The conventional work of a real estate agency involves getting a commission of the amount paid by the property seller.

In NSW this can vary between 2% and 3.5% – depending on where you are. So, when a house is sold for $350,000, the real estate agency can make upwards of $12,000 as commission. There are times when a specific home inspector is referred to the buyer by the real estate agent. At times, even a list of two or three recommended inspectors is provided.

So, the question is ‘who are these inspectors suggested by the agent?’ and ‘what are their qualifications to get into the agent’s list of approved inspectors?’. As a buyer, you may doubt whether the agent is recommending an honest , non biased home inspector or if the home inspector is an ally of the agent in earning the sale commission.

The truth is that a complete and honest home inspection is sometimes viewed as a hindrance to the sale process and the  commission to be earned by the real estate agent. Vendor-friendly inspection reports are essentially biased reports produced by a home inspector recommended by your real estate agent. Such inspectors may not do a thorough and honest inspection of the house being sold to you, so that the deal is finalized and he gets a commission.

Hiring your own home inspector

While it is untrue that every home inspector recommended by your real estate agent would produce a dishonest or biased inspection report. However, it suggested that you do some research and decide to hire your own home inspector based on the recommendations of friends, neighbors, family and colleagues.

If your real estate agent says that you cannot hire an inspector of your own choice, or forces you to pick somebody from the list of approved inspectors recommended by him, chances are that there might be some issues with the property. In such case, you can get in touch with your attorney.

It is quite obvious that if a real estate agent or sales official is making aggressive efforts at controlling the process of hiring an inspector, he has hidden motives which might not be in the best of your interests.

To avoid falling prey to ‘vendor-friendly’ home inspection reports, you must understand that real estate agents get their commission from the seller of the property, so they try to work in favor of a sale. Sometimes they do it by  employing dishonest ways. Similarly, a home inspector hired by you is paid to work in the best of your interest and is likely to give a completely honest home inspection report.

One of the biggest investments made by an individual or family is purchasing a home.

To make sure that you maximise your investment, you need to look for a professional and well-equipped home inspector to help you decide if you are making the right choice. The inspector is supposed to give you an honest and objective review of the entire dwelling including aspects such as weak roofs, termite infestation, clogged drains and so on.

The decision of hiring a home inspector is not simple though. How do you know that you are employing the right person to carry out the inspections for your new home? Is he qualified? Does he have sufficient experience? Is he non-biased? All these questions need to be closely examined as you have only one chance to get your dream home checked by a professional home inspector. If he does a superficial job, you could face a lot of disappointments in the future when you actually start living in the house. Steering clear from superficial home inspectors requires an understanding of what to look for when selecting a true professional.

Don’t blindly hire a home inspector recommended by your agent

It is true that your real estate agent will give you a list of recommended and approved home inspectors, but that does not necessarily mean that you would find the best home inspector to do the job for you. On the contrary, it might not work in your favor as several agents who get monetary incentives for the sale (i.e. the commission) have ties with home inspectors who also benefit from the deal. There is a tendency among such inspectors to carry out superficial inspections without actually looking into the details of the house and the defects hidden in it. The aim of such inspectors is to make a sale irrespective of whether the house is free from defects or not.

So, try and look for alternatives by getting recommendations for independent home inspectors from your neighbors, family and friends.

Check for professional qualifications

It is good to check whether your home inspector is associated with professional organisations and has certificates to justify his qualifications such as:

• Licenced Building Consultant
• Licenced Builder
• Accredited Timber Pest Inspector
• Accredited ABSA HERS Assessor
• Bonded Asbestos Removal Licence
• Workcover Accreditation

This kind of information gives you an idea about the professional background of the inspector and instils trust in his work. A well-qualified and experienced home inspector will make sure to check for even the smallest defects, which could turn out to be big issues later.

Most of us would assume that home inspectors would prefer clients or buyers to select inspection service of their choice instead of letting a real estate agent to choose for them. However, the truth is that a lot of home inspectors are dependent on real estate agencies to get them clients. This is often the case with large firms that have multiple inspectors working for them.

Agents looking for profit

The field of home inspection should be the same as any other open marketplace. In an open marketplace, companies that supply average products or deliver unsatisfactory services ultimately shut down as they don’t survive the competition. In the real estate world, such a marketplace can fall under the control of the agents. This means that the inspection services listed or recommended by agents get most of the business, regardless of their qualifications and capabilities.

While this may not hold true for all home inspections, buyers are often disappointed when they are sold houses inspected on a superficial basis aimed at making a sale. Even though buyers are covered under consumer protection laws, it is still a hassle – often ending up in arbitration or courts.

Better to choose independent inspector

It is clear that employing an independent home inspector is a much smarter decision than blindly selecting the inspector recommended by your real estate agent.

Real estate agents often use the belittling phrase “deal killer” to refer to home inspectors who operate independently and provide buyers with an honest and objective review report after the home inspection is completed. This could obviously lead the buyer to reconsider the buying decision and may even make him/her look at other options.

Independent home inspectors will work by keeping in mind the best interest of the buyers. That is the reason they are often considered as a challenge by real estate agents who are trying to sell the property to create income. The so called “deal killers” are viewed as enemies by real estate agents and a number of tactics are employed to manipulate the process of selecting the home inspector to ensure that the potential buyer does not choose an independent one.

Home inspection professionals are required to undertake extensive examinations before they can receive their qualifications. To receive a license, a home inspector will need to be properly trained, through educational programs that not only detail the tasks they are required to perform, but also communicate important standards of practice and ethical considerations. Home inspectors offer a range of services, but they are not to be confused with a home appraisal or a building code inspection service.

Over the course of a home inspection, an inspector will visually assess the interior and exterior of your home. This will include the roofing, walls, windows, floors, ceiling, electrical wiring, basic plumbing, basements, attics, and the general foundation of your property. However, it is not the responsibility of the home inspector to uncover problems that are not visible to the naked eye.

Timing is everything

It is extremely important to carry out a home inspection before a property is purchased, in order to save on repair costs, or to uncover problems with a property that may even prevent the sale proceeding. Before a buyer signs a purchase agreement, it is his/her responsibility to engage a home inspection service. Moreover, the buyer and the seller must also enter into a pre-purchase agreement that carefully stipulates each party’s obligations regarding repair and maintenance.

Be a part of the inspection

Home inspectors do not require potential buyers to be present during the inspection. However, it is highly recommended that buyers tag along with the home inspector when the process is being undertaken. This will allow the buyers to gain a basic understanding of the property they are looking to purchase, while also ensuring that the home inspector conducts work thoroughly and professionally.

Once the inspection is complete, home inspectors are required to provide detailed reports of the property to the buyer. A buyer who has been a part of the inspection, will be able to understand the report better, and perhaps even point out inaccuracies in the report.

What home inspectors do not do

While home inspections are common practice nowadays, home inspectors are not required to undertake particular tasks. When you hire a home inspector, request for a thorough checklist of the services offered. You will also want to consult your home inspector to find out what other services may need to be hired to protect your property from unanticipated repair costs.

Other tests like water quality testing, insect infestation proneness, air quality testing, and environmental tests may also need to be performed. These tests are not part of the home inspection package and may be available for an additional charge.

It has become common for homeowners across the country, to conduct specialized home inspections on their properties before putting them up for sale. However, any potential buyer must first understand the limitations of a home inspection. A professional home inspection service can do wonders in assessing the value of a property, and recommending repairs and renovations, but it must be acknowledged that there are many factors that a home inspector is not required to consider. Let us dispel a few myths around home inspection that many continue to believe to be true.

Home inspector’s report includes everything

The first of these myths is the understanding that a home inspection report will detail absolutely everything related to a property. A home inspector is only expected to carry out a visual examination of a property. A home inspector’s report will certainly list various deficiencies in the property, but tagging along with the inspector when the property is being assessed, will hold you in good stead as you undertake repairs.

Developing a relationship with your home inspection service, will ultimately put you in a leveraged position. If you are present during the inspection, home inspectors will make it a point to provide important maintenance tips and practices that you would otherwise not be privy to. Also, simply being present during the inspection and quizzing your home inspector, will also help you understand your property much better.

Home inspections are the same as home appraisals

The second misconception around home inspections is that they are equivalent to a home appraisal. Real estate agents always try to encourage homeowners to carry out home inspections, rather than full appraisals, when property is up for sale. However, the truth is that real estate agents work on a commission basis, and harbor loyalties towards sellers. While home inspections can give you a great understanding of the damages on your property, and the repairs required, getting a home appraisal performed on your property will help in increasing its value.

Home inspectors will tell you exactly what’s going to go wrong

Finally, home inspectors are often assumed to detail every single deficiency on a property and provide you with a full report. While home inspectors will certainly inspect plumbing, roofing and electrical systems, it is important to understand that they only conduct visual inspections. For example, a home inspector will not be able to deduce if the walls are prone to water damage. Home inspectors will not be able to accurately anticipate future problems that a property might have.