Home Inspectors Selling Clients’ Data or Sharing it Without Even Realizing

Before I even begin, let me assure all readers, unlike many other Home Inspectors throughout Florida, Sherlock Home Inspections NEVER HAS & NEVER WILL share or sell our clients’ information.
Likewise, Sherlock Home Inspections NEVER HAS & NEVER WILL pay “kick-backs,” “referral fees,” or any other type of compensation to Realtors, Insurance Agents, Mortgage Loan Representatives, or anyone else who may refer business to us. Our relationship with those folks is strictly professional. When someone recommends Sherlock Home Inspections, they truly have their clients’ best interests at heart.

The last thing most new home owners want is to be bombarded by phone calls, text messages, and emails from people trying to sell them something, or worse, scam artists!
Unfortunately, it happens all the time! Often times, the folks sharing the new home owners’ contact and other personal information don’t even realize what they’re doing.
Client data collection and sharing is big business, and it’s often disguised as a benefit to the target.
Obviously, referrals are understandable and usually welcomed. It’s the unwanted sharing or even selling of information that’s usually dirty business.

The Temptation of the Extra Dollar

Offers to monetize client data regularly bombard home inspectors. Security / Alarm and Home Warranty companies are the most prevalent, but certainly not the only folks willing to pay big money.

Security / Alarm Companies often pay Home Inspectors several hundred dollars for each client they referred who purchases an alarm and signs up for monitoring services.

Appliance Recall & Home History Search Companies either sell or offer free to Home Inspectors the ability to look up home appliances that have been recalled by the manufacturer, previous home owners insurance claims, permits, code enforcement warnings, etc. Unfortunately, many of these services aren’t very thorough, accurate, or reliable. In fact, many are just an excuse to gather home buyer information to be sold elsewhere.   

Home Warranty Companies usually charge the Home Inspector $5-$25 per client. When the client “registers” for their warranty they “agree” to allow their information to be sold to countless others, some of whom may not even operate legitimate businesses. Then, if the client ever attempts to make a claim, they learn that the so-called Warranty has a deductible and so many exemptions, restrictions, & limitations that it’s nowhere near the protection they thought they were getting.

Repair Estimate Software Most Home Inspectors DO NOT provide repair estimates for several reasons: (1) It can be legally interpreted as an offer to conduct repairs. We don’t do repairs, that would be a conflict of interest; (2) A proper quote for repairs should include a hypothesis as to a diagnosis or cause of an issue based on the results of a technically exhaustive inspection, disassembling or dismantling system components, invasive or destructive procedures, etc.; (3) Actual cause of an issue is needed to determine the scope of work required to completely and properly conduct repairs; (4) Exact cost of parts &/or labor should be provided by the person(s) actually doing the repairs.
We recommend obtaining actual quotes for repairs from licensed professionals for any and all issues or concerns before the end of the inspection period (or before it is too late to request repairs / concessions from the seller).
Those Home Inspectors offering repair estimates usually do so by using an APP or estimating software which are not only inaccurate and unreliable gimmicks (for the reasons above) but they also require the client’s information, which is then sold to anyone looking to sell or scam new home owners.  

Several Others are in the game too. Folks selling services & stuff from moving services, custom closets & Murphy beds, to window treatments, pressure washing, and rain gutters, will pay Home Inspectors finders fees or kick-backs for referrals.

Blake Williams of Super Team Services explains: As someone deeply entrenched in the home inspection business, I have witnessed the allure of extra income. Service providers encourage inspectors to share all client information, leading to a barrage of post-inspection calls. The goal may be to connect clients with relevant services, but it can lead to unwanted calls and a feeling of betrayal.
[SOURCE: Do Home Inspectors Sell Client Data? – Jan 10, 2024]

Unknowingly

Even the most reputable Home Inspectors who attempt to safeguard their clients’ information may unwittingly be sharing it without even realizing they’re doing so. Some of the above sources of home buyer information for sale, often operate as if they are merely a benefit to the home buyer without disclosing that they share and sell home buyer data, but many don’t even realize the most common source.

Software Companies make writing Home Inspection Reports quicker and easier for Home Inspectors. Most Home Inspectors don’t realize that many of the most popular Home Inspection Software companies also sell the home buyers’ information.
Sure, they may say that they don’t share their clients’ information, but the Home Inspector is their client, not the Home Buyer. They may also explain that they don’t share information consent, but how exactly are they getting that consent? Most folks don’t take the time to read the TERMS AND CONDITIONS before clicking “show me my report.”
Three of the most popular Home Inspection software companies in the U.S. explain that you must opt-out of the processing of your personal data for the purposes of targeted advertising, the sale of personal data to service providers and business partners.
Two other fairly large Home Inspection software companies are both owned by a huge software platform that provides services to more than 25,500 home services companies. They gather & share information between home inspectors, mortgage companies and loan officers, title companies, moving companies, real estate agencies, utility companies, and warranty companies. Through these relationships and its multiple brands, the company “provides a moving concierge service to home buyers” [hits up home buyers to sell them] several services including insurance, warranty, moving, security, TV/internet, roofing, home repair and improvement, and much more.

Recent reports suggest that some Home Inspection software companies even sell the information on the dark web to any shyster or scammer who is willing to pay.

THE COMPANY WE USE DOESN’T DO THAT!
We shall not sell, rent, trade or share any personal information which we hold except that:
We may disclose information which is held by us where required to do so by law or in connection with legal proceedings.
Should we wish to use your personal information for a purpose not permitted under this Privacy Policy, we will contact you to seek your consent.
We have strict security procedures covering the storage and disclosure of your information in order to prevent unauthorized access.
We hold computerized and electronic personal information only on computers that are password protected.

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