Is Your Home Inspector Selling Data? They could be. This has been a discussion in the inspection industry for years, but recently, real estate agents and home buyers are taking notice.
Yes, the Data Selling Rumors Are True
The history of home inspectors selling data goes back to at least the 1980s, when alarm companies would pay home inspectors for leads. For the last several years, large private equity has been quietly moving through the home inspection industry. They have been buying inspection software companies, scheduling platforms, and other businesses surrounding the inspection process.
Why? When a house is sold, it becomes public data. But by then, it’s too late. Most buyers have picked their insurance company, obtained a home warranty, and picked other related services, like internet and TV services. PE wants to get in front of the buyer BEFORE it closes to sell them such services.
More than that, the home inspector is the one person who truly knows the condition of the home. The home inspection report documents how old the roof is, how old the water heater is, and more. PE wants this information so they can sell leads to roofers, plumbers, and other trades.
And Not Just Private Equity Wants Your Data
Recently, I noticed a local home inspection company advertising they are looking for contractors, electricians, plumbers, etc., who want to buy leads. This inspection company is quite simply cutting out the middleman.
The Pressure To Sell Data Is Real
As a home inspection company, we are under constant pressure from various groups to sell our data. Software companies want to insert ads or pop up screens to lure customers to opt in to data selling. We previously discussed how some companies try to get your data by offering warranties. I know of one inspection software that offers FREE software if you agree that the provider owns the inspection data. We also get emails like this:
“Do you currently resell home inspection leads to other home service providers? If you are already reselling leads, I’d be interested in buying them.”
It seems every time I turn around, I have another offer to sell data.
Why We Oppose This — Completely
At IM Home Inspections, we are firmly opposed to data selling.
First, it’s an ethical issue.
Our clients hire us to protect their interests—not to turn their situation into a sales opportunity for someone else. If I wanted to sell insurance, I’d become an insurance salesperson.
Second, it’s a privacy issue.
We work with a lot of high-net-worth and high-profile individuals. These are people who already want to keep their information private. As do many of our clients, regardless if they are a 1st time buyer or not in the public eye. People like their privacy. Once the home closes, that information will become public, and we can’t help that. But we can prevent our clients from being harassed by telephone calls and emails before the home closes.
Third, offering compensation for the results of an inspection could be considered a violation of California law Bus & Prof Code § 7197.
And lastly, it doesn’t make any business sense. We spend a lot of time, energy, and money marketing ourselves and attracting clients. Yet, these PE firms want to essentially take our clients’ info without fully compensating us. Their offers are usually pennies compared to what they stand to make off the leads.
But What If I Want Contractors or Pricing?
The data buyers are often saying “but, we’re providing a service.” After all, some home buyers WANT to talk to a contractor or foundation expert, or a sewer repair service, to get a price to repair items we found.
- Yes, we have a small list of vetted professionals that we work with and/or have done work on our personal houses. We do NOT get kickbacks from any of these referrals. And the list is small, because we can and will kick people off the list if we hear negative feedback. Just call the office if you would like this list. We do not advertise this list, and the vendors on the list are often subject to change.
- If you want a full-service, all-inclusive price for everything in the report, we have teamed up with QikFix. The instructions are at the bottom of the report. You upload our report to them, use our discount code, and they will provide you with a detailed breakdown of the prices to repair all the items in your report. This is a 3rd party, and they will then have your data. But this is totally up to you if you want to use this service or not.
The Bottom Line
At IM Home Inspections, our motto is “Inspections that Matter, For People Who Care.” ™
Selling data is NOT caring.
We only work with software companies that will not insert ads or steal client data. And we can and will switch vendors if this becomes a problem.