Selman Home Inspection Company Blog On ActiveRain: March 2010

Misconceptions About Home Inspectors

Home Inspectors are worth our fee. Realtors charge 6% or more of the property sale price as their commission. 6% of $150,000 is $9,000. That is a significant amount to add to a buyers mortgage. The Home Inspection fee should be between $275 and $550 depending on the square footage and the number of additional inspected items needed such as wood destroying insect reports or septic system inspections. In addition, a home inspection is a real estate agents best defense against complaints or litigation. (Read about how to limit Agent liability) Professional Home Inspectors limit the liability of the agent.

I always recommend that the real estate agent attend at least a portion of the home inspection. Many real estate agents have been advised never to attend a home inspection, allegedly by real estate attorneys. Agents who say that they have received such advice are never able to articulate its rationale. You are not any less likely to be named in a suit by hiding during the inspection and the reasons for attending the inspection are quite compelling. First, your presence is a clear indication of your professionalism and concern for your client’s interests, two factors well-known to encourage referrals. Secondly, it affords a very good opportunity to refocus your client’s attention to the limited nature of the inspection. For example, you could note the numerous obstacles, such as furniture, carpets and appliances that can obviously inhibit the inspector’s ability to see certain areas of the home. Finally, should this transaction come to grief, your interests are usually perfectly aligned with the inspector’s and your recollection of such limiting factors would provide powerful corroboration of the exonerating reasons that a defect was not discovered during an inspection.

Buyers, Sellers and Agents think they know enough about a property to forgo a home inspection. People that buy or sell real estate without getting a Professional Home Inspection experience more system failures, maintenance expenses and buyers remorse than people who hire a Professional Home Inspector. The inspector you choose should be trained to identify defects in over 500 individual items and the most important systems of a house. Without a Professional Home Inspection, the buyer could face major expenses from failed components after moving in. Smart home buyers and sellers who want to protect their investment hire a Professional Home Inspector to perform a home inspection to identify potential problems and recommend solutions before things go wrong.

A Home Inspection is not a "pass or fail" report. Keep in mind that no home is perfect, not even a brand new house. Professional Home Inspectors evaluate each property against the Texas Standards of Practice and today's local building codes. Home Inspectors are not code enforcement and an inspection is not a pass or fail report. It is an evaluation of the property condition at the time of the report which simply identifies deficiencies against "perfect" standards. Report findings are useful in the buying and selling decisions and for understanding what action, if any, should be taken once a property is purchased.

Home Inspections are no longer just for the buyer. Real estate sales deals fall through simply because the seller did not get a professional Seller Home Inspection to evaluate the condition of their house before putting it on the market. Eventually, potential buyers are going to hire a Professional Home Inspector. The home seller may as well know what an inspector is going to reveal and correct any possible issues in advance. The advantages of a Seller Home Inspection are numerous. Consider the following:

• Marketing advantage, including listing and yard signs as "Move In Certified".
• listing advantage that makes a sellers property stand out from thousands of others.
• See the sellers real estate through the eyes of a critical third-party.
• Seller home inspections assist in realistic pricing.
• Make repairs ahead of time so that defects won't become negotiating stumbling blocks later.
• Encourage the buyer to waive contingencies, even another home inspection.
• It may alert you of items of immediate personal concern.
• Relieve buyer concerns and suspicions.
• Reduces the Realtor and home owner liability by adding professional supporting documentation to your disclosure statement.
• The report can help the seller substantiate a higher asking price if problems don't exist or have been corrected.
• Alerts you to immediate safety issues before agents and visitors tour your home.
• Sellers can use the report to communicate to contractors the nature of the defect(s), to obtain estimates for repair or to arrange for repairs or replacements.
• A seller inspection lightens negotiations and 11th-hour renegotiations.
• A seller inspection is the ultimate gesture in forthrightness on the part of the seller.

Real estate agents who recommend seller home inspections are regarded as true professionals leaving nothing to chance.

Not all Home Inspectors are the same. Home inspection companies differ in price, warranty offers and even the services they offer. Quality Professional Home Inspection companies like Selman Home Inspection offer competitive pricing, a Free Home Inspection Warranty and a complete range of home inspection services. Professional Home Inspection companies not only provide the home inspection report, they should also be certified to perform septic system inspections and have on hand someone to perform wood destroying insect inspections. The Professional Home Inspector you choose should also be able to provide onsite reports at the time of the inspection.

Professional Home Inspectors should not have the intent to "kill the deal". Nor should we write "soft" reports just to ensure that a real estate agent will refer us again. Our purpose is to protect our client. Our client is ultimately the person who hires us as a Professional Home Inspector to protect their interest in a property and the safety of their family. It is our job to perform a complete and thorough home inspection and to identify deficiencies a property may have with respect to the Texas Standards of Practice and local building codes. Then, to write a concise, easy to understand home inspection report based on the findings. It is up to the buyer, seller or real estate professional to make smart choices based on a Professional Home Inspection by a certified, licensed inspector.

Home Inspector Similarities To Realtors

In many ways, home inspectors and real estate agents are similar. Like real estate agents, home inspectors are professionals and are deserving of respect for our expertise. And, in every profession, there are those who are professional and good at what they do just like there are those who are not so professional or good at what they do. Those who are good and demonstrate professionalism last in the business they choose while others do not.

Like real estate agents, Home Inspectors are businessmen and professionals. Professional Home Inspectors operate a real business day in and day out. They have overhead expenses like professional fees, association dues, continuing education costs, marketing costs, insurance costs and expenses for tools, equipment, office supplies and vehicles. Just like any business owner, home inspectors must make prudent spending choices to operate a successful business.

Home Inspection professionals market themselves in much the same ways as Realtors do. We work from lead generation, agents referrals, public referrals, websites, social media (Join our groups on Facebook) and every other conceivable form of human contact. Our company names are on our vehicles and like real estate agents, we are always quick to hand out a business card to anyone we meet. So, like real estate, the home inspection business is a “people” business. To be successful, we have to be salesmen and foster good relationships.

Texas is among the most difficult of all states to obtain a Professional Home Inspection license (Some states do not require licensing or any regulation). Like real estate agents, home inspectors are either formally trained and mentored for 18 months or longer, or, they obtain a formal education and experience. Then after months of study they may or may not pass the state exam. I have been told that only 1 out of every 18 who take the exam pass it the first time they take it and only 2 out of 12 pass it the second time. The test can only be taken 3 times in six months. After that, the odds are even worse. Each time a home inspection exam is failed, the testing system focuses on the weakness the prospective inspector had on the last exam. Like a real estate license, the Professional Home Inspector license is difficult to earn.

Real Estate agencies and Home Inspection companies both find that their websites, blogs and online social media (Facebook) are more important than ever to business success. Today, many Home Inspectors and Realtors get more leads and customers from online sources than anywhere else. The internet has truly become where we find everything and everyone.

Home Inspections are hard work. The average home inspection takes about 4 hours at the home site, sometimes more. Inspectors cover every square foot of a structure. From the foundations and crawl spaces to the attic and roof covering, we see it all. We test every mechanical component, evaluate plumbing and vent systems and can identify 1000’s of potential hazards and problems both seen and unseen. Like Realtors, Home Inspectors must know what to look for depending on the age of the structure, the builder, current building codes and the Texas Standards of Practice for Professional Home Inspectors. Then like a real estate agent writing a sales contract, we must write a legal, state certified, home inspection reports based on the findings. It is technical and, it is hard work.

Selman Home Inspection Company
Serving All Of North Texas
www.HomeInspectionsofDallas.com
“Accurate Investment Protection You Can Trust”

Realtor Top Criticisms of Home Inspection Companies – Part 3

#3.) Inspectors Don’t Put Things Back The Way They Found Them

There is a very simple fix for the third top criticism Realtors have of home inspectors. Leave it like you found it. If it was closed, close it when you are done. If it was locked, lock it when you leave. If it was on, leave it on when you leave. You get the idea.

When I was a boy scout leader, we had a motto, “Leave No Trace”. When we went camping, is was our belief that after we left, there should be no trace, no sign that we had ever been there. As a professional home inspector, I continue to keep this value and believe that all inspectors should as well. Except for perhaps a business card left on the kitchen counter, I work hard to make sure that everything is left the way I found it, including the HVAC thermostat.

As home inspectors, we inspect all kinds of homes. Some are vacant and many still have current owners living in them. When we disturb things in someones home, we should put them back the way we found them. Having a stranger go through your home and leave things out of place can leave a feeling of violation that “someone has been in my house”. Not a comfortable feeling for anyone.

Personally, I live on a small farm and have also enjoyed hunting and fishing on the properties of many others. There is always one important rule. If the gate is open, leave it open. If the gate is closed, leave it closed. Although the homes we inspect are not likely to let out any livestock, we may be guilty of letting someone’s dog or cat out. More to the point, it is important for professional home inspectors to leave people homes exactly as they were before we performed our inspection.

So, it is simple. Home Inspectors should “Leave No Trace”. Proof that an inspector was there should only be evident by the home inspection report and perhaps a business card left behind. This is an easy criticism of home inspectors that should be easy to overcome.

Remember, be professional and “Leave No Trace”.

Arc Fault Circuit Interrupters

Arc Fault Circuit Interrupters (AFCIs) are special types of electrical outlets and circuit breakers designed to detect and respond to potentially dangerous electrical arcs in home branch wiring. Professional Home Inspectors look for these in homes today.

How do Arc Fault Circuit Interrupters work?

AFCIs function by monitoring the electrical waveform and promptly opening (interrupting) the circuit they serve if they detect changes in the wave pattern that are characteristic of a dangerous arc. They also must be capable of distinguishing safe, normal arcs, such as those created when a switch is turned on or a plug is pulled from a receptacle, from arcs that can cause fires. An AFCI can detect, recognize, and respond to very small changes in wave pattern.

What is an arc?

When an electric current crosses an air gap from an energized component to a grounded component, it produces a glowing plasma discharge known as an arc. For example, a bolt of lightening is a very large, powerful arc that crosses an atmospheric gap from an electrically charged cloud to the ground or another cloud. Just as lightning can cause fires, arcs produced by domestic wiring are capable of producing high levels of heat that can ignite their surroundings and lead to structure fires. According to statistics from the National Fire Protection Agency for the year 2005, electrical fires damaged approximately 20,900 homes, killed 500 people, and cost $862 million in property damage. Although short-circuits and overloads account for many of these fires, arcs are responsible for the majority and are undetectable by traditional (non-AFCI) circuit breakers.

Where are arcs likely to form?

Arcs can form where wires are improperly installed or when insulation becomes damaged. In older homes, wire insulation tends to crystallize as it ages, becoming brittle and prone to cracking and chipping. Damaged insulation exposes the current-carrying wire to its surroundings, increasing the chances that an arc may occur. Situations in which arcs may be created:

• electrical cords damaged by vacuum cleaners or trapped beneath furniture or doors.
• damage to wire insulation from nails or screws driven through walls.
• appliance cords damaged by heat, natural aging, kinking, impact or over-extension.
• spillage of liquid. 
• loose connections in outlets, switches and light fixtures.

Where are AFCIs required?

Locations in which AFCIs are required depend on the building codes adopted by their jurisdiction. Home Inspectors are responsible for knowing what building codes are used in the areas in which they inspect. The 2006 International Residential Code (IRC) requires that AFCIs be installed within bedrooms in the following manner:

E3802.12 Arc-Fault Protection of Bedroom Outlets. All branch circuits that supply120-volt, single-phase, 15- and 20-amp outlets installed in bedrooms shall be protected by a combination-type or branch/feeder-type arc-fault circuit interrupter installed to provide protection of the entire branch circuit.

Exception: The location of the arc-fault circuit interrupter shall be permitted to be at other than the origination of the branch circuit, provided that:

The arc-fault circuit interrupter is installed within 6 feet of the branch circuit overcurrent device as measured along the branch circuit conductors, and The circuit conductors between the branch circuit overcurrent device and the arc-fault circuit interrupter are installed in a metal raceway or a cable with metallic sheath.

The National Electrical Code (NEC) offers the following guidelines concerning AFCI placement within bedrooms:

Dwelling Units. All 120-volt, single phase, 15- and 20-ampere branch circuits supplying outlets installed in dwelling unit in family rooms, dining rooms, living rooms, parlors, libraries, dens, sun rooms, recreation rooms, closets, hallways, or similar rooms or areas shall be protected by a listed arc-fault circuit interrupter, combination-type installed to provide protection of the branch circuit.

Home inspectors should refrain from quoting exact code in their reports. A plaintiff's attorney might suggest that code quotation means that the inspector was performing a code inspection and is therefore responsible for identifying all code violations in the home. Some jurisdictions do not yet require their implementation in locations where they can be helpful.

What types of AFCIs are available?

The four most common types of AFCIs are as follows:

• Branch/feeder—installed at the main electrical panel or sub-panel.
• circuit—installed in a branch-circuit outlet.
• Combination—complies with the requirements of both the branch/feeder and the outlet circuit AFCIs.
• Cord—a plug-in device connected to the receptacle outlet.

Nuisance Tripping

An AFCI might activate in situations that are not dangerous and create needless power shortages. This can be particularly annoying when an AFCI stalls power to a freezer or refrigerator, allowing its contents to spoil. There are a few procedures an electrical contractor can perform in order to reduce potential “nuisance tripping," such as:

• Check that the load power wire, panel neutral wire and load neutral wire are properly connected.
• Check wiring to ensure that there are no shared neutral connections.
• Check the junction box and fixture connections to ensure that the neutral conductor contacts a grounded conductor.

Arc Faults vs. Ground Faults

It is important to distinguish AFCI devices from Ground Fault Circuit Interrupter (GFCI) devices. GFCIs detect ground faults, which occur when current leaks from a hot (ungrounded) conductor to a grounded object as a result of a short-circuit. This situation can be hazardous when a person unintentionally becomes the current’s path to the ground. GFCIs function by constantly monitoring the current flow between hot and neutral (grounding) conductors, and activate when they sense a difference of 5 milliamps or more. Thus, GFCIs are intended to prevent personal injury due to electric shock, while AFCIs prevent personal injury and property damage due to structure fires.

In summary, AFCIs are designed to detect small arcs of electricity before they have a chance to lead to a structure fire.

Realtor Top Criticisms of Home Inspection Companies – Part 2

Professional Realtors advise prospective homeowners to have a thorough home inspection done by a professional home inspector before purchasing property. Quality home inspections protect buyers from incurring costs after their property purchase. And, quality home inspections for sellers are sure to help sell a property faster and, for more money.

Exceptional service does not have to come at an extravagant price. But, shopping for the lowest price will usually buy the lowest quality. Just like Realtors, an experienced, quality professional home inspector and the report they provide are worth the home inspection fee. So, why is it that one of the most common criticisms of home inspection companies is the fee?

#2.) The Home Inspection Fee

What do experienced, quality Realtors charge? 6% or more of the property sale price? 6% of $150,000 is $9,000. That is a significant amount to add to a buyers mortgage. Then a portion of that goes to the Realtors brokerage. Do prospective home buyers or sellers shop for a real estate agent with the lowest commission fee? Sometimes. But not if they are smart. So why shop for the cheap home inspection?

The old adage , "You Get What You Pay For" is just as true for Realtors and Home Inspectors as it is for any other purchase or investment. Are there real estate agencies that cost less and charge smaller commissions? Yes. The "Help You Sell" type agencies for example charge only 4.5% or even less. Are the Realtors and Professional Home Inspectors worth their money? As a Realtor, are you worth what you charge? Your answer is "Of course I am". My response: "I believe you". And, I am also worth what I charge for a quality home inspection. Not all home inspectors or the reports they produce are the same. Home Inspectors who are worth their fee offer many advantages that set them apart from the cheap inspections.

As a Professional Home Inspector, I am not an alarmist or a "deal killer" type of inspector. The inspector you refer shouldn't be either. A quality home inspector does not provide "soft" inspection reports but at the same time understands that most any defect in a property can be fixed. A Professional Home Inspector knows how to keep the little things in perspective. As a Professional Home Inspector, I also back my inspections with a 100 Day Limited Warranty to resolve any "after the sale" problem calls.

Professional Home Inspectors like Selman Home Inspection are well trained, certified, licensed by their state and carry E & O insurance, vehicle insurance and liability insurance. All considerable overhead business costs. Quality home inspectors are confident in evaluating 1000's of individual items in the most important systems of a home including foundation, electrical, plumbing, structural, HVAC and roofing and reporting any defect in these systems in a non-alarmist manner. Quality home inspection reports are easy to read, easy to understand, provide positive solutions and digital photos for clarity.

Every home inspection is different in the condition of the property, the age of the property, the quality of the original construction and the quality of any repairs or upgrades that have been made. I have never completed an inspection in less than 4 hours. Some have taken as long as 8 hours. Doing a complete and thorough home inspection is hard work and requires tremendous knowledge.

I am a Professional Home Inspector and, I am worth my fee. If the inspector you are using makes you criticize their fee, find another one. Like real estate agents, there are lots of home inspectors. As a quality home inspection company, it is my job and my business to provide a complete evaluation of a property, and, to reinforce the buying or selling decision. Remember, "You get what you pay for".

In part 3 of this series, we will discuss "Put it back like you found it". Until next time....

Selman Home Inspection Company
Serving All Of North Texas
www.selmanhomeinspections.com
“Accurate Investment Protection You Can Trust”

Realtor Top Criticisms of Home Inspection Companies - Part 1

As a North Texas Home Inspection Company, I am always working to improve how my company performs home inspections and building relationships with Realtors and clients through education about home inspections. And, I believe that eliminating (or at least minimizing) the top criticisms Realtors and clients have of home inspectors is good for my industry, the real estate industry, good marketing and valuable for educating Realtors about the nature of home inspections. In this multi-part blog post, I will be listing the top criticisms many home inspectors hear from Realtors and their clients and discussing how my North Texas home inspection company overcomes these criticisms.

#1.) Embellishment of Home Inspection Findings

While I have not had this problem reported as a criticism of my home inspection reports, I have heard it about other home inspectors from agents and clients who have had inspections from other companies. Based on my reading of a few other home inspectors reports, embellishment of deficiencies in home inspections come from two or three kinds of inspections. First, there are new home inspectors who lack experience in report writing and will dwell on simple deficiencies far to long, sometime just trying to show what they know. Second, there are home inspection reports on properties in very, very good condition where the inspector could find very little to report. In these cases, the inspector would sometimes make simple, minor deficiencies sound like the house was going to fall down if it is not corrected. Third, there are the home inspectors that Realtors refer to as "alarmists". These inspectors tend to expound and exaggerate the reported problem (deficiency) to the point that the home inspection report scares or "alarms" the client and, sometimes, causes the client to back out of the deal.

The solution in my opinion is to simply and accurately state what the deficiency is according the the Standards of Practice and whether or not it is a safety hazard. Then tell ( in writing ) what field of home improvement specialist the inspector would recommend to evaluate and repair the problem. For the most important items, I will often also quote the SOP (Standards of Practice) to describe the problem. Rarely if every, do my inspections quote "building codes".

In my view, it is important that home inspectors report problems effectively but in a non-alarmist manner. Almost every common problem a home inspector can report has a viable solution. Every minor crack in the drywall is not evidence of a serious structural or foundation problem and should not be embellished. Good home inspectors know the difference between the severities of defects they find. Even when a serious defect is reported, it should be reported concisely, to the point and in simple to understand terms for both the Realtor and the client.

In Part 2 of "Realtor Top Criticisms of Home Inspection Companies, I will be writing about the dreaded subject of "Home Inspection Fees". Until next time, God Bless.