I’ve seen some interesting trends in Real Estate recently that prompted this blog posting.  Our inspection company began to get notifications that we, along with some other very thorough inspectors, were not being allowed on a seller’s property.

After some research, we discovered that a few Realtors/Builders were documenting in the purchase agreement specific inspection companies that were not allowed on the properties that they own.  Given all the legal ramifications of this practice, I am left scratching my head in disbelief.  These Realtors/Builders have now exposed themselves should there be a lawsuit concerning any issues that are discovered post closing.

Ramifications of Banning Certain Inspectors

Banning certain inspectors now gives the buyer ammunition should they discover something unpleasant after they take possession of the home.  They can quite easily say that they were prevented from using the inspector of choice in order to purchase their home of choice.

Our company has been engaged to inspect properties, subsequent to the buyers closing, to document items that were not disclosed by the previous owner and/or not found by other inspection companies.  These cases have resulted in payouts ranging from $5,000 – $40,000!

As a buyer, be aware that you have a right to the most thorough inspection possible.  As a seller, be aware that the most thorough inspection possible protects you from future litigation and potential payouts that far exceed the repair costs had issues been discovered pre-closing.

Steps to Take

Here are a few Steps to take if the Inspector you choose is not allowed on the Property you are wanting to purchase:

1. Ask why?  Ask the seller and the inspection company why they are being banned.  The answers may reveal information that could greatly affect how you proceed.
2. Research inspection companies online.  Find out for yourself which inspection companies are the most reputable, reliable and thorough.  As a recent appointee to the Mississippi Board of the Better Business Bureau I advocate use of the slogan “Investigate before you Invest!”
3. Research Realtors and Builders online.  Reputation is everything.  See number 2.
4. Ask Builders, Realtors and inspection companies if they have been involved in litigation concerning missed inspection issues.  See number 2.
5. Ask the Realtor and Builder which inspector they would hire if they were purchasing a home for their mother or daughter.

Who Are They Scared of?

Interestingly, we recently inspected a property for a buyer who was using a very reputable builder to remodel the home after purchase.  When they asked this builder who they should use to inspect the property, the builder responded,

“Inspect It Like a Girl!  They scare me to death when they show up on my properties!”