When making the largest purchase of your life, how do you find a home inspector to validate the home you are purchasing is everything you want and more (instead of being a money-pit nightmare)? Most buyers rely on their real estate agent for a referral, but this is the biggest mistake you can make. Here is why:

• Your agent, while they may be a professional in the buying and selling of homes, most likely is not trained or qualified in the home inspection industry. The agent does not know what is required for a home inspection, and does not have the proper training to evaluate the quality of a home inspector, so the referral you get may not be the best choice for you. There are many reasons a real estate agent may refer a home inspector, and many of them may not be in your best interest:
• The home inspector may be a friend or family member of the home inspector- A real estate agent has friends and family just like everyone else. You have no way of knowing where your agent's loyalties are, and just because he is referring you to an agent does not mean he is referring you to the best agent for you.
• The agent got a flyer from a home inspector- Many home inspectors are referred by agents just because they leave their flyers in the agent's office. The agent may not be familiar with the home inspector, and the only reason for the referral was the flyer that arrived just before you asked for a referral. This is no way to guarantee you are getting a great inspector.
• The agent referred you off an e-mail he received- Home inspectors need to market like everyone else. Many due so through mass e-mails. This does not mean they are a good home inspector. Unfortunately, may agents will just refer a home inspector based on the current e-mails they are receiving.
• There is some corruption in every business- By no means am I saying every agent is bad, and quite the contrary, most are excellent and professional. Unfortunately, for the ones that are unethical, there are two problems:
• First, some of these agents will refer an agent who rushes through the home inspection, and almost always misses problems. The agent refers this inspector because he is quick, and by his lack of quality, preserves the sale of the property, and you are stuck paying for repairs your home inspector should have found.
• The second problem with this type of referral is because it is not uncommon for the home inspector to be paying the agent a finder's fee, kickback or some other gift for the referral. The home inspector nor the agent have your best interests in mind. They are only interested in preserving the mutual relationship between themselves, and your home inspection will likely suffer. Minor issues get over looked, major issues get down-played, and you probably are not getting the quality of home inspection you paid for.

There are bad home inspectors in every city. What are the biggest pitfalls of bad home inspectors?

• Lack of Insurance.
• limited or no training or experience.
• Rushing through the inspection without checking everything as required.
• The wrong kind of insurance.
• Unethical relationships that compromise your home inspection.

The best way to find a proper home inspector is to find one yourself. A referral from a friend or family member does not mean you are getting a great home inspector. The biggest problem with the home inspection industry is that a home inspector can go through a home most of the time and claim it is in wonderful condition, and everyone thinks their home inspection was exceptional. Where the problem occurs in when there a issues with the home. This is where a bad home inspector will miss the issues, while a good home inspector will find them. If you hired a bad home inspector, you will most likely be paying for the major and expensive repairs, while a good home inspector will find these concerns up front, allowing you to cancel the contract before you buy the home, or re-negotiate it to cover the cost of these repairs.

So how do you properly select a home inspector?

• Find and retain a home inspector before you decide to buy a home. It is better to research and interview home inspectors now, while there is no hurry, rather then wait until the last minute. The biggest mistake is that buyer put their offer in to buy a home, and then scramble to find a home inspector. You are almost always going to sacrifice the quality of your home inspection by doing this.
• Make sure they are insured. A properly qualified home inspector has a generous insurance policy to cover them for any mistakes they make. Request a copy of a certificate of insurance, listing you as the recipient dated with the current date. This is your only guarantee that the home inspector is insured.
• As each home inspector for referrals from prior clients and also ask him for referrals in which there were problems as well, and ask how he resolved each of these issues. It is easy to find people to tell you positive comments, but the true sign of character is a referral from someone who had an issue with the home inspection, in which the home inspector went above and beyond to resolve the issue.
• Read the contract. May home inspectors limit their liability to the cost of the home inspection only What this means that if the home inspector misses a major problem, his only liability is the cost you paid for the home inspection. He essentially just will refund your home inspection fee amount, and you are stuck paying for the repairs yourself. This one mistake can cost you thousands of dollars.
• Verify they are qualified to conduct a proper home inspection in your area. Many states require you to be licensed to conduct home inspections, but it is your responsibility to make sure.

What concerns should you know about if a Real Estate Agent recommends a particular Home Inspector to a Prospective Home Buyer?

Real estate agencies typically work for an average commission of 6-7% paid by the seller of the property. The commission on a typical $200,000 sale is around $14,000. Many real estate agents have or will recommend particular home inspectors to a potential buyer, ranging from only one home inspector to usually up to three. How did these inspectors become "Preferred Home Inspectors"? You must ask yourself if the agent is keeping your best interests in mind, and is really recommending a non-bias inspector who will complete an exhaustive and detailed home inspection, or is the agent recommending someone who will help protect their $14,000 commission? Unfortunately, some agents perceive a complete and exhaustive home inspection as a threat to their commission, and therefore will not refer you to the best home inspector's in you area. You should always find, interview and select your own home inspector.

Do you think every potential homebuyer should use a home inspector of their own choosing?

If a real estate agent "suggests' that you that you use a certain home inspector, or "recommends" not to use a home inspector of your choosing, or insists that you use one of their "Preferred" or "Premier" inspectors, you should contact www.InspectorReferralNetwork.com or your attorney. You should also immediately question why they don't want you using an independent inspector of your own choosing. Any real estate professional who suggests or is very persistant in trying to get you to use a home inspector of their choice may be trying to "steer" or control the home inspector selection process. "Steering" is illegal in most states (But unforunately still occurs more then it should). Remember, it is your right and in your best interest to find and retain your own home inspector. You must keep in mind that the real estate professionals representing the sellers are working in the best interest of the seller, and while your agent should keep your best intersts in mind, a conflict of interest is created when you ask him for a referral. He may be interested in protecting you, but at the same time wants to protect his financial interest in the sale of the property, and may not recommend the best home inspector in the area to you. Finally, when a home inspector is referred regularly by a real estate professional, he may develop an unhealthy relationship or bond with the real estate professional, because this may become a significant source of his income. There is always the potential in this type of relationship for the home inspector to "Overlook" or "Miss" problems or deficiencies when inspecting a property to preserve the relationship and revenue stream he is receiving from the real estate professional.

How Can A Real Estate Professional Manipulate The Home Inspector Selection Process?

There are many tactics used; some are obvious, while others are quite deceitful. The agent may discourage the potential buyer from using a certain home inspectors by referancing negative or malisious statements like:

• That inspector is a deal killer.
• That inspector takes too long.
• We've had trouble with that inspector.
• We don't allow that inspector to inspect any of our listed properties.
• That inspector is too expensive.

A manipulation of the fee deception tactic is that the real estate professional advises the prospective home buyer that they should expect a home inspector to charge between $150-$200. By advising homebuyers to expect these lowball (And unrealistic) fees, agents are again trying to "Steer" homebuyers to certain inspectors, because the prospective homebuyers might limit their search to the arbitrary price range set by the real estate agent. Please remember that "Steering" is an illegal practice, but unfortunately still does happen way too often.

The tactics used to encourage a prospective buyer to use a particular inspector include:

• We've had good luck with this home inspection company.
• This inspector has the cheapest fee's (keep in mind that cheap is not always best.).
• We use this inspector all the time.
• This inspector can schedule an inspection on a day's notice (Most can).
• This inspector only takes an hour and he gives you a report right on the spot.

For instance, in the first stage of discussion about having the home inspected, the real estate agent may recommend to the buyer a "good" home inspector with whom they have worked with for several years. Some agents may have a list of three inspectors who have been carefully screened not to be deal killers. The list, however, will be long enough to protect the agent from any referral liability should the buyer want to blame the agent for any inspection mistakes. This gives the agent the perfect combination of:

A) No liability for the referral;

B) The buyer "chooses" an inspector the agent prefers; and

C) The buyer's choice is limited to home inspectors who will not hurt the sale.

If There Is A Potential Conflict Of Interest With Sales Agents Recommending Home Inspectors, Why Doesn't someone do something about it?

www.InspectorReferralNetwork.com is. www.InspectorReferralNetwork.com will provide you, FREE OF CHARGE, a list of home inspection companies in your area. Our only perpose is to work towards regulating the home inspection industry, only referring you to qualified, professional home inspectors in your area, who can complete your home inspection for you, without a conflict of interest, giving you the best, most complete, and exhaustive home inspection you deserve.

What Can Be Done To Prevent This Potential Conflict Of Interest?

Do not ask your real estate professional for a referral to a home inspector. Do not accept any short list, "Prefferred" or "Premium" home inspector recommendations from the agent. If the state you're buying in requires home inspectors to be licensed, obtain the list of licensed inspectors (Click here for a list of your states home inspector requirements). Do a little research and choose your own inspector. The best source for finding referrals should come from someone independent, such as www.InspectorReferralNetwork.com, who does not have a vested interest in the sale. Remember, it's your money and your potential future home. Choose your home inspector wisely!

Is the inspector experienced?

Make sure to ask every home inspector you consider hiring how long they have been in business, if they are licenced, how many inspections they do a year, and other qualifications relevent to your market area.

Is the inspector knowledgeable?

An inspector must have full working knowledge of every system in a home. Most inspectors had formal training in just one trade. A good home inspector will be cross-trained in all the other relevant trades. A good rule of thumb is to look for at least 2 years of experience or combined formal training and on-the-job experience in related fields.

Who referred you to the inspector?

The best referral is from an unbiased third party, such as www.InspectorReferralNetwork.com. Although many real-estate professionals refer quality home inspectors there is a possible conflict of interest with this type of referral. Kept in mind that while most agents are honest, it is best to always find your own home inspector to protect your best interests.

Is the inspector covered by errors and omissions insurance and general liability insurance?

It is to your advantage that your inspector has this coverage. Do not be afraid to ask for a copy of the policies.

How long does the inspection take?

Ask how long the inspection will take and how many other inspections will be performed on the same day as yours. If the inspection takes less than 2 hours find another inspector. Performing a thorough inspection is very tiring, so arrange to be the first or second one of the day.

How much does the inspection cost?

This is one area where you do not want to hire the cheapest home inspector. A well-established, full-time professional inspector is going to charge more then a entry level or newer hoem inspector, but the established inspector will in all likelyhood do a much better and more complete inspection. Several hundred dollars is a small price to pay to get the best protection you can for perhaps the biggest purchase of your life.

Even though I have several real estate professionals who regularly refer me to their clients because they trust me to do a good job, I still have to answer this question "No. It is generally in your best interest to avoid using home inspectors referred to by your real estate salesman."

First, there are many real estate salesmen and brokers who solicit home inspectors to pay them to appear on lists that they provide their clients. These lists are often called "preferred vendors" or "preferred providers of services". In these cases, as your own common sense will tell you, a home inspector who has invested money with a real estate salesman to have himself referred to you is highly unlikely to throw away his investment by putting anything in your inspection report that might make you walk away from a deal or otherwise offend the referring salesman. He is likely to "soften" his report to ensure that you buy the house.

Additionally, agents have a duty to their clients' "best financial interests" and should, when they recommend a vendor, be recommending them on their levels of skill and experience and not simply by their willingness to pay a fee.

Even when inspectors do not pay to be referred, home buyers are still better served when their real estate salesman....who only gets paid if the buyer closes on the house...has no part in choosing the inspector who will write the report.

Many home inspectors, it is sad to say, have built their businesses to be totally dependent upon real estate salespeople to refer them. In these cases, they advertise themselves as being "non-alarmists" so that real estate salesmen know that they are safe to recommend to their clients. Most buyers, however, are counting upon being told of "alarming" defects in a home they are about to buy...and should avoid these inspectors for that reason.

Especially in very large Missouri cities where the real estate sales market it highly competitive with thousands of agents competing against each other...a good home inspector who will write a complete, thorough and unbiased report is NOT always appreciated the most by agents and is likely to be left off of a few "lists" of those the agent "prefers" to recommend.

Play it safe in the bigger cities and find an inspector from out of town...one who is not connected to the local real estate sales professionals in any way.

Be certain that you can count on your home inspector to work for you and to provide you with a complete, accurate and unbiased description of the home you are wanting to buy.

Author: Jim Bushart "Should You Use Your Real Estate Salesman's Home Inspector Referral?" http://ezinearticles.com/?Should-You-Use-Your-Real-Estate-Salesmans-Home-Inspector-Referral?&id=3938882 Visited March 29th, 2010.