The Dirty Secret About Referrals

I recently read a blog post from the Phoenix Real Estate Guy about preferred vendor programs and it got me thinking about this again.

Why does someone refer someone else for business?

In the Home inspection business it could be for several reasons;

  • The inspector is top notch, spends as much time as needed at the site and their report is easy to understand.
  • The inspector is fair to the home and does not scare clients or kill deals.
  • The inspector is a friend, or  family member.
  • The inspector paid the real estate office to be on their preferred vendor program. Yes you read that right, it happens more than you think.

Arizona Home inspectors are regulated by the AZ. Board of Technical Registration (BTR) and the BTR strictly prohibits inspectors from paying to be on a preferred vendor list. However many Real estate offices and Home Inspectors get around this by calling it a joint marketing program. Just advertise in the offices relocation guide and we will allow you to put your marketing materials in our office. The BTR has also said this is prohibited if the number of inspectors that can advertise is limited.

The bottom line is not all referrals are provided because the person does the best job.

I track all my marketing and I have found a disturbing trend. There are several agents that have hired me to inspect their own home and referred me to their family members that do not refer me to their other clients.

Why is that? Why would there be a double standard when giving referrals?

If your looking for a home inspector, ask the agent if this is the inspector they would use on their own home. You can also get some additional tips by viewing How to hire a home inspector and feel free to read my other posts for some other tips and tricks.

For more information about Arizona home inspections or our other services please visit the Phoenix Home Inspection Web site

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