Buying a Home in Delaware? Home Inspection?
Using a Brokerage’s Recommended Home Inspector May Not Be in Your Best Interest.
Associates of Realtors, such as Home Inspectors, do not get listed in purchase agreements or included in brokerage advertising/folders without paying for it. There’s always a fee that is collected in exchange for these direct referrals—sometimes characterized as an advertising expense to obfuscate the brokerage-associate’s arrangement. The associate, who depends on these brokerage referrals for steady business, may be motivated to downplay significant issues, especially given that almost all Delaware brokerages demand that report defects be characterized as “minor” or “major.” Stated differently, there is incentive to leverage the vagueness of defect categorization to limit the potential for home inspection items to go into a follow-on repair request addendum—especially those potentially threatening the transaction.
Real Estate Purchase Agreements Can be Modified
The Delaware Association of Realtors (DAR) provides an Agreement of Sale for Delaware Residential Property form that serves as the basis for most residential real estate transactions. However, because the purchase agreement is a contractual document governing a business transaction, many of its terms can be changed or added upon by the parties involved prior to ratification. Although rules in neighboring states differ, it is not prohibited in a Delaware agreement or marketing materials to suggest or recommend a brokerage’s associates for ancillary services, such as home inspections.
Ancillary Services are Recommendations, Not Requirements
While frequently introduced as a convenience to the customer, it is often stated that this arrangement is preferable, or it may be inferred that it is required to exercise the inspection contingency. The recent nationwide changes in buyer and seller representation have further contributed to the lack of transparency in associate referrals—especially when some of the activities required to get to closing are not directly managed by the buyer or their lender.
Why You Should Research Your Home Inspector
Don’t assume that the advertising on folders or other materials is not an indicator of a quid-pro-quo arrangement. Smart buyers should independently research and directly hire an inspector who works just for them and their best interests (this can’t be done by delegating the task to someone else who may have other priorities). Hiring the brokerage’s listed or advertised home inspector associate could result in a “light touch” report that may downplay significant defects to maintain a smooth working referral agreement.
Not All Real Estate Purchase Agreements Are the Same
Don’t assume all real estate purchasing agreements are the same. Buyers need to carefully review their purchase agreements, and the required property condition disclosure form, prior to signing and presenting their offer. Be particularly suspicious of any purchase agreement text that doesn’t say the same thing as the DAR purchase agreement form located at https://delawarerealtor.com. Remember, any extra verbiage in an agreement, especially the listing of preferred associates, was paid for and is likely there to help control the transaction.
Where to Find Independent Home Inspectors
Tokori pays no referral fees and doesn’t advertise with any brokerage—our loyalty is solely to our customer and their best interests. We encourage due diligence as well and hope to earn your business when you reach out to us. Need help finding another independent home inspector for your research, you can find one at www.nachi.org. Delaware home inspector licensing information can also be found at https://delpros.delaware.gov/OH_VerifyLicense