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Inspector Credentials

BUYER'S TIP: Home buyers want inspectors to give honest, objective and thorough opinions of the home being inspected but many inspectors feel they must rely on real estate agents for referrals and will tiptoe around problem areas so as to be a "deal killer". This is good for home sellers and listing agents but bad for the home buyers. Look for an inspector who does not rely on real estate agents for their business. Consumer advocates generally recommend avoiding home inspectors referred by real estate agents unles the agent is working as a Buyer's Agent who has legal and fiduciary duties to the buyer which would include getting a thorough home inspection by a skilled inspector.

Finding a good home inspector may require some research effort as many states do not require licenses for inspectors and they are not regulated like other professional service providers. Choosing a home inspector is further complicated by getting suggestions or recommendations from real estate agents, which currently happens in about one half of the real estate transactions.

The potential for a conflict of interest exists when home buyers rely on the advice of real estate agents that work for the seller. The exception to this rule of thumb is when buyers have made arrangements for a buyer's agent who has legal and fiduciary duties to put their interest first. The seller's agent or a sub-agent, working on behalf of the seller, has legal and fiduciary duties to the seller and it puts him or her in an awkward position to recommend a really thorough inspection. A diligent home inspector may get the reputation as a "deal killer" from traditional seller agents who don't want to frighten away the buyer from completing the real estate transaction. The inspector with a reputation as being "real estate agent friendly" may provide a favorable report or gloss over important items that have financial implications for the buyers to guarantee more referrals from agents in the future.

Licensure of home inspectors has been implemented in a number of states and is currently being considered in others to address the lack of training, certification and regulatory review. New Jersey's home inspection statute is comprehensive and considered a standard for other states to follow. Massachusetts has enacted legislation to license home inspectors in response to the significant number of consumer complaints. Home buyers using a Buyer's Agent benefit from knowing that the Buyer's Agent wants a thorough and rigorous inspection because he/she has the fiduciary duty to protect the home buyer's interests.

ASHI, American Society of Home Inspectors, is considered the top national organization offering training and credentials to home inspectors. Members must follow a Code of Ethics requiring them to look out for the buyer's interests and they must attain 20 hours of technical education each year and complete several hundred inspections and pass rigorous exams just to get their ASHI credentials.