Monday, September 11, 2006

Licensing Debate: RE Community Interest

What stake does the real estate community have in this? I've heard brokers state emphatically that they would like to see licensing of home inspectors. I wonder though, what would be the qualitative difference between mandatory licensing and a simple amendment to the standard contract to require that inspections be performed by certified inspectors.

A recent pole of the Dulles Area Association of REALTORS (DAAR) was insightful. They got above average response, which I think suggests that there is interest in the topic. The responses however, were suggestive of a very low level of understanding of the issues. Most REALTORS didn't seem to understand that state certification existed.

I remember the time that I got to the Q&A session of a real estate office sales meeting in '98 or '99. I made the mistake of calling on the agent with the agenda. Her assertive question was, "Is there some agency we can go to to complain when you guys...?

4 Comments:

Anonymous Anonymous said...

Hollis and I had a conversation yesterday (in Philadelphia, of all places!)about 'Why' should we be talking about licensure and regulations of Home Inspectors.

I won't speak for Hollis, but a couple of the points that came up were -
'Raising the bar' of professionalism in the manner (technical and ethical) of our industry. The primary reason for this would be the better protection and higher confidence this would give the clients.

Limiting the 'low end' of inspectors that are diminishing the confidence of clients, realtors and other parties to the real estate transaction. The low end would (presumably) be limited if higher standards were applied for entry level, training, certification, bonafide testing, 'parallel inspections' and continuing education.

Peter

11/9/06  
Anonymous Anonymous said...

I have to admit that when I started this brouha I thought I knew what the 'best' answer was. In my heart of hearts, I was convinced the mandatory licensure was the best (only?) way that we could protect this industry of ours. I believed that it was add professionalism, force the 'wanna-be's' from the market (or at least force them to get training and experience), raise the confidence level of our clients, increase confidence in our referral sources, and (magically) start paying us a fee that is more in synch with the value of our services.

Now, I don't know. Frankly, that may STILL be the best answer, but now I am less sure.

That's probably a good thing. I am more open-minded abouot it now, I truely want to explore the options to see how they weigh out.

Regulations/licesure has been done in other states - with mixed success. Sometimes it's flawed legislation, other times its legislation that starts down the right path but ends up as a watered down vague version of its original idea.

So even if 'regulation' is the answer the next question will be, "How do we get there from here?" and "Who's going to lead us inthis effort" and "What kind of effort and funding will be required from our home inspectors and leaders across the state?" "How do we build allies in this effort - Legislators, relators, builders, lobbyists?"

None of the answers are easy. No clear path exists. Even if there was a clear path, how to accomplish our goals is going to be difficult. Difficult enough to make it tempting from shirking away from the 'best' answer.

We can no longer afford to do that.

The industry is changing under our very feet. As we stand firm in our position of the past, the footing underneath is eroding. More and more people are turning to this as a job. Few are trained and experienced - their efforts - no matter how well-intentioned are causing relators and other referral sources to cringe when they have to address the home inspection. They cringe when they give the homebuyers a list of names, knowing that some of the inspectors are going to misguided, misinformed, confusing to the buyer, and a cause for additional work on the part fo the realtor.

This everyday occurance drops the confidence level iin overall home inspection industry.

Also, if 'anybody' can become a home inspector then there is no need for differentiating the quality of one's services. You acannot be a 'professional' in a field in which the task is a mere commodity. If you were a plumber, then there is no difference in the skill level required to install a wax ring under a toilet - it's all the same. If we let the 'low man on the totem pole' be the defining characteristic of this profession, then it ceases to be a profession.

I care a great deal for this profession. I find that I have some skills. More inmportantly,, I find great comfort and solace in looking my clients in the eye and telling them 'the truth' about their new home. They are trusing me with a major portion of the familiy's future - a chapter in their lives.

That's too precious to simply stand by idly while the sands slip from beneath my feet.

Peter

11/9/06  
Blogger Bob Anderson said...

The real estate community cares a lot about this issue. I’m sure that many, possibly most, do not understand all of the issues at stake, but they do have a preference. The overwhelming majority of Realtors want home inspectors to be regulated. I have mailed hundreds of surveys out to Realtors over the past five years. One question has remained on each of the different surveys; “Do you think home inspectors should be regulated by the state as real estate agents are?” A. Yes B. No C. Undecided

Most of the surveys that I mail out never return, but I have had more than 100 returned. I have had several checks in the “Undecided” box, but no one checked the “No” box. I was just looking at the most resent mailing to an agency with 50 agents. Seventeen surveys were returned. Sixteen checked “Yes” and only one checked “Undecided.”

I don’t know why they would like to see us regulated. If they had to do more than check a box, and explain in writing, I wouldn’t have any surveys returned. All I know is that the real estate community wants us regulated.

Bob Anderson

23/9/06  
Blogger John Cranor said...

I suspect the mentality of agents differ from office to office and certainly from city to city. It may depend on the experiences they have had or maybe what is fed to them by their brokers. I know several agents who have been using the same inspector for numerous years. Agents like that are not going to see a need for HI regulation. So not every agent is going to feel the same way.

The RE community is led by a relatively small body ...the others follow along.
That small body is our concern. Just like the inspection communuty not all will ever agree but if that small body for some reason decides to make us their agenda ...we are too small, too divided to adequately defend ourselves. We would just have to stand by and hope for the best. That is why I think we should consider an attempt to make an alliance. I hope that after the VAREI meeting the divide will narrow and we will grow stronger, wiser.

24/9/06  

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