Should you use the home inspector your realtor recommends?
Yes, you can, but check the inspector yourself before you book. The inspector should work only for you and get paid whether or not the sale closes. The CFPB warns that an inspector paid by someone else, or paid only at closing, might play down problems. Ask for references and a sample report.
Is it a conflict of interest for a real estate agent to recommend a home inspector to a client?
It can look like one, and the concern is fair. Your agent is usually paid when the sale closes, and an inspector who finds serious problems can slow a sale down or end it. The CFPB says you want an independent inspector who is accountable to you, and it warns that an inspector paid by someone else, or not paid until closing, might underemphasize problems with the home.
The two large inspector associations both ban the payment you might worry about. ASHI's code of ethics says inspectors shall not compensate realty agents for referrals or for a spot on a list of recommended inspectors. InterNACHI's code bars members from paying agents for referrals or for inclusion on preferred inspector lists. Those codes bind members only, so ask whether your inspector belongs to either one.
Agents recommend inspectors for an ordinary reason too. They've read the reports from past sales and know which inspectors show up on time and explain what they find. None of that proves an inspector is independent, so check the one you're given the same way you'd check one you found yourself. If you're curious how an agent puts that short list together, here's what an agent checks before recommending an inspector.
How do you find a reputable inspector that isn't in cahoots with your realtor?
Ask who pays the inspector and when, then check the inspector yourself. You should be the one paying, and the fee shouldn't depend on whether the sale closes. The CFPB suggests asking for references from prior customers and looking the inspector up with your local Better Business Bureau and your state or county licensing authority. It also notes that in some areas, home inspectors don't have to be licensed at all.
Ask every inspector you're considering the same six questions. Write down what each one says so you can compare the answers later.
- Who pays you, and when?
- Can I see a sample report from a recent inspection?
- Can I talk to two or three recent customers?
- Are you licensed here, and what's your license number?
- Do you belong to ASHI or InterNACHI?
- Do you ever do repairs on homes you've inspected?
You can take your agent's name and one name from your own search and ask both inspectors these questions. Compare the sample reports side by side, since the report is what you'll rely on when you decide. Once you've booked, read whether your agent should be at the inspection and what happens after a home inspection.
Can a home inspector recommend a contractor?
Yes, but an inspector who belongs to ASHI can't be paid for the recommendation. ASHI's code bars members from accepting compensation for recommending contractors, and from repairing, for pay, the systems they inspected for one year after the inspection. InterNACHI's code bars members from offering paid repairs on a structure they inspected for 12 months.
That's why an inspector who offers to fix what they found is a reason to ask questions. Get the names for repairs somewhere else, and check them the way you'd check any contractor, using how to find a trusted contractor. For what to do with the report itself, see repairs after a home inspection. If you're wondering whether a list of names was paid for, here's what a preferred vendor list is.
Sources
After you close, your agent's list goes with you
If your agent uses Proferral, nobody pays to be on their list, and Proferral takes no referral fee. The list opens on your phone with no app and no login. Proferral doesn't rate inspectors or check their work, so the questions above are still yours to ask. Here's how your agent's go-to list works.
Your agent sends you the link, and you open it on your phone without installing anything.