Change.
It’s a pretty mysterious word. It could mean that something good is coming, and it could mean something entirely different. We’ve all heard the old axioms about changing for the better, but we still get that twinge of fear when faced with changing something that we do.
Many of us don’t like change, but that doesn’t stop it from happening.
An event with the potential to cause a big change for inspectors is the new real estate law that just took effect. The law changes the way real estate agent commissions are paid and, some think, adds more uncertainty to the way home sales are handled.
One thing for certain is that the real estate industry is never going to be the same. It likely won’t happen overnight, but this new way of doing business is going to lead to changes.
How much those changes will affect home inspection professionals remains to be seen.
One thing that’s likely to happen is that a fair number of older, experienced agents will decide to call it quits. Many of these agents are close to retirement anyway, and a big change like this will be just enough to push them over the edge. For experienced inspectors, the retirement of some of their agents would mean inspections lost from their monthly total.
Another thing that’s going to happen, and it’s already started, is the proliferation of cheaper real estate agents. Low-cost agencies are here to stay and lower costs mean lower commissions. Common sense tells us that the best individuals in an industry aren’t the ones making the least amount of money. That means a lot more inexperienced or simply bad real estate agents out there.
And it’s no fun dealing with agents that don’t know how to properly do their job.
Working with inexperienced agents, or worse yet, unscrupulous agents, is not pleasant. It seems that whenever this happens, the inspector ends up doing a lot of the work traditionally handled by the real estate agent. Educating the client on the process, recommending contractors, ranking deficiencies, and providing guidance are all things an agent is hired for; it’s how they earn their money. Hell, inspectors are even letting themselves into houses now. The unscrupulous agents don’t even have to get up off their couches anymore!
Dealing with bottom of the barrel agents and houses is bound to have a detrimental effect on an inspector and their business. More headaches, more problems, crappier houses, uninformed clients, and downward pricing pressure all combine to cause poor mental and physical health.
I’m sure you’ve heard; stress is bad for your health.
So, what’s a poor home inspector to do? We don’t have a lot of input in this commission thing. How are we going to be able to deal with this change?
Where we’re at on the timeline of our inspection career is likely to define the changes we’ll have to make to adjust to the new normal.
Newer inspectors, just getting their business started, are going to have to be vigilant against problems. Dealing with agents and buyers on the lower end of the ethics continuum ultimately ends up in attorneys making money. The quicker you can move up the ranks and start working with higher quality customers (agents and buyers), the quicker you can minimize your difficulties (and maximize your profits.)
Experienced inspectors will have a different set of problems. In addition to having to work hard to replace the agents they’re losing to retirement, these inspectors are going to need to remain vigilant against the negative changes happening in our industry. Every day, more inspectors are buckling under and doing more of the agent’s job, thinking it’s their only option to be able to compete.
I’m not denying that there aren’t agents out there searching high and low for inspectors willing to do some of their job for them for free. I’m just saying that working for someone who values money above the wellbeing of their clients may not be a viable long-term business strategy. When it comes time for that agent to have your back, you already know what’s going to happen.
Prepare to be rolled under the proverbial bus.
Change is always a difficult prospect, no matter how good it may eventually prove to be. Being cognizant of the implications of that change, and working hard to minimize their negative effect on our businesses, is always a good strategy.
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Thanks, Joe
