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Home Inspector Working RE
Winter 2020, Volume 12
hing rs c a e R to Now Inspec 00+ de! 25,0 ationwi N
Behind the Curtain: Stucco Defects Inspecting The Wrong House Inside Claims nsive, e h e r p Com t E&O s o C w Lo e!) he pag (tur n t
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Home Inspector Working RE
Published by
Winter 2020, Volume 12
From the Editor by Isaac Peck, Editor
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Dealing with Price Shoppers by Ian Robertson, Inspector ToolBelt
Inside Claims
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by David Brauner, OREP.org
Passing the Home Inspection Exam the First Time by Josh Darling
Inspecting the Wrong House by Reuben Saltzman, Structure Tech
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Disgruntled Clients (and How to Grow From Them) by David Brauner, Senior Broker at OREP.org
When Siding Leaks Into the Basement by Tom Feiza, Mr. Fix-It, Inc., HowToOperateYourHome.com
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NJ Consumer Fraud Act & Why It Matters to You by Craig W. Alexander, Esq.
Pulling Back the Curtain: Stucco Defects by Isaac Peck, Editor
by David Brauner, Senior Broker at OREP.org
Home Inspectors How to Dress for Success by Isaac Peck, Editor
by Jerry Peck, InspectorAdvisor.com
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Mission Working RE Home Inspector is published to help home inspectors build their businesses, reduce their risk of liability and stay informed on important technology and industry issues.
Published by OREP Working RE is published by OREP, a leading provider of home inspector insurance nationwide. OREP has a low cost, broad coverage E&O and GL p olicy. Coverages available include radon, infrared, termite, pest/rodent, lead paint, mold, septic, and more. See inside front cover for more or visit OREP.org today! OREP–Organization of Real Estate Professionals Insurance, LLC. Calif. Ins. Lic. #0K99465
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OREP Home Warranty Just Got (Way) Better
Inspector Advisor Q&A
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Publisher David Brauner: dbrauner@orep.org
Editor Isaac Peck: isaac@orep.org
Working RE 6760 University Ave, #250 San Diego, CA 92115 (888) 347-5273 Fax: (619) 704-0567 www.workingre.com
Assistant Editor and Designer Ariane Herwig: ariane@orep.org Working RE Home Inspector is published tri-annually and mailed to home inspectors nationwide. The ads and specific mentions of any proprietary products contained within are a service to readers and do not imply endorsement by Working RE. No claims, representations or guarantees are made or implied by their publication. The contents of this publication may not be reproduced either whole or in part without written consent.
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From the Editor
Getting Out of Our Comfort Zone by Isaac Peck, Editor
At the start of every year, I (like many of you, I’m sure) like to reflect on the accomplishments, challenges, experiences, successes, and failures of the prior year. Oftentimes when we are in the thick of “it,” whatever “it” might be, we don’t fully grasp the significance, the meaning, or perhaps just the simple lesson that a particular situation or obstacle brings to our lives. Sometimes, only afterwards, when we’ve gained some perspective and have had time to quietly reflect, do we see the lesson or significance of certain events. For example, one of the things that comes to mind as I look back, and look forward, is the importance of getting out of my comfort zone in life and in business. Some of the most successful initiatives and defining projects that served as a tipping point in my life and work in 2019 (and over the last decade) came as a result of refusing to accept things as being “just fine” as they are, and being willing to be uncomfortable and stretch myself a little more in order to push towards that next goal.
“The only thing that is stopping you from where you are to where you want to go is your comfort zone.”
I was reminded of this again when looking ahead to 2020. It is easy to take a good hard look at big goals and think, “we’re not quite ready to take that on,” or “we’re doing just fine right now; do we really need to go after a goal that big?” We can get stuck in thinking that how things are going or what we are doing is “good enough” and become complacent. The problem is that in order to grow as individuals, and grow our businesses, we need to challenge ourselves to go that extra mile, to reach for more, and to demand more of ourselves. I’m reminded of a quote by the writer Dhaval Gaudier which states: “The only thing that is stopping you from where you are to where you want to go is your comfort zone.” And as I look back, I know that has been true in my life. As much as I want to get comfortable and sit back in 2020, I know that if I want to grow as an individual and businessperson, I need to keep pushing and stretching myself, because that’s where the growth happens. So that is my wish for you in 2020. That you get out of your comfort zone and stretch yourself a little bit more, whatever that looks like for you—adding a new service or taking your marketing to the next level by furnishing warranties to your clients. Whether you are adding a service (infrared, sewer scoping, drones, you name it!), or a new employee to your firm, or a new client benefit—be bold, be brave, and get comfortable with being uncomfortable. One of my stretch goals for 2019 was to increase the circulation of this magazine, and starting of last year, we expanded our circulation to 25,000+ home inspectors nationwide with every print issue. I’m incredibly proud that WRE/OREP is connecting home inspectors across the industry, regardless of association or location, to share the latest news, information, tools and techniques inspectors can use to grow and thrive as small business owners. Thanks for reading! And if you’re shopping E&O insurance, you can compare coverage and support in less than five minutes at OREP.org. No one beats our combination of coverage, price and pre-claims assistance. WRE
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Dealing with Price Shoppers by Ian Robertson, Inspector ToolBelt
As a home inspector, we have all received a similar phone
call or email where the first words out are “How much do you charge?” or “So-and-so only charges $199 for a home inspection, can you match that?” For most of us, those words (and variations thereof) make us cringe. Price shopping is part of our culture now. When people search for a product or service, the mentality is to go online, check prices, and buy an item where it is cheapest. That’s how I bought my toaster oven. I found the same exact toaster oven on another website for about $5 cheaper, so that is where I bought it. But there is an issue—home inspectors are not toaster ovens. One home inspector is not the same as the next. One home inspector may add more value by using better tools. Another may be more experienced and more thorough. In the end, the mentality of price shopping does not work with the home inspection industry but people do it anyway. And then they complain when they don’t get the inspection they expected. We have been dealing with price shoppers for many years, and over the years we have developed some tips and tricks to help convert them into full paying clients and other tips and tricks to know when to just drop them. Convert Price Shoppers Into Paying Clients (Without Changing Your Prices) What are your options with price shoppers? Over the years and thousands of inspections, we have narrowed it down to only three options when it comes to a price shopper.
1. Give into their price model (not suggested): too many inspectors give into this when they get a lot of phone calls from price shoppers. But there are a few problems with this. First, this is no way to run a business. We have one of the few industries where every year our rates go down instead of up. With that business model, you will be barely scraping by doing inspections given enough time. Another reason you shouldn’t give in is that it changes the dynamic with your client. You appear easily pushed over and maybe even a little desperate. Now they Ian Robertson is a veteran home inspector, owner of three inspection companies, owner of Full View Home Inspector Marketing, and one of the founders of Inspector Toolbelt. Inspector Toolbelt is simple administrative and scheduling software for home inspectors that makes running your inspection business easy and automated.
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will be more inclined to expect/demand extras from you during the inspection. This is the type of situation where if they think they can push you around, they will most likely be calling with complaints after they move in. 2. Ignore them: I’ll be honest, this was my favorite option for quite some time, and still is on certain days (I’m only human). If someone is going to call us, tell us we are the best inspectors in town, that everyone recommends us, and then ask for a cheaper rate, then I am very inclined to say “No thank you, have a nice day.” On a side note, this can help convert a price shopper sometimes but we will discuss that in a minute. 3. Try to convert the price shopper into a full-paying client: This conversion takes forethought and planning. Turning a price shopper into a full-paying client is a skill but one that is easily developed with the right mentality and practice. After we broke things down into these three options it helped us see things a bit clearer. We only choose options two and three now, depending on the time of year. In the busy season option two—ignore them—is our go-to option, but option three is helpful in the slower season. But not all of us are established home inspection companies that have the liberty to turn down clients, so let’s talk about how we can actually convert price shoppers. Make Them Full-Paying Clients I will start this section by saying this—be prepared for rejection at first. Once you get it down and you can read the situations better you will convert those price shoppers really well (we convert about 70%–80%). But at first, it’s a bit of an experiment. Like any new skill, it takes time to hone. So let’s go over a few “tricks” to help you convert price shoppers. These are all things
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that have worked for us, but pick and choose what you will use based on your personality and style. Keep them talking: This is an old sales trick. The longer you can keep someone talking with you, the more likely you are to close the sale. The premise of this “trick” is that people are more inclined to trust someone they like instead of a stranger. Also, the longer people talk to you, the more vested they become. Many people have the goal of just keeping a conversation going because with each minute it is more likely to turn the call into a sale. So, get them to like you and keep them talking. I had a car salesman do this to me not long ago. I bought a new vehicle for one of my inspectors. I went up to the salesman and asked him how much that particular vehicle was. I watched him as he did this same trick to me. I knew what he was doing but it still worked! He asked me what I was buying it for, what vehicle I have now, told me about his boss, mentioned his family, told me how much he liked the vehicle, etc. By the time he was done, I liked him. I didn’t think about the price as much because he made me like the vehicle more too. Because I liked him, I also trusted him. So guess who I bought that vehicle from? Actually, I plan on buying another one from him soon. So, does that dealership have the best price? I have no idea. But I feel taken care of there and I trust them/him. And that is the point—we are inclined to buy something (and even pay more) when we trust/like someone.
We use a 10-minute rule. When a price shopper calls we watch the clock and try to keep them on the phone for at least 10 minutes. I talk about their house, ask questions, and even get talking about my family, their family, where they grew up, etc. I try to not let the conversation end early if at all possible. I typically can close most calls that I can keep going for 10 minutes. Does this seem like a long time to talk? What is better: answering 10 three-minute phone calls without getting an inspection, or spending 10 minutes getting to know a client who hires you and then maybe refers you? Add Value: This should go without saying, but I will say it. I once had an inspector answer the phone for a few months so he would understand what it takes to schedule. His conversion rate was terrible. It was bad because he would tell them the price and leave it at that—so they never saw the value. He neglected to mention we use infrared, electronic reports, sewer scopes, two inspectors on site, InterNACHI Certified, we are State Certified Inspector Instructors and a million other reasons why we were better. When a price shopper calls, give them a million reasons to hire you so that the other guys seem like they offer nothing at all. Do you find that you have a short list of things that add value to your company? Then start adding things. Get more certifications and training; add more services; become an expert on various topics through education; add services to your standard page 8 8
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7page 7 inspection, like infrared. Adding value can turn a price shopper into a client, but only if you tell them about it. Tell Them No: You might recognize this as option two for what to do with a price shopper, but it is also a trick for turning them into a client at times. This takes time and experience to develop when to do this, and when not to do this. I recently had a client contact our company and ask our price and then ask for a discount—I told her no and she hired us. This does not always work, but there have to be a few elements in place. This particular woman was referred to us by her agent. She also took the time to call us twice. So what did that tell me? It told me she wanted to hire us, that she was interested in us, and she was spending time thinking about us. If she was so interested, then why would I drop the price? Turns out that she viewed us as the premier home inspection company in the area but still wanted to get the price down. She was going to hire us one way or the other, so why drop our price? In the same vein, sometimes telling someone “no” (always very politely) can show them that you are a great inspection company that doesn’t need to lower prices to get work. That often will make the client think twice about price shopping. So telling someone “no” can actually make your company look more appealing. Again, always be very polite and professional when telling people no, leaving an opening for them to come back and hire you at full price.
Don’t Talk Price: You will eventually have to mention the price, but mention the price and then move on to why they should hire you, and only after you have built a rapport with them. Mention price in mid-sentence and not at the end of a sentence. For instance: “I see that we have an opening for next week for 1:00 pm on Tuesday; the price of the inspection is $500, which includes the roof, exteriors, heating, cooling, electrical, basement, attic, and everything in between. It also includes your professional infrared scan….”—you get the point. Close the Deal So those are the “tricks” that we use to close deals with price shoppers. It isn’t complicated or fancy but does take time and practice. Ultimately, closing the deal is key. Without beating a dead horse, in the conversation with a potential client always keep the goal of closing the deal at the forefront of your mind. Make it easy for them to schedule with you (another reason to have online scheduling). Closing the deal means not leaving things open. Instead of asking them if they would like to schedule, tell them your openings and ask them which one they would like. The point is not to be pushy, but focused, polite, and to build a rapport with each of the price shoppers who call you. You won’t win them all but the more you do, the better you will get at converting price shoppers into clients. WRE
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For these resources and more, visit NationalHomeInspectorExam.org
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Inside Claims
by David Brauner, Senior Broker at OREP.org
There are two recent insurance “claims” that I’d like to share with you.
In the first, our OREP insured was “being taken to Small Claims Court” by a client alleging a non-functioning HVAC system. The homeowner is seeking costs to replace the system. In California, where the inspection took place, attorneys are not permitted in Small Claims Court. An OREP claims professional reviewed the report and other pertinent documents with the insured, free of charge, to help him prepare for his court date. The insured also was given guidance on how to prepare and what to expect. It is recommended to always consult a claims expert and/or attorney before any court appearance, even Small Claims. A referral to a local attorney was also made. The claims manager said in part, “You will need to bring a copy of the inspection report and agreement. I would also either ask the HVAC contractor to come with you to confirm the AC unit was functioning (the insured had a third party contractor go out to inspect the system). If he is unable to attend have him provide a written statement which is notarized that confirms that fact. Using the inspection agreement and report, show the judge the sections of the agreement which describe the inspection process. You advised the age of the system and had photos of the temperature of the air coming from the registers. You are not a guarantee that the system will continue to work.” If our insured loses in small claims, the insurance company will pay the claim after the $2,500 deductible is satisfied. In another case, a veteran inspector went out to investigate a claim of “a leak and damaged subfloor.” The OREP inspector reported the issue to us to get it on the record. As a reminder, this is crucial because if it is reported within the policy period, the claim will be responded to by the insurance company even years later, even if the insured no longer has insurance. Many inspectors, when faced with a demand or complaint, choose to inspect the alleged problem in person. They like to evaluate the completeness and accuracy of their report, take photos and decide how to proceed. The OREP claims folks are fine with this approach as long as the issue is reported in a timely manner. If the insurance company needs to send out David Brauner is Senior Broker at OREP, a leading provider of E&O Insurance for home inspectors and other real estate professionals in 50 states (OREP.org). He has provided E&O insurance to home inspectors for over 25 years. Contact him at dbrauner@orep.org or (888) 347-5273. OREP–Organization of Real Estate Professionals Insurance, LLC. Calif. Lic. #0K99465.
an independent adjuster to inspect the property pre-suit, those costs will be reimbursed within the deductible. In this case, the inspector did revisit the property. He showed the homeowner the section of the report that sets forth the limitations of the inspection and the Standards followed, which mirror those of the state (Washington). The inspector kept things friendly. It is a widely known fact that people are much less likely to sue someone the like. After explaining the Standards and the report, the two sides agreed that the inspector was not responsible because the problem was not visible at the time of the inspection. It only became apparent later, over time, with evidence of flaking paint. The inspector followed up with a w ritten reply summarizing what had been discussed. He also took the time to suggest a low-cost way to repair the damage. The OREP claims folks have no objection to insureds going out to a property to evaluate a claim and to respond to the homeowner. But caution always should be exercised as well. This is language from the policy, which is present in most policies: We will have the right and duty to defend any covered “claim” brought against the “insured” even if the “claim” is groundless, false or fraudulent. The “insured” will not admit or assume liability or settle or negotiate to settle any “claim” or incur any “claims expenses” without our prior written consent. There are several other important tips to keep in mind: 1) Make sure that everything seen and mentioned is included in the written report, especially if anything was called out verbally during the inspection. It has happened that an inspector calls something out verbally that he or she fails to note in the report. For a defense to hold up, it needs to be in writing. 2) Take plenty of pictures, which will stop a complaint in its tracks. 3) Report every issue when it happens—even seemingly frivolous ones. This makes good sense especially for OREP insureds, since the program does not raise your premium if no expense results. And pre-claims help and advice is always free. WRE
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My Do or Die Story: Passing the Home Inspection Exam the First Time by Josh Darling
As corny as it sounds, sometimes failure is not an option. When my wife got sick with liver cancer, we went from a two-income household to a one-income household, and I needed to cover what was missing. This was my situation going into the national home inspection exam. I couldn't fail. If I failed, the time lost between taking the test and the cost to us would be crippling. I had to pass the exam the first time or I’d have to get a second job. A second job would make it impossible for me to take care of my wife and our seven-year-old son. When I took the home inspector’s exam, I was in a room with 10 other people. Eight of them were re-taking the test. Only myself and a roofer from Miami were taking the test for the first time. An hour and a half after completing the test, I checked my email. I’d passed. This is everything I did to get ready to take the test and the lessons learned. Before studying, the first thing I did was pick which test to take. In Florida (and a few other states), to get a home inspector’s license, there are multiple exam options. There is the National Exam that has 225 questions and a four-hour time limit. The questions on the national exam are weighted. Meaning, some of the questions are worth more points than others. A score of 80 percent or higher is considered passing. My other option was the FABI (Florida Association of Building Inspectors) exam or the “Florida Test.” I’d have an hour to answer 100 questions, all equally weighted, and passing is a mere 70%. Additionally, the test is Florida-centric. This would eliminate studying for home inspection issues dealing with winter. After deciding to take the Florida test, I needed to figure out what to study. After all, remembering 120 hours of coursework and a 1,000+ page textbook verbatim would be impossible. I took a few practice tests to see how much of the course I’d retained. Doing this I got a sinking feeling. I’d taken an online course. At the end of each section were quizzes. The practice Josh Darling is a Licensed Home Inspector who works in Tampa, Florida, where he lives with the love of his life and their son. When not looking at function and safety defects, he writes crime fiction or is busy looking for a decent fishing spot.
tests were much harder than the quizzes given by the course. The questions for the practice tests were similar to SAT questions. They had both ambiguous wording and ambiguous answers. Some of the questions were outside the ASHI or Florida Standards of Practice. I can't say I didn't panic. Remember, I can't fail. After completing my home inspection course, I figured I’d study for two weeks. When I finished the course, my wife got sick. With her in the hospital, I couldn't study. The only available time to reschedule the test was two weeks later than I’d hoped for. My wife got better and came home. A week before the test, my wife got sick again. I had to postpone another two weeks. From the time I’d completed the class to taking the test was about six weeks. Due to family issues, I’d studied about four of those weeks. The extra time to study was a blessing in disguise. I began making flashcards. These were helpful, to an extent. The subjects covered in the exam are broad, and I wound up with close to 1,000 flashcards. I came up with mnemonic devices for many things (such as a pattern of letters, ideas, or associations that assists in remembering something). I still reference the NM/Romex cable "rainbow." A wire gage gets bigger as it gets darker: white, yellow, orange, black. I started with white cable and drilled it into my head that white cable = 14 gauge. This was the only number I remembered. As the wire gets thicker, the number of the gauge gets smaller. So, I subtracted 2 from the gauge as the wire matching the color got darker, like this: White = 14 AWG -2 Yellow = 12 AWG -2 Orange = 10 AWG -2, etc. For the breaker amperage, all I remembered was 15 amps for white cable. Then I added five amps each time the color darkened and the wire gauge got bigger: White 14 AWG = 15 amp breaker +5 amps Yellow 12 AWG = 20 amp breaker +5 amps, etc.
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Location, Location, Location These mnemonic tools are good for many things. But how does anyone remember everything needed for a roof inspection alone? For this I used loci. Loci is a technique that goes back to ancient Greece, and it's almost perfect for home inspectors. The word “loci” is ancient Greek for “location.”
There’s also a diminished likelihood that you'll have t wo questions in a row with the same letter for the answer. Meaning, if you answer one question and you know it’s correct and you're uncertain of your next answer, and you've chosen the same letter for both, statistically, you should change the answer of the question you're unsure of.
The technique is easy to use. In your mind, you visualize traveling to memory locations. For example, imagine yourself on a roof familiar to you. You walk over to the chimney and there is writing on the bricks, “three feet high, and two feet higher than anything within 10 feet.” Written on the chimney saddle is, “Required for chimneys 30 inches or wider.” Heading toward your ladder you pass a dormer. You look down at the flashing, “At least one to two inches of flashing required between roofing and siding.” Getting on your ladder and ascending, you look at the gable vent. Graffitied on the siding next to it, "one sq. ft. of ventilation per every 300 sq. ft. of attic space with a vapor barrier."
Remember, the percentages for these techniques are so slim we should only use them over flat out guessing. Also, I noticed I got more answers correct on practice tests when I slowed down and read the questions twice. Again, that has to do with the deliberately tricky wording of the questions.
Loci helps store facts in long term memory. With loci, the more information added, the better it works. Go back to the chimney and look down at the saddle. The saddle transforms into a block of ice. The ice melts, spalling the brick as it becomes water. Visualizing the potential ice damming and the damage caused to the brick is how to cement the defect of a missing chimney saddle in your memory. Now move over to the dormer, the flashing fades. Storm water floods against the wall, working its way under the shingles. Black rock forms on the siding; the shingles begin curling. Seeing in my mind the cause of the defects helped me learn all defects for each location. Each spot became a visual clot of facts. There are some parts of the home inspection exam where all the memory tricks in the world won't help you. On the exam, there are some questions written by professionals specific to that field. So, a lawyer might contribute to the test a question like, “Which one of these defines negligence?” There is no way of studying for all those curveball questions, but study hard and you'll get most of them. How to Guess I had to cover my bets. Meaning, I didn’t just study things that were beyond the standards of practice. When faced with a question I didn’t know, I couldn’t leave it blank. At the same time, to pass this test, guessing when I didn't know the answer wouldn't be good enough. Despite our belief that humans can be “random” when it comes to things like this, we aren’t. This has allowed for the compiling of statistics for multiple-choice questions. Here’s how that works for test takers: * With true or false questions, the answer will be true 56% of the time. * For questions with four answers, there is a three percent higher chance the answer will be “b.” *For questions with five answers, “e” is the most common answer and “c” is the least common. * Questions with the option of “all of the above” and “none of the above,” the answer will be one of them 52% of the time.
The home inspection exam is not easy and the amount of material to learn can be daunting. The best piece of advice I got while preparing for the exam was: “When in doubt, study!” WRE
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Inspecting the Wrong House by Reuben Saltzman, Structure Tech
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could a home inspector inspect the w rong house? It's not as hard as it sounds! I’ve done it twice myself, and at least one other person on my team did it recently…possibly several inspectors on my team, but only one that I know about. My second “wrong home” inspection happened in 2008. I knew that I was supposed to inspect a home listed by Re/Max, so I drove down the street looking for the Re/Max sign. Boom. There it was. The home had a manual lockbox code of H-O-T or something like that, and it worked, so I proceeded to inspect the home as usual. You can guess what happened, right?
powered through. There were people sleeping throughout the home, and I did my best to not wake them up.
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The house that I was supposed to be inspecting was about four houses away: same agency, same lockbox code. Luckily, my clients called to ask where I was about an hour into the inspection. That's the last time I ever made that mistake. Lesson learned: double-check the darned house number! Just because the lockbox code works doesn't mean you're at the right house. Lost in Translation The first time I inspected the wrong house was for a Truth-InSale of Housing (TISH) evaluation, which is a pre-sale listing inspection that's required in Minneapolis, MN. It's also known as a “City Inspection” because we do these on behalf of the city of Minneapolis. The year was 2005, and we received a lot of referrals from an agent who would order inspections on behalf of her Spanishspeaking clients. She ordered a city inspection for a property located on Columbus Avenue, but I went to the same house number on Chicago Avenue, which is one block away. I knocked on the door and was greeted by Spanish-speaking occupants. They seemed confused and unsure of why I was there, but that was par for the course and I didn’t let it stop me. I cheerfully introducing myself as the Truth-In-Sale of Housing Evaluator, showed them my city ID card, and proceeded to inspect the home as usual, repeating “It’s ok” as needed. The occupants followed me around, looking confused and irritated, but I Reuben Saltzman is a second-generation home inspector with a passion for his work, and is the owner and president of Structure Tech. Visit his blog online at: http://www.startribune.com/variety/ homegarden/blogs/Reuben_Saltzman/
After I had been there for about 25 minutes, I received a call from the real estate agent asking where I was. I quickly figured out that I had bulldozed my way into the wrong house. I sheepishly apologized and left in a hurr y. The occupants looked very relieved to see me leave. Lesson learned: everyone seems much more believable when they have an ID badge and they believe themselves.
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New Construction For new construction developments, the streets typically aren't mapped out by Google right away, so we have to find these homes the old-fashioned way. No, not with a Hudson map book—we have to get directions. That'll be a very confusing concept for my kids by the time they're old enough to drive! Anyway, earlier this year one of the inspectors on my team was supposed to inspect a new construction home located at 7648 Archer Pl. He mistakenly ended up at 7648 Archer Pt, which is only one block away. Oh, and wouldn’t you know it, that house was also listed for sale: same agency, same lockbox combination. We inspected that entire home from start to finish before getting a call from our client asking where we were. Ouch. At least our inspector hadn't driven home yet. Lesson learned: while “Pt” and “Pl” look very similar, they’re not at all the same street. I decided to write about this topic after commiserating with some other home inspectors from across the country. This kind of thing can happen to anyone, and it has happened to a lot of people. Hopefully, it only happens once. So why did it happen to me twice? I must have a high tolerance for self-inflicted pain! WRE
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Disgruntled Clients (and How to Grow From Them) by David Brauner, Senior Broker at OREP.org
You may think I’m crazy but I love customer feedback—good and bad. Enjoying positive feedback should go without saying: we all want to make a positive impact in the world—but the negative feedback too? Why on earth would we want that? In my experience, negative feedback is golden! It’s like finding a $100 bill on the street—and here’s why. Feedback is the best way to understand your own business. The customer’s experience is what pays the bills. For us at OREP, it means listening to our insurance clients. For many of you, it might be listening to a homebuyer or real estate agent who reviews your reports and finds something confusing or not helpful. When you’re wearing many hats, trying to run a small business—home inspector, marketer, IT guru, accountant, etc.—it’s hard to take the time. But that’s how you extract the gold from the rough lump of feedback: listen, consider and then fix whatever needs fixing. I know, simple right? It is and it isn’t. It requires taking a breath when you’re often too busy to breathe and refraining from a kneejerk defensive response when you’re in a pressure cooker of a day. At OREP, we have a lot of clients, real estate appraisers and home inspectors, and honestly we get many positive comments every single day. I still enjoy and appreciate every one. I see just about every email that comes into our company and have for the 18 plus years we’ve been serving appraisers and home inspectors. When an OREP agent is called out in particularly glowing terms by a client, I send it around for everyone to appreciate—it makes me proud of them and proud of our business. When a critical comment comes in, I try to always follow these three steps: listen, consider and improve, if possible. Automated Reviews Recently, we began using an automated one-to-five star rating system (Blipp Reviews) for customers; it also provides space for feedback, in addition to the star rating. I review every one of these. I love it but I have to admit I was hesitant at first because I dislike most surveys (many seem to be trying to get my data or sell me something). I seldom review anything and typically only if it’s positive. I figure OREP insureds feel pretty much the same way. Well, it turns out we get a fairly high percentage of feedback and much of it very nice; we get a lot of 5-stars. Very few come in with actual written comments, and when they do, most are almost always constructive. Here’s how to turn a bad review into something positive.
Case Study Recently, a review came in that indicated the financing wasn’t clear and our insured had problems trying to get quoted for general liability insurance (GL). Interesting, I thought. We have thousands of clients every year who use our financing and I don’t recall ever hearing that the process is unclear. On the other hand, I seldom take those calls unless the issue can’t be resolved by the first person trying to handle it. But as I am saying, I believe things can always be improved and I try hard to keep an open mind. The Blipp Review system is new, so I considered that maybe there’s been a problem for a long time that I was never aware of. In other words, maybe the financing verbiage has been unclear for years! I called the client to find out. Regarding the financing confusion, they really had no specific feedback, which happens sometimes. They may just feel like it wasn’t good, but can’t tell you why specifically. I was prompted to take a look. Sure enough, the language did need some cleaning up. By the end of the day, a revised, more coherent set of instructions was in place on our website. Who knows how many people over the years had “friction” when trying to finance, instead of the seamless experience we strive for at OREP (think Amazon). And the added bonus going forward of the clearer instructions is, of course, the many calls that our clients will not have to make and that we will not have to answer—saving everyone time and money. Yeah! Regarding the General Liability (GL) issue, the insured was a real estate appraiser who said the industry standard GL application was too complex and that he didn’t feel like he got the help he needed in figuring it out. I happen to agree that the standard GL application is confusing but that is not something we can change. I did speak to the OREP agent in question, who is VERY patient and I was satisfied they did their best. Looking at the database I could see multiple, timely return contacts to the client by phone and email. So I called the client back.
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I asked the appraiser/insured why they needed a standalone GL policy in the first place. A full commercial GL policy provides coverage for bodily injury and property damage (BIPD) for the subject property walk-through that appraisers do, and also for an insured’s own business office, if they have one. However, his OREP E&O policy includes BIPD when at the subject property— just like the one OREP has for home inspectors. Did he have his own office that needed the expanded GL coverage? It turns out the insured had a home office, not a separate office space outside of his home, and didn’t need the full commercial GL policy after all. He already had the coverage he needed, included free! He therefore saved $200–$500 because he got all the coverage he needed in one policy. Was he happy? You bet. I think I’m safe in saying we reversed the client’s experience from negative to positive, with the bonus of improving our processes. Was I gratified? You bet.
services and pricing, maybe something is not clear. Let a little bell go off in your head when this happens and circle back to see if anything can be improved when you have time. When you face criticism, it’s good practice to take a breath (rather than getting defensive) and realize you’re being handed an opportunity. Really. Someone is taking the time to help you improve. Listen to the issue and consider its validity. If you need to make a change, do it! If you don’t, move on and feel good you investigated. Ver y rarely do I find that “negative” feedback isn’t helpful in some way, if we can listen and consider and change. WRE
Don’t get me wrong; not every one of our customers is always right and neither are yours, but I find that they almost always have some kernel of advice worth considering, if I can keep an open mind and stop to listen. If you take a call from a client who can’t understand something about your report, it’s a sure bet they are not alone. Maybe you can cut down on call backs, questions and even liability issues with clearer reporting. Maybe you’ll get more referrals too. Maybe a clearer and more frictionless process at your point of sale can improve your close rate and bottom line. If someone sounds irritated at your explanation of
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When Siding Leaks Into the Basement Science Behind Your Inspection by Tom Feiza, Mr. Fix-It, Inc., HowToOperateYourHome.com
All siding leaks! Got it? Wood, vinyl, fiber cement, wood com-
position, plywood, stucco, synthetic stucco and every other type of siding and cladding can leak. So how do we protect the structure of a home? Water-resistant barriers, flashing, proper clearances and other construction details. “But we never had this problem in the old days!” Right. But remember how drafty those old homes were? They allowed lots of air and heat to leak outdoors. In many cases, when water penetrated under the siding, the walls dried out on their own. Damp basements were also common and not a cause for concern.
Figure 1: Exterior Bay Construction
Old homes had other big advantages. They were built with simple roof lines and simple wall designs. They had wider overhangs to keep water away from the structure. In those days, carpenters carefully worked around the tarpaper and builderspaper that were used as water-resistant barriers. Construction materials like real wood, plaster and wood trim were not prone to mold. Homes were built on the available “high” ground. Today’s Home: Tighter and Warmer Today we have tightly insulated new homes that hold moisture and heat. This makes them much more comfortable and energy-efficient. New homes have exterior water-resistant barriers and internal vapor retarders. We have also tightened up and insulated most older homes. We expect basement to be dry enough to serve as living space. If water enters the wall of a new, tight home, there’s no air movement to dry it out. Today’s construction materials also are prone to water damage and mold. Oriented strand board (OSB), paper-covered drywall, and synthetic products are often made of partially processed/digested wood, and they are ready to rot and mold. Installation Errors Create Leaks Improper installation of siding, brick and flashing creates leaks in the basement that can cause structural rot and mold within exterior walls. Let’s look at a typical example. This home has a bay next to the front door (See Figure 1: Exterior Bay Construction.) Water stains appear on the foundation walls below the bay (See Figure 2: Interior Bay Basement.) The stains start high on the wall. At times, water runs down the wall and puddles on the floor. The owner stated that this 19-year-old home has always leaked. The original builder corrected the leaks with exterior caulk. (I call that applying liquid flashing.) For a few years the leak was minor, and it appeared to be fixed. But later, leaks occurred
Figure 2: Interior Bay Basement
Figure 3: Where is the Flashing?
again, and they have become more severe with time. These leaks occur with wind-driven rain or heavy rain. What’s Going on Outside? At first glance, the materials in this area seem to be well-maintained. But a closer look reveals several problems. This area has a small roof overhang, and the bay faces the direction of most wind-driven rain. We think there are flashings over the windows, but the windows are caulked to the siding. The vertical trim appears to extend behind the brick with no flashing over the brick. (See Figure 3: Where is the Flashing?) Note that this is real brick, not adhered masonry. At the top of the brick, the veneer cap has no or very little slope away from the building. The small flashing below the wood siding is
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caulked to the siding (See Figure 4: Cap with No Slope or Flashing.) All of these improper details allow water to penetrate behind the brick. We’ve found the source of leaks into the basement. Down at Ground Level Moving down to the soil level: The weep is just a hole/rope left in the mortar joint (See Figure 5: Weep High in the Brick.) Why is the brick buried in the soil? The lower edge of brick veneer should not be exposed like this. I dug out some soil to examine the joint atop the basement block/brick veneer and the weep hole/rope. There is no visible flashing at the bottom of the brick veneer. The weep should be at the bottom of the brick—otherwise, water can pool in this area. In my part of the country, builders commonly bury the lower veneer flashing in the mortar joint so it will not be visible. I think that’s a mistake. Overview of Potential Problems There are many ways that improper siding, brick veneer and flashing can cause moisture problems (See Figure 6: Masonry Veneer Flashing—Problems): poor or no flashing over the brick, no low weep, no low flashing in the brick, and misapplication of the exterior water barrier. Flashing Done Right When flashing is properly installed, it should direct water over the top of the brick (See Figure 7: Masonry Veneer Flashing.) While there may not be flashing over the full length of the veneer as shown here, there must be flashing at the base of the veneer with a weep at the bottom of the brick to drain water. In this case, we don’t know whether a moisture-resistant barrier was placed on the wall and layered properly with flashing. We do know that skimpy overhangs and exposure to the rain from most rainstorms, combined with poor construction details, cause the leak in the basement. page 22 8
Figure 6: Masonry Veneer Flashing—Problems
Figure 4: Cap with No Slope or Flashing
Figure 5: Weep High in the Brick
Figure 7: Masonry Veneer Flashing Working RE Inspector Winter 2020 19
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7page 19 Crucial Steps You Must Take You must never overlook this type of situation, which can require expensive repairs. Leaks in the basement should always be reported, although you don’t need to identify the reason or recommend the following methods of repair. 1. Remove siding and trim above the brick to check for a water barrier. If there is none, remove all siding, trim and brick and replace these elements, along with a water barrier and proper flashing. 2. Inspect for rot and mold, and correct as needed. 3. If there is a water barrier, remove siding and trim so flashing can be placed over the brick and under the water barrier. 4. Remove top layer of brick and pitch it away from the wall, or install long metal flashing that extends over the top of the brick. 5. Lower the weeps to the base of the brick if there is flashing and a water barrier. 6. Backfill the area around the brick and the top of the basement wall with free-draining stone. You can cover this with a weed barrier and decorative stone. Pitch the soil in this area away from the basement. 7. The extent of the work will depend on the existing condition of the water barrier and flashings and the damage from rot or mold. Install all materials per current standards, practices and codes. Inspector Takeaway Always note missing horizontal flashing, improperly caulked flashing, and stains or leaks on basement walls. The note may
say “potential for leaks—suggest further evaluation” or “signs of extensive leaks—requires further evaluation.” A visual inspection does not include digging into the soil or exposing moisture-resistant barriers. Keep in mind that all siding leaks, so flashing must be used to protect the wall assembly. Remember that signs of leaks in siding and brick can appear in the basement. Understand the installation instructions for modern siding and cladding. Visit manufacturers’ websites and study their installation instructions for siding, brick, adhered masonry, windows and exterior trim. Be aware of essential exterior construction details, and look for them during your inspection. Always report any visible sign of excessive moisture. WRE To learn more, attend Tom’s presentations at educational sessions for ASHI chapters and local organizations. Tom can also provide his knowledge for your educational event; contact him at Tom@HTOYH.com. Tom Feiza has been a professional home inspector since 1992 and has a degree in engineering. He has inspected over 9,000 homes. Copyright 2019 by Mr. Fix-It, Inc. Visit HowToOperateYourHome.com (or htoyh.com) for more information about building science, books, articles, marketing, and illustrations for inspectors. Tom helps professional inspectors help their customers and boost their business. E-mail Tom (Tom@misterfix-it.com) or call 262-303-4884. Tom also provides educational presentations for home inspector events.
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NJ Consumer Fraud Act & Why It Matters to You by Craig W. Alexander, Esq.
The home inspection is a well-established part of the home
buying process. Buyers rely upon the inspection to identify problems with the dwelling before the closing; and the inspection report forms the basis for demanding repairs or credits. Together with mortgage brokers, inspectors are an integral part of the residential real estate team, and most real estate agents have a list of preferred inspectors to recommend to their clients. The Appellate Division in the State of New Jersey has recently ruled, however, that despite their expertise and professional status, home inspectors are not “learned professionals” and therefore not entitled to exemption from liability under New Jersey’s Consumer Fraud Act (CFA). This has significant ramifications to the home inspection industry nationwide. The CFA is remedial legislation intended to protect consumers and prevent consumer fraud. The Attorney General has the authority to enforce the CFA, but there is also a private cause of action that can result in an award of treble damages and attorney’s fees. Claims arising under the CFA include fraudulent billing practices, false advertising, and misrepresentations of material business issues. There is, however, a judicially created exception to the CFA for “learned professionals,” such as physicians and attorneys. The exception is significant because it protects those professionals from private CFA claims and the potential exposure of treble or triple damages and legal fees. In Shaw v. Shand, a home inspector failed to identify some problems with the home in the inspection report. After closing, the buyers discovered the problems and incurred substantial repair costs. The buyers sued the inspector under the CFA, and the inspector claimed that as a “semi-professional” he was exempt from liability under the CFA. The Appellate Division in the State of New Jersey concluded that home inspectors are subject to the CFA but that the “learned professional” exemption does not apply. Home inspectors in New Jersey are a regulated profession, under the Attorney General’s Division of Consumer Affairs. They must be licensed under the Home Inspection Licensing Act. To be licensed in New Jersey, an inspector must serve 40 hours of apprenticeship with a licensed home inspector and then pass a Craig Alexander is a member of Mandelbaum Salsburg P.C’s Real Estate practice group headquartered in Roseland, NJ. His practice focuses on real estate transactions in all asset classes (multi-family, retail, office and industrial) including development, financing, leasing, zoning, 1031 exchanges, construction, and more.
State-mandated test. An inspector must keep his license in good standing in order to engage in the home inspection business in New Jersey. Notwithstanding the training and licensure requirements, the court concluded that home inspection is not a profession requiring extensive “learning or erudition.” To be a home inspector in New Jersey requires only a high school diploma or its equivalent. The court declared that while a home inspector may be a semi-professional, it is not a “learned professional.” This distinction is important because the court also determined that the judicially created exception to the CFA for learned professionals should not be extended to semi-professionals. As a result, home inspectors will continue to face exposure for treble damages and legal fees from private litigants under the CFA. The court’s opinion is a warning to all home inspectors to consider how to better protect themselves from liability. Home inspectors should have engagement letters that clearly outline their scope of work. If a buyer attends the inspection, the inspector should patiently and carefully explain the findings to the buyer. The inspector should also prepare a comprehensive written report, with all potential problems reflected in the report as well as recommendations for further evaluation by specialists. Additional training and education should be implemented. Inspectors should also consult with insurance brokers and attorneys to determine appropriate levels of coverage and to refine the documents utilized in the inspection process. While high-quality service and effective communication may ultimately be the best safeguards against liability, home inspectors, like any professional, should act prudently to manage the risks inherent in their industry and in New Jersey, the threat of treble damages under the CFA demands constant care and attention. WRE
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Pulling Back the Curtain: Stucco Defects by Isaac Peck, Editor
If there’s one thing that home inspectors, homeowners, Realtors®, contractors, and home builders all get alarmed by, it is water intrusion. One of the main reasons for water intrusion are stucco defects and failures, either from poor workmanship or faulty product. While incorrect installation and defective products do happen across many different types of exterior wall products—from brick veneer to vinyl siding, stucco defects have made a special name for themselves among homeowners, builders, and of course, lawyers. Stucco has been used as a building material since ancient times, with the Romans creating stucco surfaces out of gypsum, marble dust and glue. Today’s stucco is made by combining Portland cement with water and lime to strengthen the substance. Industry estimates indicate that stucco is currently used in roughly 25 percent of new residential construction. Stucco is found in many parts of the countr y but is most popular in the southwestern states because it per forms best in hot, dr y climates. It does not per form as well in areas with heav y, ongoing precipitation. Stucco is energy efficient and many homeowners find it to be aesthetically pleasing, which is one of the reasons why it continues to be used in residential and commercial buildings throughout the countr y. Stucco defects have created incredible grief for homeowners and homebuilders alike, with water intrusion leading to houses literally rotting from the inside out. Shattered American Dream In their detailed exposé on the problems created by shoddy stucco workmanship, “Rotting from Within,” published in the Philadelphia Inquirer, authors Caitlin McCabe and Erin Arvedlund explain how the stucco-related construction defects have impacted homeowners in Penn., just one microcosm of the stucco defect construction phenomenon. McCabe and Arvedlund tell the story of dozens of unsuspecting homeowners who, in many cases, saved for much of their lives to afford their “dream” house, only to later realize that shoddy workmanship and inferior products used on the exterior walls of their home created moisture problems, mold, structural damage, and resulted in hundreds of thousands of dollars in repairs.
One particular story is that of Mitch and Cheryl Goldstein, a couple in their early forties who had been saving for years for their dream home. The Goldsteins put a deposit on an empty lot in 2001, contracting with Toll Brothers, known as “America’s Luxury Home Builder” at the time, and began the construction of their brand new, custom-built home. The Goldsteins learned later that before they were even handed the keys in 2002, water and moisture had already begun seeping into the walls. Rainy days and high humidity led to water and condensation entering the cracks in the stucco, slowly rotting the walls of the home from within. It wasn’t until 2013, 11 years after they moved in, that the Goldsteins began seeing rot around their front and back doors. At this point, they could still have pursued their claim against the builder under state law, but it wasn’t until 2016 that the Goldsteins began hearing about serious water damage issues from their neighbors. By the time they hired a contractor to come out and inspect the potential damage, they were outside their state’s statute of limitations. The total cost to remove the defective stucco from the home and replace it with fiber cement board was over $60,000. The Goldsteins are just one family among thousands throughout southeastern Pennsylvania who bought new homes since the early 2000s only to learn that their dream house was a nightmare due to shoddy construction. McCabe and Arvedlund report that since 2001, over 90,000 new single-family homes have been constructed in southeastern Penn; the extent of the damage is likely not yet fully known. Stories like the Goldsteins can be found all across the country, with thousands of homeowners throughout the United States reporting similar experiences with stucco defects. Florida has had a rash of stucco-related class-action lawsuits, with one of the more extreme cases being KB Home's Willowbrook Townhomes in La kewood Ra nch. K B Homes event ually admitted construction defects by blaming its subcontractors in a lawsuit.
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The Willowbrook community ultimately required nearly $50 million in repairs for rotting wood and bad stucco. Some builders in Florida are finally starting to change their approach, according to Jerry Peck, a home inspector veteran, litigation consultant and host of InspectorAdvisor.com, an online service that provides on-demand inspection support free to OREP insureds. “Florida has a very serious problem with bad stucco installations. Some builders are being proactive about getting it right because they’ve messed up so many houses and have found themselves in so many lawsuits,” says Peck. Inspectors Beware While many lawsuits surrounding stucco defects involve homeowners suing the builder, inspectors should be aware of the risk of stucco defects and know what to look for when inspecting a home built with stucco. While there are many instances where an improperly installed stucco job is not detectable because the stucco has not begun to fail yet, there are still a variety of conditions that inspectors should be careful to look for and note. Robert Mault, principal at EIFS & Stucco Inspection & Forensic Services, has specialized in EIFS and building envelope inspections and testing for over 20 years, often serving as an expert witness in litigation. Mault was careful to note that he is not a home inspector; he is certified as an EIFS inspector, building envelope specialist and an air barrier field auditor. He did offer Working RE several insights into how inspectors might be able to identify defective stucco when inspecting a home and/or be able to offer some preventive measures. Cracking Cracking in stucco can occur for a myriad of reasons, so for the purposes of this article, only the more common types of cracking will be addressed. One indication of defective stucco is cracking, but not all cracking is indicative of defective stucco. It can be difficult to determine the causation of cracking without forensic investigation, as there are numerous types of cracking that can occur in any single stucco application. “When you look at cracks in stucco, you always have to quantify and qualify it because most stucco will crack,” said Mault. “The most commonly viewed cracks in stucco are diagonal cracks that occur at 90° reentrant corners, especially at windows and doors.” This is generally for two reasons, Mault says. “First, all structures are in continuous motion, mostly caused by thermal expansion and contraction. This movement, imperceptible to the human eye, results in areas of building stress commonly expressed at these 90° corners. Other areas of stress are sometimes three-plane intersections, outside corners and projecting foam plant-ons at 90° corners,” said Mault. Second is the lack of control joints on residential structures. The primary function of a control joint is to mitigate shrinkage cracking within the stucco cladding by defining the size of any given stucco expanse, for the following reasons: a. To limit the size of a vertical st ucco panel to no more than 144 ft.², b. To limit the size of a stucco panel to no more than 100 ft.²
Figure 1: Stucco Cracking
Figure 2: Crack Comparator
in horizontal, curved, or angular sections, and c. To limit the length to width ratio to be equal to or less than 2½ to 1 for any given panel. Another culprit responsible for cracking may be the lack of a floor line horizontal expansion joint in a multi-story home, according to Mault. “There is a fair amount of green lumber used in residential construction and, as this lumber dries, it can contort and warp. Stucco is a brittle material and cannot withstand the outward forces exerted upon it by the contortion of a lumber at floor line,” says Mault. “Note that if cracking at floor lines has not appeared within the three years after construction is complete, it typically does not occur later.” There is also the question of what size cracks are acceptable. “Some people will tell you that cracks up to 1/16 of an inch in width don’t need attention. However, I have seen evidence of excessive amounts of water passing through a 1/16 inch crack. But again, context is important. Oftentimes you’ll see hairline cracks at the corners of doors and windows, but they’re not really a concern unless they are concentrated in a small area,” reports Mault. (See Figure 1: Stucco Cracking.) The commonly accepted definition of “Excessive Cracking” is three or more cracks greater than 1/32 of an inch in a 10 sq. ft. section of stucco Mault says. He recommends carrying and using a field “Crack Comparator,” which is typically a credit card size piece of transparent plastic with solid enumerated dimension markings along the edge of the card that can be held up on a crack to determine the width or girth of that crack. Per industry standards, cracks larger than 1/16 of an inch need remediation regardless of the cause. (See Figure 2: Crack Comparator.) page 28 8 Working RE Inspector Winter 2020 27
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7page 27 Bulging/Pockets Another defect to be on the lookout for is bulging or pockets in the stucco, especially if the stucco has an elastomeric coat of paint on it. “Some people think elastomeric paint is great as it is designed to weather the elements and can waterproof surfaces if applied correctly, but the water can sometimes enter between the elastomeric paint and the stucco through breaks in the elastomeric (such as discontinuous paint or cracks that persist through the elastomeric), and the water will migrate between the elastomeric layer and the stucco and collect where there is a slight gap,” says Mault. “This can create little pockets of water in the wall where, after a series of heavy rainfalls, you can poke a pin in them and watch the water drain out.” Jerry Peck advises inspectors to stay alert for ripples and waviness in the wall. “If you can push on extruding parts of the stucco wall and it is flexible, that might indicate that stucco is coming loose from the wall and can be a serious problem,” says Peck. “If you push on it and it feels solid, it could just mean inconsistent installation, not necessarily indicative of a structural issue behind the stucco. A stucco wall which is not flat (in plane with itself) might mean a poor framing job and everything that follows. Sometimes it is hard for a home inspector to diagnose the issue with only a visual inspection, but it’s definitely something to be aware of,” says Peck. (See Figure 3: Stucco Bulging.) Staining and Waterproofing Another thing to watch for is staining of the stucco. Like other visual cues, not all staining is indicative of a problem, but excessive staining in certain areas may be an issue. “Sometimes stucco staining is innocent, but if I see a pattern of staining under a raked roof/wall junction, I will investigate further,” says Mault. “Those areas should be flashed properly and have integrated into the roof flashing, a kick-out or diverter flashing, which takes that water running down the sloped roof and diverts the water into the gutter, thus preventing it from jumping the gutter and wetting the area of the wall under the gutter dam, which is a particularly sensitive area for moisture intrusion.” (See Figure 4: Staining on Sloped Roof by Flashing.) Another negative condition that often results in staining is referred to as a “stucco bucket,” according to Mault. A stucco bucket is continuous stucco that travels from a vertical position wrapping into a horizontal position in a soffit or soffit-like condition lacking drainage (a weep screen or drip edge) at the vertical/ horizontal junction. Stucco buckets can occur at locations such the underside of projecting bays, balconies, recessed window and door heads, exposed beams supporting decks or roofs, etc. (See Figure 5: Stucco Underside.) Waterproofing underneath the stucco is the final defense against water intrusion. “Stucco anticipates incidental water, but is not designed to manage copious amounts of water getting behind the stucco, even if the waterproofing behind the stucco has been properly applied. Stucco is going to absorb a certain
Figure 3: Stucco Bulging
Figure 4: Staining on Sloped Roof by Flashing
Figure 5: Stucco Underside
amount of water and moisture naturally, and if there is an entryway for water to pass through the stucco, the integrity of the wall will become completely dependent on the water proofing to be installed 100 percent correctly,” says Mault. If that waterproofing is not applied correctly, especially under windows, and water gets through or past the stucco system, it may find its way through the building paper due to a reversed lap, inadequately dimensioned laps, tears or holes in the building paper, or sometimes along the shanks of lath fasteners. “When water gets behind the waterproofing, it sends it into the wall system onto and along the moisture sensitive wood sheathing and or framing. I mention this only because I can get very suspicious of certain types of stains, including rust stains, especially underneath windows,” says Mault. page 30 8
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7page 28 Stucco Drainage Another item to note is whether the stucco terminates above grade. Mault says that stucco should terminate at least four inches above soil and two inches above hard surface. “If I see stucco below grade, that means there’s no drainage for the stucco when it rains. Sometimes eaves can protect a wall, so if I look at a house with below grade stucco, I look for eaves, but best practice is for stucco to terminate above grade to avoid water damage to the lower wall. There you’ll want to look for a weep screed that allows any water or moisture to drain out of the wall,” says Mault, adding, “I use a telescoping inspection mirror to inspect weep screeds, among other things.“ Penetrations in Wall One very common issue Mault finds are penetrations into the stucco wall that are not sealed properly. “When I see plumbing, electrical, or fixture penetrations into the stucco, oftentimes there’s a gap between the outer edge of the element and the stucco itself. This gap serves as an open hole inviting water to get into stucco, and depending on the waterproofing, the pipe may be penetrating the building paper without caulking surrounding it as well. I always call for those holes to be filled,” reports Mault. Another item that is overlooked, according to Mault, is exterior lights. “Many times a builder will just bolt on an exterior fixture through or to the stucco. I use a probe or a chopstick
and check for a gap between the baseplate of the fixture and the wall. Oftentimes the bottom of the fixture is more tightly adhered than the top, inviting water into the electric box. So if I see a gap between baseplates and walls, I will call for those to be sealed,” says Mault, adding, “however, I always insist a small gap in the sealant be left at the very bottom of the baseplate to act as a weep for any water entering the fixture itself.” Two other conditions that Mault recommends paying attention to are the lack of metal flashing over the deck ledger board and the typical lack of a sealant joint between stucco and dissimilar cladding materials, such as brick or wood trims, both conditions that are ready pathways for water intrusion. Interior Signs In addition to fully inspecting the exterior of a home, it’s also worth looking for signs of moisture and water damage inside the home. Mault recommends looking at ceiling/wall intersections for staining, buckling or crackling. “Window sills and the area around them are good areas to check for moisture intrusion. Also check the wall/door intersections for signs of moisture intrusion. You can also pull up a corner of the carpet and check for rust and stains on the tack board, buckled or cracked flooring or stains on lower walls,” says Mault. Recommendations While acknowledging that not all stucco defects and water/ moisture problems will be “visible” without more invasive methods, inspectors should still be careful to note what they can see, call out what they can, and disclaim/disclose what they aren’t sure of. Mault’s best advice to inspectors is to get educated. “Get as much training as you can and try to address deficiencies in your experience. You can also speak to manufacturers and their representatives. Go online and read what manufacturers say. Try to always be learning and adding to your expertise,” advises Mault. Secondly, err on the side of caution. “If you’re not sure, say so. Be careful about your liability and don’t say something is ok if you’re not sure. If you can’t tell whether a particular siding is stucco or EIFS, call in a specialist or ask a colleague for insight. Define your uncertainties and deficiencies and attack them. Become familiar with warning signs when inspecting stucco. Don’t be afraid to ask for help,” says Mault. Jerry Peck advises inspectors to be careful not to call what you’re doing a “stucco inspection,” unless you’ve been trained how to do one. “As part of a basic home inspection, you want to stick to the basics. Describe what you see. Without having watched the stucco system being applied, you won’t be able to say if it went on correctly or incorrectly, but you can describe the defects that you observe and raise the red flags when you see them. Be careful what you say the cause is. Report what you see, but don’t make any presumptions,” says Peck. WRE
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OREP Home Warranty Just Got (Way) Better by David Brauner, Senior Broker at OREP.org
There is an old saying: “keep the customer satisfied.” And that
holds true for home inspectors. So how do you exceed client expectations, win new business and keep on delivering for your clients even after the report is delivered? One tool that checks all the boxes is probably familiar to you: a quality and dependable home warranty with every report. If you haven’t enjoyed the benefits yet, the 120-day warranty that OREP endorses just became a much better value for you and your clients. A home warranty is a simple and effective way to add value to your services, so you stand out among the crowd and sell your services more easily. They remove risk and worry from your clients by offering them a no or low cost solution to many of the unexpected headaches that inevitably pop up after moving in. A warranty gives the client peace of mind. Helping the client helps you. And there is one other very important way a warranty helps your business: when a warranty-related problem pops up, there is a warranty professional there to take care of things so you don’t have to. Issues are handled with the warranty company directly, and the client can call them 24/7. Not only is the customer satisfied, you are now free to do what you do best: inspecting. Expanded Coverage OREP offers home warranties from one of the most reliable and customer-centric companies available, Complete Protection™. It doesn’t do you any good to be aligned with a warranty company that makes your client madder through too many loopholes and exclusions. To learn about the product, you will find a “Warranty” tab at OREP.org where you can learn all about the CP™ warranty program. You have access to official warranty marketing materials, to be given to your potential clients, so that you can understand and present it. “It’s very simple to use and so inexpensive ($12.75) you can fold it into your rates without notice,” said Isaac Peck, Vice President of Marketing and Operations at OREP. Complete Protection™ has added new coverage to their warranties: $2,000 of coverage for any deductibles paid for claims made on foundation, framework, and roof. This reimburses the homeowner for their deductible costs (up to $2,000) if they need to make a homeowners insurance claim relating to the home’s foundation, framework or roof. Starting this year, the coverage term is now 120 days, which is state of the industry. On top of the main appliances in the home, CP™ 120-day warranties
also now cover mold, as well as water and sewer lines. Higher payouts toward replacement appliances have been added as well! This means that for as little as $12.75 per warranty, home inspectors can offer their clients a 120-warranty that provides coverage for all major appliances in the home, as well as mold, septic, sewer, foundation, framework and roof. How does it make your life easier? First, anytime a client has an issue covered by a 120-day home warranty from CP™, second, they just call the customer service number provided for the warranty professionals to handle, and you can forget about it. How much is that worth? The process of purchasing and administrating the warranties is automated and seamless, which saves you time and makes it easy to implement. Special Offer For new clients, CP and OREP are offering 10 free warranties when you sign up and pay for 10. Twenty warranties will give you a month’s trial at a very minimal cost. “You don’t have to be insured by OREP to get this benefit,” says Peck. “They will help any inspector reduce liability and avoid the headaches, no matter who they are insured with.” Start the New Year out right, differentiate yourself from the competition beginning today and watch your business grow. Visit OREP.org/warranty for more information or call OREP at (888) 347-5273. WRE
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Home Inspectors How to Dress for Success by Isaac Peck, Editor
Looking out for a buyer’s interests and ensuring they are sat-
isfied is vital for a home inspector to gain repeat and referral business. But while you may believe that the quality of your inspection report should speak for itself, the client and others present at the inspection may be forming an impression of you based on far more: how you speak, act and dress. Every inspection represents an opportunity to market not only to the buyer but to the buyer’s agent, seller, and the seller’s agent. Being perceived as a competent and skilled professional is a must if you want to maximize referral business. Consequently, how you dress is an important and often overlooked factor in how you are perceived. Dress too nicely and the client will suspect you aren’t going to do a thorough job. Dress too poorly and the client (and others) will consider you unprofessional or worse. Perception is Reality Inspector John Smith says that a few of his recent buyer-clients have mentioned that their previous inspector showed up in shorts and a tank-top. “My clients were definitely not impressed with their previous home inspector, or their inspection, but I can’t help but wonder if the clothes set the tone. As for me, I always wear a pair of khakis and a button down shirt with a logo,” says Smith. Dana Bostick, an inspector for over 10 years in Los Angeles, says that deciding what to wear to the inspection can be difficult because an inspector must strike the right balance to avoid leaving clients with the wrong impression. “For some, if not most clients and agents, perception is reality. If you show up dressed in business casual attire looking like you don’t intend to get dirty, your credibility may suffer,” says Bostick. However, the opposite approach is also damaging to the inspector’s credibility, warns Bostik. “On the other hand, if you show up in a beater truck, wearing trashy clothes, and looking like you just stopped by on the way back from the dump, this too can reflect badly on you. You should have a clean truck in good repair and not leaking oil all over the driveway. Proper, reasonably clean work attire conveys a professional image and credibility,” says Bostick.
Michael Bronner, an inspector in Georgia for nearly 20 years, says that inspectors are professionals who should dress accordingly. “I always wear nice slacks and a polo type shirt—tucked in—belt, nice, decent condition shoes. My truck is always clean and looking good (and it is 11 years old). If I look like this, I don’t feel ashamed and can confidently ask for and get paid the amount that I do. You can wear whatever you want to an inspection, but I feel that as professionals we should dress the part if we ever want to earn widespread respect in the marketplace,” says Bronner. According to Bronner, dressing professionally isn’t an excuse or barrier to doing a thorough inspection. “I crawl on my hands and knees, too. I go into crawl spaces (wearing protective gear and coveralls). I belly crawl under decks and come out of attics covered with insulation too. But I do all this while still looking the part, with my slacks and polo and I feel good about how I look,” Bronner says. As far as keeping tidy over the course of a full day inspecting, many inspectors recommend carrying an extra pair of clothes and shoes to clean up between inspections. “I’ve learned to carry two to three extra pairs of shirts and pants in my truck in case I need to change,” says inspector Rick Hurst, from Texas. Other inspectors say they carry disposable coveralls for particularly dirty areas. “I buy cases of recycled clean-room Tyvek coveralls with attached feet and hoods. I wear the coveralls when in crawlspaces. I typically get three to five crawls before they are too dirty or torn. By the case they are only about $3 each,” says Bruce Ramsey, an inspector from Georgia with over 10 years of experience. “Clients seem to like me going in bright white and coming out dirty. Gives the impression I worked hard for them.” Ramsey says he wears the same professional clothing regardless of whether the client is attending or not, crawlspace or not. “Every inspection is a marketing opportunity. I also have real page 40 8
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Inspector Advisor Q&A by Jerry Peck, InspectorAdvisor.com
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OREP Insured: If there is a finished ceiling in a DETACHED garage, does the ceiling have to be 3/4 sheetrock? The garage has thin plywood covering the ceiling. The ceiling is insulated and there is conditioned space above the ceiling (electric heat). Jerry Peck/InspectorAdvisor: Because there is conditioned space above the garage, I am presuming that the "conditioned space" is "habitable space." And, because there is “habitable space” above the garage, a ceiling is required. From the IRC: (bold are mine) [RB] HABITABLE SPACE. A space in a building for living, sleeping, eating or cooking. Bathrooms, toilet rooms, closets, halls, storage or utility spaces and similar areas are not considered habitable spaces. A space for "Living" is basically for any use, for the purposes of “living,” other than those specifically identified for “sleeping,” “eating” or “cooking”; rooms and spaces such as an office, den, playroom, etc. a room or space which is not used for/as “Bathrooms, toilet rooms, closets, halls, storage or utility spaces and similar areas.” Making the presumption that the “conditioned space above the ceiling” includes rooms or spaces for “living, sleeping, eating or cooking” means that the space is likely “habitable space” (in code speak). Now we address that habitable space above the garage. From the IRC: (underlining and bold are mine):
R302.6 Dwelling-garage fire separation. The garage shall be separated as required by Table R302.6. Openings in garage walls shall comply with Section R302.5. Attachment of gypsum board shall comply with Table R702.3.5. The wall separation provisions of Table R302.6 shall not apply to garage walls that are perpendicular to the adjacent dwelling unit wall. Note that the first line item in Table R302.6 states: “From the residence and attics.” In other words, this would not apply to detached garages because they are “detached,” unless there was an accessory structure with habitable space which adjoined the detached garage, in which case this could be applicable the same as it is to garages which are attached to dwellings. The “garage” needs to be separated from the dwelling (“residence”) and the dwelling’s attic. This is most typically done by installing a ceiling in the garage of 1/2" gypsum board (drywall) which separates the garage from the attic above the garage, leaving the attic above the garage open to the attic above the dwelling. Another means of separation, which is not frequently used, would be to continue the wall which separates the garage and the dwelling up through the attic to the underside of the roof sheathing—in this case, the garage does not require a ceiling as the garage and its attic are separated from the dwelling and its attic.
Table R302.6 - Dwelling-Garage Separation SEPARATION
MATERIAL
From the residence and attics
Not less than 1/2-inch gypsum board or equivalent applied to the garage side
From habitable rooms above the garage
Not less than 5/8-inch Type X gypsum board or equivalent
Structure(s) supporting floor/ceiling assemblies used for separation required by this section
Not less than 1/2-inch gypsum board or equivalent
Garages located less than 3 feet from a dwelling unit on the same lot
Not less than 1/2-inch gypsum board or equivalent applied to the interior side of exterior walls that are within this area
For SI: 1 inch = 25.4 mm, 1 foot = 304.8 mm.
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The second line item in Table R302.6 states: “From habitable rooms above the garage.” This applies to any garage, detached garages as well as attached garages, which have habitable space above the garage. The ceiling of the garage and the floor of the habitable space above are referred to as a “floor/ceiling assembly” (the name ties into the next line item in the table), and that “floor/ceiling assembly” requires a minimum of 5/8” Type X gypsum board on the ceiling of the garage. Type X gypsum board is used in fire-resistance rated assemblies in conjunction with other components to attain a specified fire-resistance rating. However, no other components of fire-resistance rated assemblies is required, thus this has no “fire-resistance rating” (is not a fire-resistance rated assembly). Even though the floor/ceiling has no fire-resistance rating, the application of the 5/8” Type X gypsum board does provide some improved protection of the floor/ceiling assembly above. The intent is to give more time for someone in the habitable space to escape in case of a fire. There is no predetermined minimum time that a fire-resistance rated floor/ceiling assembly should provide, but it should provide an increased time to “get down and out” and not “out through the garage,” as the required egress from habitable space is not allowed to go through a garage. The third line item in Table R302.6 states: “Structure(s) supporting floor/ceiling assemblies used for separation by this section.” This means that when there is habitable space above the garage, any and all structural components which support the “floor/ ceiling assembly” referenced in the section above, i.e., walls, columns, etc., need to be protected by minimum 1/2" gypsum board: i.e., not left as open uncovered framing members and not left as uncovered columns (this includes metal columns as well as wood columns).
TRAINING INSTITUTE
Look around at the garage str ucture and make note of every component which is supporting, or helping to support the floor/ceiling assembly above—you should not see any exposed wood, metal, or other material supporting the floor/ ceiling assembly (all of it should be covered by minimum 1/2" gypsum board). The fourth line item in Table R302.6: “Garages located less than 3 feet from a dwelling unit on the same lot.” This means the garage walls—exterior walls of detached garages—the “garage side” of walls of attached garages, which are within three feet of the dwelling. Attached garages have walls which are obviously within three feet of the dwelling—the garage and dwelling are attached with one common wall. These are to be protected by a minimum of 1/2" gypsum board. Regarding the garage in the question, if the detached garage is three feet or more from the house, the ½ gypsum board requirement would not apply. WRE
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Professional Marketplace E&O/GL Insurance Broad Coverage, Peace of Mind Broad coverage should never be optional, according to David Brauner, Senior Insurance Broker at OREP. “If you want to do the best for yourself, your family and your business, be sure to choose a professional insurance policy that will protect you adequately should the unexpected happen,” Brauner says. “A broad policy covers you for the threats that you can anticipate as well as the unexpected ones that you don’t see coming. A broad policy covers all the bases and keeps you safe.” The OREP E&O insurance program offers Errors and Omissions, General Liability/Off-Premises Coverage, Radon, Termite/WDI/WDO, Lead Paint, Pool & Spa, EIFS/Stucco, Indoor Air Quality Testing, Green Building Inspections, Infrared Thermography, Rodent Inspections, Mold and Septic/Water testing, and more (most states). Prior Acts, multiple inspectors, commercial, additional insured for agents/referring parties and much more are included. Please ask your OREP agent for details. All insureds enjoy free claims assistance, risk management and automatic membership in the OREP Professional Support Network ($95 value), which includes free, on-demand inspection support, savings on professional contracts, discounted state-approved education and training, Working RE magazine, discounts on office supplies, technology and more. Visit OREP.org or call toll-free (888) 347–5273. OREP—Organization of Real Estate Professionals Insurance Services, LLC. Calif. Lic. #0K99465. Risk Management: 120-Day Warranties Increase Your Business/Reduce Your Headaches Offering a solid and simple, no-gimmick home warranty grows your business and makes clients happy when you include it free with your home inspections. It tells your clients that your product is good enough to back up. Sometimes you only get one conversation with a potential client or one click to your website to close the deal. Make your business the obvious choice for homebuyers AND reduce your headaches: warranty-related nuisance claims are handled professionally and quickly by the experts, instead of burning up your time and attention trying to “fix the problem.” You concentrate on inspecting, not problem solving; meanwhile your clients are in good hands. “The warranty program fits squarely in line with our approach to business. They stand behind everything they say and the commitment really shows,” says Tom Sullivan, home inspector and founder of Inspec10 in Arizona. The Complete Protection (CP™) 120-Day Guarantee provides your clients with a warranty on the major mechanical systems in the home. The 120-Day Guarantee is valid for 120 days from the day of inspection or 30 days after house closing (whichever comes later) and has no dollar caps on repairs with no deductible or copay. Unlike other programs, all claims are done over the phone without having to submit any documentation in order to receive service. Home inspectors can offer a warranty to every client for as little as $12.50, which can be built into your fee without notice. Now includes mold, septic, sewer, foundation, frame and roof. Visit OREP.org/warranty or see page 32 to learn more or call (888) 347–5273. OREP E&O insureds save.
Save on Office Supplies, Telecom and More Corporate savings is a little-known but significant cost-saving benefit of being an OREP insured. Home inspectors insured through OREP save money with Office Depot, Staples, Dell, FedEx, UPS, Sprint, travel, and more. The program is free. OREP/Working RE saves well over $1,000 a year on office supplies alone. Rod Lopez, an OREP insured from New Jersey, says that he saved over $100 on the discounts at Staples and Office Depot. Cynthia Traylor, from House Calls Home Inspections in California, said "YES! We are saving 19% on our Verizon bill and I order all of our office supplies through the discounted Staples portal—they provide overnight, FREE shipping, even on Sunday orders! Lastly, we are considering the Six Flags discount. So, yes, yes, and yes. We are taking advantage and truly enjoying your program. Great job!" A cost comparison of a typical office shopping list netted a savings on supplies of $500 ($3,500 total order). Large company or small, you can enjoy significant discounts on the goods and services you use most. The corporate savings program is part of the OREP Professional Support Network ($95 value), free for OREP E&O insureds. For details, email isaac@orep.org.
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7page 34 estate signs with my company logo and contact information that I post in the yard during the inspection. That way neighbors and traffic know why someone is walking around on the roof or peaking in windows. Some clients allow me to leave the sign for a week or two,” says Ramsey. Looks Aren’t Everything Some inspectors argue that the perception formed by the client is, or should be, based on how they perform the inspection instead of what they wear. Inspector Robert Frank from Michigan says he doesn’t have a particular dress code, but tries to make sure he has a clean appearance on arrival. “I don’t know if it makes a great initial impression, but at the end of the inspection, my client’s impression is that I spent four to five hours at the house, crawling through the insulation in the attic to the back corners, squeezing around in the crawlspace and clearing out the cobwebs in the corners of the basement. It is about the client being impressed and appreciative at the END of the inspection,” says Frank. Gordy Zorn, a home inspector in Nevada, whose background is in residential construction, says he simply wears blue InterNACHI t-shirts and a pair of jeans to his inspections. “The t-shirt and jeans always look new. Nothing faded. The only thing that’s a little dirty is my tool pouch but I’m not about to buy a new one for every inspection! I just can’t see wearing nice clothes to an inspection when I know I’m going to get filthy. The only ones who judge me are some of the agents. I guess they’re used to seeing the dressed up inspector. I’m there to inspect, not look pretty,” says Zorn. According to Zorn, his clients appreciate the fact that he appears ready to get his hands dirty. “A couple weeks ago I was talking with a client who was all fired up because his last inspector didn’t go in the attic. He had to ask the inspector to please do
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so and apparently the inspector gave him a little attitude about having to get his ladder. Even then the inspector just opened the access to pop his head in for a few seconds and said everything was fine. He was also amazed that the inspection only took 50 minutes. He kept referring to the last inspector as the “pretty” inspector, afraid to get his clothes dirty. He told me I looked like I was ready to go to work and he liked that,” says Zorn. “I guess I’ll stick to what works best for me.” Zorn says that he has to laugh when he hears other inspectors say that if he doesn’t wear nice clothes, that he isn’t a professional. “Home inspectors are no different than plumbers, electricians or any other tradesman who comes knocking at your door. When was the last time a plumber knocked on your door looking like he’s ready to play a round of golf? I’m there to do a job for my client and get into crawl spaces and attic areas where others don’t go, not win a beauty contest,” says Zorn. There’s no shortage of work for home inspectors who do a thorough job, notes Zorn. “I stay pretty darn busy and get a ton of referrals from both past clients and agents who only care that their clients get a good inspection.” Getting It Right The impression that a client or potential client has of the home inspector plays a critical role in whether the inspector will receive repeat or referral work. Whether home inspectors like it or not, their attire is an important part of that equation. Whatever a home inspector wears to the inspection, it’s recommended that it be clean, at least in the beginning. The challenge is maintaining a professional appearance while ensuring that the client is confident in the inspector’s ability to perform a thorough and quality inspection, but it pays off for those who can do it well. WRE
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