1) Home inspections that aren't really "inspections" and are just there to grease the skids 2) Buyer's agents don't have a fiduciary duty to protect the buyers. 3) Pricing "knowledge" that is typically public info, just locked behind access restrictions 4) predatory lending practices
It's a very incestuous market where the agents are friends with mortgage loan officers at banks, handymen, inspectors, and law offices that handle closing.
The fact that it costs somewhere between 10-15% of the value of a home to actually transfer ownership is highway robbery.
I hear this a lot on here and I wonder what state people are in or if the laws are somehow different elsewhere. In the states where I do business, there are state mandated checklists of systems and inspectors could be held liable if they don’t show reasonable care and professionalism in gathering the data for their report. The inspectors I use pride themselves on the adoption of technology (drones for checking out roofs, thermal imaging for heat loss and insulation, etc) and often take the better part of a day on even small houses. So, I dunno man - I hear this stuff about inspectors a lot, but it doesn’t jive with what I expect the ones I refer to people to actually do.
There were many, and varied things missed in my inspection. The biggest was the entire HVAC system being messed up. The furnace was incorrectly installed, improperly sized for the house, and didn't even have any return ductwork installed.
The air flow seemed really bad in the bedroom and so one day I decided to climb up into the attic and take a look. The problem with the return air missing was immediately obvious. When I called the inspector to ask why they'd miss something so obvious I was given an excuse and pointed toward the part of the contract that states they're not liable. I eventually got them to refund the cost of the inspection, but it was hundreds of dollars back for over ten thousand dollars in missed issues. I was only able to get anything because I worked for a real estate company at the time and knew the right people who could apply pressure.
IMO Home inspections are a total scam.
They tried to get the inspector for the obvious bullshit roof inspection but after getting ran around multiple times to the point of needing to hire lawyer to go any further. But eventually dropped it when some roofing company came by and offered to do the roof for "free" through their insurance because of supposed hail damage in the area that basically replaced half the roofs in the town. That too was probably a scam on the insurance by the roofers because we never had big enough hail for damage, but they weren't going to complain about a free new shingle job.
TL;DR Don't just grab any random inspector, and especially never take recommendations from anybody connected to real estate.
Also - I’m about to stop recommending one of my recommended inspectors, because he’s at best a “B”. He catches most issues, but the level of care isn’t what I want for my clients. There’s another guy I used to recommend but again, he’s nearing retirement and getting sloppy.
The county inspector was fired, but the county is not taking financial responsibility.
https://abc11.com/chatham-county-forever-home-dream-nightmar...
https://www.wral.com/family-says-chatham-county-inspectors-m...
The outcome of a building inspection is a certificate of occupancy where the authority is stating the home is safe to live in, the outcome of a purchase inspection is a report of things to ask for a discount on, part of the purchase negotiation.
The Chatham County thing is crazy, I’m hoping the family manages to find someone accountable in that mess — clearly either the original architect, the builder, or the county let them down somehow. I’m just not sure it’s really an indictment of the “inspector” profession as discussed in this thread.
An agent is only getting 5-6% of the home value (assuming no split with a second agent). And a big chunk of that goes to the brokerage.
We searched and vetted and found our own inspector. On Yelp of all places, one of the least trustworthy websites. It took us less than a day to find someone good.
And he found absolutely every single imaginable problem even down to the most hysterically unimportant detail. Like the tension on one of the kitchen/garage door hinges being slightly higher than the bottom door hinge. This was on a list of over 100 other things.
The point is, inspectors are jobs like anyone else. Some are good, some bad.
And then you have home insurance which isn't a whole lot better. They might fix the problem or they might manage to declare is pre-existing and deny coverage, but even if they do fix it, it'll be the lowest bidder installing the cheapest parts possible.
The laws for insurance are very complex, and all of the material standards are locked behind paywalls. For an average person (me before I worked there) insurance is basically a black box; you can't argue against any of their points because they hide the criteria.
>but even if they do fix it, it'll be the lowest bidder installing the cheapest parts possible.
This is true, but illegal. You are owed for "Like Kind And Quality" according to the law. This means that the insurance company can't downgrade your materials, and they have to repair the property to AT LEAST pre-storm conditions. Additionally, it is your legal right to choose a construction crew or contractor of your choice, and the insurance company can't veto your decision. After the work is complete, make sure that you, the construction company, and the insurance company have copies of the specifications of your materials and what work was done. This way it will be much harder for insurance to fuck you over on your next claim.
Most contractors in my area are genuinely trying to help the clients. There are some contractors who take advantage of the innocent and gullible population, though. I hate them just as much as insurance companies.
Two very different products, the former being a borderline scam much of the time, the latter being a requirement for financing (and common sense).
Current example for me... house is 50+ year old, with copper pipe for water supply. We're starting to get pin-hole leaks on some pipes. AFAIK, insurance considers this a maintenance item. They'd probably fix a major burst and the damage it causes (after the fact) but have no interest in even subsidizing preventative work to avoid the costly repair.
The fact an inspection document is impressive to read doesn't mean it is accurate. If he blew you away with his ability to name 100 minor things, but missed a structural issue, you'd be screwed, and would have no way to know this until the structure starting cracking.
Thank you for this - the public should redirect a lot of their anger away from the agents and toward their brokerages. Likewise - please don’t use Zillow, Redfin, etc to contact an agent. Call the agent directly, as these online sites take a big pile of money out of the agents pocket as well.
I want to believe changes are coming in real estate, as the long standing brokerage model exploits agents and confuses the public.
Sample of 1, but my agent was frequently closing several homes/week during peak season (Spring, early Summer). At the time (2017), typical listing would be $500-$1 million (Fairfax County, VA).
So I'd guess 20-30/year for her.
Broker keeps 30-50% of the commission.
So, a good agent in NoVA is probably making $250-$500k/year (but has to pay their own payroll taxes and stuff out of that, IIRC).
Let's not pretend like this doesn't apply to almost every industry either...
Do such things exist? Are there real estate agents who are like "and if you buy today, we'll throw in this grill!"? Genuinely curious.
On the general utility of real estate agents... Really knowing a market and understanding construction/houses/permitting, etc... is a pretty important knowledge/skill set. I had one excellent agent figuratively drag me away from a condo that she understood to have serious foundation/construction defects. The good ones will help you understand what's good/bad about a house, problems to be alert for, etc...
Like a lot of middle men, I think they do provide some service of value. Now, is that worth 3%/6% of a houses value? In many cases, undoubtedly not. We sold a house in Austin when the market was so hot that we got an eye popping offer the day after the agent put a "pending" sign in the yard. I think he did like 4 hrs total work. So afaict, the profession as a whole acts as sort of a rentier over the MLS listings.
High-pressure job, not high-pressure sales. Real estate sales is not a business that's kind to underperformers (in the long run).
It's also a job which accomodates way more scum type people than you'd see in typical office jobs. As you note the incentives are very different, the pressure as well, and the recipes for success can involve screwing people over a lot of money.
The profession doesn't seem to have much interest in dealing with moral hazards.
It reminds me of IT recruiters in the UK a few years back: [1] sums up the situation very well and applies just as much.
[1]: https://gist.github.com/CumpsD/696599d1bd4cd472a056586967293...
I don't agree.
In my experience, there are people with a talent for talking, and have a natural attraction. People just want to talk to them. But that's not most people in sales (even if they are often top).
The key skills to be successful in sales are similar. Dedication, problems solving, and an interest in what you're doing. Many here could pick it up.
Also, be really good looking.
Definition: A person who criticizes the group they are in, without realizing that they are also implicating themselves in the criticism.