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Beware of a Conflict of Interest

Imagine this scenario. You hire a Home Inspector to inspect a house you’ve made an offer on. Everything is going according to your expectations. He goes through the house hi and low, pointing things out to you when needed.

Great so far.

At the end of inspection he goes over the report with you and indicates what needs to be done and what should be done soon – and then offers to do this work himself because he’s also a contractor, what a surprise!

That’s the definition of a conflict of interest situation that can arise in Real Estate. At this point you can no longer confirm whether the home inspection was done honestly or that all the work that was brought up was truly needed.

The same goes for when using a realtor. Many people believe that by using the Realtor that is listing a particular property that they will get a better deal, as in the Realtor will be more motivated because they have both sides of the commission on the line. That last statement is partly true as Realtors are still human, well for the most part… However in my experience during these situations I believe that the vast majority of the time the Listing Realtor for fills their fiduciary duties and remains biased towards their client.  This is because Realtors are legally obligated to act in their clients best interest. In this scenario I would contact a Realtor that you have been referred to or know personally (or even better contact me!)  as their fee is being covered by the seller and you gain the legal protections of using a licensed Realtor.

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