Working RE Home Inspector - Issue 27

Now Reaching Over 25,000 Inspectors in Print and Online—Get the latest news at workingre.com

Home Inspector Working RE

Winter /Spring 2025, Volume 27

New But Defective:

Journey of a New-Build Home Inspector Sensing Tap Water Quality Indemnification and Working With Subcontractors

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Winter/Spring 2025, Vol. 27

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From the Publisher Readers Respond

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New But Defective: Journey of a New-Build Home Inspector

by Isaac Peck, Publisher

What Your Senses Can Tell You About Tap Water Quality

by John Pujol, CEO at Tap Score

Indemnification and Working With Subcontractors

by Isaac Peck, Senior Broker at OREP.org

20 26

5 Easy to Overlook Electrical Finds

by Dylan Chalk, CEO of ScribeWare

Elevating the Role of a Home Inspector

by Preston Kincaid, Kincaid Services

30 36

Playing the Long Game: Interview with Inspector Empire Builder CEO Mark Hummel

by Isaac Peck, Publisher

How AI Is Being Used to Revolutionize the Mold Testing Industry

by Dylan McIntosh, CIH

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Professional Marketplace Mission

Working RE Home Inspector magazine is published tri-annually to help home inspectors build their businesses, reduce their liability and risk, and stay informed on important technology and industry issues.

Published by OREP Working RE Home Inspector is published by OREP Insurance Services, LLC, a leading provider of home insp ector insurance nationwide. OREP has a low cost, broad coverage E&O and General Liability policy that includes coverage for radon, infrared, termite, pest/rodent, lead paint, mold, drone, and more.

Visit OREP.org/inspectors for more information or to get a quote in only five minutes or less!

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Working RE Inspector Winter / Spring 2025

Publisher Isaac Peck: isaac@orep.org

Marketing Manager/ Senior Graphic Designer Ariane Herwig: ariane@orep.org

Working RE 6353 El Cajon Blvd Suite 124- 605 Sa n Diego, CA 92115 (888) 347–5273 www.workingre.com

Editor Kendra Budd: kendra@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.

From the Publisher

by Isaac Peck, Publisher

Readers Respond

Reflecting on Home Inspections 2025 marks my 14th year serving home inspectors, both in the work that I do at OREP Insurance, helping to protect and defend home inspectors, but also in publishing valuable news and information through the pages of Working RE Home Inspector.

When you spend the majority of your career in one particular field, it leaves its mark on you. I was buying a home last year and I chose to hire one of our own OREP insureds to perform the inspection. I’ve hired home inspectors before, but this one felt different.

Call me a true believer, because I paid for almost all of the ancillary services this inspector offered: mold testing, a pool and spa inspection, and so on. The total combined fee came out to over $1,200. I ended up very impressed with his work (and feeling great about underwriting his insurance).

As I think back on that experience, I’ve been reflecting on two things: First, why hire an OREP insured? Because we provide attorney-led pre-claims to our nearly 2,000 OREP home inspectors nationwide, I’m reminded daily (even though many angry claimants disagree!) that inspectors can’t see through walls, predict the future, or do more than report on what they can see. Consequently, bringing a claim against an inspector is not in my life plan. I felt good about hiring an experienced inspector and trusting them to do their best.

Second, it strikes me how the market for ancillary services has grown for inspectors. In The History of Home Inspection (visit WorkingRE.com; search “History”), we detailed how the home inspection profession got started in the 1970s and 1980s.

A few inspectors started offering lead paint testing in the 1990s to meet government requirements, and then infrared thermography became a huge differentiator in the early 2000s.

But all that pales in comparison to the scope and adoption rate of ancillary services for inspectors today, which include water testing (pg. 12), mold (pg. 36), lead paint, asbestos, sewer scoping, radon, and more! The movement to get the inspector’s average ticket to $1,000 per inspection is alive and well. It is possible. I wish you a prosperous 2025! WRE 4

Working RE Inspector Winter / Spring 2025

Buyer Beware: Can Legislation Fix Inspection Waivers?

The article provides compelling evidence that the existing real estate agent business model is fundamentally flawed in terms of safeguarding consumer interests. Clients rely on agents to prioritize their best interests, yet it has become apparent that real estate agents face an inherent conflict of interest. Addressing this issue is crucial, and it should involve the Federal Housing Administration, local legislators, and the National Association of Realtors. By doing so, we can bring this critical matter to the attention of influential decision-makers and pave the way for meaningful reforms. —Tracy Fulford I recommend a home inspection in every appraisal report I do. I clarify that I’m not a licensed home inspector even though I have about a thousand hours of inspector education. I also make it clear that I’m not allowed by the State of Texa s to make definitive statements about needed repairs or whether any repairs were done correctly or meet code. I point out what’s obvious to me. If I see a potential problem, it’s usually worse than I can see, so I don’t hesitate to point out issues and strongly recommend a home inspection. I also make it clear that, regardless of accepting a property “as is” in the contract, that has nothing to do with the appraisal and my fiduciary obligation to the public trust. But, as we all know, the powers are doing everything they can to put the appraisers, inspectors, surveyors and title companies out of business. —Larry E. Arnett WRE

New But Defective: Journey of a New-Build Home Inspector

by Isaac Peck, Publisher

New construction starts for single family homes are on the rise and are expected to approach 1 million in 2024, with over 725,000 new homes projected to be sold for the year, according to the National Association of Home Builders (NAHB). With existing home sales slowing to a level not seen since 1995, new home sales are now a sizable part of the single-family purchase market (15 to 20 percent).

What this means for home inspectors is obvious: Inspections for newly constructed homes are an increasingly large part of the average home inspector’s business. (Or at least they could be!)

One Arizona home inspector, Cy Porter, has built his business around this new home niche exclusively. As the principal inspector for CyFy Home Inspections in Phoenix, Porter now focuses his business solely on doing new home inspections. His keen eye for new construction defects and his bold marketing tactics have made him something of a home inspector celebrity, with buyers of newly built homes turning to CyFy to perform their inspections. Porter is booked an unbelievable 14 months out.

Unfortunately, Porter’s aggressive pursuit of the new home inspection market has also landed him in hot water with one of the largest builders in the United States, Taylor Morrison, headquartered in nearby Scottsdale, Arizona.

Here’s an inside look into how Porter built a business focused exclusively on new-build home inspections, as well as some of the challenges he’s had to face along the way.

Building a Niche with Social Media Cy Porter has been a home inspector in Arizona for over eight years and spent the first half of his career working under another inspection firm before launching his own business.

For the first half of his inspection career, as well as in early days of running his own business, Porter mostly did resale inspections, with the occasional new-build thrown in. However, as his clients began to recognize his expertise surrounding Arizona laws and Isaac Peck is the Publisher of Working RE magazine and the Senior Broker and President of OREP.org, a leading provider of E&O insurance for savvy professionals in 49 states and DC. Over 13,000 professionals trust OREP for their E&O. Isaac received his master’s degree in accounting at San Diego State University.

Reach Isaac at isaac@orep.org or (888) 347-5273.

CA License #4116465.

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Working RE Inspector Winter / Spring 2025

new-build buyer warranty rights, he began to build up a reputation in his area as a specialist in new-build home inspections.

Porter used his social media accounts to build on that reputation in an appealing and creative way, regularly posting comical and educational videos about defects that he found while inspecting new homes. He says he was inspired to create his social media accounts by his wife. “I wasn’t into social media at all, but my wife suggested I start to share my stories on Instagram. Back then, they weren’t even called ‘reels’—I think it was ‘stories.’ My previous employer was on Instagram with around 3,000 followers, and I was jealous. Once I started on Instagram, people suggested I try TikTok, so I did,” Porter recalls.

At first, he only had 1,000 followers across his social platforms, but once he started advocating for his new construction clients, and homeowners started seeing his success, more people took notice. Then local news started covering his work, and his number of followers exploded.

Porter explains that there’s a popular misconception about newly built homes, that they don’t need inspections at all. After all, people reason, the home is brand new! “When I first started, 99.9 percent of new-build homeowners didn’t think they needed an inspection. Builders and even some realtors propagate that idea.

So that’s been a key focus of my social media videos: yes, you do need an inspection, and here’s why,” says Porter.

Today, CyFy Home Inspections has over 250,000 followers on TikTok, and over 300,000 followers each on YouTube, Facebook, and Instagram. Several of his videos have over one million views and Porter has a passionate fanbase following his videos and supporting his work.

As a result of his very engaged following and his strong reputation, Porter reports being booked 14 months out. But wait—as a home inspector, how is that even possible? For starters, he’s not doing any resale inspections, or even pre-closing inspections for new construction. Since new homes in Arizona are generally completed in eight to nine months—from breaking ground to completion—Porter is typically not available for booking on any resale or pre-closing new-build inspections. The home inspections page 8 8

7page 6 his clients are booking with him 14 months out, are one- and two-year new construction warranty inspections.

Builder and State Warranties One of the reasons for this is that in Arizona homeowners have a two-year period where they can hold the builder accountable and force them to adhere to the warranty that has been codified into state law. It is these rights with respect to defects found in their new homes that put Porter’s specialization in such high demand. “When I inspect a new build, I’m looking for issues the builder is legally required to address,” Porter says. “In Arizona, builders have state-implied warranties they must follow. My job is to check if they’ve met those standards.” This legal framework provides a unique layer of protection for Arizona homeowners, setting the state apart from others.

In some cases, Arizona law offers significant protection to homeowners through an implied warranty that cannot be waived. This warranty mandates that builders fix certain issues even after the homeowner takes possession. Porter explains, “The state-implied warranty in Arizona is something homeowners cannot waive; no contract can void it. If a builder refuses to fix something, homeowners can call the state, which sends out an investigator. If the issue is validated, the builder has 30 days to resolve it.” This warranty provides a unique advantage to Arizona homeowners, allowing them to bypass costly litigation in many instances.

However, not all builders are willing to comply without pushback.

Porter recounts how some builders try to sidestep responsibility, especially when dealing with smaller issues. “Most builders initially contest my findings,” he says. “But when they realize I know the laws, they tend to comply.” For homeowners, knowing their rights is crucial. “If a builder contests my findings, I advise homeowners to file a state complaint, which usually gets things moving,” Porter adds.

While Arizona provides uniquely consumer-favorable protections to new homeowners, there are also markets for new-build inspections in other states. Porter explains that if he was operating in another state, his inspection would be done based on the builder’s warranty contract with the homeowner, instead of the state-implied warranties. “So every single thing in that contract is what I would be looking for,” he says. The fact that the state has codified these warranties into law and homeowners can file a complaint with the state to enforce the law provides homeowners with an added layer of protection though, whereas in other states homeowners often have limited recourse outside of suing the builder.

The New-Build Inspection Process New home, or new-build, home inspections are a lot like resale inspections, but much more advanced, according to Porter. “For a new build, I’m inspecting for resale standards plus warranty items,” he explains. “Technically, I have to meet Arizona’s state inspection standards, but the scope of work is broader.

In addition to the state standards, there are over 100 items that I’m checking that are specific to the new-build warranties.” This extended inspection time is necessary because new builds often have hidden flaws that aren’t immediately obvious.

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Working RE Inspector Winter / Spring 2025

“In Arizona, builders have state-implied warranties they must follow. My job is to check if they’ve met those standards. This legal framework provides a unique layer of protection for Arizona homeowners, setting the state apart from others.”

Items to inspect for installation-specific standards include siding, plumbing, insulation, drainage and grading, and more.

This obviously makes the inspection process take a lot longer.

“I might be on-site for four to eight hours, depending on the property. It takes longer than a regular home inspection. Now that I’m training other inspectors, I notice that a normal home inspection might take them a couple of hours. But when they do my process, a simple home will take them eight hours. As they get better at it, those times improve. And the same thing for me.

Some of these new builds would take me eight-plus hours, but now I can get them down to about four hours,” says Porter.

Porter says he always finds defects. From broken tiles on rooftops to improper insulation, he has seen it all. “About 95 p ercent of the time, I find something wrong with the roof—broken tiles, roof leaks, you name it,” he says. His inspections reveal issues like broken or improperly installed trusses, insufficient insulation, and inadequate stucco installation. “I’ve never seen stucco installed to minimum standards, and insulation is subpar 90 percent of the time,” he notes. According to Porter, these issues are widespread, systemic, and occur because of untrained subcontractors. “Many of these findings show that the people doing the work aren’t experts. They don’t know the proper codes, and that’s why we see these recurring issues,” he says.

Builder Responses Builders have reacted in varied ways to Porter’s popularity on newly built home inspections. Some superintendents and warranty reps welcome his insights and promptly address the issues he finds, but others resist, forcing homeowners to take matters to the state. “It really depends on the site manager or warranty rep,” he explains. “One of the best site managers I’ve worked with accepted everything I documented without pushback. They see it as an additional quality check and opportunity to improve. Meanwhile, others refuse to fix anything until forced by the state.”

Porter believes the causes of most problems with new builds are related to speed and lack of expertise. “There’s so much construction happening in Arizona that city inspectors can’t keep up. Builders are often using unskilled labor, which results in shortcuts,” he says. He thinks it’s a systemic problem, not just coming from one or two individual builders. “When you look at improperly installed tubs or showers, for example, it’s not just a one-off error. These mistakes are being repeated.” Builders will reach out to contractors and the contractors will push back, insisting they did it correctly. “They might even cite the wrong code,” Porter says.

What if builders refuse to address the problems Porter calls out?

He advises his clients not to argue with the builder. “Anytime the builder says no to repairs or takes too long, you need to be filing your complaint with the Arizona Registrar of Contractors (ROC). they will send out an investigator and if they order the builder to fix it, the builder will then have 30 days to fix it or their license is in jeopardy,” he advises.

To make matters more complicated, each builder has their own rules and standards about home inspections—about where an inspector can step, what they can turn on and off, how they are allowed to test things in the home. KB Homes, a company in Porter’s area, explicitly forbids a home inspector from walking the roof, going into the attic, operating appliances, bringing a ladder onto the property, or engaging in “destructive testing” like filling the bathtub to overflow. KB also requires the home inspector be accompanied by a KB Homes representative at all times.

Because of these very stringent requirements, Porter says he never inspects homes built by KB Homes pre-close. He always does the inspection after the homeowner has taken possession.

He recommends that homeowners get the home inspected within 10 days after closing, but he also does many one-year inspections for his clients as well.

Dispute With Taylor Morrison While the regular torrent of videos that Porter posts to his social media channels typically are a mix of educational content and humor, some of his critics believe that his content goes too far.

One of the largest builders in the United States, Taylor Morrison, has recently taken issue with Porter’s inspections, as well as his social media posts. “Taylor Morrison was once supportive at a corporate level, helping me resolve issues with site managers who refused to fix defects,” he explains. However, the relationship soured following an incident in which he documented an interaction with a site manager who blocked him from inspecting a home pre-closing.

As Porter explains it, an attorney from Taylor Morrison then sent him a letter (he refers to her as “Debbie” in his videos) and listed off a strict set of requirements if Porter wanted to continue to inspect Taylor Morrison’s homes pre-closing.

No problem, Porter responded: He would simply stop inspecting Taylor Morrison homes pre-closing. And that’s when they “seemed to lose it,” Porter says. Taylor Morrison filed a complaint with the Arizona regulatory board, alleging that the social media posts were unprofessional and damaging to their reputation. page 10 8

Working RE Inspector Winter / Spring 2025

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7page 9 In total, the company flagged about 20 videos they deemed problematic, although only a few actually involved Taylor Morrison properties. “Their complaint was mostly about my videos, not my actual inspections,” Porter explains, adding that the board’s reaction surprised him. “I expected the board to dismiss it outright, but they took it seriously enough to conduct an investigation.”

At the hearing with the Arizona Board of Technical Registration, the builder came out swinging—asking the board to suspend Porter’s license. “Taylor Morrison is asking that you control this kind of advertising, that you suspend his license until he has taken appropriate professional ethics training so that he has a much better understanding of what it means to be in this profession,” a Taylor Morrison representative said at the hearing.

Taylor Morrison’s accusations against Porter included blatant fraud and misrepresentation in his videos (claiming he fabricated the defects he reports on), as well as sexual harassment of “Debbie,” the builder’s legal counsel who actually attended the hearing and accused Porter of calling her a prostitute.

One video that became a sticking point in the Taylor Morrison complaint featured Porter humorously addressing a gas meter issue with an exaggerated reaction clip. Taylor Morrison argued that the video misrepresented the issue and painted them in a negative light. Porter disagrees, viewing the post as harmless satire. “That video was clearly labeled as satire, but they claimed it was false advertising,” he says.

The dispute between Porter and Taylor Morrison was covered by both local and national news, with some critics saying that the national builder was only further hurting their reputation by going after a home inspector to begin with.

Ultimately, the board decided against pursuing disciplinary action against Porter, but they did issue him a Letter of Concern, a minor reprimand that Porter considers both puzzling and frustrating.

“They said it was false advertising, but it wasn’t even an ad,” he argues. Nevertheless, he says he’s definitely learned some lessons from the ordeal, saying that from now on he will only inspect Taylor Morrison homes post-closing and that he’s much more careful to blur things like logos. “I’ve learned to be more careful.

I avoid sharing potentially offensive comments. It’s all about showing the facts and letting people draw their conclusions without my commentary,” Porter says.

Still More Complaint Drama Unfortunately, the drama for Porter was not quite finished. After the Taylor Morrison complaint, Porter says, he was served with two more complaints from other home inspectors. In the videos he posted to his social media accounts, Porter says that the home inspectors repeat the same complaints that the builder made, but just in a different way. The crux of the complaints is that the home inspectors are upset that Porter posted videos online. They alleged that Porter “personally attacked” them online and that they’ve been getting death threats, dealing with stalkers, threats of violence, harassment online since then.

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“Homeowners deserve to know what they’re getting,” he says. “It’s about transparency and holding builders to the standards they’ve promised. As long as I can keep doing that, I’m willing to deal with the pushback.”

At the hearing with AZBTR, Brad Patterson, a home inspector in Arizona, testified that Porter’s comments about him online have “literally caused harassment and harm to my family, our business, and more importantly fake bookings, causing harm.”

Nevertheless, the Arizona board promptly dismissed both complaints against Porter, meaning that he has now successfully defended his license against three complaints.

Moving Forward With Purpose Porter’s mission is straightforward: protect homeowners and hold builders accountable. “Most new build homeowners don’t think they need an inspection,” he says. “My goal is to show them why they do, by providing real examples from my inspections.”

In many cases, I’m able to uncover defects that would cost new homeowners tens of thousands, and even hundreds of thousands of dollars to fix. All on a brand new home!” Porter exclaims.

Given Porter’s incredible reach online, he’s also serving as a great example for why homeowners everywhere ought to get an inspection, whether buying a new-build or a resale home. Many of Porter’s videos have thousands of comments and his most popular videos have several million views.

His experience with Taylor Morrison and the Arizona regulatory board has been a learning curve for Porter, but it hasn’t diminished his resolve. He’s adjusted his approach, focusing more on educating homeowners and providing value without unnecessary commentary. “I’ve learned to keep it straightforward, show the evidence, and let people make their own judgments,” he says.

In term of advice for other home inspectors, Porter recommends getting familiar with the builder’s warranty contract and your state law if you are doing new-build home inspections. Failing to do that, according to Porter, does a disservice to the homeowner.

“Homeowners deserve to know what they’re getting,” he says.

“It’s about transparency and holding builders to the standards they’ve promised. As long as I can keep doing that, I’m willing to deal with the pushback.” WRE

To check out Porter’s social media accounts, search “CyFy Home Inspections” on TikTok, Facebook, or Instagram, or visit: Facebook: https://www.facebook.com/cyfyhomeinspections TikTok: https://www.tiktok.com/@cyfyhomeinspections Instagram: https://www.instagram.com/cyfyhomeinspections

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What Your Senses Can Tell You About Tap Water Quality

by John Pujol, CEO at Tap Score

We all want our water to be crystal clear and refreshing. Nothing is less welcome than a glass of tap water that is discolored, smells off, or tastes funny. Regardless, it’s a relatively common predicament. But are aesthetic issues indications that a tap water supply is unsafe to drink? Not exactly—and not always. After all, some of the most potentially hazardous water contaminants—like lead, arsenic, and PFAS—cannot be seen, smelled, or tasted. It’s vital for a home inspector to know the difference, and to know when these issues are a sign of something serious. Because water chemistry parameters are always in flux, getting a sense of a property’s water quality takes a little assistance, preferably from a certified laboratory. That’s not to say aesthetic indicators aren’t a helpful way to get insights on water quality issues; they are, as long as you know what to look out for.

Color The first indicator that something might be the matter with a property’s water supply is a change in the color of the water. Common color changes include reddish-brown or yellow, murky, white or cloudy, blue-green, and occasionally, water with an oily sheen.

The most common culprit is reddish-brown or yellow water. You’ve seen it in the movies to signify dire straits: someone turns on a faucet and ruddy-brown water sputters out. But while iron is the primary reason for reddish-brown water, there’s a little more to it than meets the eye. Iron can get into a water supply for a variety of reasons, and it isn’t always a sign that a building’s pipes are rusted.

Two questions to ask yourself are: first, does the tap water eventually clear up, or does it remain reddish-brown or yellow? Second, and importantly, does the water come from a private well on the property or a water utility?

Tap water that clears up after flowing from the faucet for a while is an indicator of a plumbing issue. This could mean faucets and fixtures, old pipes, or even simply a rusty water heater (only if the hot water comes out discolored). If the property is supplied by a public utility, the utility could be performing maintenance, or they may have recently flushed out their lines.

John Pujol, CEO of SimpleLab and Tap Score, holds a Master’s Degree in Engineering from UC Berkeley.

He is a water quality expert with a background in the commercialization and development of electrochemical arsenic remediation, off-grid water treatment and UV LED technology for pathogen and pharmaceutical inactivation. Visit GoSimpleLab.com to start offering water testing to your clients.

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As for private wells, the iron issue could be more than just piping.

Iron is naturally occurring, and a groundwater supply that is rich in iron will lead to iron buildup. It may also foster iron bacteria growth, which can lead to some other undesired aesthetic effects besides yellow-orange water, like yellow slime, black gunk, or even an oily sheen.

It’s important to note, however, that despite how unpleasant a ruddy-brown or yellowish glass of water may look, it isn’t necessarily unsafe to drink or bathe in. The iron itself doesn’t present a health hazard, but there may be other contaminants in the water depending on the source of the iron. A water test will easily clear all this up.

Some quick notes about other instances of discoloration: Murky water is most common in properties with private wells and can indicate an issue with the well’s sediment trap, especially if you can see actual solids floating around in the glass. White or cloudy water is most often a case of suspended solids, or simply air bubbles, particularly if the water clears up after sitting for a while. If copper corrosion has reached a point where the water of the sink and its surroundings are turning blue-green, it is likely unsafe to drink. It’s also time for a costly re-pipe. For private well supplies, algae growth (particularly in the warmer months) can impart a greenish color to water. It can also produce an odor. And with the variety of toxins algae can produce, this situation would also render the water unsafe to drink.

The bottom line: a case of discolored water is not necessarily a health risk, but it is a sign that a few things may need some adjusting or mitigating—from aging plumbing components to bacterial growth. So it’s a very good idea to have a water sample analyzed by a certified laboratory to get the clearest picture of what needs remedying, especially if the property in question is over thirty years old. This is because homes built before the early 199 0s are more likely to have aging pipes and components that could negatively affect water quality.

Odor After inspecting the color of a glass of tap water, a good sniff is in order. Odor can be tricky because it’s the most immaterial of the three aesthetic concerns. The most pungent of the water-related odors is that familiar stink of rotten eggs, but water can also smell like chlorine or bleach, must, mold, or even fish.

It can also smell of petroleum and its byproducts. page 14 8

7page 12 The first step is trying to locate the source of the smell. There’s a simple heuristic you can follow using nothing but your nose: Does the smell come from one faucet or all the faucets? If it comes from only one, it will probably go away if you run the tap for a little while, indicating that the problem exists within the faucet in question or the specific pipes that feed that faucet.

If the smell comes from all faucets, does it go away if you run the tap for a while or not? The cause of the odor might stem from one of three possibilities: • The property’s plumbing network (if the smell dissipates after running the faucet) • The water heater (if the smell only affects hot water) • An issue with the water source (particularly for private well systems), which merits further investigation.

If your water smells like rotten eggs, it’s not a cause for alarm, but it is a sign of sulfur-reducing bacteria, which can grow in drains, water heaters and water softeners, and even in wells themselves.

It is worth noting that hydrogen sulfide, which is emitted by the sulfur-reducing bacteria, is corrosive to iron, stainless steel, copper, and brass if left unmanaged. Therefore, appraising a rotten egg smell should warrant a water test to get a clearer picture of hydrogen sulfide levels and any contaminants that may have been released by corrosion.

It’s also common to pick up on chlorine or bleach smells, which are often a sign of elevated chlorine levels in a water supply.

Chlorine is a common water disinfectant, added to most tap water supplies by water treatment facilities. The scent should disappear if exposed to air for a few minutes, but you might want to investigate further if it doesn’t dissipate or is particularly pungent and the property is on a city water supply.

Moldy, musty, earthy, or fishy smells are typically an issue reserved for water from private wells and are a sign of increased bacterial activity. A shock chlorination regimen along with a flushing of the system—and a checkup on the well’s pressure tanks— should remedy the problem. Oil or petroleum smells should be investigated immediately, especially if there is any heavy industry in the area. There’s nothing you want in your water that smells of gasoline or petroleum byproducts.

Generally, the source of a foul smell is often not the water supply itself but an issue somewhere in the plumbing. If an inspection of the plumbing system doesn’t reveal a source, remember that a water test often will.

Taste Taste is often the last in line, simply because you’re less likely to take a sip from a glass of water that looks or smells off. But taste can tell you something about water quality. It’s also considered the leading reason people opt to filter their water in the first place. Taste is highly subjective, so take the descriptors with a grain of salt. As with the other two aesthetic concerns, taste doesn’t necessarily reveal whether or not a water supply is compromised. Only a water test can do that. But it can be a clue to issues that might merit investigation before a sale is finalized.

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Sometimes water can take on a metallic taste due to elevated concentrations of metals, like iron, zinc, and/or magnesium. These are all relatively common and no cause for alarm. But higher than normal concentrations of metals in water should encourage a closer look at the property’s plumbing situation. Zinc, for example, can enter water through the corrosion of galvanized pipes.

Importantly, galvanized pipes that are or were downstream of a lead service line (an issue with older buildings) might have captured toxic lead particles and can leach lead along with its zinc particles. Lead cannot be seen, smelled, or tasted.

As with odor, the taste of chlorine can be a sign of higher than normal levels of chlorine in the water, which is a key part of making sure water remains safe to drink. Some have described water with high TDS (total dissolved solids) levels as bitter or salty. Low TDS is often falsely equated with better water quality—neither high nor low TDS is a sure indicator of water quality, it’s only one parameter among many.

The vast majority of minerals measured by TDS are harmless, in fact. Salty tasting water is also associated with high chloride and/ or sulfate concentrations, and, while not directly a health concern, elevated chloride and/or sulfate in water should warrant further investigation, particularly for a property with a private well because it could be a sign that runoff—from simple road salts to agricultural and even industrial waste—has entered groundwater supplies.

Lastly, properties with aging PEX, PVC, or another plastic polymer material for piping can lend a plastic-like flavor to tap water. The link between plastic polymers and human health is a complicated one—a subject for a different article. Suffice it to say, as a home inspector, tap water with a plastic flavor definitely deserves attention.

For a home inspector, everything covered above can offer clues as to whether or not the water supply should be tested by a certified lab. Even if there are no sensory traces, it’s always encouraged to include a laboratory water test as a part of any property transfer. It’s also widely recommended to have a water supply tested any time changes to color, smell, or taste occur—particularly for properties with a private well. Sometimes, these indicators can in fact be a sign of something more serious going on. Other times, they really are only aesthetic issues that can be taken care of cost effectively.

Testing provides you with the ability to make decisions tailored to what’s actually in the water. Understanding how to appraise the aesthetics of water quality, and how you should respond to different circumstances, can help make any home inspection that much more thorough.

About Tap Score Tap Score offers certified laboratory water testing designed to make drinking water analysis easy, reliable, and accessible for homes and businesses. Through mail-to-lab test kits, Tap Score combines the scientific rigor of a world-class laboratory network with a simple, user-friendly process, delivering fast, unbiased results. Each lab report provides clear analysis, expert insights, and personalized recommendations, making Tap Score a trusted choice for safe and informed water quality decisions. WRE

Indemnification and Working With Subcontractors

by Isaac Peck, Senior Broker at OREP.org

Home inspectors are no strangers to hiring other professionals, including other home inspectors, so they can meet their clients’ needs or be a one-stop-shop in their market. While subcontracting is a smart and potentially rewarding practice, it’s important to understand and manage the risks involved with subcontracting, and in particular, how to protect yourself from the liability incurred by the subcontractor. Indemnification is a common and effective way to manage those risks.

A home inspector might hire another home inspector as an independent contractor to handle overflow work. Or they might hire various professionals to conduct the specialized parts of the inspection: an environmental professional to conduct mold testing, a plumber to conduct sewer scoping, or a pest control professional to conduct a pest inspection. Such efforts allow the inspector to capture additional revenue while providing a convenient and comprehensive set of services to their clients. In some markets, offering additional services like this is a competitive advantage, or even necessary to compete with other inspectors.

For those home inspectors who do work with subcontractors, there are two very important things the inspector needs to do with each professional: First, get a copy of each subcontractor’s liability insurance. Second, have a signed, written agreement with the subcontractor that includes an indemnification clause where the subcontractor agrees to indemnify the home inspector.

While some home inspectors do take the step of verifying current liability insurance, very few go the extra mile and get that signed agreement with their subcontractors—and even fewer include an indemnification clause in that agreement. Let’s talk about what indemnification means, and why it’s helpful in risk management.

What is Indemnification?

Let’s start with what it means to “indemnify” someone. The Merriam-Webster Dictionary defines “indemnify” as: • To secure against hurt, loss, or damage; • To make compensation for incurred hurt, loss, or damage.

In other words, an indemnification clause ensures that the subcontractor is agreeing to defend the home inspector against legal claims and make them “whole” (compensate them for losses) in the event the home inspector is sued or held liable for mistakes that the subcontractor makes.

Indemnification clauses are common amongst construction trades, real estate professionals, wedding services, financial 16 Working RE Inspector Winter / Spring 2025

services, and other client-based professions. For example, if you are a general contractor hired by a wealthy patron to build a house, you’ll likely hire a framing company to frame the house, an electrical company to wire it, and so on. In each case, the best risk management practice is to have these subcontractors sign indemnification clauses where they agree to take responsibility for any property damage, mistakes, or errors that they make. After all, even though you are the general contractor, if your subcontractors make mistakes, you want them to take responsibility and pay for it. You don’t want to be left holding the bag.

It’s just good risk management—and OREP provides its members with an attorney-prepared Subcontractor Agreement they can use with their subcontractors—free of charge.

A Practical Example: Home Inspection Here’s a story straight from the trenches about why using an indemnification clause is a good risk management practice for any home inspector that is hiring a subcontractor.

OREP serves roughly 2,000 home inspectors with liability insurance and recently had the privilege of defending a home inspector on a claim in the Midwest. This home inspector was offering clients pest inspection services alongside his regular home inspections. The inspector would charge $80 for the pest inspection and then hire a pest professional to do the inspection for $50, pocketing a cool $30 on every transaction. Sounds like good business, right?

In this case, the OREP home inspector told us that the pest professional was his “buddy” and that he had seen a copy of the guy’s liability insurance, but didn’t have a copy on file.

Additionally, there was no written agreement between himself and his subcontractor “buddy.”

The inspector and subcontractor kept their working relationship going for a couple of years when some new homeowners who had hired the inspector moved into their house and did a “gut-to-the-studs” remodel, pulling out all the drywall with plans to completely update the home.

Guess what they discovered? Termite damage. Lots of it. It had been concealed by the drywall and was not visible to the home inspector or to the pest inspector.

Here’s the thing. This is exactly the type of claim that would traditionally be made directly to a pest professional. But in this case, because the home inspector is the one who was hired and paid to perform the pest inspection, the home inspector is the one with the liability.

But what about the “buddy?” He’s the one who actually did the inspection for termites. Do you think that he, his company, or his insurance carrier would voluntarily step up and take responsibility for this claim? The answer is no. The pest professional and his insurance carrier are breathing a sigh of relief that they were not named in the lawsuit and that they are, so far, completely unencumbered by the entire ordeal.

And so the home inspector was left to defend this claim all by himself. The only recourse a company has against a subcontractor like this would be to file a claim against the subcontractor and potentially sue them. In other words, the home inspector would need to sue the pest professional himself, while defending a lawsuit from the homeowner. Many insurance companies and professionals are very uncomfortable with this approach (unless the dollar amounts are very high), and in many cases, the subcontractor will get off scot-free if there is no written agreement between the two parties outlining responsibilities and liabilities.

Two things would have prevented the home inspector from getting stuck with all the liability: a copy of the pest professional’s insurance policy, and a written agreement with an indemnification clause. Those tools would have allowed the home inspector to tender the claim directly to the pest professional’s insurance carrier and seek compensation and defense in the lawsuit.

Another Practical Example: Mortgage Field Pros Here’s another example. OREP also serves mortgage field professionals with insurance and risk management. These professionals help banks and other large property managers manage their inventory of bank-owned properties (REOs). Their services include boarding up windows, mowing lawns, property maintenance and even property clean-outs—where a firm will go into a home and empty it of all furniture, belongings, and trash.

The relationship between these professionals is structured like this: typically, there are larger vendors that service big contracts with a lender. They then subcontract out the jobs to smaller firms across the U.S. Just like with appraisals, lenders try to avoid administering their own panel of thousands of vendors across the country.

In one claim OREP has seen, a local mortgage field firm was hired by a larger vendor to perform a “clean out” on a particular property that had been foreclosed on. But the smaller firm made a serious error: they didn’t verify the address and ended up getting it wrong. So they drove up to the wrong house, kicked in the front page 18 8

Working RE Inspector Winter / Spring 2025 17

7page 17 door, and cleaned it all out, putting all of the legitimate homeowner’s current belongings out on the front lawn.

As you can imagine, this resulted in a very big claim. But because the larger vendor didn’t have an indemnification clause in their service agreement, they couldn’t transfer the liability onto the smaller firm that had made the mistake! As a result, the larger vendor ended up defending, and finally settling, a serious claim.

You’d hope they could recover from that one disaster, but it’s more complicated than that. This big vendor was doing big business, and their faulty contracts created more problems for them, and eventually the company faced six-figure insurance premiums, with few carriers willing to even quote their business. In fact, the only insurance carrier that was willing to quote their business demanded that they start including—you guessed it—indemnification clauses in all their service agreements as a condition of coverage.

Be Smart When Hiring Subcontractors I tell these stories to home inspectors when they ask me about indemnification clauses. Common law indemnification theory dictates that the party responsible for the mistake should pay for it. From a practical standpoint (especially when it comes to insurance), indemnification clauses make all the difference. In other words, from a risk management perspective, any business that is

18 Working RE Inspector Winter / Spring 2025

working with subcontractors, or even businesses that allow subcontractors on their properties (like builders or wedding venues, for example), should be asking those subcontractors to sign an agreement with an indemnification clause. This is true for home inspectors as well.

Be Smart When You Are the Subcontractor If you’re the one working for a large vendor, another home inspector, or any business subcontracting out to you, you should not be surprised to see indemnification provisions in your agreement.

But there’s an important difference you should keep an eye out for.

Specifically, you never want to sign any agreement where you agree to indemnify any third-party for their mistakes or errors. You should only indemnify a third-party for your own errors or omissions. From an insurance standpoint, if you agree to indemnify a third-party for their own mistakes and errors, that is not something your insurance will cover. So watch out for that.

How Can I Help?

If you ever have any questions about liability or risk management in your home inspection business, please reach out to me directly at isaac@orep.org or give OREP’s office a call: (888) 347-5273.

We are now open 12 hours a day to better serve home inspectors across the country! (8 a.m. – 8 p.m. ET) Stay safe out there! WRE

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5 Easy to Overlook Electrical Finds

by Dylan Chalk, CEO of ScribeWare

main panel. Most residences are 240-volt but you will likely find lots of 208-volt systems in condominiums and commercial buildings. While this is not a major safety item, it is easy to overlook and something a home buyer may want to know. Here is the narrative I use to explain this: (ES-1) Inspection Notes: 208-VOLT SYSTEM NOTED

Inspection of electrical systems in existing dwellings is a chal-

lenge. In some states and provinces, there is resistance to letting home inspectors perform the basic steps necessary to complete an electrical inspection such as opening the dead front cover to the electric panel. Then, obstacles such as personal belongings, wall and ceiling finishes, and busy agents/brokers wishing we would hurry up, all conspire against us. Despite these obstacles, home inspectors are often the best and possibly only resource for identifying electrical safety concerns and flagging electrical systems for repair in existing dwellings. Who else would do this? As electrical systems age and get modified by Larry The Cable Guy, there is often no one else watching or paying attention.

Here are some sobering statistics. According to the US Fire Administration, electrical fires are the leading cause of fires in residential buildings. An estimated 24,200 residential building electrical fires were reported to United States fire departments in 2021.

These fires caused an estimated 295 deaths, 900 injuries, and over $1.2 billion in property loss in the US alone.

The voltage of the electrical service was tested at roughly 208-volts rather than the standard 240-volts. Without getting overly technical, what this means to the homeowner is “functionality” differences of roughly 20-25 percent: • Longer recovery time for water heaters • Longer time for electric baseboard heaters or electric furnaces to bring rooms up to temperature • Harder work for Air Conditioners to cool the home • Longer times for Heat Pumps to heat the home • Longer time for dryers to dry clothes • Longer times for ovens to get up to temperature No repair is needed. This condition is common in wiring systems in condominiums. It could impact future design and appliance replacement. For example, when replacing an electric water heater, range or dryer, be sure to inform the installer that the appliance will be run on a 208-volt system.

Hopefully, this average of over one electrical fire per day per state is enough to stave off complacency. But the challenge is real. Home inspectors are tasked with being constantly vigilant for low-probability, high-consequence installations, and the electrical system forces dozens of seemingly little critical safety items upon us. Inspectors must also explain to homeowners that electrical system safety standards are a progressive moving target. Do you need modern AFCI protection in your 1984 house? Probably not…. But if you do…. You might NEED it. Do you write this up?

Call it a repair? An improvement? Ah, business decisions!

With this in mind, let’s take a look at five commonly overlooked electrical findings.

The electrical tester above shows a 208-volt system on a townhome. It is normal to find readings slightly above or below the nominal voltage.

208 Volt Systems Some state standards of practice require that inspectors describe the electric system voltage while also stating that inspectors do not need to insert testers into electric panels. Even if you don’t live under such an SOP, measuring the system voltage is a great way to get it right. If you don’t measure, you are guessing. I use a Fluke T+ Pro Tester to measure the voltage on line lugs at the Dylan Chalk is the author of The Confident House Hunter—a book to teach home buyers how to look at and understand houses: Cedar Fort Publishing and Media (www.dylanchalk.com). He is also the co-founder of ScribeWare report software, which offers innovative and simple report-writing solutions for inspectors—https://getscribeware.com.

20 Working RE Inspector Winter / Spring 2025

Note the 208-volt rating for this solar panel installation above. page 22 8

7page 20 Poorly Wired Sub-Panels in Outbuildings Sub-panel wiring is complex and often glossed over in inspection training. Some newer inspectors cling to the idea that neutrals and equipment grounds should ALWAYS be separated or isolated in sub-panels. This is TRUE for all sub-panels done with a 4-conductor feed, but not sub-panels done with three-conductor feeds to outbuildings. Three conductor feeds were allowed in detached structures until the 2008 NEC and such panels should be treated like main panels where grounds and neutrals are bonded together.

This has brought up many a donnybrook in an electrical class I teach with my friend and mentor Charles Buell, so we came up with this helpful flow chart. Also, be sure to check outbuildings for a proper grounding system. If home inspectors get confused, imagine Larry The Cable Guy. A note about the ground rods on the single phase sub-panel wiring flow chart: it is possible that one ground rod could be adequate. In practice, I rarely find two ground rods at outbuildings but it’s a good idea to look and at least check for some type of grounding system. (See Figure 1: Single Phase Sub-Panel Wiring Flow Chart).

Figure 1: Single Phase Sub-Panel Wiring Flow Chart

22 Working RE Inspector Winter / Spring 2025

Bootleg or False Grounds Bootleg grounds are frequently found in buildings that pre-date the equipment grounding requirements of the early 1960s, especially older buildings that have been flipped (See Figure 2). The installer of these installations will install a jumper wire between the neutral and the ground terminals on the receptacle, making most three-bulb testers believe it is a grounded circuit.

Figure 2: Bootleg ground courtesy of Mike Twitty from Homescan Training - www.HomeScanTraining.net

to the circuits and see how many conductors are in the cable (See Figure 4). Then, I try to make sure the breakers are on different legs.

Throw tandem or wafer breaks into the mix and things get seriously confusing. These are the thin breakers that allow two breakers into one slot. Tandems are even more difficult to verify that the two circuits are on different legs. You might even find some cables feeding these circuits with two neutrals (See Figure 5), which would not be a multi-wire branch circuit, so watch your step and keep your wits about you. Also, in 2008, multi-wire branch circuits started requiring handle ties so that BOTH ungrounded conductors would get disabled with a fault or when working on a circuit. This comment makes all of my reports where handle ties are missing.

Figure 3: Three-bulb tester shown above is not finding the bootleg ground; courtesy of Mike Twitty.

(ES-3) Improve or Upgrade: ADDING HANDLE TIES FOR MWBC’S RECOMMENDED - ELECTRIC PANEL

Most if not all three-bulb electrical testers will miss a false ground so consider establishing more vigilant procedures for buildings older than 1963 (See Figure 3). A Sure Test Circuit Analyzer is a great circuit tester for older buildings. It can find false or bootleg grounds that many three-bulb testers will overlook. I identify where these conditions were found and I use this narrative:

Multi-wire branch circuits were noted in the electric panel.

These are circuits where two ungrounded conductors share a neutral. Starting in 2008, these were required to have a means of disconnecting BOTH ungrounded conductors together. This means a handle tie should be used. This is recommended for improved safety. I would do this in the context of other electrical repairs or upgrades.

EDF-1 Electric Distribution and Finish - Branch Wiring: BOOTLEG GROUNDS NOTED There is evidence that false or bootleg grounds have been installed at electric receptacles. A false ground (or “bootleg ground” as it is sometimes called) can result in the metal components of the receptacle: i.e., the cover plate screw, the ground prong, or even a metal cover plate, would be potentially energized, resulting in another path for electricity to flow when touched if the neutral of the circuit is in any way compromised. This could result in electrical shock if a person were to contact these metal components while touching something else that was grounded. Extension cords plugged into these improperly wired receptacles would further complicate and extend the danger, and any conductive components downstream of the false ground would risk being energized with the neutral current.

Figure 4: Circuits where two ungrounded conductors share a neutral in one cable

Recommendation Have this further evaluated and repaired as recommended by a licensed electrician.

Messed-up Multi-Wire Branch Circuits Multi-wire branch circuits are my nemesis. They grind my inspection process to a crawl, especially if there are a lot of them as I fumble to try and trace the wires in the panel. When wired correctly, these 120-volt circuits consist of one cable with two ungrounded conductors (hots), one grounded conductor (neutral), and an equipment grounding conductor. The ungrounded conductors share a neutral (grounded conductor) for the unbalanced load between the two circuits. Put both breakers on the same leg, and the neutral can now carry the combined current of BOTH conductors. This can overload the neutral, and overheating is likely if that neutral wire is loose. I trace the wires back

Figure 5: Two neutrals in one cable courtesy of Charles Buell

Disabled Grounding/Bonding Connections Grounding and bonding is an infinitely complex subject and the grounding and bonding system is difficult to inspect because you cannot just switch it on and see how it works. One habit I got into was taking a picture of all grounding and bonding connections page 24 8 Working RE Inspector Winter / Spring 2025 23

7page 23 and putting them in the report. This change in my inspection process helped me develop instincts for finding and documenting connections. Now, with this new workflow, at the end of the inspection, I feel more confident that I have looked at the grounding and bonding system. Be vigilant in buildings that have partly updated plastic piping systems. There may be unbonded parts of the metal piping system. You can also use a clamp meter to look for stray currents on the equipment grounding system. This is a rare find but could be a life safety issue. I avoid testing this inside the panel due to induced current but often test grounding conductors away from the panel. If you discover this, the next challenge will be finding an electrician willing and able to diagnose the source.

Find more information at: https://bit.ly/grounding-electrode.

Electrical Bonding System Present - Could Not Confirm, Bonding Noted on Water Pipes, Bonding Noted on Gas Pipes During the inspection, I attempted to visually document electrical system bonding. There is no way in the context of a home inspection to verify the “effectiveness” of system bonding. All metallic systems in the building are required to be “bonded” (connected) to the building’s electrical grounding system. Bonding creates a pathway to shunt static charges (that would otherwise build up on the system) to earth and to provide a pathway to trip a breaker in the event that these bonded metallic components become energized. There are many things that can lead me to further evaluation of this system by a licensed electrical contractor and they will be documented as repair items in the observations below if discovered.

Figures 6/7: Bonding connections were noted on the water pipes.

Is this helpful? Was it too short? I get it. This is complex stuff. Want another resource? Douglas Hansens’ book, Electrical Inspections of Existing Dwellings (https://bit.ly/dwell-electrical-inspection) is a fantastic resource—big thanks to Mike Twitty and Charles Buell for editorial help. Happy inspecting! WRE

OREP Members enjoy this software for FREE. For more information, visit OREP.org/inspectors.

Member benefits provided as part of the OREP Risk Purchasing Group, Minimum Member fee of $60. | Calif. Lic. #0K99465

24 Working RE Inspector Winter / Spring 2025

Elevating the Role of a Home Inspector

by Preston Kincaid, Kincaid Services

All industries and professions evolve. They evolve through technology, improved practices, and changing products. Home inspection is no exception; the profession was very different before thermal imaging cameras, licensure requirements, or even the internet. As the industry evolves, so do the ways that professionals can differentiate themselves in a competitive market.

If you’ve attended any of my webinars, you know I like to kick things off by asking the seemingly obvious question: “Who here is a home inspector?” As hands go up, I say: “Actually, you’re all wrong.” They look at me funny, but I’ve set the tone for the real discussion, what I believe is a crucial shift in mindset for our profession.

Understanding why this is important begins with an important shift in our perceptions of ourselves: of what a home inspector does, of what values we represent, of how well we can feel and relate to the goals and aspirations of our clients. It begins by saying “I’m not just inspecting this home. I am providing my expertise and commitment to these owners, these buyers, these agents, who are engaging in what may be their first such transaction, or their most important one.” Like so many professional services, we are elevating ourselves and our careers by elevating, supporting, and sustaining our clients.

From Inspector to Professional Consultant Many home inspectors see themselves as only just that—home inspectors. They show up, they inspect the property, and they knock out a report. But if that’s all you see, how are you going to differentiate yourself from other home inspectors? What’s different about your brand, your marketing, your image? Many inspectors think the answer to this question is price, and price alone. But while price may be important, it isn’t the most important part of how to distinguish yourself.

To distinguish yourself, you need to let your clients know that you are there for them. To me, this is like understanding the difference between flipping burgers and being a chef. The inspection part of being an inspector is important—even vital. But Preston Kincaid is a Certified Master Inspector based in Oxford, New York. He is a social media influencer known as “Inspector Preston”on TikTok and other platforms. He runs a family business with his 23year-old daughter, Trista, managing the office, and his 17-year-old son, Austin, in training to take over the business. He also offers mentoring webinars for home inspectors via www.hijumpstart.com.

26 Working RE Inspector Winter / Spring 2025

the other half of the job, the part we need to do to be the chef, is in communicating our findings to our clients, in making recommendations to them, and advocating for them through the process. Essentially, it’s about becoming a trusted advisor and making the journey through the inspection with them. Your clients are making what may be the largest financial investments they’ll ever make, and you’re the one walking them through the inspection process and delivering value to them beyond just the visual property inspection.

What Sets a Consultant Apart?

The differences between being “only just a home inspector” and being a professional consultant home inspector are all in the approach and the value added. This transition begins when you see yourself as being on a journey with your client rather than just performing a series of tasks for them.

Enhanced Communication Communicating findings is essential, but it’s not just about pointing out defects. A professional consultant invites and encourages the client to attend the entire inspection, to be a meaningful part of it. A professional consultant explains issues that come up in the inspection in a way that’s understandable and meaningful to the client along the way. While inspecting and explaining, a consultant is educating the client on implications, potential solutions, and repair options. This also involves breaking down complex issues into simple terms, guiding them through what’s urgent versus what can wait, and offering actionable and concrete advice. They should not feel like they are on their own.

Guidance and Recommendations Any home inspector can identify a problem, but a professional consultant will suggest specific next steps. For example, imagine there is a problem with the roof. Rather than simply stating that a roof is in poor condition, a consultant will say (in an understandable way) what’s wrong with the roof specifically, what consequences might result from not fixing the problem, provide information on local roofing contractors, page 28 8

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7page 26 preferred roof covering materials, estimated costs, and even what to expect in terms of repair timelines. They should not feel like they have to go somewhere else to ask what they should do.

Client Advocacy As consultants, we take on the role of advocating for our clients. We help them make informed decisions by providing context around what we find during the inspection. Instead of merely noting issues and recommending repair, we position ourselves as partners in helping clients make the best possible decision. Being an advocate means not only giving that full advice, but showing the client that their success is our success, and that we want them to succeed.

Comprehensive Services Keeping up with the innovations, developments, and cutting edges of the profession is more than just good technical knowledge: It’s a signal to our clients that we care about what we do and about helping them in the best ways possible. So inspectors who view themselves as professional consultants also tend to use the latest technology and tools, which allows them to provide a higher level of service. These might include thermal imaging, drones, crawler robots, endoscopes, or advanced moisture detection equipment. By going beyond traditional inspection tools, consultants can provide more thorough inspections, which leads to better insights and more value for clients.

Commands a Premium We often hear that everyone is looking for high quality at low cost. That might be true, but what clients actually expect is a little different. Clients expect minimum pricing to deliver minimum service, not maximum. But because professional consultants offer an elevated level of service—better technology, enthusiastic advocacy, comprehensive guidance, and including the client in the process—they can also charge a premium for their expertise and commitment level. Clients are willing to pay more when they see that they’re getting a service that includes professional guidance and advocacy, rather than just a report.

Break Out of the Comfort Zone Leadership expert Robin Sharma says that “Greatness begins beyond your comfort zone.” To become a professional consultant, you have to believe it’s possible to be and do more than the status quo. This involves a mindset shift, something which is not easy, but always worthwhile. Instead of viewing yourself as a service provider, start seeing yourself as a highly trained professional who provides advocacy, expertise and solutions.

The minute you decide to go above and beyond and charge a premium for it, you start putting pressure on yourself to deliver on that value proposition. When clients are paying a premium, they expect results. To meet those expectations, you need to be at the top of the game. This means continuous learning, adopting new technologies, and always pushing the limits of what you can offer.

It’s not always comfortable. In fact, it’s often the opposite. You’ll be in situations where you have to learn new skills, adapt to new 28 Working RE Inspector Winter / Spring 2025

Instead of merely noting issues and recommending repair, we position ourselves as partners in helping clients make the best possible decision.

technologies, and sometimes have to research for answers. But that’s okay—this discomfort is where growth happens. It’s the pressure that forces us to elevate our standards and bring our best every time.

Elevating the Industry Together When more inspectors start thinking of themselves as professional consultants, we elevate the industry as a whole. That elevation is worth the time and the cost. Mere home inspectors compete for $300 inspections and knock out the reports, but professional consultants play a much more important role, provide a higher level of service, use the latest technology, and go the extra mile.

This mindset shift doesn’t just benefit individual inspectors.

When we raise the bar, we also raise public perception of the profession. Homebuyers will start to see inspectors as indispensable resources rather than just another necessary step in the transaction process. This improved perception leads to greater demand for high-quality inspections, better client relationships, and ultimately, a stronger industry.

Steps to Become a Professional Consultant If you’re ready to make the leap from home inspector to professional consultant, here are some steps to consider: 1. Invest in Technology: The right tools can set you apart.

Consider investing in tools like thermal imaging cameras, drones, and crawler bots. Not only will these tools improve your inspections, but they’ll also allow you to offer insights that a standard inspection can’t provide.

Meanwhile, greater internet technology will enhance outreach with prospective clients, and make your business website more welcoming.

2. Enhance Your Communication Skills: Learn how to explain complex issues in simple, clear language, letting your personality shine through. This takes a little time, to practice before client visits and to educate your clients in person at the inspection, providing context and breaking down what’s urgent versus what can be planned for down the road. Your clients will always appreciate the enhanced clarity and care, and will feel more comfortable asking you questions.

3. Offer Recommendations and Next Steps: Don’t just point out problems—be prepared to describe available solutions. Although this may seem intimidating because fixing problems is beyond your responsibilities as an inspector, the truth is that you don’t need to be an expert in every field to help your clients. Having a network of professionals you can

recommend (like roofing contractors or electricians) adds value to your service. Recommending the services of others also builds good karma for you in your professional community.

4. Continuously Educate Yourself: Stay up to date with industry changes, new technologies, and evolving best practices. Remember, the clients you are looking for expect the best and want to pay you for it. The only sure and authentic way to deliver on those expectations is by continuously learning about your field.

The Road Ahead Dale Carnegie, who knew a lot about winning over clients and stakeholders, once wrote: “You can make more friends in two months by being interested in them, than in two years by making them interested in you.” Becoming a professional consultant with your home inspection business begins with being interested in your clients—in their interests, perspectives, and goals.

5. Network and Build Relationships: As the old saying goes, “a good reputation is more valuable than money.”

A good reputation goes a long way in this industry. Build relationships with real estate agents, contractors, and other professionals in your community. By being a trusted resource, you’ll not only get referrals but also position yourself as a top consultant.

The path to becoming a professional consultant rather than just a home inspector isn’t always easy. It means concentrating a little harder, working a little longer, staying on top of the issues and changes in the profession. But the path is immensely rewarding. By shifting your mindset and your approach, you not only enhance your career but also help to elevate the standards of the industry as a whole. In this way, you’re part of a movement that’s transforming the home inspection field, one client at a time. And along the way, you are learning about your clients and their homes.

6. Charge What You’re Worth: Once you’ve started offering an elevated level of service, don’t be afraid to charge a premium for it. When clients see the value in what you provide, they’ll understand why it’s worth paying for. Remember that you are a professional consultant, not a production assembly line. By charging more, you can spend more time on each inspection, providing the in-depth analysis and personalized service that sets you apart.

So if, up until now, you’ve been thinking of yourself as “just” a home inspector, take a pause. Imagine yourself as your client’s advocate, offering them your enthusiastic, caring, and skilled assessments. Believe in the value you can bring. Push yourself to learn, grow, and always deliver more than what’s expected.

Together, we can reshape this industry, provide immense value to our clients, and create a future where home inspectors are more respected and trusted, where we are indispensable. WRE

Working RE Inspector Winter / Spring 2025 29

Playing the Long Game:

Interview with Inspector Empire Builder CEO Mark Hummel

by Isaac Peck, Publisher

Building any business takes energy and intention, not just tools and skills. Building and maintaining a home inspection business is no exception, especially in an ever-changing housing market.

According to Inspector Empire Builder (IEB) CEO Mark Hummel, it takes a mindset. Founded in 2017, IEB provides coaching and motivational training for home inspectors, and currently serves around 250 clients. During our conversation with Mr. Hummel, we discussed his predictions for the housing inspection market, what motivates people’s business decisions, the needs of solo entrepreneurs, and Mr. Hummel’s favorite subject, mindset.

launching another Mastermind group, and our intention over the next decade or so is to just continue doing that to the degree that we can and launch as many Mastermind groups as we can.

Working RE: For starters, give us a brief rundown of your own professional history and how you came to be at IEB.

Working RE: Before we talk about your services, how about an overview of what IEB is, its mission and how it benefits home inspectors?

Hummel: I’m not from home inspections or home service or real estate or anything related to what we do. I’m a coach—a business coach, a performance coach. What I do is bring industry experts together and then we build communities around them.

Hummel: Our mission says faster growth, record profits and time freedom. We get really excited when people build their business into something that’s more efficient and produces the lifestyle they’re looking for, but we also get really excited when somebody says, ‘Yeah, I got to go on a vacation for 10 days, and the business didn’t burn down. Things kept running.’ That’s what we really live for.

I was a paramedic for 13 years. I ran a county EMS agency, one of the busiest in the country, for a number of years. It was highstakes, so it was really fun. I eventually got into emergency management. I was a task force leader for the state of Texas for disaster response. I ended up going back to school. I got my degree in public administration. Right around the time I was finishing that degree, I just came to the very clear realization that government wasn’t the track I wanted to chase. And so, the same month I graduated with my public administration degree, I left the field, enrolled in the MBA program, and didn’t look back.

Soon I was running a team of coaches in the Houston area, I was completing my MBA, and I was bored. I thought, I’ll just get a job coaching, health coaching. It was part time, 17 bucks an hour. I thought I could go help people. I got hired as a part time health coach, so that I could finish my MBA. And within a month, I became the area manager.

Pretty soon I got to a point where it was like, OK, it’s time for me to lean deeper into coaching and see what that looks like. So, I started looking for the next great group of people to work with.

And then I actually found IEB—six minutes from my house. They needed help going from an entrepreneurial kind of environment in their startup days to more of a systems and process-driven business. That’s where I came in. It’s been about four years. Now we’re 30 Working RE Inspector Winter / Spring 2025

Most people will not make it beyond a few years in the industry because they just keep hitting those trial-and-error ceilings. They don’t know how to get above them, right? Breaks my heart sometimes. I talk to people who’ve been in the industry for five years and haven’t figured out how to get more than 150 to 200 inspections.

I think the longest I’ve heard was nearly 20 years. They were a solopreneur still butting up against the same ceiling of a couple hundred inspections a year. For whatever reason, they just couldn’t nail the idea of marketing and selling themselves, and they were just kind of taking what was on the floor. There’s a lot of stories like that in our industry.

For solopreneurs like that, we’ve got another product called Launch.

There’s about 70 companies in that one. That’s a new product.

We just launched it—no pun intended.

We take a truly holistic approach to building your business because we know if we can help people become really great versions of themselves, then they’ll be excited about building a really good business, and they’ll be able to do it in a more efficient way. page 32 8

7page 30 Working RE: About this new product, Launch: Why a product for solopreneurs?

Hummel: We want everybody to nail their business right where they are, and then they can move up if that’s what they want to do.

What we’ve noticed over the last couple years is that the people who have gotten really good at marketing themselves and they understand how to run a business rather than that technician-minded thing we were talking about, they’ve done OK through the downturn, and they’re now starting to grow again. But a lot of companies who grew during like 2020, 2021, the big boom after COVID, a lot of those companies have gone back down to maybe one or two guys. And this is one of the lessons for us.

A lot of those guys have realized that they don’t want a big giant company. They’re perfectly happy being at just a couple of guys, and they want to be around other people who are happy at a couple of guys. So that’s part of why we’ve changed a little bit of our thinking. If you were to join IEB four years ago, it would have been like higher, higher, higher, grow, grow, grow, that’s the only thing to do. But now that we’ve seen things on the other side of a downturn, we’ve grown a lot as a coaching team to help people just nail what their actual vision is based on what they think their vision is because they see other people doing something huge.

I don’t know who came up with this quote, but it’s ‘the purpose of business is to fund the perfect life.’ Well, you get to decide what your perfect life is, right? For somebody who’s a solopreneur making $300,000 a year, you may just love that. You’re probably pulling your hair out with busyness and doing a million inspections a year yourself, but you can take a vacation when you want. You don’t have employees to deal with. You can scale back if you want to. If that’s what you want, that’s your perfect life. Your business should just fund that. Absolutely nothing wrong with being a solopreneur. We think that there’s a lot of opportunity for people at the solopreneur business stage, especially in smaller markets. It may not always even be realistic to be a multi-inspector firm in a lot of markets.

What I’ve experienced is that most people arrive at the decision that they’re going to be a solo inspector shop because they’ve beat their head against the wall trying to figure out how to be a multi-inspector shop. That vision is a little bit skewed because we talk to people who want to build a business, mostly. When they come to us, it’s like, ‘Hey, I’m a solopreneur. I’ve been trying to hire people. I can’t figure it out. Everybody I hire sucks. I’m wasting all this money. Help me out.’ That’s very common.

Now, we’ve entered into this Launch program where we think if we can meet people right when they start their business journey, one, is people will stay in the industry longer than they would have without help. That means people might be able to provide a living for themselves and a lifestyle for themselves that they would have never experienced without coaching. That means these stories of, ‘Yeah, I was a home inspector for two years and then I had to go 32 Working RE Inspector Winter / Spring 2025

You don’t have employees to deal with. You can scale back if you want to. If that’s what you want, that’s your perfect life. Your business should fund that.

get a job.’ We can help eliminate some of that. That’s very common. We can help eliminate some of that.

In other words, fast forward five years, everybody in IEB will be people that started their company within five years, and it’ll be an incredible story to tell, I think.

Working RE: What are the components of the IEB Launch program?

Hummel: It’s very similar to the other groups, but it’s just a very specific target audience. They have four live coaching calls a month. I lead that call along with another coach who’s just super passionate about the solopreneur business stage. He is a home inspector, I’m not. So they’ve got their live coaching calls and then they have access to the online portal as well. That’s 99 bucks a month, man.

Working RE: So what are the group coaching calls like?

Hummel: A coach will typically present something for 20, 25 minutes, and then they’ll discuss it. They’ll talk about executing, what could go right and wrong, who’s doing it, who’s not doing it, that kind of stuff.

Working RE: If I’m a home inspector, what am I getting out of being in IEB and being in these groups?

Hummel: The most common thing I see as a result of being in the group is sanity. Sometimes these people enter into IEB from some sort of place of pain, meaning they feel isolated, or they feel like they’ve tried and tried and tried and they can’t figure it out on their own. And all of a sudden, they realize, oh my gosh, there’s hundreds of other people trying to figure this out, too. They’re actually doing what they should be doing. And sanity is a big thing.

The other thing I notice is excitement. And this is a big driver for people. If you’re not excited about what you’re doing, you’re just not going to do it for very long. Where I see people really failing in business a lot, especially in their growth activities, is if they don’t see results or if they don’t get the result they’re looking for, they’ll typically just stop doing the activity. And growth is the worst thing for it because to warm up a pipeline is 60 to 90 days, and people typically stop after three weeks. So, they never even get to the point where they have a warm pipeline. I see that all the time for people.

But when you’re around a group of folks who are focused on building true businesses, then you start to understand, OK, we’re playing the long game together. And then you start to see people get a little momentum, get a little success, and before you know it, they have a story that’s like, ‘Man, when I came into IEB, I was hitting a ceiling of 200 inspections. Now I gotta hire somebody because I’ve been at capacity for six months.’ It’s just beautiful.

So, to get a little more concise, typically what we’ll see as a result of somebody being in the group who’s actually engaging is they’ll certainly grow their inspection volume. That’s a no-brainer. But they’ll get more efficient in their operations as well. And they’ll start to understand what it means to work on the most important things in their business and get help with the things that don’t make sense for them to be doing.

If they keep playing that out, if their desire is to go bigger, typically they’ll have an inspector or two. And then once they start to experience success with that—we’ve seen some companies join IEB at the Launch level, basically meaning they’ve not even done 100 inspections yet, go all the way up to nearly Enterprise level over about a four-year period. That’s the fastest I’ve seen that— Enterprise being 4,000 inspections a year. Not many people are going to accelerate that fast. But the results are pretty clear cut.

People get what they’re looking for; they get what they want.

That’s probably a good way to put it.

If you’re coming into the group because you want to grow your inspection volume, you’ll focus on that work, and you’ll do it. If you want sanity and camaraderie and a network, you get it. If you want to build a team and go through the entire system we teach of recruit, select, train, manage, motivate—that series we teach— then you end up becoming a world-class recruiter, and then you start winning through your team.

Working RE: How critical is continuing education and professional development in adjusting to a changing market, particularly when things get slow?

Hummel: Your business will never grow beyond your level of personal development. You’re never going to do new things if you’re not becoming a new person. So, whether you are in a slow market or a fast market, you have opportunities for success. And we’ve seen that. People who have been in slow markets have done just fine because they’ve made that shift to thinking about market share rather than inspection volume. If things are declining, you want to make sure you’re not declining as fast as your market, right? That means you’re outpacing your peers, and you’re going to position yourself for future growth. It’s really, really important. We have been preaching that for a couple of years now in IEB because of the declines.

Certainly now, numbers are down year-over-year. People would love for it to be 2020 again, 2021. I was just talking to our financial coach about this a couple of days ago, so it’s good timing.

Inspection volume seems to be increasing in major markets. And

what it looks like it’s going to be is maybe flat compared to 2023.

So 2023 to 2024 may be flat, but the trend right now on the tail end of 2024 is up. And so that’s a good indicator that perhaps we’re getting back into some positive territory for the industry.

As a business coach, that tells me that we’re about to find out who is actually learning because when things start getting really busy and chaotic and your phone’s ringing, you better have some really good systems and processes so that you don’t get sucked back into the business and all of a sudden, you’re just answering your phone all day doing inspections.

And understanding what’s going on with the federal interest rates, all of it indicates that 2025 is not going to be like a hockey stick, J curve, I don’t think that. But I do think that the indicators are that 2025 is going to be a decent year. If you’re focused on market share rather than volume, then you’re going to be doing things that are a longer-term play.

Even in the slow times, I’m going to be talking to these [real estate] agents. Even if there’s no inspections to be had today, I’m going to be setting myself up to be the first person they think of when things get busy.

Working RE: How important is service diversification right now, particularly when it comes to slow markets in terms of opportunities for work?

Hummel: Sometimes it’s better to just stay simple in the beginning, get really good at selling home inspections and then add things. But we certainly believe in adding ancillary services and increasing your average ticket fee. The average ticket fee we want to see in the industry is a thousand-plus, right? And a lot of people are still hovering around like $350, $400. So there’s a lot of work to do in the industry.

Working RE: One of the things that struck me when I was at IEB was the amount of time spent on mindset.

I thought that was really interesting. What is the ideal mindset for a home inspector, particularly in a market like today’s?

Hummel: So, we have a framework that we look through, which is mindset, strategy, and tools. The average inspector will think about that the other way around. What tools do I need? Now, let’s build a strategy because I have tools, and they will probably never get to the mindset piece. But mindset is the most important thing, and then you can have the strategy that you want by thinking clearly, and then you’ll know which tools to use. So, that’s the framework that everything we do kind of follows that.

Most of the industry is saying, ‘Hey, just get your home inspector training, and you’ll make $100,000 in your first year. page 34 8 Working RE Inspector Winter / Spring 2025 33

7page 33 You’re going to love it. It’s going to be awesome.’ But our experience is people get told that, but they don’t make $100,000 in their first year. A lot of them really struggle until they start to shift the way they think about their business.

So that mindset piece, critically important. We actually look for that when we’re recruiting people into IEB. If somebody is clearly not a fit, we just don’t invite them in. And it’s very rare, but we have booted people out of IEB for not fitting the culture.

Working RE: What’s your advice to home inspectors who are feeling pinched currently? I was talking to someone just the other day. He said his business is still down about 60 percent. He’s in New York. What’s your advice to inspectors who are really struggling with low demand right now?

Hummel: Well, it’s a hard question to answer with a one-liner because if somebody tells me they’re down 60 percent, the question is: What are you doing versus what is your market doing? I don’t think New York is down 60 percent as an example. I don’t know that for sure, but I don’t imagine that that’s the case. In fact, we have people in IEB in New York and they’re not doing so badly.

Do you have a good understanding of what you’re doing versus what your market is doing? Before you behave as though your opportunity to earn is gone, we need to actually understand what’s happening in your market. So, how many transactions were there? Are they trending up or down? Are you shrinking faster than your market?

A lot of times people aren’t doing as bad as they think. If somebody says 60 percent, they’re probably doing as bad as they think because that’s a big number. But sometimes people say I’m 20 percent down and everything’s terrible. OK, let’s look at your market.

Well, my market’s 25 percent down. It’s like you’re actually gaining market share. You’re doing good. Keep doing what you’re doing.

Working RE: Some of my favorite stories have always been that some of the biggest brands of today were still aggressively marketing during the Great Depression, including Disney. Often in an economic downturn, the thing that gets pulled back first is advertising and marketing. And it’s probably the one thing you want to increase so you can stay top of mind. As soon as the market comes back, then you’re in the best position to capitalize when people are looking for service.

Hummel: Yeah. And in case it’s helpful, some tactics you can spread around is like sales psychology. These agents have one or two spots in their brain to hold on to somebody or a product or a service, right? It’s Coca-Cola or Pepsi. It’s Nike or Adidas. It’s home inspector A or home inspector B. And, so, their job in a down market is to make sure no matter what, I am the number 34 Working RE Inspector Winter / Spring 2025

one or the number two spot in the agent’s brain. And so when they think ‘home inspector,’ they think me.

I’ll say the ROI, too. If somebody’s in a down market, 60 percent for example, and you say, yeah, just double your spend on ads, they’re going to be like, yeah, that sounds nice, but that’s not realistic. One of the things we teach is your highest ROI activity, if you’re strapped for cash or time, is to pick up your phone. Call people, go meet people. Be where they are. You don’t have to sponsor events, you don’t have to pay for digital. You can still pick up the phone and go do things and call people and build relationships.

I think for a number of reasons, guys are hesitant to do that. Fear being one of them, fear of rejection. A lot of them just don’t feel like they’re extroverts, so they just refuse to get good at it. But at the end of the day, if you don’t have money and you need money, pick up your phone. That’s always the answer.

Working RE: This has been a great discussion! Is there anything else you want to mention?

Hummel: We have a huge desire to grow that Launch product.

Like I said before, there’s about 70 or so companies, maybe 80 or 90 at this point, companies in that group. And we think it could be somewhere between 400 to 600 companies within the next couple of years. That’s our vision for it. So, we’ll certainly be looking for partners to help us spread the word and grow that because we think the industry needs it. WRE

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How AI is Being Used to Revolutionize the Mold Testing Industry

by Dylan McIntosh, CIH

For decades, lab analysis for the mold testing industry has been

constrained by traditional, labor-intensive processes that typically review only a fraction of each sample, leaving room for inaccuracies that can impact indoor air quality assessments. This longstanding method relies on technicians manually examining spores through microscopes and using manual counters to estimate spore levels. Due to the uneven distribution of spores in collected samples, even highly trained technicians are vulnerable to variability, which can lead to overestimations or underestimations of mold levels and make precise, dependable reports difficult to achieve for homeowners and building managers.

However, the integration of artificial intelligence (AI) into mold testing has marked a groundbreaking shift. This technology enables the review of 100 percent of each sample with consistency and objectivity, effectively reducing the variability and error inherent in manual processes. AI mold testing allows for a level of accuracy and efficiency previously unattainable, making it easier to deliver standardized analysis and reports, minimizing discrepancies among technicians and laboratories, and ensuring more reliable outcomes for environmental consultants, home inspectors, and ultimately, the occupants of the buildings they assess.

Limits of Traditional Testing Historically, mold testing has involved the collection of air or surface samples, which are then sent to a lab where technicians analyze them. Analysts manually identify and count mold spores under a microscope and then apply mathematical multipliers to extrapolate the total spore count per cubic meter of air. This approach, while common, has several limitations. The multiplication of spore counts only from a sample subset means inaccuracies are built into the process from the start, as results are based on an extrapolated estimate rather than a full, comprehensive count. Additionally, mold spores are often unevenly distributed across samples, so even small inconsistencies in how a sample is reviewed can lead to significant discrepancies in results.

Moreover, manual analysis introduces a level of subjectivity and variability, as different technicians may interpret and count spores differently, and fatigue or distraction can affect accuracy. For Dylan McIntosh is a Certified Industrial Hygienist (CIH) who has performed hundreds of mold assessments in residential, commercial, and healthcare settings.

He is also a PAACB Certified Spore Analyst who has analyzed thousands of airborne and surface mold samples. Dylan is currently the product manager for Sporecyte, the leading AI platform for fungal analysis.

36 Working RE Inspector Winter / Spring 2025

environmental consultants and home inspectors, who rely on consistent data to assess potential mold-related risks, these limitations have created a pressing need for more reliable, standardized methods that provide dependable information to their clients.

AI Transforms Mold Testing AI offers solutions to many of the challenges associated with traditional mold testing by leveraging machine learning (ML) algorithms and computer vision techniques to identify, classify, and quantify mold spores with high precision. AI-powered systems, trained on comprehensive datasets, use convolutional neural networks (CNNs) to recognize mold species and determine spore concentrations with a level of accuracy and consistency that surpasses human capabilities. Unlike human analysts, who might examine only a section of a sample, AI can analyze 100 percent of each sample, providing consistent, objective results without the fatigue or variability that can affect manual analysis.

The human analyst remains integral to this process, reviewing AI-generated results to verify accuracy and make necessary corrections. This combination of AI precision with human expertise creates a synergistic workflow that reduces error rates and enhances overall reliability.

Additionally, digitizing samples for AI analysis allows technicians to work from computer monitors instead of microscopes, leading to a more ergonomic setup and reducing the risk of eye strain and other health issues associated with prolonged microscope use.

AI-powered systems bring a new level of accuracy to mold testing, setting a standard that traditional methods struggle to meet.

With digital platforms, it is now possible to reduce discrepancies in spore counts, which are essential for dependable indoor air quality (IAQ) assessments. According to research from the National Institute of Standards and Technology (NIST), AI-based mold identification often surpasses the accuracy of traditional methods, delivering dependable results that foster greater confidence in environmental assessments.

Faster turnaround times are another benefit to the integration of AI into mold testing technology. For home inspectors and environmental consultants, the rapid results facilitated by AI mold testing are particularly valuable. Traditional methods can take days, requiring lab technicians to spend considerable time examining samples. AI, by contrast, can deliver nearly instantaneous results, allowing inspectors to offer timely feedback to clients. A peer-reviewed study published in Processes illustrates that “AI-driven quality prediction systems can significantly reduce analysis times, enabling near-real-time monitoring and quality control.”

Cost-Effective While AI technology requires an initial investment, it is relatively marginal, as its potential for long-term cost savings is quite substantial. Automation reduces the need for extensive manual labor, allowing labs to process larger volumes of samples with greater efficiency. According to McKinsey & Company, AI-driven environmental testing can reduce operational costs by up to 30 percent, benefiting both laboratories and their clients through lowered testing fees and faster service. The scalability of AI also allows smaller laboratories to adopt high-throughput testing without compromising on quality or accuracy.

Sporecyte, an industry pioneer, has developed advanced AIdriven tools that are user-friendly and generate detailed, visual reports. These reports help home inspectors explain findings to clients with clarity, making the data accessible and easy to understand. This shift has been especially valuable since the COVID-19 pandemic, during which demand for remote, contactless testing has risen sharply. Clients now expect digital solutions that minimize in-person contact and streamline the testing process. Opensource tools like OpenCV, TensorFlow, and PyTorch have also allowed smaller labs to create their own AI solutions, making cutting-edge technology accessible and customizable even for organizations with limited budgets.

One of the most powerful aspects of AI in mold testing is its ability to handle and analyze large datasets. By aggregating data from numerous samples, AI can reveal regional patterns and hotspots of mold growth, information that could be useful for property managers, public health officials, and even insurance companies monitoring air quality trends. Publications such as Forbes have emphasized how AI facilitates predictive analysis, incorporating environmental variables like humidity and temperature to forecast potential mold growth risks. This proactive approach helps property managers and inspectors stay ahead of IAQ issues and supports efforts to improve air quality across entire communities. page 40 8

Working RE Inspector Winter / Spring 2025 37

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7page 37 Additionally, successful AI implementation requires skilled staff and tailored training programs. Laboratories need to adjust to an AI-supported workflow, balancing automated processes with human oversight to ensure quality control, meet regulatory standards, and maintain a high standard of service for clients.

Implementation Challenges While AI offers transformative benefits to mold testing, there are challenges associated with its implementation. One of the primary concerns is the need for diverse, high-quality datasets to ensure the accuracy and adaptability of AI models across various mold types and environmental conditions. Furthermore, as technicians transition to interpreting AI-generated reports, laboratories must maintain a balance between automation and manual oversight, particularly in compliance with regulatory standards that may require additional validation of results.

The potential for AI in mold testing extends beyond static sample analysis. Future applications could include real-time air quality monitoring, allowing for continuous data collection and providing inspectors with immediate insights into mold levels. Integrating AI with IoT and smart home systems would enable real-time alerts for elevated spore levels, helping property managers and homeowners take action before issues escalate. AI-based systems could also leverage big data, offering new opportunities for interpreting mold samples on a larger scale, revealing deeper insights into environmental patterns and the factors that contribute to mold growth.

As more laboratories adopt AI-driven solutions, the accuracy and consistency of mold testing are set to improve further. This evolution will likely lead to breakthroughs in mold testing protocols and establish a new benchmark for quality and efficiency in IAQ management.

40 Working RE Inspector Winter / Spring 2025

Future applications could include real-time air quality monitoring, allowing for continuous data collection and providing inspectors with immediate insights into mold levels. Integrating AI with IoT and smart home systems would enable real-time alerts for elevated spore levels, helping property managers and homeowners take action before issues escalate.

AI has fundamentally reshaped the mold testing industry, transforming it from a labor-intensive, variable process into a streamlined, standardized system with unmatched precision and reactivity. AI technology is elevating standards for accuracy and efficiency, creating immense value for home inspectors, environmental consultants, and property managers focused on maintaining safe, healthy indoor environments. As AI continues to develop, it will play an even greater role in setting new standards for mold testing and IAQ management, ensuring that the industry evolves to meet the growing demands for accuracy, speed, and proactive environmental stewardship. WRE

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