November 2015 Reporter

ASHI

11.15

REPORTER

Inspec tionW Sched orld ® ule-at -a-Gla nce Page 6

Inspection News & Views from the American Society of Home Inspectors, Inc.

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Basement Walkouts

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The Word: Electrical Systems: Questions and Answers

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Company Identity: Segmentation, Targeting and Positioning

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NEW! Around the CoRner

WHAT’S TRENDING IN RENOVATION NATION

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On My Mind: Increasing the Bottom Line

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11.15

REPORTER ASHI

November 2015

Vol. 32, #11

Features

6 Schedule-at-a-GLANCE

7

InspectionWorld® 2016 Exciting Education Program Line-up Planned Michele George, Director of Education and Events

The Industry’s First AFCI Outlet

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Home Inspectors Take Note! What’s Trending (and What’s Not) In Renovation Nation Carol Dikelsky

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Basement Walkouts

Alan Carson, Carson Dunlop

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National Home Inspection Manual Tops the ASHI Bestseller List Randy Sipe, ASHI President Elect 2015

The Word: Electrical Systems: Questions and Answers

Bruce Barker, ACI

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Company Identity: Segmentation, Targeting and Positioning Alan Carson, Carson Dunlop

Departments 15 Insider Tips for Smart Inspectors Tom Feiza, Mr. Fix-It, Inc.

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16 Affiliate Spotlight OREP

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The ASHI School The ASHI School Staff

26 You Tell Us Letters From Our Readers

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28 Services Spotlight Mike Lane, Basement Systems

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ASHI Community

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Your ASHI

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THE FUTURE IS ON®

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ASHI Reporter • November 2015

Postcards From the Field It’s Wacky Out There

On My Mind

Alden Gibson, ASHI President

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Membership News, Event Calendar, Endorsed Member Programs

35 Around the CoRner

Jim Funkhouser, Speaker, ASHI Council of Represenatives 37

Visit leviton.com/afci

New Inspector Status, Chapters, Education

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Leviton 2 leviton.com/afci BusinessRisk Partners 5 inspectorinsurance.com InspectionWorld® 6 InspectionWorld.org Allen Insurance Group 13 allenins.com OREP 17 OREP.org EBPHI 18 NHIEStudyGuide.org InspectIT 25 InspectIT.com How To Operate Your Home 27 HowToOperateYourHome.com

American Home Warranty Co. RTCA Fort Reports 3D Inspection The ASHI School America's Call Center Target Sun Nuclear Corporation HomeGauge

29 ahomewarranty.com 29 RTCA.com 29 fortreports.com 30 3dinspection.com 30 theASHISchool.com 30 americascallcenter.com 36 TargetProIns.com 39 sunradon.com 40 HomeGauge.com

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ASHI National Officers and Board of Directors

Home Inspectors: Groundbreaking E&O/GL from BRP

Educated. Tested. Verified. Certified.

A SH I M ISSIO N S TATEM ENT To set and promote standards for property inspections and to providethe educational programs needed to achieve excellence in the profession and Officers Alden Gibson, President Breslau, ON, 519-648-3963 alden@inspectgib.com Randy Sipe, President-Elect Spring Hill, KS, 913-856-4515 randy@familyhomeinspections.com Howard Pegelow, Vice President Gilbert, AZ, 414-379-4186 hpegelow@yahoo.com

Directors Lisa Alajajian 2013-2015 Milford, MA, 508-634-2010 homequest1@comcast.net James Allen 2013-2015 Overland Park, KS, 913-894-5893 james@sweethomeinspections.com Bruce Barker 2015-2017 Cary, NC, 919-322-4491 bruce@dreamhomeconsultants.com Ken Harrington 2015-2017 Delaware, OH, 614-507-1061 inspectorken@rrohio.com C. Blaine Illingworth III 2015-2017 Harleysville, PA, 610-565-4181 housemechanic@hotmail.com Keven Kossler 2015-2017 Huntersville, NC, 704-875-3200 Team@CastleCheck.com Bruce Labell 2015-2017 Scottsdale, AZ, 602-765-2140 inspect@cox.net

Tim Buell, Treasurer Marysville, OH, 614-746-7485 tim.buell@gmail.com Larry Cerro, Secretary Tallahassee, FL, 850-222-4404 larrycerro@comcast.net Bill Loden, Immediate Past-President Madison, AL, 256-464-7060 insight@knology.net Scott Patterson 2013-2015 Spring Hill, TN, 615-302-1113 scott@traceinspections.com Robert Peterson 2013-2015 Carmel, IN, 317-581-0074 inspectorbobp@sbcglobal.net Tony Smith 2015-2017 Cedar Rapids, IA, 319-533-4565 inspecthathouse@netscape.net Mike Wagner 2014-2016 Westfield, IN, 317-867-7688 mwagner@ralis.com Robert Walstead 2013-2015 Colorado Springs, CO 719-495-2652 rwalstead@aol.com Kevin Westendorf 2014-2016 Mt. Pleasant, SC, 843-881-7842 kevinw@lowcountryhome inspection.com

Donald Lovering 2015-2016 Auburndale, MA, 617-698-3903 lovering@earthlink.net

American Society of Home Inspectors, Inc. 932 Lee Street, Suite 101 Des Plaines, IL 60016

ASHI Reporter • November 2015

Home Inspectors are expected to know everything about every house they inspect. Unfortunately, suits for negligent pre-purchase inspection are all too common. If a suit is brought, inspectors often feel safe with a clause in their contract limiting damages to the fee paid. Courts have disagreed and continue to award damages.

Frank Lesh, Executive Director, 847-954-3182, frankl@ashi.org Bonnie Bruno, Executive Assistant, 847-954-3177 bonnieb@ashi.org Education, CE Approval, Smart Track, InspectionWorld

Michele George, Director of Education & Events, 847-954-3188 micheleg@ashi.org Membership, Chapter Relations, Booth Rental, Product Orders

847-299-2505 (fax) Reporter only E-mail: frankl@ashi.org Advertising: Dave Kogan Phone: 847-954-3187, E-mail: davek@ashi.org

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Russell Daniels, Assistant Executive Director, Director Membership and Chapter Relations, 847-954-3185, russelld@ashi.org

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Mark Lester, Membership Services Coordinator, 847-954-3176 markl@ashi.org Janet George, Membership Services Supervisor, 847-954-3180 janetg@ashi.org Jen Gallegos, Membership Administrator, 847-954-3175 jeng@ashi.org

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Accounting

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Toni Fanizza, Bookkeeper, 847-954-3190, tonif@ashi.org Beverly Canham, Financial Assistant, 847-954-3184 beverlyc@ashi.org

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Website, Information Systems, Database

Mike Rostescu, Director IT & Internet Communications 847-954-3189, miker@ashi.org Publications, Advertising, Marketing, Public Relations

Dave Kogan, Manager of Marketing & Business Development 847-954-3187, davek@ashi.org Arlene Zapata, Graphic Design Manager, 847-954-3186 arlenez@ashi.org The ASHI School

847-954-3186 Reporter calls only

ASHI REPORTER – ISSN 1076-1942 – the official publication of the American Society of Home Inspectors, Inc. (ASHI), 932 Lee St., Suite 101, Des Plaines IL 60016, is published monthly. Annual subscriptions: $44.95 to non-members. Periodical postage paid at Des Plaines, IL 60016 and additional mailing offices. POSTMASTER: Send address changes to ASHI Reporter, 932 Lee Street, Suite 101, Des Plaines, IL 60016-6546.

Copyright© 2015, ASHI. None of the content of this publication may be reproduced, in any manner, without the prior written consent of the publisher. Inclusion of or specific mention of any proprietary product within does not imply endorsement of, nor does exclusion of any proprietary product imply non-endorsement, by the American Society of Home Inspectors, Inc. Opinions or statements of authors and advertisers are solely their own, and do not necessarily represent the opinions or positions of ASHI, its agents or editors. See above for information pertaining to submission of articles, advertising and related materials.

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Main Phone: 847-759-2820, 8:30 am - 5:00 pm Mon. - Fri., CST Executive Director

Speaker, Council of Representatives: Mark Londner 2014-2016 James Funkhouser 2015-2016 Purcellville, VA, 540-668-6339 Manassas Park, VA, 703-791-2360 mark@LBIhome.com jfunkhousr@aol.com

Publisher: Frank Lesh Editor: Carol Dikelsky Art Director: Arlene Zapata, Jr. Designer: Juraj Ilavsky

ASHI STAFF

Kendra Eiermann, Manager, 888-884-0440 or 847-954-3178 kendra@theashischool.com Steve Reilly, Senior Sales Representative, 888-884-0440 or 847-954-3181, steve@theashischool.com Kimberly McGraw, Administrative Assistant, 847-954-3198 kim@theashischool.com

Up to 10% discount for ASHI members

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ERRORS & OMISSIONS (E&O) HIGHLIGHTS: Coverage for Lead Paint, Termite and Mold Defense Coverage (Except LA) Real Estate Referring Parties Premises Liability Commercial Inspections (up to 50,000 square feet) Indoor Air Quality Radon Testing Thermal Imaging Optional coverage for Pool/Spa, Septic and Carbon Monoxide 50% deductible credit for mediated claims Protection for your spouse against claims No minimum earned premium Limit options from $100K to $3M 2 hours of FREE Risk Management Advice

GENERAL LIABILITY (GL) HIGHLIGHTS: • Policy limits up to $1M/$2M • Deductibles starting at $250 • Premiums starting at $315 This list is solely intended to be a summary of policy coverage.

Please reference the actual policy for specific terms and conditions.

The policy supersedes all representations made above.

Quote: www.inspectorinsurance.com Questions: Tennant Risk Services 866.268.1327 5November 2015

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SCHEDULE AT-A-GLANCE InspectionWorld® 2016: Exciting Education Program Line-up Planned

Home Inspectors, Take Note! What’s Trending in Renovation Nation

Home Inspectors, Take Note! What’s Trending (and What’s Not) in Renovation Nation

Come to IW San Diego, learn from top industry experts and to meet other home inspectors. Visit vendors in the busy expo hall and explore new tools and technology. You’ll head home with new ideas, energized and prepared to move forward in your business.

IW 2016 Education Program: An exciting line-up of topics, current and relevant for today’s home inspector.

Select one session to attend from the five sessions offered at each class time indicated. Course descriptions and speaker bios are located under Session Information on the www.inspectionworld.com website. Earn 20 ASHI CEs, 18 CREIA CEs, state CEs and many industry association credits.

Friday, January 22 • Saturday, January 23, 8:00 AM – 5:00 PM

Tuesday, January 26, 1:00 PM – 3:00 PM

Pre-Conference - California Plumbing Code Exam Certification 16 hours Pre-Conference - Certified Residential Thermographer 16 hours

What Chimney Sweeps Encountered in 2015 2016 Advanced Electrical Single Phase Significance of Finding Vermiculite Attic Insulation ASHI Pool and Spa Standards Marketing Your Home Inspection Business for Growth

Sunday, January 24, Morning Sessions Pre-Conference - NADRA Deck Evaluation Certification Class 8:00 AM – 12:00 PM 4 hours Pre-Conference Getting to the Root of It! Sewer Line 9:00 AM – 12:00 PM Inspections Class — 3 hours Monday, January 25, 9:00 AM – 11:00 AM Inspecting Electrical and Electrical Safety Uncontrolled Air Flows in Homes Radon- Marketing to Realtors Infrared Cameras and Infrared Applications Tax Strategies for Home Inspectors FEMA P50 – Simplified Seismic Assessment of Wood-framed Dwellings, Part 1 FEMA P50 – Simplified Seismic Assessment of Wood-framed Dwellings, Part 2

Jason Brozen Joe Konopacki, ACI Matt Hendrick Bill Fabian Maine Shafer, J.D. 9:00 AM – Noon 9:00 AM – Noon

Monday, January 25, 1:00 PM – 3:00 PM Plumbing and Codes including Water Heater Requirements Water Intrusion into Buildings Forensic Investigations Environmental Issues of the 21st Century Inspector Safety Managing Risk and Time

Mike Casey, ACI MCI Tom Feiza, ACI Ron Passaro, ACI David Goldstein, ACI Dan Huber

Monday, January 25, 4:00 PM – 6:00 PM Asphalt Shingles and Flat Roofs High Efficiency Gas Furnaces Wood Destroying Insects, Bedbugs and other Household Pests Inspection of Decks Inspection Apps for Smart Phones, Inspection Hardware and Backing Up

Gerry Aubrey, ACI Alan Carson, ACI James Nemastil, ACI Marco Vovk, ACI John Bouldin, Ph.D. Dominic Maricic

Tuesday, January 26, 9:00 AM – 11:00 AM

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Inspecting Hard Coat Stucco Inspection of AMSV (Adhered Manufactured Stone Veneer) Mold Testing and Lab Report Interpretation “Live” Video Inspection

Mark Cramer, ACI Mark Parlee Eric Ciotti Andy French, ACI, Frank Lesh, ACI Mike Casey, ACI John Gamache, ACI Bob Davidson, ACI

Grow or Quit?

FEMA P50 – Simplified Seismic Assessment of Wood-framed Dwellings, Part 1 FEMA P50 – Simplified Seismic Assessment of Wood-framed Dwellings, Part 2

Kirk Bingenheimer, ACI 9:00 AM – Noon

ASHI Reporter • November 2015

9:00 AM – Noon

Ashley Eldridge Bryck Guibor, ACI Edward Cottingham Bruce Barker, ACI Graham Clarke, ACI

By Carol Dikelsky

Tuesday, January 26, 4:00 PM – 6:00 PM Defect Recognition, Effective Reporting and SOP Inspecting Old Homes from the Ground Up Indoor Air Quality Testing during a Home Inspection Inspecting a Tile Roof and Solar Array Attachment

Secrets to Jump Start Your Business FEMA Disaster Inspections

JD Grewell, ACI David Rushton, ACI Dr. Steve Froelicher John Jensen Gary Manlove Jeff Donaldson, ACI John Botero

Wednesday, January 27, 8:00 AM – 10:00 AM Basic Residential Heating and Cooling Major Home Deficiencies - The 10 Plagues

Decentralization, The Future of Water Drones, Quad Copters/Drone Ground Crawlers and Home Inspections Is Your Website Driving Customers Away?

Dan McLaughlin James Nemastil, ACI Marco Vovk, ACI Dr. Richard Forde Keven Kossler, ACI Bruce LaBell, ACI Lisa Jensen

Wednesday, January 27, 10:30 AM – 12:30 PM Defect Recognition & Diagnosing Home Improvement and Homeowner Cover-ups Pre-Fab Fireplaces Residential Energy Inspections and Energy Audits Not your Typical Inspection: CSST Gas Piping Systems QuickBooks Workshop for Home Inspectors

Stephen Gladstone, ACI Skip Walker, ACI Jim Hemsell, ACI Robert Torbin, P.E. Steven Z. Freeman, CPA

Wednesday, January 27, 2:00 PM – 4:00 PM Causes, Symptoms and Solutions to Common Foundation Problems EIFS- Identify Common Installation Deficiencies and What to Report Earthquake Vulnerabilities and Effective Strengthening Methods Fire Protection Running a Multi-Inspector Home Inspection Company

Jeff Kortan, P.E. Frank Libero, ACI Thor Matteson, S.E. Claude Lawrenson, ACI Reuben Saltzman, ACI

Post-Conference, Thursday, January 28 Guided Tour of Univ. of California-San Diego Earthquake Shake Table Thursday, January 28 • Friday, January 29 • Saturday, January 30 Commercial Building Inspection Course

Richard Weldon P.E.

M

akeovers, upgrades, improvements—homeowners love them all. HGTV and DIY Network feature incredible before-and-after projects, and viewers respond by calling in a home remodeling expert or shopping for new gadgets, products and styles to replicate what they see. Whether people hire a certified professional to do a major renovation project or if they choose to tackle upgrades on their own, home inspectors are among those who will see the results of the good, the bad and the in-between outcomes.

Recently I talked with David Pekel of Pekel Construction and Remodeling, a design/ build/remodeling firm based in Wauwatosa, WI (www.pekelconstruction.com), about trends and topics in the renovation and remodeling industry that could affect home inspectors on the job. According to Pekel, who is secretary of the National Association of the Remodeling Industry, home inspectors can help their clients simply by being able to identify and use the most common new technology and trends in home renovations and by being able to spot signs of outdated renovations that may cause problems.

Home Renovation and Technology Trends

(

Pekel identified technology-based

systems as the most

noteworthy trend

in home renovation

today. He said, “Tech-

nology in homes is

moving at warp speed.

Being in-the-know

can be as easy as

having a general under-

standing of how a remote-controlled

system works.”

• Thermostats • Garage doors • Fire detection systems • Mold and moisture control systems, particularly in bathrooms Some technology “learns” the typical settings that a user chooses and automatically applies those settings on schedule or demand.

The following technology-related products stand out.

Remote-controlled fixtures and features.

Homeowners can install a variety of useful products that can be controlled using a home-based unit, smartphone or other device, including: • Light bulbs, light switches and electrical outlets

Home security systems. Whole-house security systems are on the rise. Home renovations typically involve installing cameras and intercoms that work with smart technology.

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Home Inspectors, Take Note! What’s Trending in Renovation Nation

Safety systems are popular with aging adults, millennials with young children and people living independently. Electronic alerts allow users to see who is coming to the door even before the visitor rings the doorbell. Some technology allows users to set doors to unlock at a certain date or time so that an aide or neighbor can enter to do housework, deliver groceries, provide health care or check on a pet.

Technology in the bathroom. Home inspectors typically check exhaust fans in bathrooms—if you haven’t yet seen one that turns on when it senses motion or humidity, you probably will soon. These fans are designed to turn on and off as needed, depending on the relative humidity level in the room. New light fixture designs also sense and react to motion. These features are not only trendy but they also can add value by lowering the risk for mold and saving energy costs.

Home comfort and health. These technology-charged comfort and health-related features are gaining popularity, especially among people with allergies or other medical issues: • Electronic air purifying devices • Heat recovery ventilation (HRV) systems • Water quality systems

Home Energy Trends Solar power. “We’re seeing an increase in clients requesting solar-generated power as part of their remodeling projects,” said Pekel. As a result, home inspectors should understand some basics regarding solar power at home. For example, some solar systems don’t store the energy; the energy is used as it is generated. Other solar systems are equipped to store energy; people with these types of systems use batteries to store the power until it’s needed. Batteries may be kept on a wall rack, using vertical space.

example, an unsafe location for a generator is directly under a bedroom window).

Spray foam insulation. The sealing of attic space with spray foam insulation should not be too tight; however, adhering to this detail often depends on the installer’s expertise level. Home inspectors may want to note whether the air exchange rate is satisfactory, and if it is not, suggest that the client contact an energy auditor for a comprehensive assessment.

In a home with solar power, home inspectors could ask these questions:

Right: Breezway Top: Tile renovation Left: Heat Recovery Ventilation (HRV) system

• Where are the batteries?

• What condition are the batteries in?

• Is there ample air exchange in the location where the batteries are being stored?

Generators. Natural gas-powered generators can be a critical need for people with medical issues that require access to consistent power. Home inspectors can look at the overall functionality of the generator and transfer panels and check whether the unit’s location is safe (for Solar Power

Geothermal heating and cooling. The use of geothermal power is gradually developing, especially in rural areas and among those who can afford to make the major changes required. Issues with geothermal systems are very different than those related to conventional forced-air or boiler systems, and, as a result, home inspectors should recommend that clients contact an expert with appropriate knowledge and training to make an assessment.

Rainwater and gray water recovery systems. In an effort to be ecofriendly, some people install rain or gray water recovery systems to collect water from their shower and sinks. The system diverts the excess water to a holding tank, and then the homeowner can use the water for other purposes, such as watering gardens or plants.

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To learn more about any of these types of products or systems, home inspectors can search the Internet or visit a home improvement store to compare the examples of remodeling trends on the professional and retail level.

ASHI Reporter • November 2015

Outdated Trends and Sub-Par Renovations Home remodelers are often hired to redo jobs that were not done by professionals.

Pekel said, “To prospective homeowners who are touring a home at 30 miles an hour, it all looks good, but when they start living with it, they see the problems.” And, he added, they often need to call in professionals with the knowledge and practical experience to fix big and small issues.

Home inspectors often are in a position to notice issues associated with poorly executed projects or outdated remodeling trends. Pekel listed the following examples to watch for: • Atmospheric water venting that routes up through the chimney and wastes energy • Analog thermostats • Ball valves: Remodelers now recommend using ¼-turn valves in sinks and bathrooms.

• Water heaters and washers in condos and in homes built without foundations: These previously had catch basins for leaks, but now they should have electronic automatic shutoffs.

• Shower tiles installed over inappropriate substrates or with incorrect adhesives: This can lead to failure, breakage and ongoing problems.

• Exhaust hoods in the kitchen that “vent to nowhere” • Breezeways constructed with a lot of creativity, but perhaps not adequate skill Buyer, Beware… and Home Inspector, Take Care

With the prevalence of DIY projects featured in the media, people feel empowered to attempt ambitious renovations in their own homes; however, a “buyer beware” outlook is important for a person planning to purchase a home with these “improvements.” Home inspectors can help prospective buyers go into a new home with eyes wide open.

( Pekel concluded,

“Generally, the goalposts keep moving in building systems and technology. It’s helpful for home inspectors to know what good working conditions look like.

It’s also a good idea to expand your horizons so you can look beyond what you’ve seen before and become familiar with what’s to come.”

Carol Dikelsky recently joined the ASHI Reporter editorial team. Her experience includes more than 20 years of editing, writing and managing projects for a variety of association, health care and community-based publications. H

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Basement Walkouts

When adding a basement walkout to an existing house, it’s a huge job to underpin the house foundations and footings in the vicinity of the walkout. A more common approach in many areas is to protect the walkout excavation from frost with rigid insulation before the walkout is constructed. This slows the rate of frost penetration into the soil and, if done properly, will help prevent frost heaving problems to the basement walkout and the adjacent house wall.

Basement Walkouts

By Alan Carson, Carson Dunlop, www.carsondunlop.com

N

ote: This article applies to regions with basements that are subject to freezing temperatures.

Houses in cold climates may have an entrance straight into the basement from the outside. Creating this entrance usually requires soil excavation (except on sloped lots). The walls of the stairwell are retaining walls. A railing is needed to protect people moving up and down the stairs. A guard should be provided around the opening to protect people passing by the walkout. A drain at the bottom prevents the stairwell from filling up with water. The door opening should have a raised threshold to protect against water or snow from entering under the door.

Now let’s look at some of the problems to watch for. Problems with walkouts are commonly related to the following:

Although simple to describe, basement walkouts are tricky to build.

Basement walkouts, especially if added after original construction, should be inspected with caution. Basement walkouts typically have to resist lateral soil pressure and frost pressure. You will find few walkouts that are perfect. You will have to use your professional experience and judgment to evaluate the performance and identify what should be corrected. You should inspect walkouts from inside the home as well as outside. The illustration and the photo on this page show what things should look like.

Soil Pressure Soil on one side of a wall exerts considerable pressure against foundations, retaining walls and basement walkouts. Wet soil exerts more pressure. Soils that expand when wet exert even more pressure. When wet soils freeze, the water expands and the soil exerts more pressure still. Hydrostatic pressure and frost pressure in the soil below also can cause heaving. Let’s take a closer look at frost.

A well-constructed basement walkout with no damage to the retaining walls, a drain at the bottom and railings. Note: In new construction, the handrails would return to the walls.

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ASHI Reporter • November 2015

•W alls cracking, leaning, bowing or spalling, due to soil pressure, hydrostatic pressure and frost pressure • Steps, railings and guards • Drains • Door thresholds • Covers and roofs

Watch for evidence of structural damage to the home and the walkout. Look for walkout doors that don’t open and close freely and those that have been trimmed extensively. Look for doors that have buckled or been crushed. Look for cracks around door frames on the inside and outside of house foundation walls. Look at the house foundation walls for evidence of inward movement. This may be leaning or bowing. These often are accompanied by horizontal cracks.

Cracks, heaving, bowing. Look for bowing, leaning and cracks in the walls of the stairwell itself. The walls of the basement walkout must be built as retaining walls to withstand the lateral soil pressure. As previously discussed, the pressure exerted on one side of the wall by the soil can increase dramatically if the soil is wet, if the soil is expansive or if it freezes. The more water there is in the soil, the greater the hydrostatic pressure.

Frost Protection Frost goes deeper. In freezing climates, basement walkouts must have adequate frost protection. Frost penetrates deeper where a basement walkout is created. In an area where frost goes down three or four feet into the ground, and the grade level adjacent to the foundation and footing system is dropped five feet by creating a basement walkout, the frost now goes three or four feet down below the bottom of the stairwell. Frost can now get three or four feet below the bottom of the new grade level, below the foundation and footing of the home.

Damage due to frost heaving is a significant risk. Frost damage is likely to be most severe where the soil is wet. Good surface water management, including surface drainage and free draining soils, helps to minimize the risk.

This crack is consistent with heaving as a result of frost penetration.

Lowered footings. Including a basement walkout during original construction adds to the expense, but the foundation and footing system can be built lower in this part of the house to account for the greater frost depth.

During the home inspection, you will not be able to determine whether the foundations and footings have been lowered, or whether insulation has been added to protect against frost damage.

As with many things in a home inspection, you can’t review the design; you can only evaluate the performance.

The left side retaining wall has a severe vertical crack due to frost pressure.

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Basement Walkouts

Moisture in soil. Even where there is no obvious damage, pay attention to drainage around the stairwell. If the ground slopes down toward the walkout, the frost damage is potentially great. Soil that contains no moisture won’t freeze and expand. The amount of water in the soil determines how much hydrostatic and frost pressure will develop. A granular backfill that is free draining and won’t hold moisture around the basement walkout is good. Silty clay is not as good.

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Check the above-grade house wall. Watch for cracks or evidence of heaving of the steps. If the steps are not level, they have probably moved. Watch for cracking or heaving in the floor of the stairwell.

Perimeter drainage tile. The perimeter drainage tile system often is compromised during the installation of a basement walkout.

The perimeter drainage tile ideally would be rerouted or extended around the walkout and reconnected at both ends. This is rarely done. Clogging or failure of the perimeter drainage tile allows water to saturate the soil around the base of the walkout. Again, this is a recipe for serious frost damage.

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We cover all of this for one low cost starƟng at $1,375 with $1,500 DeducƟble • Errors & Omissions and General Liability (each within it’s own limits) Here’s a poorly constructed walkout with a narrow landing, no raised door threshold and no drain.

No outside traps. Drains at the base of walkouts usually do not have traps because water in outdoor traps would freeze in the winter. The pipe from the walkout drain often connects to an interior floor drain pipe above its trap. This allows the walkout drain to use the trap of the floor drain. In any case, there should be a trap, but it should be inside the perimeter of the building where it is not susceptible to freezing.

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Another Benet: Tough to tell on new work. You won’t be able to see what, if anything, has been done to prevent frost damage in a basement walkout. If the walkout is relatively new, you will have to explain this limitation to your client. Remember that an inspection is a performance-based evaluation. It is not a design review, and it’s not crystal ball gazing. If it hasn’t been around long enough to prove its performance, you simply describe its performance as unproven.

When there is a problem, you may not see the causes, only the result. Repairing a basement walkout typically costs thousands of dollars. Repairing the house foundations may cost even more. Be careful with basement walkouts.

Drains Drains are needed in the floor of uncovered basement walkouts because rain and snow will accumulate here. Overflowing gutters or poorly arranged downspouts also may dump a good deal of roof water directly into the stairwell.

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ASHI Reporter • November 2015

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Mike Casey with Michael Casey Associates performs our claims analysis and expert work Our policy requires your consent to se�le a claim Other drainage possibilities. Sometimes the drain discharges to a French drain (buried gravel pit). On a sloping lot, the drain may discharge out through a hillside, well away from the building.

Drains discharging to daylight should have grates to keep animals out. All drains must flow by gravity.

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Drains may be missing, clogged or broken, or undersized.

Missing drains. There should always be a drain at the base of a walkout unless there is a watertight cover or roof above. The 13November 2015

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Basement Walkouts

Insider Tips

for Smart Inspectors

basement may flood, or there may be damage to the basement door.

Make sure there is a drain if there is no watertight cover or roof structure. If you can’t tell because of snow and ice buildup, for example, let the client know that you could not verify that there is a drain. Explain the importance of a functional drain and recommend follow-up by the client.

Clogged or broken drains. A clogged drain is usually a minor maintenance issue. A broken drain is more serious and may be the result of building settlement or pressure from tree roots, for example.

A clogged or broken drain has the same implication as a missing drain. Look at the drain to see if it’s clear. The drain should have a grate to keep debris out. There should be no standing water in the drain. Look also for a high watermark on the door or on its frame or on the walls or steps, suggesting chronic drain problems. Look for staining or debris accumulation around the drain, which may indicate blockage or damage. The drain may be clogged or broken somewhere you can’t see.

It is beyond the scope of a home inspection to flow-test drains.

Never say a drain is working properly or is correctly sized. It’s more appropriate to say that you see no evidence of issues, if that’s the case. Better still, in our opinion, say nothing if you see no issues and only report adverse conditions. Alternatively, you can say that the system was examined and no adverse conditions were observed.

Undersized drains. Walkout drains and drain pipes should be a minimum of three inches in diameter. Smaller pipes will clog more easily and may not have enough capacity to handle a sudden downpour. An undersized drain pipe is an installation defect. Check the size of the drain opening, and make sure the pipe under the opening is the same size. Although a drain smaller than three inches may have been there for some time and may look like it’s working adequately, you should report this as not consistent with generally accepted practices.

Wet Basement?

Look Outside

A Word About Basement Egress Window Wells Retrofit basement egress window wells have many of the same conditions we’ve described in this article. Keep these issues in mind when looking at window wells.

he customers always call after a heavy downpour. “You inspected our home last fall, and now we have a leak in the basement.”

If they are reasonable folks, they will add, “What do you think we should do?” If they are upset about a wet carpet and damaged drywall, they may say, “This is your problem.

We hired you because we did not want a wet basement. How will you fix this?”

Summary In this article, we’ve introduced basement walkouts and some of the common issues associated with them. In the ASHI@HOME training program, this discussion is extended to address door thresholds, steps and railings, guards and walkout covers. We also detail the causes of problems, implications and strategies for inspection.

Thanks to Kevin O’Hornett and Roger Hankey for their valuable contributions to this article. H

ASHI New England’s 11th Annual Conference and Expo held September 14-15 in Randolph, MA Front Row left to right: Lisa Alajajian Giroux, Greg Boyd, Randy Sipe (ASHI President Elect), Mike Atwell (New England Chapter President), Don Bissex, Alex Steinberg.

Back Row left to right: James Brock, Michael Heneghan, Michael Licari, Lenny Licari, Ernie Simpson, David Rossinow

Bottom: Over 100 Attendees each day, with 20 Affiliate Member Sponsors in our Expo Hall.

By Tom Feiza, Mr. Fix-It, Inc. • HowToOperateYourHome.com

T

You dig out your report and hopefully find recommendations for proper maintenance and conditions that must be corrected to keep the basement dry. You visit the customer and gently explain that plugged, overflowing gutters and lack of downspout extensions caused the problem. You point out exterior maintenance needs outlined in your report (recommendations that the seller or the new buyer didn’t follow).

What should you do to prevent this common issue? You can’t stop rainstorms, so always check grading, gutters and downspouts, and suggest proper maintenance.

Prevention is key Make sure you note any signs of water intrusion in the basement and lower level, and specify whether the stains are dry or wet.

Suggest that the buyers ask the owners to explain any stains in the basement – they live there, so they may know the cause. Make a note that one home inspection visit will not reveal all issues related to water leaks. Then look to the outside for any source of water intrusion. Many times, simple maintenance will prevent basement leak problems, but your report must identify the maintenance needed.

Even if the basement is totally dry with no signs of water intrusion, always suggest proper maintenance of grading, gutters and downspouts. Check the gutter and downspouts to ensure that they capture water and direct it away from the foundation. Suggest raising downspout elbows as needed – a detail

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ASHI Reporter • November 2015

that is often incorrectly handled. Sometimes, downspouts extend six feet but tip back into the foundation because the elbow is too low. (See illustration B153C.) Surface water must drain away Always suggest maintenance of surface drainage away from the foundation. If the soil surface is not sloped away from the foundation at least ½ inch per foot for about six feet, describe the issue and the corrective work needed. If concrete is not sloped away from the foundation about ¼ inch per foot, you must describe this defect and explain that it must be corrected.

Check and describe the condition of the window wells. Are they high enough?

(See illustration B131C.) Soil around the window well must slope away from the foundation. The bottom of the window well should be filled with six to 20 inches of free-draining gravel – not weeds and dirt.

Always remind buyers that they need to maintain grading, gutters and downspouts to keep their basements dry. And make a note: during one short visit, home inspectors cannot predict the future performance of a basement. If leaks occur after homeowners perform maintenance, you may need to hire a specialist to evaluate and correct the issue.

(See htoyh.com – Free Articles – “Keep Your Basement Dry” for complete information on maintaining a dry basement.)

Tom Feiza has been a professional home inspector since 1992 and has a degree in engineering.

Through HowToOperateYourHome.com, he provides high-quality marketing materials that help professional home inspectors boost their business. Copyright © 2015 by Tom Feiza, Mr. Fix-It, Inc. Reproduced with permission. H

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Affiliate Spotlight

“Thank you. We sure do appreciate everyone at OREP. Worry free service year after year!”

— Alan, HousePro Home Inspections

Complete Coverage Should Never Be Optional National Home Inspection Manual Tops the AHSI Bestseller List

By Randy Sipe, ASHI President Elect 2015 When I was asked to review the NHIE Inspection Manual and Study Guide, I thought it was just going to be a book to help people pass the National Home Inspector Examination (NHIE). Boy, was I wrong. Not only is this a study guide, it’s also a great reference book for home inspectors. The companion book is the study guide, and the two-inch thick manual is a reference for the home inspector or building professional.

My first impression of the manual and its contents was “WOW.” It’s full of easy-to-read sections on components, systems, typical defects, maintenance, safety and industry standards that you use as a home inspector. It also covers the necessary elements of running a successful home inspection business, including startup, the law, inspection agreements, ethics and marketing.

I can easily see why this book is flying off the ASHI shelves. The manual puts the information in logical sequence just as if you were inspecting a house. It explains and illustrates what you should see and then reviews common defects that home inspectors should identify. For inspectors who have not yet taken the NHIE, the companion guide used with the manual will make studying for the test as easy as reviewing what you do as a home inspector and answering practice questions similar to those you can expect on the test.

It’s no wonder these resources make sense— they were written by home inspectors for home inspectors. Did I mention the principal author is Bruce Barker and that the technical reviewers were Mike Casey and Tom Lauhon? It doesn’t get any better than that when it comes to gray matter and inspection experience.

If you haven’t taken the NHIE and have put doing it on the back burner, fear no more. This is your ticket to successfully passing the NHIE and running a successful home inspection business. I used to tell inspectors that every home inspector should carry a copy of Code Check in their vehicle for reference. Now I recommend that not only should you own a copy of Code Check, but you also should have the NHIE Home Inspection Manual. It’s the reference book that will make a difference in your career as a professional home inspector.

Order your copy through the ASHI website at www.ashistore.com. H

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ASHI Reporter • November 2015

A

t OREP, we believe a couple of things. First, we believe that for home inspectors, enjoying a complete package of professional insurance coverage should never be optional. That’s why our home inspector program includes the most important coverages in the base premium in most states. This means peace of mind for every inspector who chooses OREP, not just the ones with the biggest budget.

Second, we believe in Business by the Golden Rule—putting our clients first. Our mission at OREP is to treat everyone the way we like to be treated—with courtesy, honesty and efficiency.

OREP (Organization of Real Estate Professionals), now in its 14th year, is located in San Diego, CA, and has 10 agents/support staff. OREP also publishes Working RE magazine, which is one of the largest print circulation magazines for inspectors in the country and is free to inspectors. There is also a digital version of Working RE specifically for home inspectors that reaches over 16,000 each month. The company is led by Senior Broker David Brauner, who has over 20 years’ experience helping home inspectors place their E&O insurance.

The carrier for OREP’s flagship E&O/GL program is an “A” Rated, Admitted carrier that has been in business since 1852 and was recently named “One of America’s Most Trustworthy Financial Companies” by Forbes magazine.

In most states, coverage in the base package includes E&O, General Liability, Radon, Termite/WDI/WDO, Lead Paint, Pool & Spa, EIFS/Stucco, Indoor Air Quality Testing, Green Building Inspections, Infrared Thermography, Rodent Inspections and more. Mold Coverage and Septic/Water Testing are available for a small additional premium.

Complete Coverage- Low Rates Home Inspector E&O Insurance Premium Coverage, Affordable Price  Included*: General Liability, termite/pest, commercial, radon, lead paint, pool/spa, EIFS/ stucco, indoor air quality testing, green building inspections, infrared thermography, rodent inspections, and more. Mold and Septic/Water testing available.  “A” Rated, Admitted Carrier, Prior Acts, Additional Insured for Agents and other Referring Parties.  Save time with fast application. No quoting, no delays and automatic annual renewal for most inspectors.  Coverage for all inspectors employed by the firm and the first two independent contractors free.

The self-rating application allows inspectors to finish the entire application process in just minutes. In following years, most inspectors enjoy auto-renewal at the same premium or lower with no application required at all.

The carrier’s “First Defense” program defends and protects insureds against meritless and frivolous complaints before they take root, potentially saving inspectors deductible expense, higher premiums and a negative claims history. While every claim is unique, it’s good to have experienced claims adjusters on your side.

Finally, we like to let our insureds speak for us, in this case inspector Henry “Sonny” Toman, who copied us on this e-mail he sent to a fellow inspector: “Hey Matt, I collected many estimates but the combination of value, flexibility and knowledge was unsurpassed by OREP. Maria patiently answered all of my questions and moved pretty quickly when I pulled the trigger. Let’s hope I can never tell you how good the service is beyond that!”

OREP: 6760 University Ave. #250, San Diego, CA 92115 888-347-5273, OREP.org; info@orep.org.

David Brauner Calif. Insurance Lic. 0C89873 H

Find details at www.OREP.org

(888) 347-5273 E&O Coverage Limits

Premium

General Liability

$1,000,000/$1,000,000

$1,700

INCLUDED

$500,000/$500,000

$1,550

INCLUDED

$300,000/$300,000

$1,400

INCLUDED

$100,000/$300,000

$1,250

INCLUDED

*Coverages vary in FL, HI, LA, NY, VT. Ask your OREP agent for details.

SERVICE

We answer the phone!

Senior Broker David Brauner has helped home inspectors with their insurance needs for over 20 years.

OREP’s Mission: Business by the Golden Rule.

6760 University Ave. #250 • San Diego, CA 92115 Fax: (708) 570-5786 • info@orep.org David Brauner: Calif. Insurance Lic. #0C89873 17November 2015

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A look at terms used in home inspection reports

Electrical Systems: Questions and Answers

By Bruce Barker, ACI

O

nce again, The Word invites you to travel into the dark realm of subjects that are sometimes misunderstood by home inspectors. The Word hopes you will find this trip informative and maybe a little entertaining.

Our subject this month is questions. The Word finds this topic interesting because he has the pleasure and privilege of answering a lot of them. Questions show what topics remain in the dark realm of misunderstanding. Asking questions is a great way to learn. The only better way to learn is to try to answer them. The Word has missed writing these columns in part because he learns so much in the process.

Service Amperage A common question is about determining electrical service system amperage. Our Standard of Practice (SoP) requires that we report service amperage. This is usually easy for a newer system that has one clearly labeled circuit breaker. Older systems, however, can present a challenge. The first lesson to learn about this requirement is that it is okay if you cannot determine the service amperage. In this case, report your best estimate, be sure to clearly report that it is an estimate, and recommend evaluation if the client wants more information about the service amperage.

Electrical service system amperage is determined by identifying the component with the lowest amperage rating. We should be able to identify each component in this system (see Figure 1).

An electrical system inspection should include observing each of these components.

Figure 1

The electrical service system begins at the service point. The service point is where the utility’s responsibility ends and the homeowner’s responsibility begins. In service drop configurations, the service point is usually at the drip loops where the service drop conductors connect to the service entrance conductors. In a service lateral configuration, the service point is usually not visible. It is often at or inside the meter base.

The service entrance conductors may be the lowest rated component. This is especially true of older systems that have been updated without a permit. Some electricians will install a higher rated panelboard and service equipment, but leave the lower rated service entrance conductors. This is a dangerous situation because the new equipment can draw more current through the service entrance conductors than is safe. More current means more heat. More heat can melt the service entrance conductor insulation. Fire and electric shock can occur.

Amperage ratings for service entrance conductors are shown in Table 1. Note that Table 1 does not apply to service entrance conductors installed under the 2014 NEC/2015 IRC. The new maximum ampacities are usually lower than those listed in Table 1.

Table 1: Service Entrance Conductor Amperage Ratings Copper Wire Size (AWG)

Aluminum Wire Size (AWG)

Maximum Ampacity

4

2

100

3

1

110

2

1/0

125

1

2/0

150

1/0

3/0

175

2/0

4/0

200

3/0

250 kcmil or 2 sets of 2/0

225

400 kcmil or 2 sets of 4/0

600 kcmil or 2 sets of 300 kcmil

400

Before we move on, it should be noted that the visible parts of the service drop and service lateral are also within the scope of an inspection, even though they are not part of the house electrical service system. We should inspect these components for general condition, such as damage to the service lateral riser and the service drop conductors being subject to damage from trees. That is about all we can do.

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ASHI Reporter • November 2015

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Electrical Systems: Questions and Answers

It should also be noted that the conductor amperage ratings in Table 1 do not apply to the service drop and service lateral conductors. These conductors are the responsibility of the electric utility.

The utility determines the ampacity for their conductors. It is not uncommon for these conductors to be smaller than in Table 1.

The service entrance conductors run through the meter base and meter. The meter base may be the lowest rated component. The meter base in most systems is the rectangular enclosure in which the meter is set. Newer meter bases are rated at 200 amps or more.

The meter base for a very old system may be a small square enclosure, an unusually shaped enclosure or a small circular mounting ring. Sometimes an old enclosure has some type of sheathed cable running to and from it. These older meter bases, especially the very old circular mounting rings, may be rated as low as 60 amps and often are rated at not more than 100 amps. These old meter bases are obsolete. Evaluation by an electrician may be an appropriate recommendation, especially if the downstream components have been upgraded.

The meter may be the lowest rated component. The amperage rating of a modern electric meter is usually printed (in code) on its face, but because there are so many different meters and so many different codes, it is hard for an inspector to determine the meter’s amperage rating. Even if you determine a meter’s amperage rating, that fact may make no practical difference because many meters can accommodate current beyond their rating. Perhaps the best thing for an inspector to do is ignore the meter and concentrate on other components that make more of a difference.

The service equipment may be the lowest rated component. The service equipment is better known as the main shutoff, main breaker or the service disconnect, as well as other similar terms.

The service equipment may be one device or it may be up to six devices. These devices may be in one enclosure or they may be in different enclosures. If there are multiple enclosures, the enclosures should be near each other so that all electricity to the house can be shut off quickly in case of an emergency.

If the amperage rating is marked on a single device, then the service equipment amperage rating is easy to determine. If the amperage rating is not marked, or if there are multiple devices, things are more challenging. One way not to determine the service equipment amperage rating is by adding the amperage of the individual service equipment devices. Individual device amperage ratings have nothing to do with the service amperage.

If the service equipment serves downstream panelboards, it does so through feeder conductors. Feeder conductors may be the lowest rated component. Feeder conductors that run from the service equipment to a primary panelboard are rated the same as service entrance conductors (as shown in Table 1). These feeder conductors are effectively an extension of the service entrance conductors because they serve the entire electrical load of the house.

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ASHI Reporter • November 2015

The panelboard may be the lowest rated component. The panelboard rating should be shown on the label that is usually located on the enclosure door. This label is often absent or faded to the point of being unreadable on older enclosures. If this is the case, there is not much you can do to determine the panelboard rating.

connection sets up the potential for multiple paths through which current can return to its source. This current can create a shock hazard under certain conditions. It also can create heat while flowing through these paths. With enough current, enough resistance and enough time, these paths can get hot enough to cause a fire.

There is a pattern regarding the amperage rating of a component and its location in the system. A higher amperage-rated component downstream from a lower amperage-rated component is usually a bad thing. The higher rated component can allow too much current to flow through upstream components, creating a fire risk. A higher amperage-rated component upstream from a lower amperage–rated component is no problem.

One common situation occurs when the panelboards and enclosures are physically and electrically connected (see Figure 2). In this situation, the panelboards are effectively the same panelboard but happen to be located in different enclosures. Assuming that the grounding conductor between the panels and the nipple connecting the panels are properly bonded, everything should be at the same potential. The risk posed by unintended return paths is so small as to be appropriately ignored.

Is This a Subpanel?

Important disclosure: The discussion in this section is The Word’s commonsense approach to a frequently encountered situation. This approach is not sanctioned by the NEC, although it is frequently accepted by code officials. Although this approach causes concern among technical purists, it provides a practical way for inspectors to deal with this situation.

The simple and common definition of a subpanel is any panelboard located downstream from the service equipment. This definition includes situations when the service equipment is in one enclosure and only one panelboard exists downstream. This downstream panelboard might be called the main panel by the uninitiated, but it is still a subpanel (see Figure 1). This simple definition works most of the time, but as with many simple definitions, there are exceptions.

One exception occurs when the service equipment is in an enclosure with a panelboard and with the grounding electrode conductor.

Another panelboard is located in an adjacent enclosure. Is that adjacent panelboard a subpanel? Should it be wired as such with the neutrals separated from the grounding conductors, often referred to as floating neutrals?

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Electrical Systems: Questions and Answers

the same terminal bar (see Figure 4). Three-wire feeders have not been allowed since at least the 2008 NEC. Even when three-wire feeders were allowed, metallic pathways between the buildings were prohibited (the old unintended return path problem). These pathways could include metal pipes, fences or even phone or television wires.

Figure 4

A similar situation occurs when the panelboards and enclosures are very close to each other but are not physically connected. In this situation, the panelboard that does not contain the service equipment is a subpanel. It should be wired as such; however, the risk if it is not wired as a subpanel is very low. The situation should be reported with a recommendation for evaluation and repair; however, the risk is low so there’s no need to oversell the hazard.

Subpanel in a Detached Building A subpanel located in a detached building is a completely different situation. A detached building might be a detached garage, a storage shed, a barn or, for the lucky few, an airplane hanger. How a detached building subpanel is wired depends on how many feeder conductors are installed.

A subpanel installed in a detached building should be supplied with a four-wire feeder, two hot conductors, a neutral and a grounded conductor. This subpanel should be wired as any other subpanel with floating neutrals and grounding conductors bonded to the enclosure (see Figure 3).

Figure 3

To begin answering this question, let’s recall the reason why neutral conductors should not be connected to grounding conductors and should not be bonded to any grounding connection downstream from the service equipment. The reason is that this improper

The unusual component in both of these situations is the presence of a grounding electrode. A subpanel in a detached building should be connected to a grounding electrode located at the detached building regardless of the number of feeder conductors.

A subpanel is not required in a detached building. One or two 15- or 20-amp, 120-volt branch circuits may be supplied by a three-wire feeder consisting of either #10 copper or #8 aluminum conductors. A single 15-amp, 120-volt branch circuit may be supplied by a three-wire feeder consisting of #14 copper or #12 aluminum conductors.

How Many Conductors in a Terminal?

The general rule is one conductor per terminal or lug. A terminal or lug with more than one conductor is probably wrong, unless it is an exception. It is easier to remember the exceptions.

Figure 2

You may find a subpanel in an older detached building that is supplied with a three-wire feeder, two hot conductors and a neutral.

This subpanel should be wired as if it contained service equipment; neutral conductors and grounded conductors may by connected to

Square D circuit breakers with the plate under the screw that accommodates two conductors may have two conductors attached.

Some Cutler Hammer circuit breakers also allow two conductors, but these are less common. As with many things, just because something is allowed does not necessarily mean it is a good idea to do it. The load of two circuits protected by one circuit breaker could exceed the circuit breaker’s capacity and cause it to trip. The inspector may wish to report this circuit breaker overload potential to the client as information because this circuit breaker may trip more often than others. Since the manufacturer allows two circuits to be connected to these circuit breakers, doing so is not a defect and should not be reported as such.

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Company Identity: Segmentation, Targeting and Positioning

advertises online and is in business. This home inspector is entirely generic. This home inspector does not stand for anything.

Company Identity: Segmentation, Targeting and Positioning

By Alan Carson, Carson Dunlop, www.carsondunlop.com

A Better Approach: Here’s an example of a home inspector who uses the principles of segmentation, targeting and positioning to create a memorable inspection company and who will enjoy success in a much shorter period of time:

S

egmentation, targeting and positioning are three related concepts that say the same thing—you should narrow the focus of your marketing efforts.

An inspector chooses to be a specialist in first-time buyers.

(First-time buyers are the biggest market segment today.

The millennials are starting to buy!) Now, rather than trying to create a marketing strategy that appeals to all, the inspector designs a strategy that appeals to first-time buyers.

The inspector’s goal is to create a position in the minds of his or her customers, particularly real estate agents, as being the expert in first-time buyers.

What do we mean? You are a home inspector, but you could specialize in one or more of the following: • High-end homes • Old homes • Structures • New homes • First-time buyers

How does the inspector get the message out? With a brochure, flyer or letter designed for the real estate agent. The message is that the inspector specializes in first-time buyers.

Here are sample statements for such a brochure, flyer or letter (and notes indicating whether the statement conveys a feature or a benefit of the business):

Let’s look at the definitions of the terms. Then we’ll give you a few ideas about how these concepts can help you.

SEGMENTATION Segmentation divides up the “mass market” into smaller, distinct markets, or “micromarkets.”

Segmentation is the opposite of mass marketing, which is what most home inspection firms practice. Mass marketing is ineffective for any professional service. Segmented marketing is much more effective.

Why do we break down the market into micromarkets? This segmentation process enables us to design a specific marketing strategy for that micromarket.

The idea is to tailor your campaign to fit exactly what the people in that segment are looking for. In other words, you show that you can meet the specific needs of that specific segment. Marketing experts suggest that in a competitive market, you can’t compete effectively in more than one segment.

Here are two things to consider as you look for segments to target: • The market must be large enough. If there are only 500 real estate transactions per year in your service area, you can’t afford to specialize.

• The segment must be large enough. For example, it does not make sense to target the segment of the market that includes houses over $10 million if there are only a few such houses in your service area.

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ASHI Reporter • November 2015

The Great Generic Inspector: If this same home inspector is a great inspector who is good with people, puts things into context and does all the other things that clients and real estate agents expect, that inspector eventually will carve out a market share and have a referral base. The problem is, it typically takes three years to build a self-supporting business using this strategy.

TARGETING Targeting means designing a marketing strategy for a particular market segment. For example, rather than creating a general brochure for home inspections, you would create a brochure for new home inspections, another for inspections for first-time buyers and still another for inspection of old homes or any other market segment you decide is worth targeting. The goal is to satisfy each market’s specific needs.

POSITIONING Your position is how your customers see you. For example, let’s assume you are very good with first-time buyers. You are trying to create your position by targeting a market segment and by building a specific marketing campaign. Understand that the public decides your position, not you. You may guide the public with your marketing campaign and careful segmentation, but in the end, your customers decide. People who use “position” as an action verb are missing the point. The actions are targeting and segmentation.

In this respect, there is no such thing as “positioning.”

An Example of Segmentation, Targeting and Positioning What do segmentation, targeting and positioning have to do with the home inspection business?

• We are experts at communicating with your first-time buyers. We leave no questions unanswered (feature). At the end of the inspection, your buyers will feel comfortable knowing they are making the right decision (benefit).

• We keep house conditions in perspective to avoid unnecessarily alarming your clients (feature). They should understand all issues and know which ones are typical of homes of that type and age.

We help clients see not only the issues, but the readily available solutions. This means that a well-informed client can make good decisions (benefit).

• We help your clients learn how to operate the home and maintain its systems (feature). More knowledge and understanding will help clients control their emotions and make rational decisions (benefit).

• We are available free of charge at any time after the inspection to answer your clients’ questions and concerns (feature). This saves you time and helps you enhance your reputation as an agent with satisfied clients for life (benefit).

Company Identity: Segmentation, Targeting and Positioning

Deliver the Goods: You should come up with a number of strategies that prove you are not only saying that you are the right specialist for first-time buyers, but that you also can deliver the goods. Delivering on your promise creates your position in the minds of your customers. With a segmentation and targeting strategy like this, you have an interesting story to tell real estate sales professionals one on one, in meetings and at events. The message should outline how this process helps agents streamline the process and saves time and money. Remember, the real message is in the benefits rather than in the features.

Stand for One Thing: The key to a solid marketing position is to stand for one thing. That one thing should be clearly identifiable and presented in a simple, clear message. This thing should differentiate you from other home inspectors.

Let people know what you stand for at every opportunity. For example, you can create a tagline for your company like, “ABC Inspection Services—The new home specialists.” This tagline would appear on your e-mail correspondence, on your letterhead or anywhere your name appears.

Specialize: Why are home inspectors afraid to specialize? They fear that by standing for one thing, they will lose much of the market.

For example, why would they want to target only first-time buyers when they want all of the business? It doesn’t make sense to reduce the size of the pool, right? Not necessarily! You will get more business by reducing the size of the pool. In fact, you are not really reducing the size of the pool at all; by saying you focus in one area, you are becoming memorable. You stand out.

Let’s say an agent is working with a client who is not a first-time buyer. Do you think the agent won’t refer this client to you because you are a specialist in first-time buyers? Don’t you think that the agent wants a home inspector to treat every client as a first-time buyer? The agent will most likely think, “If this inspector is an expert at handling tricky first-time buyers, he (or she) will be great with all clients.”

The fear of focus is a common theme in every business. You have to trust the marketing experts in the same way that you ask your clients to trust the inspection expert. You will broaden your appeal by focusing on and targeting a single market segment.

Thanks to Roger Hankey and Kevin O’Hornett for sharing their experience and wisdom to make this a better article. H

The home inspector might have a special first-time buyer package.

As part of the inspection fee, the inspector’s clients might receive a free book about maintaining their home or a discount on a follow-up inspection.

The Generic Inspector: The typical home inspector sets up shop, picks a name for the business, gets business cards, builds a website, 23November 2015

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The ASHI School: Moving Forward The ASHI School has had many exciting developments within the last few months that we want to share with you.

Introducing New Locations We recently opened three new locations: • Columbus, OH—opened July 2015 • Brentwood, TN—opened September 2015 • Baltimore, MD—opened September 2015 Our new location in Columbus, OH, gives potential students in or near Ohio another place in which to attend The ASHI School.

The instructors at our Cincinnati location—John Cordell, Ken Harrington and Tim Buell—will also teach at our Columbus site.

New Programs for The ASHI School The school is awaiting approval for a four-point Wind Mitigation class at our Tampa, FL, location. This class will be taught by our lead instructor in Florida, Mike Conley. We look forward to offering this new class.

In Brentwood, TN, just outside of Nashville, we are offering The ASHI School course as our “Fast Track” to learning. The course in Brentwood is 93 hours, with students starting off doing 40 hours of at-home study, then attending five days of in-class instruction and finishing off day six with field events. Our instructors at the Brentwood location are Scott Patterson and Ray Baird. Both instructors come with many years of experience and home inspecting.

Welcome, New Instructors!

• Scott Johnson—Cumming, GA • Scott Patterson—Brentwood, TN • Ray Baird—Brentwood, TN

In Baltimore, MD, The ASHI School is teaming up with Baltimore City Community College. The college will be offering our 120-hour course as part of their curriculum. In addition, the school’s facility offers a full-scale, cut-away house for students to enhance their learning. The instructors are still being reviewed. If you have interest in becoming an instructor at our new Baltimore location, please e-mail kendra@theashischool.com.

The Level I Thermography Certification course will be offered as an ancillary course with The ASHI School. We will be posting our upcoming schedule of classes in the near future.

Upcoming Classes Lakewood, CO—November 2-13 Leesburg, VA—November 2-13 Des Plaines, IL—November 9-20 St. Louis, MO—November 9-20 Bellevue, WA—November 9-20 Nashville, TN—November 9-14 Cincinnati, OH—November 30-December 11 Tampa, FL—November 30-December 11 Cumming, GA—November 30-December 11 H

Continued from page 21 Electrical Systems: Questions and Answers Two grounding conductors that are the same size may be connected in one lug. Three or more grounding conductors may not be allowed by some manufacturers, and conductors that are different sizes are not allowed.

Code references for these situations are sometimes requested. The general reference for the one conductor per terminal or lug rule is NEC 2014 110(A), which requires that terminals listed for more than one conductor be identified as such. This identification should be on the panelboard label or on the device itself. The NEC 2014 reference for the one neutral conductor per terminal rule is 408.41.

This rule has been around for a long time.

The Bottom Line The wise person is not afraid to ask questions. Nobody knows everything about everything.

When you ask questions, help the person you ask by providing enough information. Information like your city and the age of the 24

ASHI Reporter • November 2015

house is often essential. Remember, the person answering the question is not on site with you and does not have the perspective that you have.

Memo to Zeus: The Word does not reside on Mt. Olympus (just at its base) and welcomes other viewpoints. Send your lightning bolts or e-mails to Bruce@DreamHomeConsultants.com. The thoughts contained herein are those of The Word; they are not ASHI standards or policies.

Bruce is the founder and president of Dream Home Consultants, and the author of Everybody’s Building Code, written to help home inspectors understand the International Residential Code.

Bruce has been building and inspecting homes since 1987. He currently serves on the ASHI Board of Directors. He is a certified Residential Combination Inspector and a licensed contractor in Arizona, Florida and North Carolina.

To read more of Bruce’s articles or if you need a presenter at your next chapter event, go to www.dreamhomeconsultants.com. H

ASHI Ad.indd 6

25November 2015

3/25/15 10:33 AM • www.ASHIReporter.org

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> POINT / COUNTERPOINT Letter to the Editor Submitted by Roger Hankey, ASHI Certified Inspector, and Kevin O’Hornett, Retired ASHI member

T

he September 2015 ASHI Reporter featured an article, “Ensuring Safety for Children at Home.”

The author of the article, Carol Dikelsky, writes that “ASHI member Skip Walker noted that home inspectors’ No. 1 job is ensuring safety, and that ensuring the safety of children is especially critical. He expressed that [Parents for Window Blind Safety] has raised the level of awareness about what the window covering industry is not telling consumers about safety, [sic] and suggested that home inspectors should be aware of [PFWBS founder Linda Kaiser’s] campaign for pointing out the life-threatening flaws in design.”

Contrary to Skip Walker’s position, “ensuring safety” is NOT the primary task of ASHI home inspectors. To “ensure” means to secure or guarantee; to make sure or certain; to make secure or safe, as from harm.

If the primary task of home inspectors is “ensuring safety,” then along with recommending modification of window covering cords, inspectors should also be aware of and discuss and document all potential “safety” issues in a home. They should also be familiar with every campaign, movement and organized effort pertaining to potential “safety” issues in homes. This would include recommending that every home they inspect be modified to meet all of the most current applicable building codes as well as all the recommendations promulgated by various organizations such as the U.S. Consumer Product Safety Commission (CPSC), the National Fire Protection Association (NFPA), etc. Only in this way could inspectors “ensure safety.”

The task of ASHI home inspectors is to conduct a primarily visual examination of a home’s readily accessible systems and components in accordance with the ASHI Standard for conditions which are adversely 26

ASHI Reporter • November 2015

affecting or which have the potential to adversely affect their normally intended functions or operations. The normally intended functions or operations of systems and components can be defined as the customary and conventional purpose or use for which they were installed and for which they were designed and intended by their manufacturers.

While part of such normally intended functions or operations may include safety of use, installation, assembly and operation, that doesn’t mean and should not be extrapolated to imply that home inspectors are performing “safety” inspections. The article ends with the statement, “A home inspector’s thoughtful warning about safety issues has the potential to save a child and a family from experiencing tragedy.”

H

ow should such a “warning” be provided to customers? Bringing a customer’s attention to conditions which lie outside the scope of the home inspection through a thoughtful discussion rather than a “warning” is something individual inspectors may choose to do. However, such conditions do not belong in the body of the written report. They should never appear as adverse conditions or include recommendations to address them as such. Otherwise, unless inspectors document every single potential “safety” concern, they are not “ensuring safety.” To “ensure” means to secure or guarantee; to make sure or certain; to make secure or safe, as from harm. The concept that “ensuring safety” is part of the scope of an ASHI inspection leaves inspectors open to the potential for litigation based on a claim of negligence for failing to report a “safety” issue which resulted in an injury or death. Regarding this particular issue, as an attorney with whom this was discussed pointed out, it’s a slippery slope. Once inspectors are in for a dime, they’re in for a dollar.

It is clear from the ASHI Standard that inspectors are NOT required to inspect “window treatments.” We have no objection to verbally discussing risks to children from window blind cords with customers or directing customers to resources about home

safety, but placing remarks about those conditions in the report opens the door to the question of “why didn’t you also tell me about these other safety concerns?” Where does it end? While the ASHI Standard includes the term “unsafe” along its definition which, in our view, directly contradicts the Section 13 of the ASHI Standard, subsection 13.2 General Exclusions, part A 8. Stating “safety” is our #1 job increases inspector liability and improperly redirects the purpose of the inspection.

Inspection reports should be limited to the items required to be reported by the Standard. If inspectors want to include more, they would be well advised to check with their attorneys and E&O insurance carriers.

The notion that ASHI home inspections should first and foremost focus on a home in terms of safe, unsafe and safety was never part of the original mission of ASHI or of its standards and does not accord with the “Purpose and Scope” as stated in the current ASHI Standard. It is an idea which has emerged (mission creep) over the intervening years. It increases inspectors’ potential legal exposure. Unless the ASHI Standard is modified to encompass the concept of “ensuring safety,” then it should not be presented as or even alluded to as an additional responsibility of inspectors.

makes some excellent points. However, I don’t believe the intent of the article was to expand the scope of our inspections, add to our liability or to alter the ASHI Standard of Practice. It was simply an attempt to bring some awareness to a safety issue that impacts nearly a hundred million U.S. and Canadian homes and results in about 30 senseless child deaths in the United States each year. I agree completely that the job of a home inspector is not to guarantee the safety of the home. But I firmly believe that safety is at the heart of what we do as inspectors. For me, the most gratifying days as an inspector are not when I find some framing mistake, but rather when I find an issue where someone might have died had I not been there.

When I heard Linda Kaiser speak at the CPSC about the strangulation death of her

12-month-old child from corded window blinds, I was deeply moved. Out of her personal tragedy, Linda founded Parents for Window Blind Safety (www.pfwbs.org).

She became a member of the UL committee that deals with window blind safety design standards. During Linda’s testimony, she recounted how industry and the manufacturers have undue influence over the window blind safety standards. She has been on the committee for over a decade, yet the committee has been unable to pass any meaningful changes in the standard. In the meantime, 30 kids die needlessly each year. Many UL standard committees are heavily populated by manufacturers and industry consultants. They block effective changes to the very standards their products must meet. This has been a big issue with changes to the smoke alarm standards as well.

You Tell Us: Point / Counterpoint

The ASHI Standard of Practice represents the minimum level of performance during an inspection. There is nothing that precludes an individual inspector from making the business decision to exceed the standard. Many of us, including myself, do so every day! There are inspectors using carbon monoxide detectors to test indoor air and appliance draft, IR cameras to look at electrical panels, test for hidden water leaks, etc. All far beyond the Standard. Every time we use a photo in an inspection report, we exceed the standard.

D

uring the course of a typical inspection, we note many issues: Federal Pacific Electric and Zinsco panels, solid aluminum wiring, Knob & Tube Wiring, Consolidated Furnaces, improperly installed or damaged decks, improperly constructed stairs, missing handrails, low or improperly constructed guards, displacement in walk-

The concept of “ensuring safety” may be seen as enhancing the benefits of home inspection in terms of marketing. However, its unintended consequence is to increase the potential liability of inspectors as well as the potential for buyers to demand of sellers that they make modifications to satisfy the particular safety concerns documented in the report but which are outside the scope of the ASHI Standard.

POINT / COUNTERPOINT Response to the Letter to the Editor Submitted by Skip Walker, ASHI Certified Inspector

T

he impassioned response from Roger Hankey and Kevin O’Hornett to the September 2015 article on child safety 27November 2015

• www.ASHIReporter.org

27

>

You Tell Us: Point / Counterpoint

ways, improper drafting of gas appliances.

The list goes on and on. At the heart of each and every one of those calls is not some arcane technical issue—it is safety! Every one of those calls poses a safety hazard of some kind to the occupants.

Every one of us will make a business decision on how we deal with new information.

Obviously, no one can know everything

about every possible issue. I accept that.

However, that will not discourage me from doing what I can, where I can, when I can.

Is there some added liability in doing so?

Perhaps. I will gladly accept that risk for the chance to save a child. If a small child were injured (or worse) in a house I inspected, I would much rather be able to say that I did what I could as opposed to saying that I did nothing. I think that as an organization of

professional inspectors, we can bring some awareness to this and similar safety issues.

I believe in doing so we elevate the status of our profession.

P

ersonally, I simply cannot justify doing nothing because I can’t do everything.

Personally, I choose not to say that safety is outside the scope of this inspection. H

ELIMINATE HoMEwork

Services Spotlight

By Mike Lane, Basement Systems, Inc. Please see the photo on page 11 captioned: “This crack is consistent with heaving as a result of frost penetration.”

If you look at the threshold pictured in that photo, it is evident that water seepage has entered the basement by either going under the threshold, around the threshold or over the threshold.

Please see the photo on page 11 captioned: “The left side retaining wall has a severe vertical crack due to frost pressure.”

In that picture, you can see a bowing wall due to frost pressure, hydrostatic pressure or both.

Please see the photo on page 12 captioned: “It shows a poorly constructed walkout, with a narrow landing, no raised door threshold and no drain.”

28

ASHI Reporter • November 2015

FYI: A TrenchDrain on the inside connected to a sump pump would collect water seepage, keeping the basement floor dry.

FYI: This wall can be permanently stabilized and, in most cases, straightened over time with Geo-Lock Wall Anchors.

FYI: Outside drains are prone to clogging with leaves and debris. It’s always a good idea for the homeowner to periodically clean the drain and stairwell to minimize the chances of the drain clogging and backing up into the basement. H

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29November 2015

• www.ASHIReporter.org

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w w w.t h e a s h i s c h o o l .c o m 1- 8 8 8 - 8 8 4 - 0 4 4 0

The Chapter Listing is Online Please visit: www.homeinspector.org/Chapters/Listing

New ASHI Associates As of September 1, 2015

H Denotes graduate of The ASHI School Michael Higgins Higgins Home Inspection LLC Bessemer, AL

Steven Boyle Steven Boyle Home Inspections LLC Scottsdale, AZ

Matt Maxwell Silver Hammer Inspections Prescott, AZ

Jeffrey Barksdale

Charles Wiemann

Brett Boese

Steven Collier

East Hartford, CT

H Carlos Martinez

Raeon Bryan

Wiemann Home Inspection Des Moines, IA

Collier Home Inspection Poughkeepsie, NY

Los Osos, CA

Eco Safe Living, Inc Brandon, FL

H Justin Love

Brett Boese Home Inspections Inc Brooklyn Park, MN

Meridian, ID

Matt Karr

David Frechette

H David Davis

TALG Plattsburgh, NY

Jax House Doctor Home Inspections Inc. Orange Park, FL

WIN Home Inspection Carbondale Elkville, IL

Heartland Inspections Elk River, MN

Yorba Linda, CA

Frank Fulghum

Joseph Marsh

Aaron Miranda

F.L. Fulghum Design Builders Tampa, FL

JMJP Inc./ NPI Tonganoxie, KS

Steve Gagnon

Ken Novinski

Steve Gagnon The Villages, FL

Buyers Protection Group Wichita, KS

Charles Merritt Bakersfield Real Estate Services Bakersfield, CA

H Blake Miller Whittier, CA

H Ken Blurton

La Mirada, CA

Irvine, CA

Robert Thurgood

Michael Booth

HomeGuard Incorporated San Jose, CA

Pillar to Post Rancho Cucamonga, CA

H Balram Satram

H John Wiesen

H Shane Bowman

Laguna Miguel, CA

HomeGuard Incorporated San Jose, CA

John Williamson

Thomas Brick

Jeff Brown HomeGuard Incorporated San Jose, CA

John Burnett Up Country Home Inspections Greenwood, CA

Steven Collins Full Sail Home Inspections San Clemente, CA

Dominic D’Ambrosio HomeGuard Incorporated San Jose, CA

Delfino Dominguez HomeGuard Incorporated San Jose, CA

Paul Halsell

Robert Dowd

Randall Womack

Pillar to Post Duluth, GA

Leawood, KS

Lee Garrett

Two Thumbs Up Inspections Shreveport, LA

Home Probe Decatur, GA

Clovis, CA

H Jeff Gilbert

Zachary Wilson

Southern Comfort Home Inspections Cartersville, GA

Tahoe Truckee Home Inspections Truckee, CA

Ben Beckner

David Hazelton

Walker Home Inspections Monte Vista, CO

Advanced Property Inspections Pooler, GA

Jonathan Cox

Corey Johnson

A Team Home Inspection, LLC Northglenn, CO

First Choice Home Inspections Augusta, GA

Robert Endyk

Jason Maloy

Pillar to Post Littleton, CO

Pinnacle Home Inspections Bonaire, GA

Eric Shaffer

Jerry Prato

Around the Block Home Inspections, LLC Brighton, CO

Atlanta’s Choice East Point, GA

Ronald Ashe Newington, CT

Buyers Protection Group Alpharetta, GA

Michael Bullard

Carlos Ward

Southington, CT

Cathryn Corning

Santa Maria, CA

West Hartford, CT

Samuel Henselmann

Nicholas Danburg

Eric Taglioli

4Ward Property Inspections, LLC Douglasville, GA

Brian Zeis Home-Probe,Inc. Decatur, GA

Homespec San Leandro, CA

Danburg Inspection Columbia, CT

H Mark Hoover

Michael Denham

Aguanga, CA

Thompson, CT

Kenneth Kelley

David Lamp

HomeGuard Incorporated San Jose, CA

Home-Pro Home Inspection Michael Hendrickson Danbury, CT Inspect First Home Inspections LLC Gerald Porter North Liberty, IA Meriden, CT

Perry Knowlton HomeGuard Incorporated San Jose, CA ASHI Reporter • November 2015

Robert Repass

Elk Grove, CA

API Inspection, LLC Canyon Lake, CA

Nustart Home Inspections Salinas, CA

30

Haiying Li

Jeremy Gates Premier Home Inspections of O’ahu, LLC Ewa Beach, HI

Najja Thumbutu

Arthur Staffiere Staf Inspections LLC dba Pillar to Post Arlington, MA

Reginald Andrews RLA Home Services Laurel, MD

Nick Mikula Blue Crab Inspections Joppa, MD

Robert Moody Diligent Home Inspections, LLC Westminster, MD

David Campbell

Nick Koenig Heartland Inspections Richfield, MN

Bill Oelrich Structure Tech Home Inspections St. Paul, MN

Doug Peterson Dependable Home Inspection LLC Dover, MN

Stephen Newsome Ballwin, MO

Ronald Owens Absolute Home Services Eldridge, MO

Jon Tomich Jon Tomich Home Inspections Missoula, MT

Robert Buettner RKB Properties Papillion, NE

Walt Fick Know Your Home Inspections and Services LLC Kearney, NE

William Fluhr

New England Home inspections Freedom Home Inspection Kennebunk, ME Services LLC. Antrim, NH Matthew Verrill Banger, ME

Sean Conahan

Richard Giroux

Anthony Greco Holmes, NY

Jon Keesler Salt Point, NY

Todd Mikus Wappingers Falls, NY

RossRelyea Sweet Homes Chittenango, LLC Chittenango, NY

Pierre Vales Integrity Inspection South Fausburg, NY

M. Rustam Ali MJA Home Inspection Service Westerville, OH

David Antulis NEO Home Inspections LLC Canal Fulton, OH

Scott Blatnik Liberty Township, OH

Matt Dildy M D Inspections Wapakoneta, OH

Rodney Dysert Ada, OH

Gerald Erwin North Lewisburg, OH

Kevin Garland

Grand Rapids, MI

HouseMaster West Caldwell, NJ

Garland Inspection Services, Inc. Mineral Ridge, OH

Brian DesJardin

Vincent Lee

H Charles Hill

Cameron Bowman

Cutting Edge Home Inspections LLC Hillsdale, MI

Top to Bottom Home Inspections Jackson, NJ

Bradley DeVries

John Ragno

Jeffries Inspection Services, LLC Sylvan Lake, MI

Bradley Dicks Universal Home Works LLC Bloomfield Hills, MI

Blake Jeffries Jeffries Inspections Services, LLC Farmington Hills, MI

Joseph McDade

Hamilton, NJ

Sven Balc

Clarksville, OH

Tony Lipps Spot On Home Inspection Cinncinati, OH

Eric Payne

Poughheepsie, NY

Buyers Protection Group Hamilton, OH

Ryan Bergami

David Rhodes

Bergami Building Inspections Rexford, NY

Brian Champagne Champagne Home Inspection Patchogue, NY

A.P. Inspections Pullman, MI

31November 2015

Cincinnati, OH

Steven Salyer Centerville, OH

DonSmith Cincinnati Certified Home Inspections, LLC Loveland, OH

• www.ASHIReporter.org

31

To submit your materials for moving up, please contact Janet George at 847-954-3180 or janetg@ashi.org

New ASHI Inspectors

ASHI Chapter Education

As of September 1, 2015

Jerry Southall

Mike Dobrowotski

RES Resources Delaware, OH

Lynchburg, VA

JoeTimmer Cincinnati, OH

Larry Coates Wall-to-Wall Home Inspections Tigard, OR

Carrie Stevens PDX Home Inspections LLC Portland, OR

Joel Van Dyke JV Home Inspections, LLC Portland, OR

Robert Ames

Jaime Huntt

Pillar to Post Bulger, PA

Jonathan Santiago Pillar to Post Philadelphia, PA

Jeffrey Zimmerman Berks Realty Services Kutztown, PA

Chris Bassford Bassford Home Inspections LLC Aiken, SC

Van’s Home Inspection Albuquerque, NM

KED Home Inspections, LLC Chesapeake, VA

Blanke Brett All Pro Inspections Las Vegas, NV

David Rapoport

New ASHI Certified Home Inspectors As of September 1, 2015

Pat Cosentini

H Scott Shuman

Pillar to Post Baltimore, MD

Acquaint Home Inspections, LLC Herdon, VA

William Cavill HouseMaster Belleville, MI

Alan Steinmetz Vertex Home Inspection LLC Manassas, VA

Doug Steinruck N. Chesterfield, VA

Frank Taylor Radford, VA

Mark Vaughn Vaughns Home Inspections LLC Wood Bridge, VA

Adam Parot

Matthew Brown Robert Garfinkel Top Flight Home Inspections Peoria, AZ

Eric Stone Pillar To Post Home Inspection Sherman Oaks, CA

John Botto

Milton, VT

Elite Property Inspections Spring Hill, FL

Michael Merritt

Michael Doyle

All Around Home Inspections, LLC Ladson, SC

MDD Home Inspections, LLC Marysville, WA

Todd Cole

Bradley Horstman

Timothy Steinke

HouseMaster Sioux Falls, SD

Clintonville, WI

Shane Randle

Huntington, WV

Randle Home Inspection, LLC Ooltewah, TN

Scott Bingaman Cherry ParkProfessional Home Inspections Houston, TX

AlexFlores Anna, TX

Andy McKee

To have your chapter seminar listed in this section: Email all information about your chapter seminar to micheleg@ashi.org.

Earnest Baker Richmond, VA

32

VanWicklin Kevin

Marcos Pina

Trademaster Home Inspection, LLC Catlett, VA

Keith Pfender

7 Oaks Home Inspection, LLC Warrenton, MO

Axiom Home Inspections Richmond, VA

Philadelphia, PA

ASHI Reporter • November 2015

Apple Inspections LLC St. Louis, MO

Smith John

Joaquin Martinez

Paul Scrivner

DeStefano Home Inspections Irwin, PA

INSPECTOR

Freedom Home Inspections, LLC Partlow, VA

Herman Chatman

Daniel DeStefano

Hagar Dustin

Richmond, VA

Pillar to Post Norfolk,VA

Pittsburgh, PA

General Inspections LLC Florissant, MO

Darren Hall

State College, PA

T-Doe Cooper

Smith Paul

Inspect-All Services Conyers, GA

Brett Cortez Academy Home Inspections, LLC Newton, MA

Be sure to include all information: when, where, CEUs & a link for more information or contact information.

HomeSight Inspections, Inc. Inver Grove Heights, MN

James Holl 5 Star Home Inspections Hillsborough, NC

David Cassavaugh Advanced Home Inspection LLC Manchester, NH

Steve Agenbroad National Property Inspections Troy, OH

John Denison HouseMaster Cranberry Twp, PA

George Richardson HouseMaster Cranberry Twp, PA

The deadlines to submit info are: January 2016 11/18/15 February - 12/22/15 March - 1/22/16

Mid-Missouri ASHI Chapter Educational Seminar

WE DON’T WANT TO LOSE YOU!

When: November 6, 2015, 8:00 am – 5:00 pm Where: Columbia Board of Realtors Office

Columbia, MO CEUs: 8 ASHI CEs Contact: www.midmoashi.com

Don’t risk losing your ASHI benefits.

Renew your membership no later than November 30, 2015.

•B oasts nearly 40 years of home inspection experience and keeps you abreast of the latest trends

You can renew online at www.ashi.org or call 847-759-2820.

•H as knowledgeable and accessible staff to help answer whatever questions you may have

NOVA ASHI Chapter NADRA Deck Evaluation Certification Course When:

November 7, 2015

7:30 am – 5:00 pm Where: Best Western, Fairfax City, VA CEUs: 8 ASHI CEs Contact: Fred Heppner at fred.heppner@gmail.com

MAC-ASHI Technical Seminar When: November 7, 2015 Where: Johns Hopkins University

9601 Medical Center Drive

Rockville, MD 20850 CEUs: 8 ASHI CEs Contact: www.mac-ashi.org

OAHI/CAHPI-ON 2016 Educational Conference When: March 4 - 6, 2016 Where: Holiday Inn Burlington Hotel and

Conference Center. Burlington,

Ontario, Corporate Head Office /

Training Centre 1515 Matheson

Blvd. East Suite 205

Mississauga, ON L4W 2P5 CEUs: 18 ASHI CEs Contact: 416-256-0960 info@oahi.com

Fourth Annual Hampton Roads ASHI Holiday Season Tech-Talk When: December 5, 2015 Where: Chesapeake, Virginia

Mike Casey Presenting

ASHI National President

Alden Gibson and more.

Contact: Kenny Hart at theplumbing

andhvacguy@gmail.com or www.facebook.com/ plumbingandhvacguy

and click on Upcoming Events

CONGRATULATIONS TO THE WINNERS OF THE IW SAN DIEGO FULL CONFERENCE REGISTRANTS RAFFLE:

LAST CHANCE TO RENEW YOUR ASHI MEMBERSHIP!

Adam Vujovic Aurora, IL Sidney Carter Marietta, GA Max Polsak Livingson, MA

• Connects you with thriving chapNo other membership speaks more ters all across the United States loudly than being a part of the oldest and most prestigious home inspection and with other home inspectors • Verifies your home inspection association in North America. reports to make sure you are ready to represent the home inspection No other home inspection association: profession • Lobbies for home inspection professionals so you have a voice • Certifies their home inspectors in Washington, D.C. after they have worked hard in the •P rovides top-tier education whether you are just beginning your career or looking for continuing education

ASHI’s Recruit-aMember Program

field, have been tested and have truly attained the right to be called Certified

•D elivers industry experts in all aspects of home inspection during an annual education conference and expo

Education-Smart Track program ASHI will be discontinuing the smart track program that allowed members to get up to 10 hours of free continuing education hours.

This program will not be available after December 31, 2015. Please print out any certificates that you need by this date as they will not be available afterwards. H Education-ASHI Online Learning Center

HELP ASHI GROW & Earn $50 in Gift Cards

(

Now available unlimited free continuing education hours for your ASHI CE requirements. Just log on to the ASHI website, put the mouse on the education tab, click on the ASHI Online Learning Center, log on to the Learning Center with your member number and the word password and begin taking these exciting education modules. You earn two CE’s upon successful completion for each module. You can also view a list of State approved online education under each of the past IW course descriptions. A certificate of completion will be available to print out. H

Who knows best how to sell ASHI membership?

YOU!

Who deserves to be rewarded for helping ASHI grow?

YOU! Earn $50 in gift cards for every new member you recruit.

Download the membership application form, have the new member fill it out (including your member number in the referral field), scan and email it to russelld@ashi.org or fax to 847-759-1620. Questions?

Contact Russell Daniels, russelld@ashi.org.

33November 2015

• www.ASHIReporter.org

33

The Chapter Listing is Online CURRENT ASHI MEMBERSHIP ASHI Certified Inspectors: 3,416 Inspectors/Logo: 101 Associates: 2,351 Retired Members: 108 Affiliates: 59 Total: 6,035 Members as of 10/10/2015

ASHI Event Calendar

December 10, 2015 AEI Board Meeting ASHI Headquarters Des Plaines, IL

January 24-27, 2016 InspectionWorld® and ASHI

Board Meetings

San Diego, CA

ASHI-ENDORSED MEMBERSHIP BENEFIT PROGRAMS ASHI’s E&O Insurance Program: Target Professional Programs www.targetproins.com 860-899-1862 ASHI Personal Lines Insurance Program: Liberty Mutual www.libertymutual.com/ashi ASHI Service Program BuildFax Tricia Julian, 877-600-BFAX x161 TJulian@BuildFax.com www.buildfax.com http://go.buildfax.com/ASHI ASHI Customer Appreciation Program: Moverthankyou.com Brent Skidmore, 864-386-2763 www.moverthankyou.com Brent@POWRsoft.com HomeAdvisor.com Brett Symes, 913-529-2683 www.homeadvisor.com ashi@homeadvisor.com LegalShield Joan Buckner, 505-821-3971 buckner.legalshieldassociate.com buckner@legalshieldassociate.com InspectionContracts.com Dave Goldstein, 800-882-6242 www.inspectioncontracts.com david@inspectoreducation.com OneSource Solutions 877-274-8632 www.osconnects.com/ashi/ Porch.com Eliab Sisay, 206-218-3920 www.porch.com Eliab@porch.com

34

ASHI Reporter • November 2015

ASHI Rebate Program Quill.com Dana Fishman, 800-634-0320 x1417 www.quill.com/ashi dana.fishman@quill.com Platinum Provider Millionaire Inspector Community Mike Crow www.mikecrow.com dreamtime@mikecrow.com Mention that you are an ASHI member ASHI-ENDORSED EXAMS ASHI Standard and Ethics Education Module Go to www.homeinspector.org, click on Education and Training, then click on the link for the ASHI Standard of Practice Education Module.

NHIE Exam: 847-298-7750 www.homeinspectionexam.org ASHI-ENDORSED TRAINING PROGRAMS ASHI@Home Training System 800-268-7070 education@carsondunlop.com The ASHI School Kendra Eiermann, 888-884-0440 kendra@theashischool.com www.TheASHISchool.com

WE ARE COLLECTING PHOTOS FROM ASHI'S 40-YEAR HISTORY FOR A PHOTO AND MUSIC PRESENTATION AT INSPECTIONWORLD®.

Please visit: www.homeinspector.org/Chapters/Listing 1. VISIT: www.homeinspector.org 2. H over over the Members Only tab, scroll down and click on chapters

TO HAVE YOUR PHOTO CONSIDERED EMAIL IT TO ARLENEZ@ASHI.ORG.

3. On the chapter page, scroll down to the 1st bullet and click on: Find the closest chapter here.

4. W hen you see the screen pictured on the left, click on the state where you wish to find a chapter and the information will appear below the map.

Nove Anni mber versa ries

Forty Years

Edward Charkey Ronald Passaro

Twenty-Five Years James Dunsing Jay Balin Frank Lesh Robert Brennan Richard Askew Thomas Morgan

Twenty Years

James Callicutt Robert Davis Tom Flanigan Mark Kachur Donald Pyle Thomas Heyl Richard Martel Ronald Peters Glenn Church James Orphanos Jeff Burkman Terrence Gallagher Raymond Camosse Phillip Wells James Boote David Mielke Randy West Lowell Leemkuil Kenneth Stepp Jung Lee Paul Staron

Fifteen Years Craig Lynch Marc Sirois John Simansky Kevin Turner

Ten Years

Greg Jenkins Tim Harriger Luciano Marquez Jerry Emery Michael Boeger Tom Terry Raymond Beasley Ken Colter Todd Houston Frank Hopton Robert Lissenden Donald Cocker Robert Johnson Robert Panion David Belisario Joseph Toomey Edward Castro Daniel Tucker J.D. Fuller John Rust Joe Kelley Brett Kayzar Michael Amos Lester Boynton Brian Wilcox George Miller Jerry Freitag Tom Comer

Five Years

David Ritchie Nicholas Goodman James Chung Matthew Drifmeyer Guy Brand James Waldron Erwin White Gary McDonald

Around the CoRner

From The Speaker of the CoR

T

his is the section of the ASHI Reporter where you get to gripe, bemoan, extoll, champion and share those ideas about ASHI you’ve been annoying your fellow inspectors and your wife or husband with for years. Let’s face it, sometimes the things ASHI does can boggle the mind, right?

So we’ve figured out a way to make your voice heard. Here’s how it works: 1. C ollect your thoughts carefully and clearly. Relax. Be especially aware of anything you may be grasping with an ever-tightening grip…such as a hammer or your wallet.

2. Open an e-mail and address it to SPEAKER@ASHI.ORG. Place only the words “Around The CoRner” in the subject line. (Please do not use the words Kenya, ED, CIA, Dear Beloved, or Sagging in the subject line as I already get a lot of those.)

3. In the body of the e-mail, clearly write your idea or problem. Please fully expound on your subject, as e-mails consisting of simply “Dues Stink” make it difficult for the staff to fully grasp your “Stink.”

4. D o everyone a favor and let your e-mail rest for 24 hours, reread it and, if you are still happy with what you wrote, send it. Otherwise, take that opportunity to rediscover the English language free from expletives.

5. Relax. Your thoughts are rummaging around in our heads now. On second thought, don’t relax.

All e-mails will be read and responded to by my staff of gruff, but lovable, minions.

The letters most pertinent to the membership will appear in upcoming issues of the ASHI Reporter, and responses will be completely unvarnished. Here’s your chance to gain the attention of ASHI leadership. Even if your idea does not appear in the Reporter (and no whimpering!), every idea or concern will be brought to the Council of Representatives Group Leaders for discussion and a decision will be made as to how we can proceed. H Jim Funkhouser

ASHI Council of Representatives Speakers and Group Leaders Speaker: Jim Funkhouser 571-214-4039 jfunkhousr@aol.com Alternate Speaker: John Wessling St. Louis, MO 314-520-1103 John@wesslinginspections.com Secretary: Brendan Ryan 724-898-1414 brendan@csahomeinspection.com Group Leaders

New England/ Canada Mike Atwell 617-630-5629 mike@jmhi.com

New York/New Jersey

Mid-Atlantic

North Central

Hollis Brown 703-856-7567 Hollis@thorospec.com

Dave Haught 304-417-1247 inspector@wvchi.com

Midwest

Mountain

Michael J. Von Gunten 262-945-2446 mike@lahigroup.com

Kurt Salomon 801-523-6060 kurt@inspectutah.com

South Atlantic Richard Hart 770-827-2200 ashi1@comcast.net

Pacific Darrell Hay 206-226-3205 darrellhay@aol.com

Gulf John Knudsen 334-221-0876 jgknudsen111@ elmore.rr.com

South Midwest John Wessling 314-520-1103 john@wesslinginspections.com

Kevin Vargo 732-271-1887 kpvargo@comcast.net

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ASHI is pleased to announce that Target Professional Programs is now our endorsed partner for Professional Liability Insurance.

NEW POSTCARDS EMAIL!! Please send your name, city, state, photos, headings & captions to: postcards@ashi.org

Safety Last!

We Call These Widow Makers

Serving Home Inspectors Across the U.S.

Ken Meyer Portico Home Inspection LLC Portland, OR

James Brock Boston Home Inspectors, Inc. South Boston, MA

Target has been serving home inspectors’ professional liability insurance needs for over 22 continuous years. Their Professional Liability coverage (aka: Errors & Omissions or E & O) includes General Liability (for bodily injury and property damage), and optional Inland Marine Coverage (to cover inspection tools and gadgets).

Target even includes Identity Theft Coverage at no additional premium.

15 % Premium Discount and $25 In addition to CE Credit

TARGET PROFESSIONAL PROGRAMS

offering all ASHI members a 15% discount on insurance premiums (the highest discount available in the marketplace), Target is now offering a $25 CE credit to home inspectors who are ASHI Members and Target Customers.

The CE credits must be earned at an ASHI event (national or regional), and the credit is offered one time per year to one inspector from the insured business.

Yeah, We had a Leak in the Supply Pipe,but it was Fixed!

DIY Danger!

Thomas R. Battoe Perfromance Home Inspections DeBary, FL

Aluminum wiring mixed with copper, no junction box and loose tape.

David Maudlin Indy Pro Inspection Service, Inc. Carmel, IN

GET A QUOTE! We encourage you to support all of our endorsed business partners. In this case, we suggest you get a quote (or a premium estimate) from Target Professional Programs.

Visit their website www.TargetProIns.com for program details and applications, or contact

Lisa Belz, Senior Underwriter at 860-899-1870 or lbelz@TargetProIns.com

Target will be exhibiting at Inspection World, January, 2016 in San Diego.

Stop by and say hello!

Preparation for the Impending Mouse Zombie Apocalypse

What! Something’s Gotta Hold up the Lawn

Daniel Dodge Top Notch Home Inspections Myersville, MD

AMERICAN SOCIETY OF HOME INSPECTORS Educated, Tested, Verified, Certified.

Bill J. Loden Insight Building Inspection Inc. Madison, AL

© 2015 Target Professional Programs is a division of and operates under the licenses of CRC Insurance Services, Inc. CA Lic No. 0778135. No claim to any government works or material copyrighted by third parties. Nothing in this communication constitutes an offer, inducement, or contract of insurance. Financial strength and size ratings can change and should be reevaluated before coverage is bound. This material is for educational use only. It is not meant to be an offer of insurance directly to or business owners. Equal ASHI Reporter • November 2015 Opportunity Employer – Minority/Female/Disabled/Veteran.

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By ASHI President, Alden Gibson

Increasing the Bottom Line T

he world is constantly changing and the home inspection industry is keeping up with the changes. In addition to the standard home inspection service, home inspectors can offer a variety of other services including water softener testing; radon, mold and air testing; well and septic testing; pool testing; wood-burning appliance inspection; asbestos testing; termite and rodent inspections; sprinkler system inspections; and stage inspection for new construction. One of the newest ways to expand the list of inspection services is by using drones to take aerial photos of the house or property.

When offering these services, please keep in mind that these additional services provide value and therefore merit additional charges. Offering expanded services also may require you to make changes to your insurance coverage to ensure that you have appropriate liability coverage in place to protect your business. Both the client and the insurance company may require documentation as proof of your qualifications to perform additional services.

A first step toward diversifying a home inspection business might be to offer something simple, like providing a water softener test. This test takes only about five minutes and nets $25 to $50. Test kits are available from many companies. I use the Hach hardness and iron test kit. There is very little training involved to use the test kit; basically, you can follow the enclosed instructions. Whenever I do a water softener test, I provide a separate letter to my client, revealing the results.

Offering other services might require additional training and investment in more expensive equipment; however, remember that the return on the investment will increase as well.

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ASHI Reporter • November 2015

Radon testing is another service that home inspectors could provide. An additional return trip to the property is required to retrieve the testing equipment. Becoming a Residential Measurement Provider is suggested. In Canada, membership in Canadian Association of Radon Scientists and Technologists (CARST) and in the United States, membership in National Radon Proficiency Program (NRPP) is recommended. Successful completion of an exam is required, as well as continuing education. Inspectors will need to rent or own special equipment and should provide a separate letter revealing their findings.

This type of testing generates additional revenue for the business, but more importantly, it can save lives.

C

onducting pool inspections is another source of revenue that, again, requires additional training. Although I do not perform these inspections, I’ve been present when others have performed such tests.

The time required to complete a pool inspection varies from company to company, and an additional fee is charged for this service. Again, please make sure to get the proper training to do a thorough and professional job.

Increasing the bottom line of a home inspection business can be accomplished by offering additional services. These services also can be beneficial when there are down cycles in the real estate industry. Please be sure to remember to acquire proper training to become qualified to perform any additional services, confirm that you have appropriate and adequate insurance coverage for the services you offer, and charge an appropriate amount for the additional service that you provide.

Diversifying the inspections you offer in your business is one way of increasing your bottom line. Another way is through wordof-mouth advertising. This type of advertising can make or break a business. Including the client in the actual inspection process has allowed me to optimize word-of-mouth advertising regarding my inspection business. The client attends the inspection and goes everywhere I do, with the exception of the roof. I give thorough explanations to the client regarding the function and maintenance of the building, bringing attention to any deficiencies of the building. At the end of the inspection, the flaws of the house and requirements for future replacements are apparent. A buyer of a home that I have inspected will have a good understanding of how to maintain the home. This thorough and inclusive approach with clients has netted me many referrals.

This thoroughness also allows me to charge an increased rate for the inspection, thereby increasing my bottom line, even though I only perform two inspections per day, compared with other inspectors in my area who perform three or four inspections per day.

Having a reputation of being thorough also attracts a higher-end client—one who is more concerned with a complete and thorough review of the home, rather than simply being charged a specific fee.

Until next month, work safely. H

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ASHI Reporter • November 2015