Who Are The Stakeholders?

Many home inspection firms are operated as sole-proprietorships or owner-operated limited liability companies. The differences are minimal, but the point is that home inspection firms are typically small companies. So this narrows down who the stakeholders are relevant to any decision made by a home inspection firm. The stakeholders become the home inspection firm, and stockholders or investors, and the clients that the firm serves.

Over the years, many professional home inspection associations have suggested that stakeholders include the seller of a property, the real estate agents involved, and the mortgage broker in addition to the home inspection firm, investors, and the firm's clients. This is improper and wrong. Real estate agents have no interest in the home inspection firm, therefore they are not a stakeholder. Likewise with the seller of a property, or a mortgage broker. While these parties may be indirectly impacted by decisions made by the home inspection firm, they have no legal or financial interest in the firm. They should not be considered stakeholders.

Home buyers should be wary of home inspection firms that consider parties that do not have a financial or legal interest in the firm as stakeholders. This will more often than not muddy the agency dilemma faced by the home inspection firm, and could create a scenario where the client's interests are not a priority. As the saying goes, buyer beware.