NAHI Spring Forum 2015

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INSIDE

CRACKED! Also Know Your Home Inspector Mold, Asthma Triggers, and Allergens...Oh My! The Countersuit A Reality?

Spring 2015

CO N TENTS S P R I N G

2015 NAHI BOARD OF DIRECTORS

2015

FEATURES Know Your Home Inspector | 13 Cracked | 23 Mold, Asthma Triggers, and Allergens...Oh My! | 29

COLUMNS Commentary | 5 New Members | 17

President | Troy M. Bloxom, CRI Home Inspection Plus, LLC 17640 Lacey Drive | Eagle River, AK 99577 P: (907) 694-7587 homeinsp@mtaonline.net Vice President | Sean McKenzie, CRI Burlington Home Inspection Service 137 Mansfield Ave. | Burlington, VT 05401 P: (802) 238-6558 sean@burlingtonhomeinspection.net Secretary/Treasurer | Charles Kleindienst, CRI Open Sky Inspections 10800 Canaan Valley Ct. | Glen Allen, VA 23060 P: (804) 399-2329 openskyinspections@verizon.net Past President | Forrest A. Lines, CRI, NIT By-Lions Home Inspections, LLC PO Box 93 | Blacklick, OH 43004 P: (614) 855-9310 bylionshi@gmail.com Director| Curtis S. Niles, CRI, NIT Armored Home Inspections, LLC 1451 N. Hanover St | Pottstown, PA 19464 P: (610) 352-2212 nilesent@msn.com Director | Charles Allen, CRI National Property Inspections 713 Augusta Drive | North Aurora, IL 60542 P: (630) 879-5715 callen2777@sbcglobal.net Director | Steven Burnett, CRI Journey Property Inspections, LLC 403 Burt St. | Tecumseh, MI 49286 P: (517) 920-2888 journeyinspection@gmail.com

It’s Your Business | 19 The Countersuit - A Reality?

Now I’ve Seen Everything | 26 BYOB / Build Your Own Business | 25

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

Executive Director | Claude McGavic (800) 448-3942 | claude@nahi.org NAHI® is a non-profit association dedicated to promoting and developing the home inspection industry. NAHI®’s objectives are to further the professionalism of the home inspection industry by promulgating standards of practice to provide a consistent method of performance of home inspections; to promote educational opportunities to benefit its members, the home inspection industry, and consumers of home inspection services; to inform the public of the importance of a reputable home inspection as an integral part of the residential real estate transaction; and to protect consumers from fraudulent, misleading, or deceptive practices. The NAHI® Forum is available free of charge to members of the National Association of Home Inspectors and those interested in the promotion and development of the home inspection industry. Statements of fact and opinion in this publication are the responsibility of the authors alone and do not imply an opinion on the part of the members, directors or staff of NAHI®.

Material may not be reproduced without written permission.

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

Spring 2015 | 3

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COMMENTARY

By Troy Bloxom, CRI

By Claude McGavic, CRI,

Home Inspection Plus, LLC

National Association of Home Inspectors, Inc.

FROM THE NAHI

FROM THE NAHI

PRESIDENT’S DESK Considering that this is my first “president’s” message, I’m not sure how to set the tone. Should it be stiff, all business or full of facts and figures? No, that’s just not me, and certainly not the nature or DNA of our organization.

First, I need to express my appreciation to the entire membership and the board for allowing me the honor of representing the organization. It truly is a humbling experience for me. I will do all in my power to fulfill my obligations to the board and membership.

Photo credit: depositphotos.com/jtiloligo

The opportunity to be at the Southern Ohio joint NAHI / ASHI meeting this past month was both encouraging and exciting. The NAHI “Future Inspectors” day was an overwhelming success with over fifty (50) in attendance.

The organization or “business” of NAHI has grown and become much more secure in the last few years due to strong leaders that you have entrusted by voting them onto the board. The level of commitment by them and our recent past presidents is inspiring. Know that without those people in place and our capable and committed staff, we would most certainly not have the financially sound organization we do now.

I thank all of you for your loyalty to NAHI. The world, and life, is never a static thing. If we do not adapt and change we become lost in the landscape. The board’s vision is for a strong and growing organization focusing on education, member recruitment and retention. The new standards that have been created are moving us forward. The old standards were created decades ago.

I find it hard to believe that anyone still uses products that are twenty to thirty years old in our daily lives, let alone in our businesses? For example, who still plays a game on an Atari, or uses 8-track tapes in their vehicles?

There are changes coming to our website and media presence to promote the organization and boost our organizations name recognition. The younger generation of inspectors wants and needs to be able to grow their businesses with an organization that is focused forward and not looking backwards. We as members need to be looking to recruit and train young men and women who have a passion and drive to succeed in this business. Mentoring and training the new inspector is incredibly rewarding, and will ensure the high standards we expect to continue.

EXECUTIVE DIRECTOR One of the things I like about living in Florida is that spring comes in February. While the nation is buried under feet of snow, I can catch a couple of innings of a baseball spring training game a few blocks from our office, see dozens of friends and neighbors, grab a hot dog and soda, and be back in the office by the time lunch is over. But one thing always impresses me. While I am there for less than an hour to enjoy the company of friends and the atmosphere of the park, the professional athletes on the field are there to work hard. Ten year veterans on top of their game know they have to outplay the new kids in order to keep their jobs. And the rookies sitting on the edges of the benches and watching every movement on the field know that they are up against pros who intend to keep every penny of their multi-million dollar contracts. At the end of the game, each one knows that anything less than maximum effort could be the end of a career.

Consequently, both veteran players and ‘newbies’ practice the fundamentals over and over during the week. Sprints, weight lifting, squats, planks, drills, and each working to be one of the Boys of Summer.

Now, let’s leave the field and go to a home inspection. The inspector arrives and parks in the driveway; truck dripping oil. He didn’t have time to shave and he has on the same shirt he wore yesterday. But he figures he’s not there to impress anyone anyway. He stopped doing continuing education 3 or 4 years ago because he believes that after ten years doing inspections, he knows what he needs to know. And the whole time, rookie home inspectors are running the drills to get on top of the game. They set up Lunch and Learn sessions, take AC classes at the local Vo-Tech school, and participate in local charity events. They refuse to believe old age and experience can beat out enthusiasm, attention to detail, and current training, so they pound it out.

The first generation of home inspectors is reaching retirement age. Some plan on sliding into retirement in a cloud of dust. Others are going to ‘be retired’ without taking a swing.

But, if you are beginning to think about retirement and would like to sell your business, contact us. If you are a new home inspector - take your swing.

Those on the board and your committed staff want your input. Do not think for a moment that they or I do not have time for a phone call or a response to an email. If it’s important to you, then it most certainly is important to those that serve you.

I, for one am looking forward to another incredible year of growth and prosperity in the organization and wish for you the same.

The NAHI® Forum

Spring 2015 | 5

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Member ProfileTips

About Privacy Settings You’ve seen those little green and red icons in your member profile when editing your account information. Perhaps you haven’t given them much thought.

BIG CHANGES Coming for Water Heater Efficiency READY? New residential water heater energy-efficiency standards that go into effect April 16 will require changes to the installation of many residential water heaters. Most water heaters with a capacity of 55 gallons or less will require more installation space, and those larger than 55 gallons in capacity will see additional, more significant changes.

However, products manufactured before April 16 can still be bought and installed after the changeover date.

These new efficiency standards will require much higher Energy Factor (EF) ratings for larger water heaters, making a huge impact, especially on how these types of water heaters are manufactured, distributed, installed and/or vented.

These locks control the level of privacy that you desire within your profile. By clicking on the lock you can control whether the information in that field is Private, Open to Members only or Public.

The more common-sized water heaters of 55 gallons or less will likely be larger by roughly 2 inches in height and diameter to account for the additional insulation needed to meet the new standard. This may require builders to account for the increased size in their design.

For example, if you do not want your home phone number visible to the public, then you would adjust the green lock to red meaning “private”. If you want to make it available to fellow NAHI members, then click “members only”. Be sure to hit update at bottom of screen.

It is expected that replacement water heaters installed in closets will present the biggest problems: They may require installing an appliance with reduced water capacity, selecting a much taller tank of the same diameter or a switching to a tankless water heater if space does not allow for a simple change-out.

And just a reminder to members: Please...please do NOT delete your home and/or business street address completely. If you want to keep it private, just use the privacy lock key settings.

NAHI needs access to your complete address to send correspondence including the NAHI Forum magazine.

6 | Spring 2015

Larger heaters, bigger changes There are many factors for home builders and remodelers to consider when deciding whether to specify these new larger water heaters. First is the cost: Conventional, current minimum-efficiency 60-gallon gas and electric water heaters are approximately $675-$1,500, while the new high-efficiency models are about $1,200-$2,450.

Continued on page 12 The NAHI® Forum

How to Put An Extra $15,000 In Your Pocket This Year

If you are happy with your current income, you can skip this article. If you are as busy as you want to be, you can also skip this article. And if you can’t use extra money in your pocket, don’t waste your time here.

But if you have an hour to spare and can get over the anxiety or frustration of messing with a web page, NAHI can show you how to get more business. Interested? Keep reading.

All of us have been taught that first impressions are important. So, before we meet a new client we bathe, comb our hair, watch our language, and put on our manners. But guess what? That’s not enough anymore because our clients are now checking us out before we even arrive at the house.

The new generation of home buyer are not as willing to accept referral recommendations from real estate agents and prefer to check out home inspectors online. While still in business, I was getting at least one inspection a week from the Inspector Search feature of the NAHI website.

(One inspection a week at $300.00 per inspection amounts to $15,000 per year!). I did not go looking for them; they found me without a referral from a real estate agent.

Now, if some of you are thinking that you have never gotten a referral from the NAHI website, there is probably a reason for that. It may be that you have done nothing to make a good first impression on the NAHI website.

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NAHI provides every member with a free webpage at the NAHI website where you can promote your company. You can post your photo so the buyer knows what you look like before you show up. You can place your logo on the page, all of your contact information, photos of homes you have inspected, videos, testimonies, sample reports, links to your website, and anything else that will set your inspection company apart from all the rest. It can be an online billboard proclaiming, ‘Pick Me! Pick Me!’. And you can change it anytime you want.

I recently selected 18 home inspectors at random to see what they have done with their web page at www.nahi.org. Eighteen out of eighteen had done nothing to set themselves apart from their competitors. I absolutely love it when my competitors do not advertise. Getting their business is truly easier than taking candy from a baby.

Maybe you are in a market that will not generate one inspection a week from the NAHI website, but if you get only two per year, that more than covers your NAHI dues! And if you get 4 inspections from the NAHI website Inspector Search feature, you would have earned more than double your investment in membership dues. And isn’t that what you should expect? A decent return on your membership investment.

Will it work for you? Try this. Go to www.nahi. org. Click on – Inspector Search. Type in your city and see whose name comes up. Click on

by: C. McGavic, NAHI Ex. Dir.

their names and see if they have a plain vanilla web page listing. If they do, add your photo to your web page and see if you don’t get more business.

Then add photos of homes in the area you have inspected. Add a few testimonies from happy clients. Do a selfie video which says, ‘Hi. I am your home inspector and I’m going to do a good job for you’.

Just a word of warning. If there are no other NAHI members listed in your city, don’t get smug and think you don’t need to waste any more time with this.

Other home inspection associations have similar inspector search features and those competitors may be eating your lunch without you knowing it. If you are not advertising and your competitor is, he will get your business.

Don’t know how to add content to your NAHI web page? Here are five easy steps.

1. Find a teenager.

2. Show them the NAHI website.

3. Tell them to create a ‘Knock Your Socks Off’ web page.

4. Give them $20 dollars.

5. If they have questions, have them call Jeannie at NAHI toll free (800) 448-3942 for instructions.

You’ll be glad you did.

Spring 2015 | 7

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8 | Spring 2015

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NJ Court Grants Motion For Sanctions For Frivolous Litigation Against Plantiff In Home Inspection Matter In a rare occurrence, a New Jersey Court recently enforced the State’s prohibition against frivolous litigation against a plaintiff who sought to sue a home inspector following a failed real estate transaction.

The plaintiff in Vorhand v. Guinan, et al., OCN-L-425-14 was the seller in a real estate transaction. The buyers, also defendants, retained the defendant professional home inspector to inspect the home being sold by plaintiff. Several areas of concern were noted during the inspection of the structure and foundation. The buyers cancelled the contract to purchase the property as a result.

At Salmon, Ricchezza, Singer & Turchi, our entire staff is dedicated to providing our clients with the highest level of legal service. With a wealth of technical and professional resources, we strive to provide practical and efficient services for all of our client's legal concerns.

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The seller filed suit against the buyers and the home inspector, alleging that the inspector was negligent in performing the inspection thereby causing the buyers to cancel the contract. The seller had no contract with the home inspector and admitted he did not rely upon the home inspection report provided to the buyers.

New Jersey prohibits frivolous litigation by court rule. New Jersey Rule of Court 1:4-8 allows a court to impose sanctions, including attorney's fees, if a lawsuit: is filed in bad faith; is not warranted by existing law or by a non-frivolous argument for the extension, modification, or reversal of existing law or the establishment of new law; or contains unsupported factual allegations. A defendant who believes that a claim is frivolous must send written notice to the plaintiff demanding that the offending pleading be withdrawn within thirty days. If the plaintiff fails or refuses to voluntarily withdraw the lawsuit, the defendant may seek sanctions following entry of judgment against plaintiff on the questionable claims.

Counsel for the defendant home inspector in Vorhand, Joseph W. Denneler, Esquire, sent a letter to plaintiff’s counsel demanding that the claims against the inspector be dismissed because the plaintiff was not the client of the inspector, had no contract with the inspector, and that no legal duty was owed to the plaintiff by the inspector. The plaintiff refused to withdraw the action. Mr. Denneler filed for summary judgment seeking dismissal of the case which was granted by the Court. After the dismissal Mr. Denneler filed the motion for sanctions for frivolous litigation.

During argument the Court noted that there was no factual or legal basis for the claims by the seller against the home inspector. As a result, the Court granted the motion for sanctions permitting an entry of an order compelling plaintiff to repay the defendant home inspector for the fees and costs incurred defending against the frivolous claim.

Although not normally sought or granted, sanctions for frivolous litigation are an effective tool to offset the costs of eliminating frivolous claims in home inspection and other professional liability matters.

Should you have any questions regarding this article please feel free to contact Mr. Denneler at jdenneler@srstlaw.com.

At the law offices of Salmon, Ricchezza, Singer & Turchi LLP, we provide litigation defense and legal counsel to businesses, individuals and insurance companies. Our attorneys are recognized leaders, serving the legal - needs of established clients throughout Pennsylvania, New Jersey and Delaware in all types of litigation matters.Experience, Integrity, and Practical Solutions Contact Salmon, Ricchezza, Singer & Turchi LLP

Joseph W. Denneler, Esquire SALMON, RICCHEZZA, SINGER & TURCHI, LLP Tower Commons 123 Egg Harbor Road - Suite 406 - Sewell, NJ 08080 (856) 842-0731 (direct) (856) 354-8074 (main) (856) 354-8075 (fax) jdenneler@srstlaw.com

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Spring 2015 | 9

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A Trusted Insurance Advisor 10 | Spring 2015

The NAHI® Forum

New Law:

Illinois Home Sellers Must Disclose Window, Door Issues

By Steven Jack If you’re considering selling your home in Illinois in 2015, you’ll now be required to disclose the condition of and any major problems with your home’s windows and doors.

Before you can sell the house and leave behind the warped windows that won’t open anymore or patio doors where water seeps in during storms, you’ll now have to warn potential buyers about these or other window and door defects.

Those particular problems were central in the court case that brought about Public Act 098-0754, an amendment to the Illinois Residential Real Property Disclosure Act that takes effect Jan. 1, 2015, and will add one more disclosure to new real estate transactions.

The new law requires sellers to state if the home’s windows and doors have material defects, such as existing leaks that would allow water into the home where it could lead to flooding or damage. The measure unanimously passed both houses of the Illinois Legislature and was signed into law

by Gov. Pat Quinn on July 16.

According to Betsy Urbance, the legal hotline attorney for the Illinois Association of

Realtors®, the addition to line 6 of the Disclosure Act form was made after an Illinois Appellate Court decision determined that the disclosure about defects in a home’s walls did not include windows and doors in those walls.

Who’s required to make disclosure?

That decision was related to a lawsuit against the sellers of a lake home who hadn’t expressly disclosed problems with the windows and patio doors in the home and garage door that later contributed to extensive water damage to the home.

“If the residential property is subject to a pending purchase contract, the seller has provided the form as required by the existing law and the buyer has acknowledged receipt of the property disclosure form before becoming bound on the purchase contract then there should be no need for the seller to complete a new form. (This answer assumes that the seller has no new actual knowledge regarding defects relating to windows and doors),”Urbance writes in a post on the Realtors’ association blog.

Material defects are defined in the act as “condition(s) that would have a substantial adverse effect on the value of the residential real property or that would significantly impair the health or safety of future occupants of the residential real property unless the seller reasonably believes that the condition has been corrected.”

Greg Lason, President of Engineering Support Services (ESS), L.L.C, says to a home inspector, material defects can mean anything that makes the window or door not in perfect working order. “The lawyers will determine what ‘material defect’ means, but if a window or door isn’t working perfectly, that’s going to be something that’s written in a report,” Lason says.

Although the change starts Jan. 1, not all sellers in 2015 will be forced to make the disclosure, Urbance says.

If a purchase contract isn’t pending on a home transaction, Urbance recommends sellers provide the window and door disclosure. “... In the abundance of caution, it is best for seller to provide a form that complies with the most recent version of the Act,” she writes.

Source: Angie’s List Date Published: Dec 19 2014 Steven Jack is a reporter covering the Chicago area for the List. He’s worked for 25 years as a print and online journalist, tracking down unscrupulous characters from all walks of life.

WHAT’S HAPPENING...

2014 Buyer/Seller Characteristics

Source: 2014 NAR Profile of Home Buyers and Sellers

National Association of REALTORS®, Inc.

Buyer

33%

33% were first-time buyers the lowest since 1987 Last year 38% were first-time buyers Median Age: 31 Median Household Income $68,300 Median Home Size: 1,570 sq. ft.

Median Home Price: $169,000

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Seller

88%

88% of homes were sold with the assistance of a real estate agent.

Median equity gain: $30,000 Median time on market: 4 weeks Only 9% of sales have been for-sale-by-owner sales.

ancing n i F 97%

97% of younger buyers financed their purchase compared to 64% of buyers over 65.

Sales price: 216,000 Median downpayment: 10% Sources of downpayment: Savings: 65% Prior sale: 33% Gift: 14%

Spring 2015 | 11

Top of Mind

A survey of builders conducted by the National Home Builders Association pointed to energy-efficient concepts, high ceilings and laundry rooms as top-of-mind construction concepts for 2015.

Not so likely are fully functional outdoor kitchens fully equipped with plumbing and appliances.

The survey asked builders for the features that they felt were most likely to be included in a typical new home this year. Topping the list with a score of 4.9 (on a 1-5 scale) was a walk-in closet in the master bedroom.

Four of the top 10 features are related to energy efficiency, low-energy windows, Energy Star-rated appliances, Energy Star-rated windows and programmable thermostats.

Hot Water Heaters---continued from page 6 New gas water heaters with a capacity of more than 55 gallons will need to be a condensing combustion design to meet the new efficiency requirements, which raises the EF from 0.55 to 0.75 for a 65-gallon model. This means you’ll need a dedicated electrical receptacle to power the exhaust fan and provide a means for condensate disposal. For venting, a dedicated line for combustion air via a lower temperature PVC pipe will typically exhaust through the wall rather than the roof with this design.

Larger electric water heaters will need to be of a heat-pump design to meet the efficiency requirements, which increases the EF from 0.88 to 1.98 for a 65-gallon model. Where a 3 feet x 3 feet closet was often the go-to location for installation for an electric water heater, these new appliances likely won’t fit into the same space.

According to the Air Conditioning, Heating, & Refrigeration Institute, heat pump water heaters require installation in locations that remain in the 40-90 degree Farenheit range year-round and provide at least 1,000 cubic feet of surrounding air space. Because heat pump water heaters remove heat from the house to heat the water, it’s better to install them in warmer areas of the country where the cooling effect of the heat pump will reduce the air conditioning load on the house.

Gary Klein of Gary Klein and Associates says one alternative is to run new plumbing to two smaller water heaters (i.e., 40 gallons) at opposite sides of the home, bringing them closer to the point of use and conserving both water and energy by eliminating excess piping.

For gas water heaters, there may not be much of a benefit from purchasing two appliances because of the need to install another gas line and comply with ventilation requirements.

However, not only can the two electric water heaters fit in smaller spaces, there is no need to manage the cold air expelled from the unit or for the design to account for proximity to fixtures to decrease heat loss in piping.

Another alternative: the gas or electric tankless water heater.

These units take up little space and can be mounted indoors in cabinets, under sinks, and in very close proximity to fixtures, using less energy than conventional water heaters.

However, gas tankless water heaters may require a larger gas line and modifications to the vent pipe. Electric tankless models may require increasing the capacity of the electric service to the house. Hot water flow rate is limited by the size of the unit and measured in gallons per minute (GPM). Wholehouse tankless hot water systems with up to 7.0 GPM can cost $600-$1,000.

It’s important for builders and installers to become familiar with the new rules and the technology options so that they can offer customers the best solutions for placement and capacity.

Water heater manufacturers are working to get the word out and the major manufacturers have updated their websites with the latest information. So far, A.O. Smith, Rheem, Bradford White and State Water Heaters have announced changes to product lines and installation instructions to address how these new standards will affect their customers.

For more information about this item, please contact Donald Surrena at 800-368-5242 x8574 or via email at dsurrena@ nahb.org.

Source: NAHB.org

12 | Spring 2015

The NAHI® Forum

Know Your

Home Inspector From understanding licensing to hiring specialized experts, prepare your clients for the home inspection process. These six tips can help.

By Kelly G. Richardson In the typical home purchase, the buyer receives only one expert review of the residence prior to purchase — the home inspector report.

While economical and useful, these reports have limits that must be acknowledged. Too often, the significance of this report is overstated, leaving the buyer and seller exposed to unreasonable expectations, which can lead to unhappy clients, disagreements, and even lawsuits.

There are several important considerations that you can help your clients understand about their home inspector.

1. Some home inspectors are not licensed Some states, such as California, have no licensing or state certification for home inspectors. Others, such as Arizona, certify but do not license home inspectors. Many states, including New York, New Jersey, Mississippi, Washington, and others, require home inspectors to be licensed. A license or credential is not a guarantee of competence, but an indication the inspector has completed a minimum level of education.

There are a number of credentialing organizations, including California Real Estate Inspection Association, American Society of Home Inspectors, and the National Association of Home Inspectors. These organizations each have their own qualifications, exams, and code of ethics. Your client should look for an inspector certification by one of these major organizations. Do not accept so-called “company certifications,” which are simply in-house programs and not subject to any industry oversight.

2. Insurance is important Unfortunately, an inspector can occasionally miss important items that could point toward a significant repair issue. In the event this occurs, your client will be disappointed if the inspector is unable to pay for the repair of the neglected item. Your client should hire an inspector with current liability insurance.

3. Be prepared to recommend a specialized expert An inspector will sometimes report on a significant item that requires particular expertise. For example, if a question is raised regarding soil stability, your client may need advice from a soil engineer. If a floor seems too bouncy or there are cracks in walls, a structural engineer may be needed. An architect or general contractor might be needed to determine how an unpermitted addition might be legitimized with the building department.

The home inspector is the first but not necessarily the last word on things. Recommend your client bring in further expertise if the report indicates a problem.

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Spring 2015 | 13

4. Home inspectors do not eliminate all risk

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The home inspection is only visual. The inspector cannot see inside walls to confirm that the framing is solid or that the plumbing or wiring was properly installed. Exterior finishes typically cover a home’s most important elements, so inspectors look for clues. However, the absence of cracks does not mean a wall is strong, and the absence of stains on the ceiling does not guarantee the roof is watertight.

The typical home inspection contract alerts your client to these limitations.

Be sure your client reads and understands this. This is critical to help remind them that the inspector will not tear open walls, expose the waterproofing of windows, or remove any part of the home. The risk of potential hidden problems remains, even after the best visual assessment of the property.

Your clients believe that your visual inspection (“AVID”) and the home inspection protects them from any problems with the home — but it does not.

Help them understand, so their expectations are reasonable.

5. Pick the best, not the cheapest Your client is hiring expertise and presumably wants the best. Home inspection prices vary and it can be tempting to hire the cheapest. There may be a reason a company’s price is low. Are they new? Do they take far less time on the inspection? Do they have a poor reputation and need a catchy low price to get business? Home inspections are a minuscule cost relative to the total price of a home. Encourage your client to not worry about the price and hire the best available.

TN, CT, NJ, FL, IN, KY, MD*

6. Let your client analyze the report

* MD awards online learning at 30% of approved hours.

Real estate agents are not construction experts. Your expertise is in finding properties for buyers and finding buyers for sellers. You may want to consider offering an opinion or suggestion about the content of an inspection report.

That advice should come from a construction expert. Your client should talk to a contractor or other expert about the report if there are questions.

NAHI members are required to acquire 16 hours of CE annually to maintain membership.

Home inspections are a valuable tool for the home buyer and should be a routine part of the homebuying process. Manage your client’s expectations to enhance a successful relationship. The risk in buying something built by someone else can be reduced, but not completely eliminated. With a qualified and competent home inspector, your client is doing what can reasonably be done.

Reprinted from REALTOR® Magazine Online (http://realtormag.realtor.org), June 2014, with permission of the NATIONAL ASSOCIATION OF REALTORS. Copyright 2014. All rights reserved.

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16 | Spring 2015

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NEW MEMBERS

D E C E M B E R 16, 2014 - M A R C H 15, 2015

ALASKA

Joseph Lawendowski, Chugiak

ALABAMA

Russell Adams, Hoover Kyle Benton, Birmingham Chris Ferguson, Geneva Morgan Pearson, Eufaula Blaine Rodger, Salem Stephen Stewart, Phenix City Gary Youngblood, Phenix City

ARIZONA

George Assink, Laveen William Clark, Scottsdale Matt Fey, Phoenix Jack Whisehunt, Gilbert

CALIFORNIA

Josh Bailey, Soulsbyville Mike Bashforth, San Pedro Richard Beach, Acampo Tim Chau, Mission Viejo Alex Comerchero, Winchester Armin Dajdzic, Victorville Teresa Howarth, Garden Grove Don Manos, Chino Richard Rabin, Newbury Park

COLORADO

Daniel Allan, Centennial Aaron Aneloski, Grand Junction Michal Barton, Parker Bennett Christensen, Colorado Spgs Brian LeBlanc, Conifer Joe Loyd, Cripple Creek Richard Mecabe, Thornton Phil Messina, Colorado Spgs Beth Minnick, Denver Len Ovrutsky, Centennial Kent Robinson, Wellington John Scott, Greeley

DISTRICT OF COLUMBIA Matthew Hix, Washington

FLORIDA

Robert Farrell, Naples David Frechette, Orange Park Bobby Hayes, Oldsmar Bundy Hogue, Bradenton Colin Howse, Jacksonville Michael Hughes, Pace Danny Knight, Port Orange Mark Minore, Punta Gorda Paul Perkins, Seminole

GEORGIA

John Anderson, Fitzgerald

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Andrew Dale, Buchanan Chidiebere Ezeh, Mableton Rhett Guest, Peachtree City James Roberts, Lagrange Brian Samy, Berkeley Lake

HAWAII

Joe Kindrich, Honolulu

IOWA

Ronald Cherkas, Ankeny Andy Stoecken, Grimes Brian Sutter, Hampton Todd Wulfekuhle, Palo

ILLINOIS

Andrew Broomhead, Downers Grove Pete Edwards, Springfield Dan McKinley, Bartlett Troy Newhouse, Morton Tim Regenhardt, Mount Vernon Philip Stott, Freeport

NEBRASKA

Steve Volkert, Omaha

NEW HAMPSHIRE

David Chenel, Derry Noel Nason, Pembroke

NEW MEXICO Peter Van Diepen, Albuquerque

NORTH CAROLINA Roy Henderson, Clyde

NEW YORK

Ronald Darress, Lynbook Matthew Hanrahan, L. Ronkonkoma Paul Puckett, Hilton

OHIO

Jake Walton, Twin Falls

Joe Iacona, Mentor Eugene Iacona, Mentor Jamie Jamison, Cincinnati David Jones, Kettering Joseph Kruse, Marblehead James Maloof, New Franklin Charles Nickoson, Xenia

KANSAS

OKLAHOMA

INDIANA

Bruce Roth, Ammon

Jordan Ball, Mulvane

KENTUCKY

John McCurry, Sebree

MARYLAND

Michael Stone, Cambridge

MICHIGAN

David Dalfino, Livonia Philip Hilberer, Jackson George Horn, Flushing Peter Middleton, Houghton Lake Matthew Salle, Rockford John Scheaffer, Negaunee

MINNESOTA

Joshua Cutter, Crescent

OREGON Aaron Taghon, Canby

Nathan Powell, Saucier

MISSOURI

Chris Arndt, Kansas City Edward Dooley, Kansas City Ricky Kennison, Kansas City Paul Utter, Lees Summit

MONTANA

Marcia Rytky, Missoula

William Bramlett, Tolar Jay DeArment, Roanoke David Harris, Arlington Chris Inman, Rockwall Billy Lauderdale, Waco Garry Mitchell, Katy

UTAH

Richard Parker, Tooele Jeff Sweaney, Santa Clara

VIRGINIA

Kevin Curtin, Alexandria James Fletcher, Lorton Charles Hill, Farmville Kevin Joyce, Colonial Heights William Keen, Bassett Jorge Lara, Purcellville

WASHINGTON

Jeremy Hooper, Longview Robert Twaddle, Edmonds

WISCONSIN

Michael Brumm, Milwaukee Tony Collicott, Fort Atkinson Wade Liljergren, Grafton Criag Makela, Columbus Jay Paulson, St Francis James Thompson, Janesville

WYOMING

Kyle Dye, Casper

PENNSYLVANIA

Jesse Allen, Edinburg Daniel Burke, Pittsburgh Joe Connelly, Perkasie David Gray, Trevose Joseph Little, Essington Daniel Miller Sr., Johnstown Michael Orlowski, Reinholds Maurice Whittle, Tobyhanna

SOUTH CAROLINA John Jelinek, Aiken

Carl Mulder, North Mankato

MISSISSIPPI

TEXAS

NEW AFFILIATES Tom Lauhon Midwest Inspectors Institute www.midwestinsp.com (913) 683-1192 tlauhon@midwestinsp.com Michell Buettner RespirCare Analytical, L.C. www.respircare.co (623) 444-2240 michelle@respircareanalytical.com

TENNESSEE

Kyle Anderson, Cookesville Eric Cameron, Nashville Clifton Carico, Bountville Tony Denham, Brentwood David Dauwen, Nashville Travis Garner, Knoxville Tyler Joyner, Collierville Larry Pruitt, Piperton Scott Puckett, Clarksville Kelly Smith, Knoxville

Who consumes the most electricity?

Highest Consumption Louisiana, 1,273 Tennessee, 1,245 Mississippi, 1,220

Lowest Consumption

Hawaii, 515 Average residential Maine, 551 monthly electric California, 557 bill was $110.21 in 2013.

Source: U.S. DOE - Energy Information Agency Based on 2013 Residential-Released 3/12/2015

Spring 2015 | 17

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18 | Spring 2015

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Photo credit: depositphotos.com/@ ikopylove

r u o Y s It’

Business

The Countersuit By: Joseph W. Denneler, Esquire

A Reality?

I have been representing home inspectors in litigation matters for about 16 years. Most of my litigation matters are sent to me from errors and omissions insurance providers for home inspectors. Nearly every initial interview with my inspector client includes a discussion of whether he or she can countersue the plaintiff for the costs of the defense. The answer is generally, no. Not because I would not like to perform that service, I assure you. Rather, it is because it is nearly impossible to obtain a decision from a judge compelling the plaintiff in a lawsuit to payback the fees expended defending against a questionable claim.

Generally, in a civil action, a plaintiff must satisfy his or her burden of proof on the claims asserted in the lawsuit by a preponderance of the evidence. Imagine the classic blindfolded lady of justice and her balance scale. Usually, if that scale tips ever so slightly to the side of the plaintiff, the plaintiff wins. Unlike the beyond a reasonable doubt standard most often associated with criminal burdens of proof, the burden of proof in a civil matter is easily obtained.

Despite the explosion of statutes requiring a plaintiff in a suit against a professional to provide an affidavit of merit, or a statement by a similarly situated professional that there was a deviation from the acceptable standards of practice, most states do not require a plaintiff in a home inspection litigation matter to file any affidavit from a home inspection professional certifying that the defendant failed to adhere to the acceptable standards of practice in his or her state. A plaintiff merely has to find a willing lawyer to file the lawsuit to initiate the accumulation of time spent defending the inspector. More often than not time that would be better spent by the inspector operating the business and providing service to clients.

Unfortunately the same rules do not apply to attempting to get your costs back after

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successfully defending against a questionable claim. Most states require proof of some form of a nebulous thing known in the legal world as “bad faith”. Instead of requiring merely proof that the plaintiff suing an inspector was wrong, an inspector must also prove that the mere filing of the lawsuit was done in bad faith. Generally bad faith in litigation is defined as doing something for a purpose with ill will.

Filing a lawsuit merely to obtain money toward settlement despite the actual merit of the claim is one of a myriad of examples of how a lawsuit can be perceived to be filed in bad faith. Really, the best way to think about it is in terms of the theory of probable cause. Did the plaintiff or the lawyer give the court any reason to believe that the claim had merit, even assuming they were seeking an extension or modification of existing law? Think about that for a second.

Even though all the plaintiff has to do is slightly tip those scales of justice, you need to prove near collusion by a lawyer and his or her client to even sniff the possibility of recovering your costs defending against a frivolous claim.

I recently represented a home inspection company and inspector being sued by a seller in a real estate transaction who was, for lack of a better description, angry that my client did a great job inspecting the home. There were a plethora of structural defects. The seller never had a contract with my client and never relied in my client’s home inspection report. The buyers happily cancelled the sale due to the information in the home inspection report and avoided purchasing a home with significant structural defects.

After receiving the assignment I sent a letter to plaintiff’s counsel requesting that he voluntarily dismiss the case.

I cited the applicable standards of practice, the requisite state law, and politely (admittedly by my standards) requested that the lawyer dismiss the case voluntarily. That request was rebuffed with a demand for thousands of dollars.

L A G LE I filed the requisite motion and had the claims against my client dismissed. The amount of legal fees expended getting rid of the case were small in the grand scheme of costs associated with defeating frivolous claims. No discovery other than some interrogatories. No depositions. Less than five zeroes which is good in my world.

Following the dismissal I filed a motion seeking my client’s costs of defending the suit. The court granted my motion , but only after learning that the plaintiff was unwilling to negotiate on my client’s claim for frivolous litigation. Even then the court was only willing to award half of the fees and costs associated with defending my client.

Despite the clear ridiculousness of that lawsuit, the court balked at giving the inspector back his fees and costs spent defending that claim.

Ultimately courts are charged to defer to the idea that anyone should be able to have legal claims against anyone. The courts are hindered and nearly required to not chill litigation by imposing penalties on those who bring frivolous lawsuits, because it might stop someone from bringing a reasonable, meritorious claim.

I’ve defended more home inspection cases in litigation than I care to admit. More often than not there is a legitimate claim involved in the cases sent to me. But, there are always those that stick in my guts. This was one of many. But the lesson to be learned here isn’t one about how to win a frivolous case.

The lesson here is that it’s nearly impossible to get your fees and costs back after successfully defending against a frivolous claim.

There are plenty of charlatans out there who will tell you otherwise. But the reality is that you, as a business are ultimately going to have a frivolous claim. It’s a part of your world and a part of the cost of doing business. Until you act to change the laws and rules applicable to the penalties for frivolous litigation, you will deal with this issue.

Joseph W. Denneler, Esquire SALMON, RICCHEZZA, SINGER & TURCHI, LLP

Spring 2015 | 19

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Spring 2015 | 21

There are many situations where deal breakers don’t actually break the deal and have buyers backing off. But here are a few specific areas that have had home buyers thinking twice.

1. The foundation Foundations are just that....the critical basis on which a house sits. A bad one can create other problems with the house, like cracks in upstairs walls and doors and windows that don’t open and close properly. A new foundation is costly and could run at least $50,000.

2. The septic system If the home isn’t connected to a town or city sewer system, then the septic system should be checked. Many older systems are no longer up to code, and a faulty one can create other problems. Again, another costly area. Expect to spend $25,000 to $50,000 for a new septic tank.

3. The electrical system Home inspectors know that older homes tend to have older wiring. That wiring can also be dangerous, and create a high risk for electrical fires. How much repairs will cost will depend largely on the size of the house and the complexity of the job.

It could range anywhere from $2,000 to $20,000.

4. The roof

4

POTENTIAL HOME INSPECTION DEAL BREAKERS?

A roof may last 30 years, or even more if it has been maintained properly installed and maintained. Age alone isn’t a deal-breaker for a roof. But the current condition of it may mean taking a second look at it. Are there leaks or missing shingles? Roof replacement is expensive and will set new owners back $10,000 to $30,000 depending on the size of the house and the materials selected such as metal roofing, composite shingles, slate, etc.

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22 | Spring 2015

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CRACKED! by: Claude McGavic, Executive Director, National Association of Home Inspectors, Inc, (NAHI)

Ever have a buyer call you a week after they move into their new home and complain that there are cracks in the outside walls you missed.

And after explaining that those are just common cosmetic cracks, they accuse you of just trying to cover up for your incompetence and that you obviously did not even see them. And how could you have possibly missed them because they are everywhere! Welcome to my world. As a Florida inspector, most of the homes I checked over a 20 year career were concrete block. And, believe it or not, all of them had cracks.

It did not take me long to put a statement in every report, including reports for wood frame houses, that concrete cracks were observed.

Those cracks may have been in the foundation, garage floor, front porch, or in any other concrete feature, and sometimes I had to look closely, but I always found a crack. The first thing I trained new inspectors to do was to find a crack, any crack, anywhere, so that cracks could be reported, and then to explain that they appeared to be common cracks (unless they were unusual).

1

Reporting cracks is where a home inspector can get into a lot of trouble.

Some professions jealously guard their exclusive credentials, including licensed engineers. If a non-engineer makes a definitive statement that, ‘evidence of structural failure is present’, that person will likely be in violation of a state law and can be punished. Furthermore, your E&O insurance provider will not defend you. Finally, home inspectors are not there to look for ‘evidence’ during a home inspection. The terms ‘evidence’ and ‘limited visual inspection’ should not be used in the same report. And inspectors should avoid the use the term ‘structural’ to describe cracks or any other condition.

What causes concrete to crack?

One word: Stress. And stress comes in three forms: compression, and shear.

tension,

Because concrete is generally considered to be a rigid solid, when stress is applied, it cracks. That stress could be the result of a number of factors including excessive dead load, weak load path, excessive live load, vibration, wind or earthquake load, differential heating, hydrostatic pressure, differential loading, or a combination of any of these.

2

Where are cracks likely to be found?

We have stated that cracks are caused by stress and we identified several types of stress, so let’s go down the list.

Concrete, because of its molecular structure, has a tendency to crack on a 45 degree angle. Look at a sidewalk or driveway. The most common cracks uncontrolled cracks are cracks which start a few feet from an edge and generally follow a 45 degree angle to the next nearest edge.

A common place to find these kinds of cracks inside a home is near a corner of a garage floor. And signs that these kinds of cracks are present in floor slabs under rigid tile will show up as hair line cracks in the floor tile within a few feet of a room corner.

Excessive Dead Load:

These 45 degree angle cracks can also be found in vertical planes. If an exterior concrete block wall exhibits stair step cracks they will be on a 45 degree angle because the dimensions of the blocks create a cold joint pattern along a 45 degree angle from horizontal. (Photo 1) Combine this with the natural tendency of concrete to crack this way, in some areas you can almost tell your client before you arrive that a block wall will have stair step cracks.

However, point loading, could cause cracks. A point load is the load applied to a specific part of a structure. An example of overloading a point is when ceiling joists are designed to support the weight of ceiling drywall and insulation, but the home owner installs attic flooring so he can store a hundred cases of tax records. The extra load on the joists as well as the walls supporting the joists could result in ceiling and/or interior wall cracks.

Concrete also likes to crack across the narrowest point of a pour and at an arc. This can be easily seen in a curved pool deck. The deck will likely crack in a straight line perpendicular to the tangent of an arc of the pool and extend to the outside edge of the deck. Knowing this, pool contractors usually put control joints in pool decks at the tangent of each outside arc of the pool shell. (Photo 2)

Likewise, a garage floor is designed to support an automobile. However, if a large steel safe is rolled into the garage and placed in a corner, near an edge, or at a control joint, the floor may crack from the concentrated or point load.

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Dead load is defined as the total weight of the structure including its permanently attached equipment and foundation. Engineers calculate the dead load in order to determine kinds, amount, and locations of components of a structure. If the building is constructed as designed, and if the engineer has made the right calculations regarding soil, cracks from excessive dead load will likely not be found.

Spring 2015 | 23

CRACKED!...cont.

Weak Load Path The principle of load path is that gravity pulls everything toward the ground. If a structure is strong enough to support the load placed upon it, it provides a pathway for the load it is supporting to get to the ground. If the pathway is not strong enough, the load will cause the supporting structure to fail, thereby allowing the load to get to the ground. If the extra weight of the 100 cases of tax records exceeds the ability of the joists and wall studs to support them, the boxes will come crashing through the ceiling.

So where can we find examples of cracks associated with load path? If gravity is pulling the load down through walls, and a hole is cut in a wall to make a door, gravity is still going to pull the load toward the ground. But when the weight gets to the hole in the wall, a header transfers the weight to either side of the door or window and gives it a path through the bucks and jambs and eventually to the foundation and footer. The concentrated load at the upper corners of the door opening can cause enough stress to create cracks at these points. Every opening in a bearing wall (windows, doors, vent pipes, etc.) changes load path characteristics and is a good place to find cracks.

Occasionally, Mr. Handy Homeowner will remove a few attic trusses to install a skylight or to just get all that framing out of the way so he can add and attic loft. Those trusses carry the weight of the roof to wall studs and down to the foundation. Removing trusses transfers the weight they were carrying to other places and creates ceiling and wall cracks. I inspected a house where the owner had installed skylights by removing rafters and ceiling joists. The roof load was transferred to an interior wall and down to a beam under the floor. The beam cracked and the floor collapsed.

Stated another way, the owner cut a hole in the roof and the floor caved in because the load path had changed.

the position of the forms for the segments being poured. Each of these piers was surrounded by an insulated steel outer shell which was installed to keep the sun off the sides of the piers. Without the sun shade, the sunny (or hot) side of a pier would expand enough to cause the pier to lean and cause the form to be improperly triangulated. Likewise, when one side of a house is heated by the sun and another side is in the shade, the temperature difference can set up a boundary of competing tension and compression. Stress and related and cracks can occur.

Hydrostatic Pressure Hydrostatic pressure (generally called ground water pressure) can exert an excessive lateral or upward force, creating stress.

Differential loading Differential loading sets up conditions for shear. (Photo 3) If a pocket of soft soil can’t bear the weight of the load above and settles, gravity will continue to pull the load down until the rigid footing snaps and the foundation settles. That’s when ugly things happen to the house above.

Excessive Live Loads A live load is a load imposed on the building by users or outside forces.

Your daughter has a slumber party and all twenty of her friends are dancing in her upstairs bedroom. That’s a pretty lively load. Expect cracks at the upper corners of fenestrations. Or, your pool contractor drives a front end loader across your driveway. The driveway was intended for moving vehicles but not excessively heavy vehicles. And we saw on the news where a large number of college students were on the roof of a garage to watch a parade and the roof collapsed. Deck failures generally occur because of excessive live loads and/or shear.

Vibration Vibrations or harmonics create waves of movement and non-movement which are translated into areas of changing tension and compression.

Rigid materials like concrete have a tendency to separate (crack) when subjected to changing forces. Large trucks on a bad road, a train, pile driving, and other similar sources of vibration can set up a pattern of harmonics which can result in cracks. Likewise, wet clay soils can telegraph wave like patterns through a house. The resulting cracks are likely to show up in the weakest areas we have already described, around window and doors and other openings.

Wind Load Exterior walls are designed to carry loads to the ground along a vertical path. But when a wind gust applies a sudden lateral load, movement occurs and creates un-intended stresses between compression and tension. A sudden concentrated wind load can change load path characteristics to the point that the load path is compromised and cracks can occur, especially in a tall gable end wall.

Differential Heating Ever lay in bed at night listening to the house creak and pop? Materials expand and contract when heated and cooled, sometimes dramatically. I once visited a bridge segment casting yard. Three solid pour concrete piers were installed as the platforms for three transits used to triangulate

24 | Spring 2015

3

Or maybe a new fireplace is added to a house and a portion of the new the chimney foundation is poured over the foundation of the house. The extra weight of the chimney on the original house foundation sets up a point load stress which can break the house foundation.

How Should Cracks Be Reported?

The National Home Inspection Standards of Practice state that, ‘… the inspector should look for and report indications of unusual cracks…’. The term ‘unusual’ is a subjective term, meaning based upon your training, experience, and understanding, the thing you are looking at looks generally like a similar thing of similar age, installation, and application would be expected to look under similar circumstance.

When you see hair thin spider web or egg shell type cracks in concrete, your mind should tell you that you are looking at common ordinary shrinkage cracks. (Photo 4) When concrete dries it shrinks and cracks.

That’s why contraction joints (control joints) are put in concrete. The joint becomes the weakest part of the concrete and causes the molecules in the concrete to separate along the control joint instead of randomly across a portion of the slab. You may not see cracks in a sidewalk, driveway, or garage floor, but if you get down close and wash the dirt out of the control

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Build Your Own Business (BYOB) Dan Steward, CEO, Pillar to Post Home Inspectors 4

joint, you will see the crack in the bottom of the joint that results from shrinkage. Thus, the natural cracking that is caused by shrinkage is controlled in the joint.

Meet Jeff Mackey Top 50 Franchisee with Pillar To Post 1. How long have you been with Pillar To Post?

I’ve been with Pillar To Post since 2002.

A recognized home builders association has construction performance standards which state that if an interior floor slab has a crack more than 3/16 inch wide, or 3/16 inch in vertical displacement, a repair should be made if the crack will interfere with installation of finished flooring.

(For easy reference, a quarter is approximately 1/16 inch wide). And it goes on to state that if a crack in a concrete block or poured basement, foundation, or exterior wall is more than ¼ inch wide (the approximate width of 4 quarters) a cosmetic repair should be made.

Even though contractors who build homes believe cracks a ¼ inch wide need only ‘cosmetic repairs’, ¼ inch wide cracks are unusual in my area and I am going to recommend they be evaluated by a qualified engineer prior to closing. (In some jurisdictions, a qualified contractor can be allowed to make a determination and recommend a repair).

Cracks which result in differential planes (such as cracks through a footer) are also unusual and should be referred to an engineer for a second opinion or for further evaluation. Likewise, vertical cracks or spalling in concrete piling or posts need a second look.

Long horizontal or vertical cracks in walls could indicate a foundation or framing failure and cracks from the corners of fenestrations could be the result of load path failures.

Nail pops, cracks, or separations between interior walls and ceilings below an attic could be the result of poor attic ventilation. As a humid attic heats under the sun, it expands and pulls the ceiling up from the walls. When it cools, it pushes the ceiling back down but the ceiling nails pop through the finish, creating nail pops. In extreme cases, a crack will form where the ceiling and wall join.

In summary, building materials, especially concrete, crack. It is common, expected, and predictable. Cracks frighten home buyers so it is your job to point them out. If you see a crack that is similar to a kind of crack you have seen a thousand times before, you can call it a common crack.

If you are the least bit concerned about its nature, recommend it be monitored for changes or recommend that a qualified engineer evaluate the condition. But don’t call it ‘structural’.

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2. What were you doing before you were with Pillar To Post?

I had 10 years experience in the building industry previously with varying responsibilities that included remodeling and residential and commercial construction. This included work with HUD housing, remodeling, building and/or supervision of home construction, the construction of tilt-wall warehouses and other projects.

3. You are one of the top 50 franchisees in the system. To what do you owe your success?

I was originally going to try things myself but thankfully Pillar To Post caught my eye and I decided to buy a franchise. I am certain that decision gave me at least a three-year head start compared to if I had decided to go it alone. I had my first employee the year after I began and 2004 was a breakout year. I have been a top 50 franchisee ever since.

4. What about home inspections most appeals to you?

For most people, purchasing a home is the largest investment they will ever make.

It’s an honor to be a part of that process and providing a service to help them with that decision. Knowing at the end of the day that you helped provide a sense of security and peace of mind to people is tremendously gratifying.

5. What advice do you have for other would-be home inspector franchisees?

Don’t wait, jump in! I wish I had purchased a franchise so much sooner. It’s scary to put all your savings into a business, granted, but with hard work and tenacity, you are so much better off as a result of the level of support you’re given. Owning a franchise will give you control of your time and lifestyle in a way not possible when starting your business by yourself, and you have a much better chance to succeed with a franchise than if you try to do things alone. The franchise will have a proven system for success and that’s what you’re buying. Don’t re-invent the wheel; work the plan given but at the same time don’t think that’s all you have to do. You are personally responsible for your success not the franchise, so it’s crucial that you be aggressive, especially out of the gate. Work hard and build a business, don’t just buy a job.

Spring 2015 | 25

A

Furnace Inspections 101

B

Why home improvements stores should not be allowed to sell PVC pipe.

D

C

Dual Purpose (Attic/Chimney Exhaust Vent)

Temporary Power

Now I’ve Seen Everything

E

Harriet...Have you seen my bowling ball?

Yes dear....look in the sump pump!

Photo Credits: (A,D) Pete Robberson, CO (B) Pete Rossetti, GA (C) Troy Bloxom, AK, (E) Steven Burnett, MI

26 | Spring 2015

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2015 SHOULD BE GOOD YEAR FOR HOUSING, NAHB SAYS

2015

More jobs, low interest rates and growing demand should make 2015 a good year for the American housing industry, the NAHB says.

Economists working for the National Association of Home Builders made the predictions Jan. 20 during the group’s International Builders’ Show in Las Vegas.

“The signs point to a more robust year for housing,” Crowe said.

“Household balance sheets are returning to normal levels, homeowners’ equity is increasing and significant pent-up demand is rising.

More than 7 million existing home sales were postponed or lost during the downturn; and while some are lost forever, we should see some catch-up.”

In the last six months, the U.S. economic growth has averaged near 4 percent and the economy has added 250,000 jobs per month, Crowe said, adding that consumer confidence is back to pre-recession levels.

The NAHB is predicting 993,000 overall housing starts for the year, up from 930,000 in 2014. Single-family housing should see 804,000 starts this year — a 26 percent increase, Crowe said.

“While a good beginning, this is still well below a normal level of 1.3 to 1.4 million single-family starts,” Crowe said.

An estimated 564,000 single-family homes should be sold this year, a 29.3 percent increase from 2014’s 436,000. NAHB said it expects 358,000 multifamily housing starts in 2015, up 2 percent from 352,000 last year.

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WRITING HELP

An App That Shows Where Your Writing Went Wrong Sure, we all recognize that mean squiggly line that appears under our mistakes in word processing programs. But aside from actual misspellings, how much do we really learn from them? Well, you might be able to learn something from Hemingway. That’s the name of a clever web app and desktop program that aims to help you create clearer, more concise language.

Simply paste your composition into the free online program and you’ll immediately see color-coded clues for how to simplify words, use active language, and cut out the rambling. For a small fee, download the desktop version, which may even be robust enough to replace your current text editor.

The desktop version can check your composition without an Internet connection. Also, those who publish to the web will appreciate the ability to automatically turn text into HTML markup without having to write out tags. The HTML preview shows up next to what you’re writing, so you know exactly what your text will look like before posting it online.

The desktop version is $6.99 for Mac or Windows;

visit hemingwayapp.com.

Spring 2015 | 27

Good to GREAT!

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28 | Spring 2015

horizon@carsondunlop.com

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Mold, Asthma Triggers, and Allergens...Oh My! By: Michael Buettner, RespirCare Analytical

Quite frankly, most of these “self-test kits” are merely a petri dish you open to allow mold spores to settle into the dish for a determined length of time. The truth is, you can open this petri dish in an environment with normal fungal ecology AND still have mold growth in the test kit. Question is, what good is a test that comes back positive in almost every tested environment? If a homeowner has a visible mold issue and they cannot afford testing, they should simply fix the water problem and clean up the mold. HOWEVER, for property transfer, mortgage underwriting, insurance issues, and/or health issues, inspection and testing IS RECOMMENDED. The following paragraph comes directly from the USEPA Mold Course.

“Sampling for mold should be conducted by professionals who have specific experience in designing mold sampling protocols, sampling methods, and interpreting the results. Several problems can occur when sampling. For example, there may be too few samples, sampling protocols may not be followed consistently, samples may become contaminated, outdoor control samples may be omitted, and since sampling can be expensive, sufficient funds may not be available to sample and to fix the water/mold problem.

Professional advice may be necessary to determine if the project budget will allow enough samples to be taken to characterize a problem.

As a home inspector the decision to add mold testing to your list of services can be scary. Mycology can be a confusing topic, but fear not; there are a lot of training programs, many of them free, that can help you understand this vital service that more consumers are requesting each day.

Please find provided below a web link to the United States Environmental Protection Agency (USEPA) Mold Course. The second best thing about this course is the price… it’s free! http://www.epa.gov/mold/moldcourse/ Most inspectors who have taken this free course reported they found it very interesting and it only took a few hours of their time. With nine chapters stuffed full of information, much of the material may be redundant for an inspector who has already incorporated mold and asthma trigger testing into their current business offering. However, understanding the United States and Canadian Government’s current view of the issue is very important and should aide you immensely in your marketing efforts and also in dealing directly with the North American consumer market.

You may find Lesson 3 of Chapter 3 entitled, “Mold Sampling Considered” a bit confusing. The second paragraph starts with, “Is sampling for mold needed? Usually if mold can be seen, sampling is unnecessary.”

After calming down from such a strong statement that seems to defy scientific logic, most inspectors agree with the USEPA’s position, especially after they dig into the course a little more.

The course goes on to explain that “self-sampling for mold is not advisable for a homeowner that has a visible mold and moisture issue”. We have concluded, after speaking with a senior official at the USEPA, that this is mostly because the sampling equipment available in retail outlets to U.S. and Canadian homeowners is really little more than a 4th grade science experiment. It is easy to find a “Mold Test Kit” in a hardware store that appears to be provided by a reputable United States Analytical Laboratory.

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If sampling cannot be done properly and enough samples to answer the questions posed cannot be taken, then it is preferable not to sample at all.

Inadequate sample plans may generate misleading, confusing, and useless results. Samples should be analyzed according to the analytical methods recommended by the American Industrial Hygiene Association, or AIHA, the American Conference of Governmental Industrial Hygienists, or ACGIH, or other professional guidelines. Types of samples include air samples, surface samples, bulk samples (chunks of carpet, insulation, wall board, etc.), and water samples from condensate drain pans or cooling towers. Clear plastic tape can be used to collect a sample from a suspect site and then can be examined microscopically. Keep in mind that air sampling for mold provides information only for the moment when the sampling took place. For someone without experience, sampling results will be difficult to interpret. Experience in interpreting results is essential.”

The investigators, mycologists, and attorneys we work with agree and support this last statement. This is why it is important that training courses you attend provide data interpretation training as a part of their program.

Unfortunately, many inspectors simply do the testing and then hand the analytical data results to their clients. Please don’t be that inspector as this is a waste of time and money for everyone involved.

I’d recommend that you interpret the USEPA position as “Don’t waste your time and money testing for mold UNLESS you are willing to commit to not only understanding a microbial sampling protocol, but are willing to learn and understand how to interpret the analytical laboratory data.” A commitment to this type of training would include you and a growing group of professionals testing the way the USEPA and Health Canada recommends.

The need for adding Asthma Triggers and Mold Testing isn’t coming – it arrived, years ago. Most of our prior students who committed to training a decade ago are still active associates and have reported that microbial sampling has not only dramatically increased their income, but has made them a more valuable and utilized inspector to their clients.

What are you waiting for? Incorporating microbial biological testing into your business may eventually free you from those attics and crawl spaces and provide you with an additional revenue stream.

About the Author: Michael Buettner, the managing partner and founder of RespirCare Analytical, has trained over 800 individuals to conduct Bio-contaminant assessments. RespirCare Analytical provides Moisture Investigations, Mold & Allergen Testing, Inspector Training and Analytical Laboratory Data Review Services. RespirCare Analytical has provided these services since 2005. Prior to this time, Mr. Buettner was the Director of the Aerotech Technical Institute and the Strategic Markets Director for Aerotech Kalmar Laboratories, now known as EMLab P&K. More information about RespirCare Analytical and RespirCare Inspections Canada can be found at www.RespirCare.co

Spring 2015 | 29

NAHI Affiliates: Helping Home Inspectors to make more money!

A D VE R T IS E R S

2015 Sponsor Partners

SP R IN G 2 015 3-D Inspection Systems, Inc. | 15

Gold

3-D Inspection Systems, Inc. Horizon By Carson Dunlop American Home Inspectors Training (AHIT) Allen Insurance Group Mutual of Omaha Pillar to Post Home Inspections Inspector Pro Insurance Radalink EMSL Analytical, Inc.

Allen Insurance Group | 10 AmeriSpec Inspection Services | 16 America’s Call Center | 22 EMSL Analytical, Inc | 20 HomeGauge | 21 Horizon by Carson Dunlop | 28

Silver

America’s Call Center AmeriSpec® Inspection Services Monroe Infrared Technology RTCA (Radon Testing Corp of America) Target Insurance Services How To Operate Your Home

How To Operate Your Home | 6 InspectIT | 4 Inspector Pro Insurance | 2 Monroe Infrared Technology | 27

Bronze

Mutual of Omaha | 18

HomeGauge

OREP / Working RE Magazine | 21

CHAPTER CONTACTS ■ ALABAMA James E. Mason, CRI Pillar To Post, Inc. jamese.mason@pillartopost.com (205) 919-1913 ■ ARIZONA Daniel E. Haydon, CRI, Ph.D. DEC Inspection Services nahidan@msn.com (602) 308-8722 ■ CALIFORNIA John St. George, CRI California Const. Consultants jstgeorge@roadrunner.com (818) 266-8300 ■ CALIFORNIA - FRESNO Joseph Araiza, MPM, CIPM JS Enterprises Civil Eng Const.

Consultants josepha@jscivilengineering.com (559) 840-6007 ■ COLORADO Charlie Van Fleet B Safe & Healthy Home Inspections Cvanfleet56@aol.com (720) 890-9663

30 | Spring 2015

■ GEORGIA Rob Golden, CRI Safeguard Home Inspection info@safeguardinspect.net (770) 992-5575 ■ ILLINOIS Dave Yost Quality Building Inspections dave@qbinspect.com (630) 347-6400 ■ MICHIGAN Steven Burnett, CRI Journey Property Inspections, LLC journeyinspection@yahoo.com (517) 447-3071 ■ NEW YORK – WESTERN Paul J. Nagalski, CRI Accurate Home Inspection Services accupaul@rochester.rr.com (716) 681-9739 ■ OHIO Daniel Shields, CRI Shields Home Inspections, LLC Email: shieldsinspect@aol.com Phone: (614) 801-9118 ■ PENNSYLVANIA-SE William Squitieri A-Stat Inspection Services bills@astatinspection.com (215) 421-0560

COMMITTEE CHAIRS CHAPTER RELATIONS- Open EDUCATION JT McConnell Dragon Ridge Home Inspections jt@DragonRidgeHomeInspections.com (703) 472-8400 LEGISLATIVE Allan Monat, CRI Metro Real Estate Inspections ainspector@prodigy.net (847) 272-2766 STANDARDS OF PRACTICE – COMPLIANCE Bill Laughlin, CRI Prairie Home Inspection, LLC wglaughlin1@juno.com (612) 250-9251

Pillar to Post Home Insp. | 31 Salmon.Ricchezza.Singer & Turchi LLP | 8 Radalink | 32 RTCA | 16

Advertise in The NAHI Forum For information contact NAHI 4426 5th Street West Bradenton, FL 34207 (800) 448-3942 Mark your calendar for the Summer 2015 issue advertising deadline: June 12, 2015.

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Spring 2015 | 31

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