The Slowdown is Here

By Kendra Budd, Editor

Right now, home inspectors are faced with uncertainty in regards to their businesses. The pace of real estate transactions has slowed in most local markets and there is speculation that the United States is entering a recession. Inspectors are feeling it. This news has home inspectors scared that the ghosts of the past have come back to haunt them, with many afraid that we’ll have a repeat of the 2007–2008 housing crash. Whatever is coming down the road, I’m reminded of the quote by Robert Frost, “The only way out is through.”

With many home inspectors experiencing a slowdown in business, there is more time to adjust processes and explore new opportunities. Here are some things to consider.

Risk management is imperative for any home inspector to be aware of and now is a good time to make sure you have processes in place to protect your business. By being prepared for what can go wrong, you’ll know how to make it right—alleviating you from any potential lawsuits and the anxieties that come with it. This issue offers some practical tips on how to navigate the risks that you face and how to avoid common claims (See Inspector Claims and Risk Management: An Inside Look on pg. 6).

In an environment with less real estate transactions, it’s also time for home inspectors to consider ancillary services. Adding an ancillary service will help you stand out amongst other home inspectors while work is slow. For example, we’re seeing an influx in natural disasters all over the world—but especially here in the United States. Inspectors can consider broadening their horizons by also becoming a public disaster adjuster (See ATI Training on pg. 33). The bittersweet truth is that even though the real estate market is slow, disasters rarely take time off. This is just one of many additional services home inspectors can consider adding on. See Specialized Environmental Testing on pg. 14 for additional ideas.

Finally, home inspectors should consider obtaining reliable E&O insurance if they haven’t already. There are a multitude of benefits to getting E&O insurance, from protection against discrimination claims to claims of negligence—you need to be protected (See Do You Need E&O Insurance as a Home Inspector? pg. 38). In an environment where real estate prices start to decline, claims against home inspectors tend to increase. That makes it more important than ever to select an insurance provider that specializes in defending home inspectors.

For over 20 years, OREP has specialized in home inspector E&O/GL insurance and now offers professional claims support led by trial attorney Geoff Binney, who delivers pre-claims support and decisive response letters to shut down frivolous claims for all OREP Members.

Stay safe out there! WRE

As electricians ourselves, we come across this issue daily. Many more appliances are in the home nowadays, especially with people wanting to install electric vehicle charging points. — James A.

The oldest type of wiring system found in homes is called knob-and-tube, named for the insulating knobs and tubes that are used to run the wiring along and through the house framing. Knob-and-tube wiring was run as individual wires—one black hot wire and one white neutral wire—throughout the home. —SK

Electrical Works

Electrical Receptacle Testers Demystified

Author Victor Faggella has made an obvious error about operating three light testers. He says, “With an open ground, and reversed polarity, you will get no lights.” This is not true. The tester cannot identify reversed polarity unless the ground is also present to light the reversed polarity bulb. The tester will indicate an open ground but not reversed polarity. In fact, this is one of the shortcomings of a three-bulb tester. It can only indicate ONE problem at a time. Outlets that have multiple wiring problems will only be identified as having one by the three-light tester.

Robert K.

In Response to Robert K.—You know, you are correct. Somehow when I wrote this, all I saw were LEDs and not neon bulbs. This was peer-reviewed, and something was missed. The neon bulbs will light with reversed polarity and only show the ground is open and not reversed polarity. Thanks for catching that.

Victor G. Faggella, P.E. WRE