. I just finished a conversation with a home inspector in our state. He told me 2 interesting tidbits.

1) He did an inspection on a house that had gobs of piled up paint and caulk around trim, windows, etc. He started probing with his fingers. His fingers went through the paint and caulk MANY places. LOTS of wood rot or decay the SELLER had hidden or tried to cover up. He points it out to the buyer. The buyer walks. The seller goes to sue him for DAMAGING their trim. His attorney advises him to settle BECAUSE it would be to expensive to fight it.

Over $4,000 in payment to seller for damage to their house. Plus his attorney fees ..... If he hadn't probed and buyer moved in and found rot, he'd have the buyer suing him .... Either way you lose!!

2) The inspector says in his area that the attorneys are starting to visit real estate offices to tell them about the new $10,000 repair allowance or limit of liability in Kansas for home inspectors. Apparently some of the more unsavory real estate agents and the trial attorneys are up to their noses in making sure this info is SPREAD around to use it as a CASH COW.

We've talked to several Attorney Firms who feel there is enough inconsistancies or discrepancies in the Bill to challenge it in a District Court.

But since its not a contingency type case for them they all want about $14,000 to get it off and rolling. AND we're in the deadest summer for business we've seen in 10 years or more ...................