Summerforum2015small by Jeannie Flynn

速

Summer 2015

Feature BEST INSPECTION PRACTICES

Electrical Protection of CSST Gas Piping Systems...page 9

Inside

With Hydronic Systems, the Heat Is On...7 When Going Above and Beyond Your Standards Goes Wrong...19 Inspecting the Inspector...26

MAKING BETTER HOME INSPECTORS EVERYDAY!

C ontents

S u m m e r

2015 NAHI BOARD OF DIRECTORS

2015

FEATURES With Hydronic Systems, the Heat Is On | 7 To Square Or Not To Square | 13

COLUMNS Commentary | 5

President | Troy M. Bloxom, CRI Home Inspection Plus, LLC 17640 Lacey Drive | Eagle River, AK 99577 P: (907) 694-7587 homeinsp@mtaonline.net Vice President | Sean McKenzie, CRI Burlington Home Inspection Service 137 Mansfield Ave. | Burlington, VT 05401 P: (802) 238-6558 sean@burlingtonhomeinspection.net Secretary/Treasurer | Charles Kleindienst, CRI Open Sky Inspections 10800 Canaan Valley Ct. | Glen Allen, VA 23060 P: (804) 399-2329 openskyinspections@verizon.net Past President | Forrest A. Lines, CRI, NIT By-Lions Home Inspections, LLC 2583 Reynoldsburg N. Albany Rd | Blacklick, OH 43004 P: (614) 855-9310 bylionshi@gmail.com Director | Curtis S. Niles, CRI, NIT Armored Home Inspections, LLC 1451 N. Hanover St | Pottstown, PA 19464 P: (610) 352-2212 nilesent@msn.com Director | Charles Allen, CRI National Property Inspections 713 Augusta Drive | North Aurora, IL 60542 P: (630) 879-5715 callen2777@sbcglobal.net

New Members | 17 It’s Your Business | 19 When Going Above and Beyond Your Standards Goes Wrong | 19

BYOB / Build Your Own Business | 25

Director | Steven Burnett, CRI Journey Property Inspections, LLC 403 Burt St. | Tecumseh, MI 49286 P: (517) 920-2888 journeyinspection@gmail.com

Inspecting the Inspector | 26 Director | Michael Holmes CRI Holmes Inspections, LLC 5891 Picarn Rd. | Jackson, MI 49201 P: (517) 740-7035 holmesinspectionsllc@comcast.net Director | Peter Rossetti, CRI Pete’s Friendly Home Inspection, LLC 1227 N Peachtree Pkwy | Peachtree City, GA 30269 P: (678) 329-7198 pete@friendlyinspector.com

NAHI® is a non-profit association dedicated to promoting and developing the home inspection industry. NAHI®’s objectives are to further the professionalism of the home inspection industry by promulgating standards of practice to provide a consistent method of performance of home inspections; to promote educational opportunities to benefit its members, the home inspection industry, and consumers of home inspection services; to inform the public of the importance of a reputable home inspection as an integral part of the residential real estate transaction; and to protect consumers from fraudulent, misleading, or deceptive practices. The NAHI® Forum is available free of charge to members of the National Association of Home Inspectors and those interested in the promotion and development of the home inspection industry. Statements of fact and opinion in this publication are the responsibility of the authors alone and do not imply an opinion on the part of the members, directors or staff of NAHI®. Material may not be reproduced without written permission.

The NAHI® Forum

Executive Director | Claude McGavic (800) 448-3942 | claude@nahi.org National Association of Home Inspectors, Inc. 4426 5th Street West | Bradenton, Florida 34207 (800) 448-3942 | Fax: (941) 896-3187 info@nahi.org www.nahi.org

Summer 2015 | 3

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InspectIT

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commEntary By Troy Bloxom, CRI

By Claude McGavic, CRI,

Home Inspection Plus, LLC

National Association of Home Inspectors, Inc.

From the NAHI

President’s DesK Summer is in full swing in the “Greatland”. Summer is the busiest time of year for us here in Alaska and it’s hard to keep up with demand for inspections, let alone the management of the business.

Photo credit: depositphotos.com/jtiloligo

“Productive” seems to be a monthly common theme for our business. Providing a good “solid” NAHI standards-based inspection is important, but working ON the business is just as important; if not more so. There is so much more to this industry than inspecting a home. Without a business plan and a marketing effort no business can survive. You can make the best “widget” in the world, but if no one knows or hears about it, any success will be short-lived or only a pipe dream. My wife, Creta came to work with me over ten years ago (my how time flies), and without her help we would not be as successful as we are today. I have been able to concentrate on the inspection portion of the business; while she manages the business. We also have the help of one of the best business coaches and supportive communities in our industry. With business growth, we are now starting to hire and train inspectors. Creta’s role in filling the schedule is becoming more and more important. We’ve learned that local involvement with industry support and involvement in charitable giving is important for business visibility. Inspecting two or more homes in a day is great for the “bottom line” but if you are at capacity or working every day of the week, including late nights, you need to step back and re-assess your business operation. Your life and more importantly, your HOME life, is far more essential. The business will always be a work in progress with change being a constant. But having a business that has value at the end of a great career is what we should be working towards, not just a “job”. Troy

Executive Director Forrest Lines, NAHI’s immediate past president, recently asked a group of home inspectors, ‘Do you want to do inspections every day or do you want to build a business’? Some would say that if you are doing inspections every day, you are building a business and if you agreed with them, you’d both be wrong. Building a business does not mean staying busy. Building a business means creating something that has value and can be sold. The truth of the matter is that there are thousands of busy home inspectors who can’t get a plugged nickel for their ‘companies’. Why? They have not created anything worth selling. If they have hustled and are doing one inspection a day, all it takes to put them out of business or to make their business worthless is to out hustle them. Why would I want to pay you for your business? Why wouldn’t I just wait till you just shut down (one less competitor) and then scramble to pick up the business you had? But if you have hired an inspector or two, hired someone to run the office, spent time building relationships with real estate agents, and have invested in local community causes like Habitat or the Cancer Society, I might see some value in what you have built, and you might have something worth selling. Better yet, hire a wet-behind-the-ears inspector, teach him to do things your way, have him answer the phone, schedule inspections and carry the ladder, and sell your company to him over a 3 to 5 year period. By teaching him the ropes and keeping an eye on him, you can make sure he does not run your company into the ground and you get income each month while he gets the advantage of owning a company with an already established reputation. If you plan to retire in 3 to 5 years, it’s time to start positioning your company for sale. How? Call us. We will help you get started. Golfing, fishing, traveling, or whatever else you plan to do in retirement will be a whole lot more enjoyable if you have a check coming in each month from the sale of your company. While it is important to build a solid foundation for your business when you first get started, it is way more important to build value into your business if you want to sell it upon your retirement. Don’t wait until it is too late. The alternative is to do like thousands of home inspectors before you and just lock the door, change phone numbers, and walk away from a 15 to 20 year business with nothing to show for it. Claude

The NAHI® Forum

Summer 2015 | 5

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Problems* Encountered for Contracts That Terminate in the Past 3 Months February 2015 REALTORS® Confidence Index Survey (Note: Terminated Contracts Represent 7 percent of Sales Contracts that Went into Settlement or Terminated in the Past 3 months) no problems encountered

4% 8%

appraisal issues issues related to obtaining financing buyer lost a job

24% 3% 7%

issue in buy/sell distress property

29%

home inspection/environmental issues

title/deed issues home/hazard/flood insurance issues contingencies stated in the contract

2% 6%

other

25%

*Multiple responses allowed. Based on the most recent sales contract that terminated in the past 3 months, which are viewed to be a representative sample for terminated contracts. “Other” includes buyer or seller back out, builder delays financing/approval delays. Source: economistsoutlook.blogs.realtor.org.

Awesome...new NAHI CRIs James Borden, Parker, CO Nick DeBolt, Centennial, CO Tom Di lulio, Highlands Ranch, CO Greg DuPey, Southampton, PA Paul Harmeier, East Lake, CO

Lon Henderson, Bennett, CO Andrew Nyveldt, Roseto, PA William Slade, Lafayette, CO Charlie Van Fleet, Westminister, CO Bradley Watson, N. Cumberland, PA

Congratulations to Joe Loyd, Cripple Creek, CO and Earl Pfeufer, Centennial, CO who successfully passed the CRI exam on March 29th.

6 | Summer 2015

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With Hydronic Systems, The Heat Is On By Tom Feiza, Mr. Fix-It, Inc. HowToOperateYourHome.com

Residential hydronic (hot water) systems have changed dramatically over the years. Boilers have improved, and the piping and circulation systems are nothing like the originals. Modern systems have pump impellers coupled with a magnetic connection – no physical shaft connection. Original hydronic systems depended on simple physics for transferring heat to a room. They used large-diameter pipes. Warm water rose, and cool water dropped. The pipes were large enough to accommodate the slow flow, and the hydronic system had no pump. A precise layout was required to enable the hydronic system to heat the home evenly. Pump it up About 1920, pumps were added to hydronic heating systems. The pipes became smaller, and a small centrifugal circulating pump circulated hot water. The centrifugal pump impeller accelerated the water to the outside of the impeller and literally pushed it through the piping. On a call for heat, the pump pushed warm water to the area that needed heat. There could be one pump and one zone or multiple pumps and multiple zones. Later on, zone valves were available to further control/refine the flow of warm water to the home.

commutated motors (ECMs) which allow easy adjustment of flow through simple motor speed adjustments if necessary. Many use a simple plastic dial to adjust speed and flow. Inspection details When inspecting hydronic systems, don’t be surprised by the small, simple-looking pumps. They are very quiet, efficient and effective. Do look for signs of leaks at pumps, valves, fittings and boilers. When inspecting older pump systems, expect to find a noisy coupling and excessive vibration. Watch for pumps that have been over-lubricated; look for oil stains on the housing. This excessive oil will often deteriorate rubber parts and cause failures. Watch for leaks around pump couplers – that is where the seals will leak. Tom Feiza has been a professional home inspector since 1992 and has a degree in engineering. Through HowToOperateYourHome.com, he provides high-quality marketing materials that help professional home inspectors boost their business. Copyright © 2015 by Tom Feiza, Mr. Fix-It, Inc. Reproduced with permission.

The original centrifugal pumps lasted a long time, but eventually, the shaft seals leaked. The mechanical coupler from the motor to the impeller failed, causing excessive vibration and noise. Multiple sets of bearings also posed potential difficulties. They needed routine lubrication. Some homeowners never performed this maintenance, while others over-lubricated, spilling oil on rubber parts. Magnetic attraction In recent years, magnetically coupled impellers have eliminated the need for the mechanical coupler and seals. Pump impellers are now driven through a magnetic coupler that eliminates shaft seals, some bearings and routine lubrication. Pumps are now more efficient and much smaller, requiring less horsepower. Modern pumps are driven with variable speed electronically

The NAHI® Forum

Summer 2015 | 7

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The NAHI® Forum

Best Inspection Practices

Electrical Protection of CSST Gas Piping Systems Written by: Bob Torbin Director of Codes and Standards Omega Flex

General All gas piping that is likely to become energized by the electrical service must be bonded to provide ground fault protection. This requirement exists in both the fuel gas code and the electrical code, and stipulates that the gas piping be electrically continuous and connected to an effective ground fault current path back to ground. Under most circumstances, this bonding is achieved through the equipment grounding conductor of the branch circuit that serves one or more of the connected gas appliances. However, starting with the 2009 edition of the three model fuel gas codes (IFGC, UPC and NFPA 54), additional bonding of corrugated stainless steel tubing (CSST) piping systems was required to reduce the risk to the house or business caused from lightning activity. The bonding of gas piping system to the grounding electrode system of the building in which it is installed will lower the voltage build-up on the piping caused by the unintentional energizing from outside sources such as power surges and lightning strikes. The bonding will help achieve an equi-potential state between the gas piping and other similarly bonded metallic systems (such as the water piping, structural steel and electrical cable). The bonding will help reduce the possibility and/or severity of arcing between these conductive systems when energized by a lightning strike. The 2015 editions of the model fuel gas codes include revisions to the requirements for the electrical protection of corrugated stainless steel tubing.

Electrical Protection Bonding is required whenever the gas piping system contains all CSST or a segment of CSST regardless of its length or location. Many jurisdictions require bonding of CSST regardless of the jacket material/design while others exempt the arc-resistant jacket (black) CSST from the additional bonding requirement. The home inspector should check with the local inspection department to determine the installation practices being enforced. The following practices highlight the various steps and hardware needed to bond and inspect the CSST gas piping system to the grounding electrode system.

The bonding conductor should be as short as practical, but not be longer than 75 feet. The location of the bonding clamp on the gas piping system must be selected so as to comply with the maximum allowable conductor length. However, local code requirements may be more restrictive regarding the location of the bonding clamp and less restrictive regarding the length of the conductor depending on the code being enforced.

Bonding Clamp and Locations The bonding conductor must be attached to the CSST gas piping system downstream of the point of delivery (either the natural gas meter or the LP 2nd stage regulator) when the service is located at or near the entrance to the house. The bonding clamp may be located within the piping system between the point of delivery and any gas appliance, but always in compliance with local code. The clamp can be attached to a length of rigid pipe, a malleable iron pipe fitting, a prefabricated manifold, and on the brass cap of a CSST fitting. The corrugated stainless steel tubing shall never be used as a point of attachment of the bonding clamp at any location within the piping system. Only a single point of attachment is required regardless of the length or complexity of the piping system. Even though a CSST piping system may include other code-approved piping materials, it is still considered to be one electrically continuous system. The conductor must be attached to the piping system using a listed bonding clamp based on UL 467. The bonding clamp must always be accessible and can be located outdoors or indoors. When the clamp is attached to rigid pipe, the pipe surface must be clean and free of paint or coating to permit a metal-to-metal connection.

Bonding Conductor The bonding conductor may be either a single strand copper or aluminum wire or a multi-strand configuration. The conductor may be coated or uncoated. The conductor can be installed indoors and/or outdoors either above grade or below grade. The bonding conductor can be no smaller than a 6 AWG copper wire or the equivalent size if made of aluminum. A larger sized conductor may be required for buildings with larger electrical service.

The NAHI速 Forum

Summer 2015 | 9

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CSST Legacy Installations Many homes utilizing CSST gas piping were built before the updated electrical protection requirements were in effect and enforced. However, existing legacy homes should be inspected for compliance with the latest code requirements and CSST manufacturer’s installation instructions regarding electrical protection.

Electrical Connections The bonding conductor must be connected to the grounding electrode system at the service equipment enclosure, the grounded conductor at the service, the grounding electrode conductor, or to one or more grounding electrodes used. The conductor should be run as straight as practical without tight bends. The grounding electrode(s) can be one of the following types:

The home must be visually examined to determine the presence of CSST (yellow or black jacket) either used exclusively, or in part, as the fuel gas piping system. If CSST is present, it is strongly recommended that a licensed electrician be hired to inspect the gas piping system to determine the status of its bonding, and to determine a course of action to bring the system into code compliance.

• Pipes • Plates • Rods • Structural steel • Concrete encased reinforcing steel All electrodes used must be bonded together to form one grounding electrode system. A complete description of electrical protection requirements for CSST, including ground fault protection, is covered in Section 4.10 of the manufacturer’s installation instructions.

Routing A well-considered installation pathway for the CSST within the structural framework of the building can be used to further protect the CSST from inadvertent electrical damage by separating it from other metallic systems. Consideration should be given to routing the tubing in crawl spaces and basements, between floors and in the perimeter spaces of attics to achieve some degree of physical separation between the CSST and electrical wiring, ductwork, structural steel and other metallic piping.

The NAHI® Forum

CSST bonding shall be performed in accordance with the local fuel gas and/or residential code, the National Electrical Code and the CSST manufacturer’s installation instructions (whichever is more restrictive). Additional information can be found at www.CSSTSAFETY.com regarding the national CSST safety campaign sponsored by the National Association of State Fire Marshals.

Summer 2015 | 11

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1 12OREP_HI_2015.indd | Summer 2015

4/10/15 ®3:36 PM The NAHI Forum

To Square or Not to Square T

he introduction of mobile payment options, like Square, have changed the landscape of credit card processing. The question is, as a home inspector, is Square type of account right for you? In this article, we will discuss the pros and cons of Square as well as other options that you, as a home inspector, may want to take a look at. The first question you want to ask yourself when considering if Square is right for you, is, “How much do I process in credit cards every month?” or “How much do I think I will process in credit cards every month?”The number one advantage of a Square account is that there are no monthly fees. You may ask yourself how they are able to have no monthly fees when everyone else has them? It is simple, they charge a much higher percentage on ever transaction. Square charges 2.75% for swiped transactions and 3.5% and $0.15 cents per transaction. So, let’s say you do a home inspection for $400.00 and key in the transaction, it would cost you $14.15 (if it were swiped it would cost you $11.00).If you are only doing 1-3 inspections a month on credit card, then Square (or a Square type of account) is probably something that would work for you. If, however, you are doing 3 or more inspections a month on credit card, then that higher percentage starts to add up. A traditional merchant account is generally going to have around $10.00 a month in set fees, however, the percentages are much lower. There are two types of traditional accounts, a swiped account and a card not present account or MOTO (mail order telephone order) account. These accounts will usually have three tiers of fees, qualified (swiped or card not present but with zip and security code), partially qualified (reward cards) and non-qualified (government, international or corporate cards). On average you will pay around 1.9% - 2.4% for a traditional account when you take the different tiers into consideration. So, with either the swiped account or the card not present account, you save almost 1.0% on all your transactions versus Square. That is a savings of almost $10.00 on every $1,000 that you process. In other words, if you are doing 3 or more inspections a month on credit cards, it is cheaper for you to have a traditional account instead of a Square account.

Advantages of traditional accounts: 1. Integration capabilities: If you are using some type of Home Inspection software (i.e. ISN, Home Inspector Pro, Home Gauge, Horizon, etc...) they give you the options to integrate your credit card processing with their software. This will allow you to send your contracts and invoices with payment links and it will allow you to take credit cards onsite with their mobile apps. 2. Customer support: If you use Square and have ever tried to get a human being to help who understands your problem, you know what I am talking about. No one likes to deal with any customer support, but you will generally have better luck with customer support when you have a traditional account versus Square. 3. Fees: Although traditional accounts will always have monthly fees (varies based on the type of account but it will range from $5.00-$15.00 a month) the percentages you are charged can be significantly lower. If you are doing more than 3 inspections per month on credit card, this type of account will be cheaper for you.

5. Swiped or Card Not present accounts: Based on how you want to process and if you want to integrate your credit card processing with your Home Inspection Software, you can get either one of these types of accounts. Advantages of a Square type account: 1. No monthly fees: If you do 3 or fewer inspections a month on credit card, the fact that there are no monthly fees means this type of account will save you money. 2. Simple fee structure: Square has two rate categories, 2.75% for swiped and 3.5% + $.15 cents for card not present. You will always know up front exactly how much it will cost you to take a card. Disadvantages of a Square type of account: 1. Higher percentage when you use it. On average, you will pay about 1% more on every transaction when using Square instead of a traditional account. 2. No Integration: There is no way to integrate your Square account with your Home Inspection software. 3. Daily Billing: The fees will be taken out before the funds are deposited in your account. So, if you do a $400.00 card not present inspection, $385.85 shows up in your account. This makes it more difficult to reconcile your accounts since the dollar amounts on your invoices will not match the deposits in your account.

Disadvantages of traditional account: 1. Monthly fees: Generally range from $5.00 per month to $15.00 per month depending on the type of account and who you use (remember, even though there are monthly fees, the percentages are much lower. So, as long as you are doing 3 or more inspections a month, this account is still cheaper than a Square type of account). 2. Fee structure is not as simple: There will usually be three tiers and all of your transactions will fall into one of these tiers. It is not a simple one rate fits all like Square has. Although it is not as simple as Square, once you get used to it, statements from traditional accounts are easy to understand. To summarize, both Square and Traditional credit card processing accounts have positives and negatives. If you have any questions about which type of account is right for you, please don’t hesitate to give us a call. Aaron Fuhriman President Guardian Financial 1-800-608-7363 www.smallbizguardian.com

4. Monthly billing: This makes your reconciliation much easier. If you do a $400 inspection, then $400 will show up in your account the next business day. The fees will all come out at one time the first business day of the next month.

The NAHI® Forum

Summer 2015 | 13

NAHI Peer Review - April 19, 2015 Held in: Oreland, PA Sponsored by: Southwest PA NAHI Chapter

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14 | Summer 2015

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Summer 2015 | 15

Home inspection franchise opportunity Home inspection is an essential part of the real estate transaction. With home sales on the rise, AmeriSpec is seeking experienced inspectors to join our franchise network. On-going training, marketing, business software and support are provided in this low cost, home-based opportunity. Financing available to qualified applicants. If you currently own a home inspection business, ask us about converting it to AmeriSpec. www.amerispec.com/franchiseopportunities

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16 | Summer 2015

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New members M A R C H 16, 2015 - J U N E 15, 2015

ALASKA

GEORGIA

MINNESOTA

Donald White, Anchorage

Cephas Holmes, Jr., Tuskegee Institute James Rose, Florence

Brian Douthat, Cumming Christopher Olien, Lawrenceville Eric Phillips, Riverdale Kris Poist, Woodstock Vernon Robinson, Dallas

ARKANSAS

HAWAII

Mitchell Bertrang, Lakeville Michael Deadrick, Mora Robert Matheson, Moorhead Bruce McComb, Independence Ryan Niedfeldt, Wykoff Steven Register, Austin Eric Woodruff, Randolph

Rick Fish, Bella Vista

Chris Grochowski, Keaau

ARIZONA

IDAHO

Bryan Ayres, Peoria Scott Copenhaver, Tucson David Dion, Phoenix Jon Howard, Mesa

Bradely Ward, Emmett

ALABAMA

Justin Hoppe, Imperial Tom Lashock, Berwick Mark Maglioli, Pringle Jill McNabb, Easton Tim Meyers, Lititz Daniel Miller Jr., Johnstown Don Minehart, Pittsburgh Rick Sheidy, Bernville Adam Smith, Philadelphia

MISSISSIPPI

CALIFORNIA Dante Ambrosini, La Verne Earl Brooks, Vacaville Jason Buford, Squaw Valley Raymond Clark, Fallbrook Darrell Clegg, Lompoc Adam Drumm, Fontana Timothy Emens, Lakeside Ronald Garside II, Bakersfield Chuck Haubrick, Costa Mesa Michael Joseph, Vista Tim McCoy, Rancho Cucamonga Jeremy Near, Vista Thane Reddell, Fresno Paul Santos, Laton Thomas Valinote, Thousand Oaks Samuel Vasquez, Big Bear City Terry Warriner, Vista Chris White, Redlands Bill Williams, Palm Desert

COLORADO Mark Agan, Woodland Park James Allen, Arvada Philip Barker, Evergreen Doug Bauman, Black Hawk Gary Baumann, Fort Collins Tim Buller, Brighton Don Ellis, Boulder Steve Flowers, Firestone Jared Franklin, Grand Junction Robert Hanson, Woodland Park Matthew Harris, Monument Jerry Klotz, Loveland Michael Miller, Fort Collins Tony Solis, Grand Junction

Steven Taylor, Cleveland

MISSOURI IOWA Roger Hall, Davenport Darrel Kroese, Orange City Jeff Peiffer, Sioux City Adam Rummans, Pleasant Hill Mark Sornson, Council Bluffs Corey Wieckhorst, Davenport Jake Winsor, Vinton Jeff Winsor, Vinton

John Robinson, Farmington Jeremy Webb, Wellsville

MONTANA Joseph Codner, Three Forks Kevin Kivela, Missoula Paris Wright, Lakeside

NEBRASKA Cliff Meays, Columbus

ILLINOIS Michael Adams, Des Plaines Toby Adamson, Woodridge Derrick Babinsky, Chicago Mark Booth, Dunlap Charles Hooker, Warrenville Paul Keagy, Lexington Kevin Pepe, Oak Forest John Terry, Additon

INDIANA Jason Fike, Auburn Doug Plew, Columbia City

KANSAS John Bilson, Wichita Thomas Lauhon, Lansing Jeffrey Wells, Junction City

MAINE Jay Blacksone, Caribou James Laverdiere, South Portland Dan Randall, Windham

MARYLAND

NORTH DAKOTA Dan Passolt, West Fargo

NEW YORK Christopher Paddadio, Poughkeepsie Paul Puckett, Hilton

Bob DeCesare, Guilford

FLORIDA David Edwards, Green Cove Springs Steven Fleming, Maitland Steven Helm, Lakeland Mark Holst, Bradenton Alvaro Soffia, Kissimmee Stephan Warner, Odessa

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James Evans, Georgetown Daniel Kozuch, Mount Pleasant

TENNESSEE Magnum Blackburn, Cleveland David Dauwen, Nashville Danny Fly, Millington Mark Hunter, Lenoir City David Johnsen, Knoxville Kevin Woods, Millington

TEXAS Mark Bares, Brenham Robin Measley, Mart David Harris, Arlington Jeff Kresta, Longview Charlie Ragsdale, Cedar Park Joseph Snyder, Tyler Jess Tatum, Bedord Gary West, Ft Worth Chris Walkes, Waxahachie

OHIO Patrick Azzarello, Bryan Joshua Branham, Powell Richard Hannah, Sabina David Jensen, Akron Christopher Lewis, Bloomville J. Liskany, Orient Ben List, Columbus Richard Paul Jr., Grafton Anthony Perry, Van Wert Paul Pope, Elyria Steve Richey, Utica Dustin Sanna, Dublin Raymond Sexton, Bloomville Corwin Shelton, Wilmington Steve Temesvari, North Ridgeville Don Wilson, Hinckley

David Grudzinski, Brinklow Adam Morville, Cockeysville Gary Witt, New Market

OKLAHOMA

MICHIGAN

OREGON

Michael Benson, Wayne Michael Davis, Coloma Andrew Engstrom, Ishpeming Ryan Henry, Kentwood Paul Hunt, Frankfort Glenn Matheson, Grand Rapids Matthew Mozurkewich, Canton Lester Ottenwalder, Lenox Paul Rea, Rochester Hills Ron Shubitowski, Shelby Township Shawn Taylor, Southfield Richard Wertz, Charlevoix

Jason Fleskes, Forest Grove Brian Goss, Florence Derek Sigman, Milwaukie Joseph Vaccaro, Klamath Falls Juan Vazquez, Woodburn

Paul Wamsley, Tulsa

Matthew Swartzendruber, Westminster

CONNECTICUT

SOUTH CAROLINA

PENNSYLVANIA Stanley Bauman, Topton Peter Chiappini, Edwardsville William Crooks, Bedford Paul Fleming, Flinton Shawn Heisse, Langhorne

UTAH Scott Barton, Hurricane

VIRGINIA Antonios Kapranos, Christainburg Todd Pettyjohn, Evington David Weikel, Chantilly Robert Wilkens, Leesburg

WASHINGTON John Wilbanks, Gig Harbor

WEST VIRGINIA Jason Spielvogel, Wheeling

WYOMING Jeffrey Williams, Buffalo NEW AFFILIATES Jack Huntress HomeBinder.com, LLC 800-377-6915 - jack@homebinder.com Toby Adamson Home Hub Zone 773-701-5590 - info@homehubzone.com ASSOC. to REG Membership Upgrades Dennis Bartels, Upper Black Eddy, PA Robert Bolus, Bloomsburg, PA Earl Pfeufer, Centennial, CO Bud Monk, Golden, CO Shaun LIttle, Naperville, IL

Summer 2015 | 17

A Bright Idea. The Benefits of Belonging Mutual of Omaha Insurance Company and its affiliates and National Association of Home Inspectors have teamed up to offer you an exciting benefit. As an association member, you’re eligible to apply for insurance coverage at lower premiums or with no-cost benefit enhancements that aren’t available to the general public.

We want to shed some light on how Mutual of Omaha can help you: • Continue your income if you can't work • Send your children to college • Have choices if you get sick

• Save for retirement • Accumulate wealth • Protect your business

To learn more, please email me at association.insurance@mutualofomaha.com or give me a call at 800-624-5554. Or check out www.mutualofomaha.com/am/nahi/. Let’s get together to discuss your needs and goals. There’s no obligation, of course, and you’ll have a clearer picture of some alternatives available to help you protect what matters most.

Association Insurance

Mutual of Omaha Insurance Company 800-624-5554 association.insurance@mutualofomaha.com

Insurance products and services are offered by Mutual of Omaha Insurance Company or one of its affiliates. Mutual of Omaha Insurance Company, Mutual of Omaha Plaza, Omaha, NE 68175 is licensed nationwide. Affiliate United of Omaha Life Insurance Company, Mutual of Omaha Plaza, Omaha, NE 68175 is licensed nationwide except New York. Each underwriting company is solely responsible for its own contractual and financial obligations. The insurance provided will be individual coverage, not group coverage. This is a solicitation of insurance and a licensed insurance agent/producer may contact you by telephone. MC34490_1112

18 | Summer 2015

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r u o Y s It’

Business

Photo credit: depositphotos.com/@ ikopylove

WHEN GOING ABOVE AND BEYOND YOUR STANDARDS GOES WRONG By: Joseph W. Denneler, Esquire jdenneler@srstlaw.com

The majority of my law practice is litigation, specifically, litigation involving home inspectors. An offshoot of that work is providing consulting services to inspectors regarding their business practices. As more states move to licensing and regulation, I see requirements of varying degrees for the ways inspectors present themselves to the general public, whether in advertising materials, through limitations on an inspector’s ability to provide other services along with the inspection, and so on. Some states are stringent in terms of the content of advertising materials, some allow the inspectors great leeway in how they advertise. It makes it difficult for the folks inspecting in multiple states. Even if you’re working in a single state that is regulated, these regulations can be difficult to interpret. If there is one aspect of advertising that is uniform across all states, it is that there is no restriction on advertising that indicates an inspector exceeds the recognized standards of practice for their particular state. At first glance this seems like an excellent way to set oneself apart from the pack of inspectors all clamoring for the same clients in a limited housing market. It’s a classic advertising strategy used by many professionals and service providers. “We go above and beyond what others will do” or “We exceed the state standards” are common forms of this type of advertising that I see repeatedly on brochures, flyers and websites. I’m willing to bet that inspectors who make that claim are being honest. Many inspectors go beyond state and association standards on every inspection in some regard. For example, in New Jersey inspectors are not required to walk roofs or inspect common areas in multi-unit housing. Despite this, some inspectors provide those services in an effort to differentiate them from the hundreds of inspectors in the state. Exceeding the standards can also refer to the level of prior experience an inspector brings to his or her inspection business. Many inspectors had other employment in the building trades, or with particular systems like plumbing or electrical. Their expert experience with these particular systems enables them to see and

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know things other inspectors do not, and they apply that superior knowledge and experience to their home inspections. But, if you have been reading my articles over the last year you know that the devil is always in the details, and if I’m writing about a topic it is because I’ve had an inspector or two have a bad experience that can be prevented with an adjustment of the inspector’s communications to its clients. Here, that communication is the advertising seen and relied upon by prospective inspection clients that they use to decide which inspector to hire, and how that communication can be twisted by a reasonably erstwhile plaintiff’s attorney during the litigation of a claim. Many home inspection cases I see can be defended by pointing out that the alleged defect was not identified or disclosed because the system, component or condition was not within the scope of work agreed to by inspector and client in the inspection contract, or as set forth in the standards of practice used by the inspector to provide the services. The primary determinations a judge or a jury will be asked to make at a trial in any professional liability case is what is the applicable standard of care and did this professional deviate from that in any respect which caused damages to the plaintiff. In regulated states that standard is the statutory standard of care promulgated by the legislature or other administrative body in that state. In non-regulated and hybrid (limited regulation with no specific standards of practice) states, that standard will be the association based standards of practice the inspector selects to use for home inspections. A judge or a jury will compare the facts of a case to the applicable standards and decide if the inspector deviated from those in providing the inspection services. When a case comes into my office the first things I look for are what standards were used and whether the claim falls within the scope of those standards. More often than not I can defend the claim by proving that the alleged defect was not something that an inspector was required to address during a home inspection under the applicable standards of practice. Today’s plaintiff’s lawyers are, if nothing else,

L A G LE

crafty. Internet advertising is the norm, and while it does wonders to draw clients to our services, it also provides ample room to add fodder to a claim to spice it up and make it better for a plaintiff. One way to do that is to take that rather innocuous statement that an inspector exceeds the standards of practice, and use it to make the decision of whether a defect was within the scope of the promised services harder to determine. Doing this allows a plaintiff’s lawyer to expand the scope of the inspection you promised to provide so that it’s no longer clear whether that scope has any limitations at all. Consider the two cases I will describe below as evidence that this practice is more rampant and dangerous than you might think. Hazardous materials and substances are nearly uniformly specifically excluded in the standards of practice of associations and states. Two that appear rather frequently in my area of the country are mold and asbestos. I receive many cases where these two substances are alleged as something the home inspector should have identified and disclosed in the inspection report. Ask most home inspectors whether they can be sued for not reporting on the presence of those two materials and they will scoff and point to their standards that specifically exclude them from the scope of their inspection. But what happens when the plaintiff’s attorney directs the inspector to his or her internet advertising where the inspector proudly states that he or she “exceeds the standards” in providing their home inspection services? In one of my current cases my inspector clearly indicates in his inspection contract and the body of his inspection report that he follows a particular association based set of standards. However, on his website he advertises that he exceeds the standards of practice. The plaintiffs claim that he failed to identify and disclose mold that was present in the home at the time of the inspection. When confronted with the applicable standards of practice and the specific exclusion for mold contained there, the plaintiffs’ attorney promptly produced a page from my client’s website indicating that the standards would be exceeded on every inspection, and suggested that exceeding the standards meant that the inspector should have looked for mold.

Summer 2015 | 19

20 | Summer 2014

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New Drone Policy

In another case, following the home inspection the plaintiffs discovered that several readily accessible HVAC ducts were wrapped with asbestos. They sued everyone involved in the transaction. Again, I direct the plaintiffs’ attorney to the applicable standards of practice that specifically exclude any inspection for asbestos or asbestos containing products. Again, I’m quickly confronted with my client’s advertising materials indicating that he would exceed the standards of practice. Ultimately we will likely prevail on the merits of both claims, as the law tends to hold a professional to the scope of their contract with the client, and in each of the above cases the inspection contracts clearly and unequivocally exclude mold and asbestos from the scope of the inspection. But as many have heard me say, winning the litigation is not the goal. It’s not winning, at least to me, if you have to pay an insurance deductible, take time from your profession, and have the general anxiety caused by a lawsuit. To me, winning is preventing the claim from ever occurring, or at the least being in a position to quickly and quietly dispose of the claim before much of my client’s money is spent. Candidly, and as many of you know, there are enough inspectors out there that are not doing good work to keep me busy. I do not need to bill clients for cases that should never be filed. In both cases above my clients had to pay their deductible and spend time dealing with the litigation when they could be out making money for themselves and their families instead of the plaintiffs. Perhaps more importantly, most insurance policies purchased by inspectors have exclusions for hazardous materials unless a rider is attached to cover the inspector for claims arising from a failure to report them. So, if the case cannot be easily dismissed because with the argument that the condition is beyond the scope of the inspection, an inspector may also find himself or herself without the safety net of an insurance policy to cover the defense costs or to pay a judgment should the legal system fail.

The Federal Aviation Administration (FAA) announced an interim policy covering drone use that will remain in effect until it issues a final version of a proposed small unmanned aircraft system (UAS) rule. While legal drone operators must still receive approval from the FAA (a Section 333 exemption), under the new policy, these operators will be allowed to fly anywhere in the United States, provided that they follow a set of rules found on faa.gov/uas. Though it appears to mainly target illegal surveillance

by police, the new law prevents the use of drones to photograph or record images of people or their property where they have reasonable expectations of privacy. However, the law includes several exemptions from the drone ban, including one exemption for persons or entities “engaged in a business or profession licensed by the state,” which encompasses Realtors® and appraisers. According to the National Association of Realtors, “Realtors believe that images gathered by unmanned aerial vehicles can enhance the experience

of buying and selling real estate. The FAA’s intention to study the safety of UAS flights that go beyond the line of sight of the operator could lead to important benefits in the real estate industry, particularly for agents who wish to market rural and large commercial properties.” For more, visit the FAA’s website at www. faa.gov/uas.

Source: FLORIDA REALTOR Magazine-June 2015.

Now that we have the scary part out of the way, and before any of you scramble to your websites and advertising materials to delete any reference to exceeding the standards, there is a simple solution to this dilemma. If you are going to advertise that you exceed the applicable standards of practice in performing a home inspection, why not just tell your clients where and how you exceed those standards? Your services are not part of a covert operation. I suspect that you are not using some proprietary algorithm to determine which part of the house you look at first. So why not just say what you do and how you do it? If your niche is that you inspect common areas at condominium developments, say it. If you have a special expertise in HVAC or structural systems that sets you apart from the herd, then use it to your advantage. Employing this method of describing how you exceed standards eliminates the ability for a plaintiff’s lawyer to argue that you created the perception in your client’s mind that you would exceed the standards in all respects, instead limiting your promise to your client to exceeding the standards where you actually can and routinely do exceed them. Giving a blanket statement that you exceed the standards puts no limits on your promise, and that ambiguity is the type of thing that a plaintiff’s lawyer can run with to drive up the costs of defense and put you in a position where settlement of a questionable claim is better than going through the dark tunnel of the litigation process. Take the time to look through your advertising and pinpoint areas where you may be exposing yourself to greater risk than intended. The less time you spend with lawyers (although some of us are pleasant) the better for your practice and your future success.

The NAHI® Forum

Summer 2015 | 21

LET’S TALK DIRTY! What has 18 times more bacteria than a public rest room? It’s your mobile phone, that thing that’s probably attached to your hand that goes up to your face for most of the day. Yes, it’s a magnet for germs and home inspectors are exposed to enough foreign materials let alone carrying additional germ friends with you. So here are some simple tips to disinfect your phones. 1) What is the safest way to disinfect most mobile phones? Look for Zagg gadget cleaning wipes. A DIY way is to use a 1:1 mixture of distilled water and 70 percent or purer isopropyl alcohol. Both are inexpensive and can be found in your local grocery or drug store. Put the mixture into a small spray bottle, lightly spray onto a micro fiber cloth and use it to wipe down your portable gadgets, keyboard, and mouse.

like window cleaning fluids aren’t designed for touchscreens. Avoid using regular cloth or paper towels and do not spray cleaner directly onto your device. Liquid can seep around the edges that can cause physical damage to a device. Instead, spray cleaner lightly onto a micro fiber cloth and use that to wipe clean. 3) How often should people disinfect their phones? Once a week, at the least. Don’t forget your keyboard and mouse. During winter, you might want to do a cleaning at the end of each day. 4) Is there anything else people can do to avoid phone germs? Avoid using your phone in the bathroom. Even if it doesn’t reduce germ exposure, it’s good manners. And definitely don’t place it on a sink or other bathroom surface while you’re in there. Lastly, always wash your hands!

Americans

d a summe rv a

75%

24%

26%

UP FROM 69% IN 2013

Less than three months’ worth of expenses

None

(2014)

$266,828,357

HOW MUCH AMERICAN HAVE SAVED FOR EMERGENCIES

RAINY DAY FUNDS

n tio ca

TOTAL SPENDING ON INSECT REPELLENT SUMMER 2014

n ne pla

The frequency of a cricket’s chirps fluctuates with the temperature. If you count a cricket’s chirps for 15 seconds and add 37, you will have the approximate outdoor temperature (in Fahrenheit).

AM I NORMAL ABOUT MONEY?

2) What are the most common mistakes people make when trying to disinfect their phones? Avoid using household cleaners. Many,

SUMMER STAT

Did you know?

9% No answer

17%

Three to six months’ worth of expenses

23%

Six months’ worth or more

Worried about keeping up with the Joneses-don’t. They probably have money anxieties too.

Source: Money.com-July 2015

MORE The Fullest Service Call Center Customized Just For You.

The Leader in Scheduling & Phone Answering Services Exclusively for Home Inspectors. 22 | Summer 2015

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Now Registering for August! NAHI Training Institute (NTI) Sponsored by the National Association of Home Inspectors

Hands-on Training for Home Inspectors All NTI training sessions will be conducted in a house where you will climb and crawl, feel and listen, and see and smell actual parts and components of a home while looking for the kinds of defects you will someday be paid to find.

What’s included: • Eight 10 hour days of intense training • Hands-on training in an actual home, not a classroom • Text book • Links to state Standards and license requirements • Electronic tablet with pre-loaded class outlines, Standards, and report writing software (app)

The course covers: • • • • • •

Electrical Plumbing HVAC Foundation Structure Roof

Upon graduation you will receive: • • • • • •

Exterior Interior Site Report Writing Standards/Ethics Contracts

1. 2. 3. 4.

Six months of NAHI membership A technical mentor A business coach NAHI report writing software

Visit our website for more information or call today!

www.nahi.org | (800) 448-3942

4426 5th Street West Bradenton, FL 34207 (USA) Tel: (941) 462-4265 | (800) 448-3942 | Fax: (941) 896-3187

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Summer 2015 | 23

Vacation bound? Download before you go

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save on car rentals

ROAD TRIPPERS

Finds best attractions along your route and saves the trip for easy access. Free, iOS and Android

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Kayak.com not only provides prices quotes, but carries coupons from car companies for as much as 30% off, even on the more expensive, one-way rentals.

ud Pro aign p er m Ca Partn y t e Saf

Simple Water Safety Steps Can Save Lives Your greatest water safety assurance comes from adopting and practicing as many safety steps as possible. Adding an extra safety step around the water can make all the difference. You can never know which safety step will save a life — until it does. Stay Close, Be Alert and Watch Always watch your children and never leave them unattended Keep children away from pool drains, pipes and other openings Have a phone close by at all times If a child is missing, check the pool first Share safety instructions with family, friends and neighbors

Learn and Practice Water Safety Skills Learn to swim Know how to perform CPR on children and adults Understand the basics of life saving so that you can assist in

a pool emergency

Have the Appropriate Equipment Install a fence around the perimeter of the pool and spa of at

least four feet in height

Use self-closing and self-latching gates Ensure all pools and spas have compliant drain covers

Install a door alarm from the house to the pool area Maintain pool and spa covers in working order Have life-saving equipment such as life rings or reaching

poles available for use

24 | Summer 2015

The Richest Town in Each State Every state has at least one town with a median household income thousands of dollars higher than the state’s median income, according to a new analysis by 24/7 Wall St. In some states, the difference can be drastic. For example, the median income in upscale areas like Scarsdale, N.Y., and Winnetka, Ill., is more than $150,000 higher than the state’s median income figure. To identify the wealthiest towns in each state, 24/7 Wall St. analyzed median household incomes for every town with populations of 25,000 or less in each state. 1. Mountain Brook, Alabama Town median household income: $131,281 2. Unalaska, Alaska

Town median household income: $89,706

3. Paradise Valley, Arizona

Town median household income: $125,880

4. Maumelle, Arkansas

Town median household income: $80,009

5. Piedmont, California

Town median household income: $207,222

6. Castle Pines, Colorado

Town median household income: $138,349

7. Newtown, Connecticut

Town median household income: $116,7718

8. Middletown, Delaware

Town median household income: $80,443

9. Key Biscayne, Florida

Town median household income: $121,624

10. Tyrone, Georgia

Town median household income: $85,188

11. Eagle, Idaho

Town median household income: $80,788

12. Winnetka, Illinois

Town median household income: $211,250

13. Zionsville, Indiana

Town median household income: $106,071

14. Johnston, Iowa

Town median household income: $93,571

15. Prairie Village, Kansas

Town median household income: $80,862

16. Union, Kentucky

Town median household income: $102,271

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17. Gonzales, Louisiana

Town median household income: $48,729

18. Saco, Maine

Town median household income: $55,524

19. Poolesville, Maryland

Town median household income: $135,430

20. Newburyport, Massachusetts Town median household income: $78,638 21. Franklin, Michigan

Town median household income: $139,000

22. Victoria, Minnesota

Town median household income: $122,171

23. Madison, Mississippi

Town median household income: $99,124

24. Des Peres, Missouri

Town median household income: $121,471

25. Sidney, Montana

Town median household income: $54,609

26. Gretna, Nebraska

Town median household income: $73,715

27. Elko, Nevada

Town median household income: $72,565

28. Portsmouth, N.Hampshire Town median household income: $64,577 29. Essex Fells, New Jersey Town median household income: $171,681 30. Bosque Farms, New Mexico Town median household income: $59,509 31. Scarsdale, New York

Town median household income: $233,311

Build Your Own Business (BYOB) Dan Steward, CEO, Pillar to Post Home Inspectors

32. Harrisburg, North Carolina Town median household income: $81,808 33. Horace, North Dakota

Town median household income: $86,071

34. Powell, Ohio

Town median household income: $132,598

35. Jenks, Oklahoma

Town median household income: $84,491

36. Happy Valley, Oregon

Town median household income: $92,773

37. Rosslyn Farms, Pennsylvania Town median household income: $121,786 38. Tega Cay, South Carolina Town median household income: $108,958 39. Brandon, South Dakota

Town median household income: $66,943

40. Nolensville, Tennessee

Town median household income: $102,870

41. W. University Place, Texas Town median household income: $205,136 42. Fruit Heights, Utah

Town median household income: $99,545

43. S. Burlington, Vermont

Town median household income: $64,756

44. Vienna, Virginia

Town median household income: $126,991

45. Mercer Island, Washington Town median household income: $126,359 46. Bethlehem, West Virginia Town median household income: $61,744 47. Maple Bluff, Wisconsin

Town median household income: $129,306

48. Green River, Wyoming

Town median household income: $74,036

Source: “The Richest Town in Each State,” 24/7 Wall St. (June 17, 2015)

Do you think you’re spending too much for monthly internet service? 6% spend $140-$179

2% spend $180+

10% spend $100-$139 58% spend $20-$59 24% spend $60-$99 Source: Money.com-July 2015

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Q&A Session with Paul Ferguson, owner of Pillar To Post Home Inspectors of Wadsworth, Ohio serving Stark, Lorain, Erie, Huron, Medina, Wayne and Western Summit Counties 1. How long have you been with Pillar To Post? I’ve been in business since 1999. My uncle owned a Pillar To Post franchise and he spoke often of his success, inspiring me to pull the trigger and open my own along with my wife Heidi. 2. What about being a home inspector is appealing to you? Before I was an inspector I worked in construction, followed by a career as a landlord flipping homes. Inspecting homes seemed like a logical next step given my previous experiences. Being an inspector allows me to continue to be hands-on with homes, but in a different way. I take a lot of satisfaction from the fact that I can go to bed every night with the knowledge that I helped people, giving them peace of mind whether they’re buying or selling their home and helping to make what would be an otherwise stressful process a smoother one. A person’s home should be his or her castle, but no owner can ever really feel that way unless they’re sure their castle is safe. We make that happen. 3. What advice do you have for any would-be home inspectors considering getting into franchising? Because I’ve been an inspector with Pillar To Post since 1999, some of my career has been spent weathering some pretty rough conditions in the housing market. A key component that helped me weather those storms was being backed by a franchisor that had experts who had themselves been through similar situations before. When it comes down to it, it’s that level of support and guidance available that swayed me to join a franchise. A franchise like Pillar To Post provides a plan that, when followed, helps you get through the tough times. To that end, the relationship between franchisor and franchisee is like that between a master and apprentice. You stand to learn a lot when following techniques already proven to work. 4. Where do you want to take your business from here? Onward and upward! Using the proven techniques that my team has followed since the beginning, we want to continue to grow and cement our name as the most knowledgeable, professional, ethical home inspectors in our community. That’s been our goal from the beginning and following it has served us well ever since. Summer 2015 | 25

Now I’ve Seen Everything A

What’s the problem? I fixed the leak!

Inspecting the Inspector Photo Credits: (A) J. Flynn, FL (B) Jim Clark, MN (C) Troy Bloxom, AK,

May 2015 | By Brenton Hayden Your clients rely on your expertise when it comes to preparing for property inspections. Here are nine key points to evaluate when compiling your list of recommended professionals.

How many dogs do you have?

Mold and rot eating away at supporting beams, problems with the electrical system, plumbing issues... It’s the stuff of nightmares, but for many home owners, it’s a reality. Sometimes, undetected damage can be dangerous. Did you hear the one about the buyer who fell through the floor on move-in day when the rotting surface collapsed?

Near miss!

BEEN BLACKBALLED? Another home inspector trade group has convinced real estate agents in a number of cities to list only their members as being qualified to conduct home inspections and to not allow inspectors from other associations to be included on the list. NAHI believes this practice is illegal under the anti-steering provisions of the Real Estate Services Protection Act (RESPA) and will be asking HUD to investigate the matter.

Fortunately, a thorough home inspection can help to uncover hidden damage and shine some light on potentially costly future repairs. But home inspections aren’t just completed to keep the buyer safe — they can help to protect the real estate professional too. Informed buyers are more likely to be satisfied with their purchase and, as a result, they’ll be far less likely to come back to haunt you after the sale closes. If you’re like most agents, much of your business is based on referrals. A satisfied client who feels dealt with honestly and fairly will be far more likely to send others to you, even if in the end they decided not to go through with the sale. Smart real estate agents know the importance of maintaining a list of qualified home inspectors to give to clients who ask. Having some “pre-inspected inspectors” on hand is an excellent way to help ensure that your clients will be happy with their purchase. But how do you compile this list? Make sure the inspectors that you recommend are professional and qualified, will do a thorough job, and won’t be afraid to crawl under the house to make sure the floor isn’t about to cave in! Here are nine questions that can help you to thoroughly evaluate a home inspector.

1. Are You Licensed?

A handful of states don’t have any licensing requirements at all, so it’s worth checking to see if your state requires licensing. If there are no licensing requirements, you’ll want to spend some more time looking closely at other qualifications, including training and experience.

2. Which Professional Associations Do You Belong To?

Affiliation with a national or state association of home inspectors isn’t a

If you know that real estate agents in your area will not include NAHI members on a list of home inspectors, please contact us at info@ nahi.org and type ‘Blackballed’ in the subject line.

26 | Summer 2015

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guarantee of professionalism, but it’s certainly a good sign. These associations often require that members keep up-to-date with training and certification. Reputable groups to look for include the National Association of Home Inspectors (NAHI), the American Society of Home Inspectors (ASHI), and the International Association of Certified Home Inspectors (InterNACHI).

3. What Are Your Credentials?

Read up on the home inspector’s qualifications, and find out where they received their training. There are a number of professional organizations that provide credentials, including ASHI and NAHI. Watch out for those who claim a “company certification,” or any type of “inhouse accreditation system” that’s not subject to overriding industry standards.

4. How Much Experience Do You Have? The NAHI and ASHI require a minimum of 250 inspections. It’s important to note though, that many industry professionals say that finding someone who has performed at least 1,000 inspections and has three to five years of fulltime experience is important. When browsing the home inspector’s website, watch out for wording designed to make it look like they have more experience than they actually do. Remember, “industry experience” doesn’t necessarily mean experience actually inspecting homes.

5. Are You Insured?

Even the best inspectors can make mistakes. It’s important to ask for proof of insurance for both errors and omissions and general liability. Always

avoid inspectors who aren’t insured, and watch out for inspectors who severely limit their liability coverage. Some inspectors will only reimburse the customer for the cost of the inspection.

6. What’s Your Policy? Ask about their policy involving problems that should have been picked up on in the inspection. Does the inspector stand by the report? Do they offer any guarantees? Some home inspectors offer optional 90day warranties that will help cover repairs or replacement costs. Be sure to check into such offers, paying special attention to the fine print and exclusions.

7. What Are Your Customers Saying? Head online to see what their past clients are saying. Many home inspectors have client reviews on websites such as Angie’s List, Yelp, and Google Plus. You can also check the Better Business Bureau to see if there are any complaints made against the inspector.

8. Are You Able to Provide a Sample Inspection Report? This will help you to gauge how thorough their inspections will be. Most reputable home inspectors will be more than happy to provide you with one if they don’t already have one proudly displayed on their website. A home inspection report should look something like this.

9. How Long Inspection Take?

Will

Your

Often, you can evaluate the diligence of an inspection by how long it takes. According to ASHI, a home inspection can take two to four hours or longer, depending upon the size of the home. Specific guidelines governing what must be examined during home inspections exist in only around half the states in this country. Watch out for inspectors who offer “specials” for one-hour inspections—anything less than two hours may be an indicator of a less-thanthorough job. Also, it’s a good idea to maintain a full list of recommended inspectors, rather than just one or two. This approach drastically reduces your risk of liability and provides your clients with the opportunity to choose their own inspector. Real estate law professionals recommend avoiding verbal referrals whenever possible, instead providing clients with a written list of three to five service providers. By taking the time to compile a list of inspectors, you’ll be doing your clients a tremendous service and providing them with a valuable resource. You’ll also be establishing yourself as someone who can connect clients with professional help throughout the real estate transaction. Reprinted from REALTOR® Magazine Online (http:// realtormag.realtor.org), May 2015, with permission of the NATIONAL ASSOCIATION OF REALTORS. Copyright 2015. All rights reserved.

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