Working RE Home Inspector - Issue 16 by Working RE Magazine

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Home Inspector Working RE

Summer 2021, Volume 16

DEFENDING INSPECTORS FOR A LIVING

Improve Your Relationship with Real Estate Agents Stone Veneer: Friend or Foe? Technology is Redefining Mold Testing

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19 Years Serving Home Inspectors

Home Inspector Working RE

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Summer 2021, Vol. 16

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From the Publisher Readers Respond

Defending Home Inspectors for a Living by Isaac Peck, Editor

Tips to Improve Your Relationship with Real Estate Agents by David Nyman, Inspector ToolBelt

Stone Veneer: Friend or Foe? by Tom Feiza, Mr. Fix-It

18 22

Technology is Redefining Mold Testing by Ben Cahoon, CEO, Techcyte

“Seeing” with an Infrared Camera

by Bill Fabian, Vice President/Senior Trainer at Monroe Infrared

26 30

Five Ways to Expand Your Business Post-Pandemic by Max Cron, Benchmark Payment Network

Home Inspection Integrity Act Becomes Law by Joel Kleefisch, Government Affairs Director for ATI Training

Good for Business

by David Brauner, Senior Broker at OREP.org

Home Inspectors Don’t Have to Be Old White Guys by Reuben Saltzman, Structure Tech

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How to Determine Water Heater Age by Peter Gray, Sensible Digs

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

Published by OREP Working RE is published by OREP, a leading provider of home inspector insurance nationwide. OREP has a low cost, broad coverage E&O and GL p olicy. Coverages available include radon, infrared, termite, pest/rodent, lead paint, mold, septic, and more. See inside front cover for more or visit OREP.org today! OREP–Organization of Real Estate Professionals Insurance, LLC. Calif. Ins. Lic. #0K99465

Working RE Inspector Summer 2021

Publisher David Brauner: dbrauner@orep.org

Editor Isaac Peck: isaac@orep.org

Working RE 6760 University Ave, #250 San Diego, CA 92115 (888) 347-5273 Fax: (619) 704-0567 www.workingre.com

Assistant Editor and Designer Ariane Herwig: ariane@orep.org Working RE Home Inspector is published tri-annually and mailed to home inspectors nationwide. The ads and specific mentions of any proprietar y products contained within are a service to readers and do not imply endorsement by Working RE. No claims, representations or guarantees are made or implied by their publication. The contents of this publication may not be reproduced either whole or in part without written consent.

From the Publisher

Serving Others by David Brauner, Senior Broker at OREP.org

The circumstances of the last year have allowed me to slow down a bit and contemplate my 20 years running OREP. When I forwarded these two comments to the OREP team with my congratulations this morning, I realized something: I still get a deep sense of accomplishment knowing we are treating people right.

Readers Respond How to Start a Multi-Inspector Firm I enjoyed your article and thought it was very informative. It helped me to understand where I am with my business and ways to better use my time. Picking up radon in my state, Maine, is a drain on my time. It is nothing to travel an hour to do a home inspection. My question is can I use Inspector ToolBelt with another credit card processor? Does it have to be Square? Thanks again for all the information. —Paul Taylor

Sylvia Gatica

HHHHH Great service...my experience was top of the line with my agent. Pat Chastain

HHHHH Great service, the new online renewal setup worked perfectly. I had my policy back the next morning. There is a reason we get a comment or two like this almost daily and it starts at the top. I never have hassled any OREP agent about making or losing a sale. I never put any pressure on anyone to “hit the numbers.” What do I expect? That phone calls and emails are responded to promptly and questions answered. That problems are solved. That everyone is respectful. My gosh, there are so many competitors out there—if someone wants to trust you with their business—handle them with care! I give OREP agents an incentive along with their salary because when they work harder to manage a growing business, they should benefit commensurately in every paycheck. But “making the phones ring” is my job. Their job is treating you competently and respectfully when you call/email. If this simple formula for success had not been enough (combined with lots of hard work), there would be no OREP or Working RE. But it has always worked. I just want to share that with you for your business. OREP agents know insurance, sure, just like you probably know how to inspect and report. The combination of expertise and customer service is a formula for success. I was not a business major. I was a journalism major, a liberal arts guy trained to communicate information honestly—that was and is my passion. Actually your job is pretty similar, isn’t it? And I had an instinct, I’d say more like gratitude, for wanting to do my best for anyone who entrusted me with their business. I’m still grateful 20 years later. My humble advice: Work as hard as you can at making your business work and don’t give up, and treat everyone the way you want to be treated. See how that works. Set your pricing so you make the money you deserve and then deliver. I know that is simplistic but that’s what I know works. WRE 4

Working RE Inspector Summer 2021

Home Inspector Sued by the Seller We have bought and sold 10 homes and if I want a thorough investigation of a HVAC system, I call an HVAC professional! Home inspectors can take a temperature reading and make sure the A/C and furnace come on and that should be it. I recently had one disassemble my air handler in a rather complicated setup with multiple floors, dampers and a whole house ventilation system. Now my 3rd floor will not cool and the ventilation system is all screwed up. Why are they allowed access to something that they know nothing about? HVAC systems are complicated, that’s why they are left to professionals. Ugh. —Tracy

Should the Buyer’s Agent Attend the Home Inspection It is common (and expected) in my marketplace for the buyer agent to attend the home inspection. As a home inspector, and previously an agent myself, I understand both sides of the question. Agents represent their client, and the sooner they are aware of a given issue the sooner it can be addressed. Sometimes smaller issues can unnecessarily balloon into larger issues due to a simple lack of communication. As an inspector I find that most agents understand that our time at the home is limited and that too many distractions can lead to defects being missed. —Steve W. WRE

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Working RE Inspector Summer 2021

Defending Home Inspectors for a Living Interview with Geoff Binney by Isaac Peck, Editor

As Vice President at OREP, a leading provider of home inspec-

tor E&O insurance for over 19 years, I spend a good part of my day speaking with inspectors, poring over claim documents, and sharing risk management advice and information with our home inspector insureds. So it was especially rewarding to sit down and speak with someone who has been in the trenches defending home inspectors day in and day out for over a decade. Geoff Binney, Managing Partner at Gauntt, Koen, Binney & Kidd, LLP, is an experienced trial attorney in Woodlands, Texas. Binney specializes in litigation work and has built his practice around construction defect litigation, first-party insurance defense work, and home inspector claim defense cases. Binney has been defending home inspectors for 15 years and it now makes up a significant part of his practice. He shares some valuable advice about home inspector claims and risk management. Enjoy! Question: How did you get involved with home inspectors? Binney: I began my career in the Army after graduating from the United States Military Academy at West Point. Once I got out of the Army, I went straight into the FBI and worked as an FBI Special Agent for eight years. It was in the FBI where I really got to hone my skills as an interrogator and witness interviewer. That prepared me very well to be a litigation attorney: being able to ask the right questions, read people, and ferret out the facts is an integral part of my litigation work. I went to night school and got my law degree when I was working at the FBI, and I decided to get out and practice law. I knew I wanted to be in litigation, I just didn’t know what area I was going to focus on. I started working with home inspectors around 2005. I became friends with a home inspector working on a construction defect case. She was connected with the Texas Real Estate Commission (TREC), and she talked to me about representing home inspectors. A husband and wife home inspector team, who was associated with the Texas Professional Real Estate Inspectors Isaac Peck is the Editor of Working RE magazine and the Vice President of Marketing and Operations at OREP.org, a leading provider of E&O insurance for appraisers, inspectors and other real estate professionals in 50 states. He received his master’s degree in accounting at San Diego State University. Reach Isaac at isaac@ orep.org or (888) 347-5273. CA License #4116465.

Working RE Inspector Summer 2021

Association, was sued and they called me directly. I got them out of the lawsuit pretty quickly and they introduced me to their insurance agent and carrier. I’ve been working with inspectors ever since and have built up my client list over time. I really like representing home inspectors. They are decent, hardworking folks who are trying to do the best job they can. Oftentimes they are caught up by homeowners who get buyer’s remorse and just want to sue everybody in the transaction. So I especially enjoy being able to defend inspectors against these kinds of frivolous lawsuits. In my daily practice, my caseload varies from 25 to 50 percent home inspector defense, with the balance being construction defect litigation, personal injury, first party insurance defense work, and plaintiff and defense work. Question: What are the most common home inspection claims you see? Binney: The most common claims involve some sort of missed leak or water intrusion in the attic or behind walls, and then the mold that they claim it caused. The second most common claim is something wrong with the foundation. They’ll claim that the foundation is not level, has cracks in it, etc. We have a lot of movement down here in Texas because the soil is clay. The amount of rain and drought we get here means there’s some soil movement and the buyers will often try to blame that on the home inspector. The rest of the claims that I see are a hodgepodge of everything that could go wrong with a home: HVAC issues, sewer pipes leaking, plumbing, electrical, or just a combination of all those things. Question: How has the legal environment changed for home inspectors over the last 10–15 years? Binney: The one major change is that once The Texas Real Estate Commission (TREC) required home inspectors to carry liability insurance, the number of lawsuits against home inspectors went up. The interesting thing about that is that TREC is the same commission that licenses Realtors. It’s worth noting that Realtors are not required to have insurance, but home inspectors are. page 8 8

Working RE Inspector Summer 2021

7page 6 The Realtor lobby is much more powerful than home inspectors, so that probably explains it.

home system is going outside your scope and asking for a lawsuit.

Question: What are the two or three top ways a home inspector can avoid claims and/or produce defensible reports?

Question: How does a contract come into play in avoiding and defending claims?

Binney: The single most important thing a home inspector can do is to have a good inspection agreement that is signed by the client. The agreement should have a limitation of liability, a fair notice clause, and an attorney’s fee provision. If inspectors have those items in a signed agreement and they come to me with a potential lawsuit, I can get them out of the case almost every time, almost right away. The fewer of those things that they have, the longer it may take. If it’s not signed, I still have a good agreement, but it’s harder to prove the plaintiffs knew everything that they were getting into.

Binney: First and foremost: have an agreement and get it signed. I’ve talked to inspectors who say they’ve been doing it for 30 years and they’ve never used an inspection agreement. Those people are just lucky. It’s just a matter of time before you get sued if you do this long enough. Some home inspectors have the agreement online and they can just email the client a link to sign digitally. That way it’s the first step to schedule the inspection and they have the client sign before the inspector even goes out to the house. I’d definitely recommend that.

The second biggest thing inspectors can do is to take a ton of pictures. It’s amazing to me sometimes I see reports with only 10 or 15 pictures. Digital media is very inexpensive. Even if you’re not putting all the pictures in the report, if you take a ton of pictures and you save them, it can show that you did go in the attic and there were no water stains on the roof, and so on. If you don’t have those pictures, the plaintiff can say you never went in the attic, or you never looked at the roof. I see that a lot. Another important thing is to make sure that you are consistent with what you write in the report and what you say to the client. If you tell the homeowners, don’t worry about the report, I’ve already talked to you about the major things—that’s a really bad thing to say. I’ve seen some home inspectors tell their clients “if you don’t buy this house, I will.” Those kinds of statements are an invitation for the client to not read the report. Lots of cases come down to he-said, she-said. These types of things come out in depositions. The plaintiff will say they had a conversation with the inspector that they think tells quite a different story than what is in the report. Most homeowners are going to listen to what you say and if you tell them everything’s great, they’re not going to read that report. Or they’ll say “I read it, but he told me not to worry about it.” As a home inspector, you should always tell the client to rely on the report and not the conversation that you have with them. Home inspectors should also recommend experts where it’s appropriate. I don’t like to see a recommendation for a follow-up expert for every area of the home, but if you find some issues with a particular area, like the foundation, and there is evidence of prior repairs, you should recommend a follow-up foundation report. That’s your get-out-of-jail-free card if they come back to you with complaints about the foundation. Lastly, estimating useful life is risky and probably unnecessary. In most cases, it is going outside your scope as a home inspector. Your job is to perform a visual inspection of the property and report what you see and what’s wrong with the property. Predicting the lifespan or useful life of a particular

As far as what’s in the agreement, the limitation of liability is probably the most important aspect. It has to be well-written and conspicuous to be enforceable here in Texas. I’m sure state laws vary, but the requirement that the clause be conspicuous means that it’s not good enough just to have the language in the agreement. It has to stick out. It has to be readily apparent to the reader. The plaintiff doesn’t necessarily have to initial it, but that helps. If you have a one or two page agreement and the limitation of liability is in there as the same font, not bold, not in a different color, then Texas courts are not going to enforce that. It needs to be set apart and it doesn’t take all that much. Either all CAPS, bold, a different font, color, a box around it, or something else to make it stick out. If it is conspicuous, it’s absolutely going to be enforceable. If I have a signed contract with a conspicuous limitation of liability in it, I am usually successful at getting the claim dismissed. We will send a letter to the plaintiff denying liability and pointing out that pursuant to the agreement that the client signed, and that we’re willing to refund the amount of the inspection fee. We make it clear that if they decline our offer and pursue litigation, we will file a Declaratory Judgement action and pursue an affirmative claim against them. This creates a threat for the plaintiff that they may have to pay our legal fees if they continue down this road. If the plaintiff’s attorney explains this to the plaintiff, they now have some skin in the game and it will often make them think twice. It’s a really strong out of the gate response. As opposed to just saying “we just don’t want to pay it.” Another useful clause is an attorney’s fees clause. Something that says: “if you fail to succeed on all claims alleged, you’ll have to pay my attorney’s fees.” Both the limitation of liability and attorney’s fees clauses allow us to let the plaintiff know that we will respond by filing a Declaratory Judgement. We would never file for this preemptively, but once the lawsuit is filed, we can seek a Declaratory Judgement, which is basically going before a judge and seeking summary judgement on these very narrow issues. If the judge rules in your favor on the limitation of liability question, for example, the plaintiff would have to pay your attorney’s fees. page 10 8

Working RE Inspector Summer 2021

7page 8 In Texas, it always helps to have a Notice Provision in your contract as well. In other words, if the homebuyer finds a defect in the home they have to give the home inspector a notice bringing it to their attention. Failure to give notice to the inspector, and an opportunity for them to inspect it, results in a waiver of all claims. This notice is also required to be conspicuous here in Texas.

a catch-all phrase in your agreement and inspection report. In Texas, if there’s moisture, oftentimes there’s mold. Mold can leave a lasting negative stigma on the house. So, anything you can do to tell the homeowners that they need a mold inspection is a good get-out-of-jail-free card. I have two or three cases right now that are mostly mold related.

Another clause I recommend is one that limits the statute of limitations. State law here in Texas is that tort-based claims have a two-year statute of limitations and contract claims have four years. Therefore, Texas inspectors can limit all claims to one year, except breach of contract claims, which can be limited to two years. The reality is that most claims are going to be filed in under two years and educated plaintiffs will just file the breach of contract claim, but this is still a good way to limit the number of claims you’re fighting. Home inspectors in other states can consult their own state laws, but this type of notice provision is likely useful in other jurisdictions as well.

If you do offer ancillary mold inspections, or termite inspections, or test for radon, or offer any type of upsell test or service, it’s a great idea to offer that to the client, and if they decline it, to get them to sign a separate waiver that releases you from any liability and claims around that particular area. Even if you don’t have them sign a separate waiver, at a minimum, put that in the email when you send them the report, and put it in the report itself. Note that you had a conversation with the client about the added service and they declined it.

Lastly, I’ve seen cases where the husband signs the agreement, but his wife or girlfriend doesn’t. The plaintiff’s attorney will say, “well the wife still has a claim!” So, I added the following into the “Sample Agreement” I created: “The term Client shall include the undersigned representative of the Client, as well as any of Client’s past, present and future subsidiaries, divisions, parents, affiliates, assigns, related entities, successors, predecessors, representatives, employees, officers, shareholders, directors, agents, and any other person or entity that benefits from or relies on the Inspection Report.” I’ve also seen cases where a home inspector signs the contract but the agreement is between the home inspection company and the client, and the plaintiff’s lawyers try to exploit that. So, I added this to my Sample Agreement: “The term Inspector shall include the undersigned representative of the Inspector, its past, present and future subsidiaries, divisions, parents, affiliates, related entities, successors, predecessors, representatives, employees, officers, shareholders, directors, agents, and assigns.”

Conclusion While state law differs with respect to what is and is not enforceable in a home inspector’s pre-inspection agreement (see Sharpening Your Pre-Inspection Agreement on WorkingRE.com), many of the tips that Binney shares can be used in some form or fashion by home inspectors nationwide. When faced with a claim or potential claim, home inspectors are advised to seek legal counsel that has experience defending home inspectors. If you currently carry insurance, be sure that your carrier selects counsel that is familiar with home inspectors. If you are using a program written exclusively for inspectors, like OREP’s, that will be the case. The difference between the defense you receive can be substantial. With his extensive inspector claim experience, Binney is on the roster of experienced lawyers that represents those insured with OREP’s primary carrier in Texas. OREP has been serving home inspectors with comprehensive E&O insurance, risk management, and pre-claims assistance for over 19 years. If you ever need risk management information, advice, or have any insurance questions, visit OREP.org or give us a call at 888 - 347 -5273. Our extended hours are Monday–Friday from 5am–5pm PST. WRE

Question: Do you have specific disclosures or disclaimers you recommend home inspectors to use? Binney: Here in Texas, your report must conform with TREC rules. In both the inspection report and the agreement, you want to remind the client that the home inspection is limited to a visual inspection, that you’re not moving furniture or unhooking appliances, etc. Even though in Texas, inspectors are not required to report on mold or termites, I like to see them include that this is NOT a termite inspection and NOT a mold inspection and always recommended that you have a follow-up mold report or follow-up termite inspection. You don’t want to be the inspector who recommends an expert in every area you’ve inspected, but don’t be afraid to recommend an expert if you see something. Because water penetration is the most prevalent claim that I see, it’s really good to have

10 Working RE Inspector Summer 2021

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Shop OREP.org TODAY! OREP–Organization of Real Estate Professionals, LLC. - Calif Lic. #0K99465

Tips to Improve Your Relationship with Real Estate Agents by David Nyman, Inspector ToolBelt

I probably don’t have to explain why good relationships with

real estate agents/Realtors are important, right? One of the best ways a home inspector can build up business is by having a good relationship with real estate agents in their area—that’s why! While this might sound simplistic, building up relationships is not. It can take a lot of time and determination. Here are some tried and true methods for building and sustaining positive relationships with agents. Tip #1: Every Inspection Is a Marketing Opportunity Our first tip is to be good at your job. This probably doesn’t come as a surprise for most home inspectors, but being thorough, providing high-quality service, and doing what you say you will do is going to go a long way with any reputable agent. In fact, we’re willing to go so far as to say that a thorough and reliable home inspector almost always has a good relationship with real estate agents. Of course, there might be other factors that come into play, but as long as you do a good job, the real estate agents and brokers will appreciate you. Tip #2: Make Yourself Known Second, stand out. Depending on your area of operation, there might be a lot of competition—many other home inspection companies. This means that you need to stand out from the pack. It also means that you will need to find out what the agents already have seen a million times and then go one better. Bringing over a box of baked goods to their office might be what everyone else does, and a lot of it probably ends up being thrown out at the end of the day. Maybe they have the pens of 20 different home inspectors sitting in a cup on their desk already. The main thing that will make you stand out is how much attention you are giving them. Offering a landing page on your website just for them can be a great way to let them know how important their business is to you. If true, leaving positive reviews of the agent from the perspective of a home inspector will help boost their business and gain you both some exposure. Let them know personally that you appreciate working with them as well. David Nyman is Head of Content Management and Customer Support at Inspector Toolbelt. Swedish-born, and speaks three languages, he spends a great deal of time helping inspectors across the U.S. and Canada with Inspector Toolbelt, which is simple scheduling and administrative software for home inspectors that makes running your inspection business easy and automated.

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Tip #3: Get Familiar The last note on our second point brings us to tip three: be personable. Of course, you want to present a professional front as a business owner, but it is important to remember that you are dealing with human beings. If you want to have a good relationship with them as professionals, first treat them like a person. Get to know them. Don’t be afraid to share some minor details about yourself to see if they feel comfortable sharing something personal with you as well. You don’t want to get too personal of course. Pay attention to body language and tone of voice to ensure that they are comfortable with the conversation you are having. As an added note, don’t take too much of their time with social chit chat. Sharing a tidbit or two about yourself is enough to get the ball rolling toward a personal relationship that can benefit your business. You should also be careful not to come across as being insincere. Tip #4: Join an Association A fourth tip is to take advantage of the associations that are available in your area. If you find that agents are in a local chamber of commerce or the National Association of Realtors (NAR), membership could open up an avenue for you to share with them why your home inspection firm is a good choice. Sometimes there will be opportunities for presentations; there might be trade shows or just an opportunity to spend time in the same room with an agent to get to know them better. Once your face is familiar, they might think of you when they have a property that needs to be inspected. Tip #5: Proper Marketing A fifth tip is to make sure you market yourself well. Make sure that the real estate agents are aware of all the services you offer and unique additional bonuses that your business brings. While having a business card that gives them your name, number, and website is beneficial, you could do a lot more. List relevant information on the business card so that the agent easily can see what makes you the best choice. For example, if they believe that thermal imaging is important for every inspection, listing that on your business card as one of the services you offer, if you do, makes it more likely they will call you right away instead of searching out other options.

Tip #6: Diversify Sixth, don’t limit yourself to home inspection information. While you might feel like your website should be laser-focused on home inspection, it is good to have some helpful tips for homeowners that you share in your blogs and newsletters. It is definitely extra work and not so easy to measure the results, but if your information is well-written and informational, the agent might send links to their clients, and in that way, they could end up marketing for you. If you like writing, that’s a bonus.

for home inspectors in your area, is your business on the first page? If not, you have some work to do. Getting a professional service to care for your SEO (search engine optimization) can go a long way. You should also take a look at reviews. Do people say that you are a thorough inspector? Do they complain about your attitude? Are they pleased that you showed up when you said you would? All these items will affect the way a real estate agent views you before he has even met you, so try to address the issues to make sure that you have a good reputation.

Tip #7: Visit Open Houses Our seventh tip is more for smaller home inspection companies and those who are just starting up. Open houses are a good spot for you to get in touch with a real estate agent. Often you will find that they end up having a lot of downtime between clients. This means that they might appreciate having someone stop by and spend time with them. You might be even more welcome if you bring snacks! Just make sure that you have a plan. Preparing a few subjects that you could discuss could help you keep the conversation going. Just make sure that you’re not impeding potential buyers in any way, and that you are observant to any social cues that you are overstaying your welcome. It’s better to leave while they still want you than staying too long.

Closing Thoughts These are just a few of the things that you can do to make sure that you stand out when a real estate agent is looking for an inspector, but remember, it is a long-term play and you will need to sustain your efforts. While it is important to put your best foot forward at every inspection, this is extra important when you are dealing with a real estate agent. Plan ahead to make sure that you have some buffer for traffic and other issues when you are heading out to the inspection to make sure you are on time. Be quick about getting your report out, since a late report is a common reason for real estate deals falling through. Try to be pleasant and accommodating, even when it feels like the real estate agents aren’t doing the same. Remember that they might just be having a bad day.

Tip #8: Take a Close Look at Yourself Our eighth tip could be harmful to your self-esteem, but it is important. Search yourself on the major search engines as well as on sites like Zillow and Yellow Pages. This is how many real estate agents find home inspectors. When you search Google

Keeping all this in mind, you can start making a success of your connections with real estate agencies in your area. You can find more helpful information at https://inspectortoolbelt.com/. WRE

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Stone Veneer: Friend or Foe? The Science Behind Your Inspection by Tom Feiza, Mr. Fix-It, Inc. HowTo OperateYourHome.com

Stone and brick veneer for residential construction have seen

dramatic changes with the last few generations of products. The industry has moved from “real” brick and stone veneer supported by a foundation (an old friend), to an adhered, manufactured product supported by the wall frame; the question is whether this is friend or foe. In many parts of the country, adhered veneer is the new industry standard perhaps because of cost and appearance. Many builders just call both systems stone or brick. Originally, the adhered products were not that “natural” in appearance and could be easily identified. Now the manufactured stone and brick look real. Natural thin-cut real stone is also used as an adhered veneer leading to more confusion. Quality products have cornerstones cut in a “L” shape so the product wraps around corners like a full-depth stone veneer. The change has not taken place without casualties. The adhered veneer needs to be installed like a stucco/EFIS product with proper layering of moisture resistant materials and flashings. There have been many system failures and expensive repairs in wet climates. As a home inspector, you need to properly identify the veneer product, know the proper installation methods and know the signs of failure. You need to understand how the products perform in your climate. This basic primer/overview will help you identify and understand the products and the all-important drainage of water from the veneer and wall assembly.

Figure 1: Brick Veneer Construction - A modern brick home often consists of a wood-framed structure with brick veneer cladding. Solid brick or structural brick walls were not often built for homes after 1900 except where wood-destroying insects were a major issue.

Stone Veneer vs. Adhered Masonry In the last 20 years, adhered veneer of some type has become a common exterior finish replacing real masonry veneer. We use different terms for the adhered product—faux stone or brick, adhered stone, thin cut stone, manufactured stone or veneer, lick and stick and the list goes on. The big differences are the product thickness, drainage, and how it is assembled on the exterior wall. All Siding Leaks: Brick, Stone, Wood, Vinyl, Aluminum, Faux Stone Yes, all siding leaks, even real brick/stone veneer. How should brick/stone veneer be properly drained to prevent water damage to the wall assembly? As an inspector you need to understand the different siding products and how the wall assembly is drained to keep water out of the structure. There are visible clues to the flashings installed—you can see the edges. You may already know the visible signs of failure/moisture—damaged stone, flaking stone, salt stains, missing mortar and water stains. Water stains may also be visible inside the home around windows and at the top of the basement wall. 14 Working RE Inspector Summer 2021

Figure 2: Water Management Details - All masonry can leak. One-inch spacing, flashing, weeps, and water-resistant barriers drain the water to the outside and protect the wood framing.

and water-resistant barriers. In older construction, wide overhangs often helped provide this protection. Figure 1 shows general brick veneer construction. Note the air space behind the brick to drain water and stop capillary action. The wood frame is covered with a water-resistant barrier. Flashing directs water to drain over the foundation. Thin metal strips “tie” the brick to the wall for horizontal support. Details of “Real” Brick/Stone Water Management: Figure 2 shows additional water-management details. There must be a gap of at least one inch for drainage. The water-resistant barrier can be traditional tar paper, housewrap, or a specialty product. The weep shown here is an open mortar joint. There should be an insect-resistant material covering—not just a hole. An optional drainage mesh to keep mortar out of the weeps is also shown.

Figure 3: Masonry Veneer Flashing - At the base of masonry veneer, flashing may not be visible. It can be hidden by mortar. Weeps should be visible.

What can you expect to see? In residential construction, flashing and weeps are often not visible. Figure 3 shows a typical situation in which flashing is buried in the mortar joint. Who knows why? Perhaps masons do this to hide the “ugly” flashing. During an inspection, you will often find that the lower stone/brick is buried beneath landscaping; you’ll have no idea whether there are flashings. You certainly can’t see into the wall structure. Flashing that’s visible in residential construction might come as a surprise (Photo 1). If you look closely, you can see a small round weep hole just above the dark flashing. An open mortar joint and covering for a weep is even less common (Photo 2). The takeaway: Real brick veneer should have flashings and weeps. Don’t confuse real brick or stone veneer with an adhered stone or brick veneer—a synthetic stucco type of assembly. Adhered Masonry Veneer—Faux (Artificial) Adhered veneer of some type has become a common exterior finish replacing real masonry veneer. As noted, we use different terms for the adhered product—faux stone or brick, adhered stone, thin cut stone, manufactured stone or veneer, lick and stick and more. The big differences are the product thickness, drainage, and how it is assembled on the wall. (Most consumers and builders just refer to both products as stone or brick.)

Figure 4: Masonry Veneer vs. Adhered Veneer

Figure 4 shows the basic difference. Real brick or stone veneer is supported by the foundation and there is an air gap with a water-resistant barrier and flashings for drainage. Adhered brick or stone is attached directly to and supported by the frame of the home. Adhered stone requires a specialized water-resistant barrier and special flashings—there is no air gap.

Photo 1: Flashing in Residential Construction with weep hole

Photo 2: Open mortar joint and covering for a weep

“Real” Stone, Brick and Mortar Leaks: Water will flow through exterior brick veneer and can damage the structure behind and below the brick. For many years, structures have been protected by drainage planes, flashing,

Adhered Veneer The installation and water barrier/drainage details for adhered brick/stone are similar to synthetic stucco (See Figure 5, Page 16). There should be multiple layers of a water-resistant barrier, metal lath, mortar bed and then the product is adhered with mortar. The proper assembly requires a weep screed at the lower edge and four to six inch clearance to grade. The clearance to page 168 Working RE Inspector Summer 2021

7page 15

Photo 3: Adhered Masonry Veneer Issues

Figure 5: Adhered Manufactured Stone Veneer (AMSV) - Adhered stone is supported by the wood frame of a home, not the foundation.

roofs, supported concrete, and walks is often one to four inches. There are critical requirements for flashing over all penetrations like windows and doors plus edge sealants to windows and doors. You should look for specific installation requirements for adhered products used in your area. A good general reference is The Installation Guide and Detailing Options for Compliance with ASTM C1780 (78 pages) by the Masonry Veneer Manufacturers Association. Google MVMA and you will find references. Product manufacturers also provide installation instructions or a reference to code and industry standards. Problems with Adhered Stone I have seen many issues with the installation of adhered stone. It is rarely installed correctly in my cold-wet climate. Take a look at Photo 3. You can see the moisture stains from water entering the wall. There should be a gap and flashing to the roofing. Water will be trapped against the stone by the angle of the vertical wall. This home had major leak issues into the front entrance and the basement below this area. The owner had replaced walls and flooring not understanding the source of the water leak so the water damage continued. Photo 4 shows classic missing details—no kickout flashing from the sidewall to the gutter. No flashing and spacing from the adhered stone to the shingles. The small gap between the shingles and faux stone improperly sealed with “liquid black flashing” to attempt a repair. Climate and Local Construction Details Make a Difference What can an inspector do? As with all building products, “real” veneer and adhered veneer is affected by the local 16 Working RE Inspector Summer 2021

Photo 4: Adhered Stone - No Kickout Flashing

climate. If you are in a dry climate there is much less worry about ongoing water intrusion. Ever ything just dries out. If you are in a wet-cold climate, the product must be installed properly or leaks and hidden defects will surface after a few years. Homes with large overhangs limit rainwater hitting the stone and limit water intrusion. Homes with shallow overhangs and/or overflowing gutters or undersized gutters are always a problem. Water intrusion can also occur on the side of the home wet by the prevailing wind/rain. Adhered Veneer Inspectors should recognize the difference between adhered masonry and “real” masonry veneer. Study the installation details for adhered masonry and carry them with you during inspections. Identify any visible adhered stone installation omissions/defects and call for further evaluation. If a flashing is missing, identify that issue. I believe adhered stone needs a specialized inspection just like synthetic stucco. Structural damage is often hidden behind the adhered stone and not visible to the inspector. Real Stone and Brick Veneer Real brick veneer should have flashings and weeps. Don’t confuse real brick or stone veneer with an adhered stone or brick—the synthetic stucco type of assembly. If you can’t see a drainage system, state that in your report and list the limitations. Note whether there is insufficient clearance from the structure to soil. Note any visible water damage that requires further investigation. WRE 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, books for homeowners, and illustrations that help professional home inspectors educate their customers. E-mail Tom (Tom@htoyh.com) with questions and comments, or phone (262) 303-4884. Copyright © 2021 by Tom Feiza, Mr. Fix-It, Inc. Reproduced with permission. Visit Htoyh.com for more information about building science, books, articles, marketing, and illustrations for home inspectors.

Technology is Redefining Mold Testing by Ben Cahoon, CEO, Techcyte

Mold is all around us. In the past 25 years the scientific community has documented its impact on our health through many studies—now there is a technological advancement in mold testing worth noting. In 1993, the Mayo Clinic reported that 93% of chronic sinus infections can be attributed to mold. According to the National Institutes of Health (NIH), mold exposure symptoms can include sneezing, nasal congestion or runny nose, wheezing and difficulty breathing, coughing, throat irritation, chest tightness, and skin rashes. Infants who are exposed to mold have nearly three times greater risk of becoming asthmatic than those who did not have extensive mold exposure in their first year of life. The Center for Disease Control (CDC) recommends that people with asthma or other lung conditions—like chronic obstructive lung disorder (COPD)—should stay away from places where mold can be seen or smelled, even if they aren’t allergic to mold. The CDC also recommends that people with weakened immune systems—cancer patients on chemotherapy, those who have received an organ or stem cell transplant, and HIV patients—stay away from moldy areas. Experts from the 2015 documentary “Moldy” even claim that environmental mold is much more dangerous to human beings than lead paint or asbestos. And most shocking is that estimates indicate that between 50% and 70% of homes in the U.S. have mold. With everything we know about mold’s impact on our health, mold testing should be a service every homeowner and homebuyer is interested in. Big Opportunity In the U.S. alone, over five and a half million homes are sold every year. When a property changes hands, it is common practice to have a home inspection performed. According to study conducted by the NAR (National Association of Realtors), 84% of homebuyers requested a home inspection as part of the purchase contract, and almost all Realtors (99% to be precise) recommend a home inspection. Ben is a serial entrepreneur and for the past six years, he’s helped launch Techcyte working on everything from the product to projections, marketing, partnerships, and funding. Ben learned from air quality and mold perspective from one of the best mycologists in the nation, John Haines. Ben has a passion for digital mold spores and believes that AI will change the mold industry by providing more consistent results, quicker, and lower costs.

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However, only five percent of the five and half million homes sold every year are tested for mold. The impact of mold illnesses is staggering. Statistics for the U.S. show that the annual cost of allergic rhinitis caused by dampness and indoor mold is $3.7 billion. Water damage and mold cost the insurance industry $2.5 billion per year, and the average cost of a home water damage insurance claim is nearly $7,000. These statistics should result in a huge opportunity for home inspectors. Which begs the question: why aren’t more people asking for a mold test? Home Inspectors and Mold Testing Few home inspectors test for mold because testing requires training. Home inspectors can report on mold that they see but not the invisible mold. That requires the intervention of mold specialists. For the average home inspector, getting trained to perform mold inspections isn’t lucrative enough to make the investment worth it. Without training, home inspectors must refer the business, leaving some profit on the table. Secondly, mold testing solutions take time. When homeowners make the decision to sell their home, many factors come into play. The average time for homes to close once they go under contract is one and a half months. Twenty-five percent of home sales get delayed during closing, and home inspections cause 16 percent of those delays, which ultimately results in over 110,000 home deals falling through. It’s a high-pressure process with a short timeframe in which to get a lot accomplished. On average, three to four days are required between the time mold samples are sent to a lab and the time the lab delivers results, which can be too long for a home inspection report to be delivered back to homebuyers if they are in a hurry. Thirdly, mold inspections are expensive. Amidst all the other costs incurred with a home sale that can include staging and prep fees, real estate agent commissions, closing fees, title fees, transfer or excise taxes, escrow fees, reconveyance fee, recording fees, prorated property taxes, seller concessions, overlap costs, moving and relocation costs and a mortgage payoff, mold tests are just plain expensive. The average cost of a mold inspection is $650 according to Homeadvisor.com and Homeserve.com.

Contrast this with the average home inspection at only $400, where multiple areas are checked including heating systems, central air conditioning, interior plumbing, electrical systems, roof, attic, walls, ceilings, floors, windows and doors, basement and structural components. It puts the cost of a single mold test into an unfavorable light, which makes it understandable that home inspectors are not very motivated to offer it as part of their service. While the reasons for not proposing more mold tests are understandable, the fact that over half of U.S. homes are infected with mold remains very real. As home inspectors, whose careers are built on giving homeowners the information they need to be sure their home will be safe and secure, our gaze turns toward potential solutions. New Technology Brings About Important Changes Over the past several years, new technology called “machine learning” (artificial intelligence) has emerged. One branch of artificial intelligence deals with images; more specifically, finding and identifying things in pictures. This can be pictures of people (face recognition), satellite images, medical imagery, or pictures from our mobile phones. It is being used in countless applications, from digitizing books to helping visually impaired people navigate and interact with their surroundings, to facial recognition for security, medical visualization, biometrics, self-driving vehicles, gaming, surveillance, law enforcement, and many others. Machine learning can basically do what humans do through observation (either with the naked eye or through a microscope), only it doesn’t get tired or distracted. While humans are excellent at pattern recognition, machine learning’s biggest advantages are the consistency and diligence by which it performs its job. It’s like having a few thousand eager young beagles, all hot on the scent of whatever they’re asked to track, and they search relentlessly, no questions asked, until they find it. One of the more advanced branches of machine learning uses “neural networks,” which resemble the way the human brain works: by making associations and trying different variations to a problem until it finds the most optimal way to solve it. Except that the computer can try thousands of variations, as opposed to humans who can only manage a few, and it can do it exponentially faster, cheaper, and more consistently. Very recently, this technology has been applied to the environmental air quality sector as well, taking air sample images on microscope slides, scanning them into digital form, and then analyzing and reporting on them. Whereas in the past these images would have arrived in a laboratory where a mycologist would spend painstaking minutes searching for harmful mold spores, today this can be done in a matter of seconds using machine learning. With this advanced technology, home inspectors can screen for mold and get particulate counts with the same quality that they could expect from a lab, the next day—and at a fraction of the cost. Bringing the cost of the test down would make it

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As low as $12.50/warranty. Visit OREP.org/warranty to purchase Not available in all states. OREP E&O insureds save. feasible for home inspectors to offer the mold screen to many more homeowners, without the expensive training that today’s methods require. Because it is digitized, in addition to mold and particulate counts, the homebuyer would be able to see images of the actual spores and particulates in their home. A home inspector’s main goal is to protect their clients and give them the information they need to make informed decisions about the homes they’re considering purchasing. As technologies like machine learning find new applications in indoor air quality, mold and particulate screening could become an invaluable tool in the home inspector’s toolbox. WRE

Tip for Mold Testing If you test for mold, it is a good idea to ask your E&O insurance provider if you have the proper coverage. OREP offers coverage for mold testing as a very inexpensive addon to its base program. Call OREP or your agent for details. If you want to learn more about this technology and how it works, visit sporecyte.com/homeinspector. Working RE Inspector Summer 2021

“Seeing” with an Infrared Camera by Bill Fabian, Vice President/Senior Trainer at Monroe Infrared

Having taught some 150

infrared certification classes and trained more than 2,000 home inspectors over the last nine years, I often hear the question you may be asking: “What benefit does an infrared camera give me as a home inspector?”

And the lists of things found every day using thermal imagery that would have been otherwise missed goes on and on. These are not insignificant items, as we’ve seen. These are defects

Infrared cameras are often thought of as an expensive and not-so important addition to an inspector’s toolbelt. While that may have been true 8–10 years ago, it is not true today. Here’s why. While Realtors/agents used to avoid inspectors who used infrared cameras in the past, today they seek out inspectors who not only use an infrared camera but are certified to do so, including how to interpret the thermal images. We see visible light pictures with our eyes and capture those images with digital cameras. This both documents and exposes defects observed during a home inspection. An infrared camera “sees” heat energy—not light, not color, not shadows, not new paint, etc. This is ver y different than what we see with our eyes and why it is so valuable for inspectors to understand how infrared works. Everything we can see with our eyes and feel through our skin is radiating heat energy that can be seen by a good infrared camera. Absolutely EVERYTHING. And while visually we may not see any defects or flaws, the infrared image can often reveal hidden concerns. Many times a seller may not even know the problem exists. For instance, look at Figure 1a, as seen through the naked eye and Figure 1b, using thermal technology.

Figures 1a and 1b: Kick-out Flashing

Note that the lack of a kick-out flashing allows water to penetrate the EIFS. Under the right conditions this developing issue, which could result in a very serious problem, shows very clearly with an infrared camera but not with the naked eye. Would this be something the seller knew about? Maybe but probably not. Would this information be important to your client the buyer? Absolutely! The infrared camera “sees” something the naked eye cannot—a heat register tiled over! (See Figures 2a and 2b.) Bill Fabian has provided infrared training, IR cameras, and thermal inspection services to Maintenance, Utility, Municipal, Federal and Residential Building Performance Inspectors since 1986. He works closely with companies of all sizes to ensure the most appropriate training and right equipment are provided to maximize the results of thermal imaging for clients. Bill has delivered more than 100 presentations and papers on the use of thermal imaging equipment for electrical, mechanical, HVACR, building energy and residential inspection applications to a broad array of audiences across the country.

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Figures 2a and 2b: Brand new floor with naked eye (top) and with infrared camera (bottom).

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Figures 3a and 3b: Family room ceiling with naked eye and with infrared camera. Infrared reveals missing insulation in the ceiling of a new home.

Figures 4a and 4b: Ceiling shows leaking water from second floor bathroom plumbing!

that could cause your phone to ring some months later with a demand from an unhappy client. You want to discover these issues before the client buys the home, not after.

first major “OMG” find that may have saved them liability headaches. They also regularly share what they can now identify with an IR camera that they were missing or unable to find before.

Making the decision to invest in an infrared camera and committing to get certification training is a small expense that pays tremendous dividends for years and years! We hear from inspectors all the time who say they paid for their training and IR camera in the first month with increased income or with the

Infrared cameras, with the proper training, permit home inspectors to provide a better inspection and provide a higher quality and greater value to their clients. That also means you can charge more because you are providing more than your competitors. WRE

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Five Ways to Expand Your Business Post-Pandemic by Max Cron, Benchmark Payment Networks

we begin to put the pandemic in the rearview mirror, 2021 provides an amazing opportunity to invest in your business. Many small businesses have pulled back spending during Covid. This is why the opportunity is great. This creates an environment in which investing pays off more than ever. Here are a few ideas. 1. Marketing The best way to get new business is to invest in a marketing strategy. Spending money to boost your brand visibility, whether that’s through traditional means—billboards, flyers, decals on a truck or digital media, such as Google search results or running ads on social media. Whether you are doing traditional, digital marketing or forming business partnerships, you need to do an analysis of your return on investment. Analyze your current sales funnel and note where new business comes from. Is it from partnering with a real estate company? Is it from renting billboard space in developing neighborhoods? Is it from running social media ads during peak season? Whichever channel drives the most business to your company consistently, consider increasing spending, rather than trying a new channel. Whatever strategy you use, you will need to allocate part of your budget to developing marketing materials. If you have a great website, that’s fine, but if you can’t book appointments on your website, I suggest looking into that. So, to conclude, analyze your current sales funnel and expand the part that drives the most business. Whether that means a new website, a new truck decal, uniform shirts for your employees and other ideas are worth the re-investment. 2. New Employees Whether it’s an in-house marketing person, sales manager, accountant, office manager or anything else, it’s wise to invest money into staff. Let’s say during peak season, your office manager can’t keep up with inbound calls, setting up new clients in your database, processing payments etc., then it might be time

Max is the Chief Marketing Officer at Benchmark Payment Networks (BPN), and resides in New Orleans, LA. With his many years of Digital Marketing experience, Max has created an awesome & effective digital footprint for BPN. Benchmark is a leading payment processing company that specializes in bringing your fees to zero dollars per month. You can contact him at MaxCron@GOBPN.com if you want to chat about marketing and payment processing.

26 Working RE Inspector Summer 2021

to hire a second employee—even part time, or to consider using an outside call center for setting appointments. Many times, the only thing standing between you and more business is being able to make sure you clear the pipeline. The last thing you want is to lose business because your office manager is overwhelmed with bookings and office activities associated with new clients. If you are an owner and are completing the daily office work, you may not be using your time in the most efficient way. Booking new appointments, customer service work, payment processing and more, are tasks that cut into longer term planning—or big picture strategy. By relieving that daily work from your schedule, you have the room to see your business from a new perspective, whether that means going to more trade shows or conferences, forming partnerships, or working with outside companies to drive brand awareness and visibility. 3. Expand to New Territory You never know which areas or markets are going to “go” for you in big way until you try. Expanding into a new territory does not have to cost a lot in this work-from-home digital age. 4. New Tools Being at the top of your game means you work with nothing but the best tools. This means every few years or so you need to upgrade. Whether you’re a home inspector buying a new digital level or new truck, making room for these improvements is necessary. Let’s take the above example of expanding into a new territory and looking to hire new home inspectors. Maybe you want all of your inspectors using the same brand equipment. Maybe you want all your inspectors driving a certain type of vehicle to keep up brand awareness and marketing. Whatever new tools you need, you need money to invest (we’ll share a great way to save money on the next page!). page 288

Working RE Inspector Summer 2021

7page 26 5. Health Insurance / IRA While it is not right for every company, being able to offer health insurance, an IRA or even a matching 401k is something that your employees will value. Having a strong employee retention is part of what makes up a successful company. Besides marketing, new employees and tools, one of the most important aspects of your business is creating happy employees. Having benefits like health insurance, IRAs or 401ks are valuable to employees. These employees will work harder and be more invested in your company if you are able to offer even one more benefit than your competition. A good employee is golden. This is definitely more important if you are expanding into a new territory and looking to hire new inspectors. Saving Money All of these activities listed above will help you grow but they also require a financial investment. If you’d like to bring in more business through digital advertising, you need to somehow create that budget. If you need a new truck, you need to figure out a way to pay for one. One way to save thousands of dollars a year is to switching to Zero Cost Credit Card Processing. Zero Cost Processing allows you to eliminate 100% of your credit card processing fees. This is possible with our technology that automatically calculates and adds a fee to your customer’s transaction. So, if you need to create a big budget for growing your business, saving 100% of your credit card processing fees is a fantastic way to do so. WRE

28 Working RE Inspector Summer 2021

Home Inspection Integrity Act Becomes Law in Wisconsin by Joel Kleefisch, Government Affairs Director for ATI Training

In the era of at home gatherings, staycations, and closed enter-

tainment venues, sales in the home buying market continue, well, like a house on fire. New Realtors and home inspectors are entering the market quickly as well. In Wisconsin, the Realtors Association teamed up with ATI Home Inspector Training to make sure there is a high standard of integrity when it comes to consumers’ largest purchase of their lives. The Home Inspection Integrity Act will for the first time in state history call for education up front when a would-be home inspector applies for registration. Previously, anyone could hang a shingle, paint a van and open shop leaving the potential homebuyer with little faith their inspector had any education prior to scanning crawl spaces in their potential dream home. The new law also requires the inspection to have a summary page where the statutorily defined word “defect” is used when legally required. This will create a new equal standard across the board and give buyers the most transparent representation of the home they may purchase. This new law is good news for buyers, sellers, and everyone else involved in the process. It gives new home inspectors credentials right off the bat and aids in their proof of reliability. It gives Realtors a uniform tool when negotiating on behalf of their clients, and it gives buyers and sellers common language and understanding when it comes to descriptions. Wisconsin’s new law is a great example of how industr y experts worked together with lawmakers, compromised, and took a giant leap forward in guaranteeing integrity in the home buying process. The Home Inspector Integrity Act in Wisconsin is a shining example of how industry advancement and consumer protection can both win, and who doesn’t agree we could all use a few wins these days! WRE Joel Kleefisch works as the Director of Government Affairs. Joel has over two decades of legislative experience under his belt, having served Wisconsin as a State Representative of the 38th Assembly District. Joel works tirelessly to support home inspection businesses throughout the entire United States, both big and small, working with lawmakers to ensure every home inspector has complete freedom to grow their business.

30 Working RE Inspector Summer 2021

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Good for Business by David Brauner, Senior Broker at OREP.org

Great reviews, like the one printed here, can be good for business—just ask Yelp. But “negative” feedback also can propel your business success—if you pay attention to it. Let me explain why.

Good companies, even those with a staff of one, can benefit from negative feedback and even criticism. When we’re too busy or struggling, the impulse may be to not take criticism to heart. Staying positive while you forge ahead may seem like self-preservation...and it probably is—I’ve been there. But while you shouldn’t let criticism defeat you, you shouldn’t ignore it either. Taking the time to take a clear-eyed look at client feedback is good for business.

and to set expectations as to what happens next—to avoid that question. I know, “duh.” But if you don’t take the time to listen, review and act, even a simple fix like this...is never fixed. If it’s your business, the buck stops with you. No one else will do it if you don’t. That’s challenging but also exhilarating, especially if you’ve ever banged your head against the wall working for someone else.

Pay Attention OREP set up BlippReviews, an automated customer review system, as a way to encourage client feedback and measure how we’re doing. The good, bad and the ugly. It works! This may not make sense for your company right now but when feedback in any form is offered, make up your mind to not ignore it because it’s valuable. If you’re busy, make a note and set it aside for when you have the time and patience to review it. Maybe you can schedule an hour a week dedicated for this; just giving it some thought on the drive home or in the shower can be all it takes to evaluate the validity. A good part of this involves taming our egos and resisting the impulse to be defensive. We all know people who believe that everyone else is the idiot. That’s not good for business.

Analyze Another thing to keep in mind is that not all negative feedback is justified, reasonable or even fixable. You should sort this too. Before we had our own insurance program at OREP, we had to wait for quotes, policies and other documents from our underwriters. We had techniques to improve service but it was a thorn in our side until we got the underwriting control that we have now. What I told my staff back then is, that while you can not manufacture the insurance documents our clients want right then, you can return their calls/emails promptly. You can set proper expectations and lean on the underwriters for an expedited request: repeatedly if necessary. Know what you can fix and what you can’t. If you can’t fix your customer’s experience, can you at least improve it?

And not all criticism/feedback is obvious. Keep your ears attuned and your radar on because feedback can be subtle. Sometimes it’s in the form of a question, such as this from years ago: “Did you receive my renewal application?” If you hear the same question over and over, like we did at one some point during our early expansion, figuring out how to fix the issue will save you time by not having to answer it over and over, while creating a much better experience for your clients— which is good for business. Do you hear any recurring complaints or questions?

Also important is whether the problem is a “one-off” or part of a process or entire system that can be improved. Sometimes the fix involves reminding your staff or yourself about an already established procedure. Sometimes it’s simply human error and the circumstances surrounding it are unlikely to ever happen again. Sometimes, it’s something else. Did you forget to return the client’s call/email this one time or do you do it frequently? That’s not good for business. If something like that happens often, a simple solution like putting a sticky on your monitor or phone can work, such as: “Returns Calls” or “Smile.” It takes time and effort to form a new habit but once you do, it’s auto-pilot.

In response to the question above, we set up an automated response to let insureds know that their application is received David Brauner is Senior Broker at OREP, a leading provider of E&O Insurance for home inspectors and other real estate professionals in 50 states (OREP.org). He has provided E&O insurance to home inspectors for over 25 years. Contact him at dbrauner@orep.org or (888) 347-5273. OREP–Organization of Real Estate Professionals Insurance, LLC. Calif. Lic. #0K99465.

32 Working RE Inspector Summer 2021

As mentioned, sometimes a complaint can lead to a fix that applies to every piece of business you handle; a routine or procedure that makes everything more efficient. You might realize that certain explanations or notes in your inspection report consistently prompt questions from clients or agents. Maybe there is a way to make these sections of your report clearer to the reader. Or you might notice that there’s a breakdown

in your processes and you aren’t getting your pre-inspection agreement signed on every inspection (which increases your risk!). Are there “hints” in your day-to-day business that you can use to provide a better client experience, build stronger reports, and limit your liability? Responding If I see an email from an anxious client waiting for a quote as their expiration draws near, my radar turns on because they might be losing business without proof of new coverage. What is their expiration date? Have they waited too long? Do we need more staffing? If I see in the file that they have a claim that requires additional underwriting from the carrier and that they just submitted their docs two days ago, I understand what’s going on. That it is not a system problem is resolved in my mind for now but not finished, for two reasons. First, we need to set up a reminder that the quote is still pending. And we also must acknowledge our client’s feedback. Responding to your client is another way of saying “thank you for your business.” And that’s good for business. Ask yourself: if your expectations are not met by a service provider, but their explanation is timely and reasonable, aren’t you okay most of the time? If a mistake is involved, aren’t most of us willing to understand and accept that if the issue is fixed quickly and not repeated? In this case, I might also remind the agents that this type of question can be avoided by preparing

clients with claims in advance, that their renewal process may take a few days longer than usual if they have a claim. This ultimately saves our clients and ourselves time. For my own part, I send periodic insurance bulletins reminding our insureds that if they have a claim or complaint, it’s best to submit renewal documents early. It’s good advice whether you’re an OREP insured or not. Feeling Good Out of 400 total BlippReviews, OREP has enjoyed over 350 FiveStar reviews! And, yes, with a couple of “one and two stars” also (stuff happens). But kidding aside, a high level of customer satisfaction is not accidental—it takes focus. But it pays off. Happy clients mean better client retention (more money). Better procedures reduce mistakes and liability (less costly). And a tighter ship reduces the stress and workload also, which makes the staff happier and hopefully more patient, kind and courteous to clients, which is…good for business! Most importantly perhaps is that it’s good for us as human beings. Enough studies and our own life experience are proof enough that we are happier when we like what we do, when what we do matters to us and when we believe we are helping others. Being happier and liking what we do is…well…good for business. That’s how and why suggestions, questions and negative feedback can translate to a more successful business and greater satisfaction. WRE

Working RE Inspector Summer 2021

Home Inspectors Don’t Have to Be Old White Guys by Reuben Saltzman, Structure Tech

Take

a look around any room full of home inspectors and you’ll notice we look a lot alike. We are almost all white men with a lot of gray hair. It’s as if there’s an unwritten rule that you have to be an old white guy to be a home inspector. And it takes one to know one: I’m a second-generation white-guy home inspector. But it is obvious that we don’t reflect our community in terms of gender, race and ethnicity, nor age. This bothers me. But more than that, it seems to be a business opportunity. Women Inspectors According to the National Association of REALTORS®, single female home buyers made up 17% of home sales in 2019, while single male buyers made up nine percent. I’ve learned from experience that a lot of women would prefer to work with a female home inspector. The first woman inspector on our team here at Structure Tech quickly became one of the most highly requested inspectors. She also received a lot of requests from people who had never worked with her before. There’s a huge demand for female home inspectors in our industry, and it isn’t being met. The ASHI Reporter has been profiling female home inspectors in their monthly magazine since 2014, and I meet new female home inspectors at every conference I attend. Yet, change is slow. Here’s what a couple of them shared with me about this profession: “Working as a woman in a male-dominated field has been a great experience for me. Despite occasionally being mistaken for the real estate agent, my clients have been over whelmingly supportive of me as a home inspector, and sellers have expressed a certain ease knowing a woman is in their home. In fact, many clients have specifically asked for a female inspector. Being a woman has also been quite advantageous in building my career, as female inspectors tend to get noticed more easily.

Reuben Saltzman is a second-generation home inspector with a passion for his work, and is the owner and president of Structure Tech. Visit his blog online at: https://www.structuretech.com/blog/.

34 Working RE Inspector Summer 2021

It’s extremely rewarding to hear support for more women in the building industry, and I implore any woman interested in this kind of work not to shy away from it. I’ve built up a wonderful career for myself and thoroughly enjoy the professional relationships with real estate agents and clients I’ve developed over the years.” – Uli Sommers “In today’s world, women can be and do anything they train to do. I have never experienced discrimination because I was female. Just like every other new inspector, you have to prove you have the knowledge and skill to do your job. Speak with confidence and take charge of the inspection when clients and agents are present.” – Miki Mertz I have a young daughter who wants to be a home inspector when she grows up. If I tried to tell her that this job was for men, she’d think I lost my mind. She firmly believes that girls can do anything that boys can do—and she’s right. If you’re a woman and you’re interested in home inspections, I encourage you to pursue that interest. And if you’re reading this and you know any women who you think would be a great home inspector, please encourage them to check it out. This is a highly satisfying job that people rarely want to leave. Side note: just two percent of The American Society of Home Inspectors are women. Just four percent of the International Association of Certified Home Inspectors are women.

People of Color At Structure Tech, I want a racially and ethnically diverse team of people who represent the various communities in the Twin Cities who we serve. Today, I can’t say we have that. We have very few people of color working in the field. The team photo on our home page displayed such a homogenous-looking group that I took it down. I don’t want people to get the idea that we only hire white men to be home inspectors. If you’re a person of color or you know one who would be a great home inspector, please encourage them to check it out. To learn more about becoming a home inspector, check out my latest blog post on training advice for future home inspectors https://structuretech.com/home-inspector-training-advice/.

65 or older 15.2%

25-34

Under 25

6.2%

0.2%

35-44

15.4%

55-64 33.1%

U.S.

45-54

29.9%

Figure 1: 2017 Survey on Age Ranges of Home Inspectors

Young Though we have some younger inspectors on our team, it is unusual to find home inspectors under the age of 45. A 2017 survey by the Examination Board of Professional Home Inspectors (Figure 1) found that less than 22% of U.S. home inspectors were under 45 years of age. We have a ton of older home inspectors in this business who are at or near retirement age, and someone will need to fill those positions. I started inspecting houses at the age of 25 after going through a lot of unstructured training with my pops, as well as a ton of self-study. I received my share of questionable looks and sincere questions about whether my dad would be coming on the inspection or not, but I was always able to earn people’s trust by the end of the inspection. While age can sometimes bring related experience, this doesn’t translate to a better home inspector. If you’re young, don’t let your age turn you away from this profession—gray hair is not required. WRE

HOME INSPECTION INFORMATION AT THE TOUCH OF A BUTTON

Both NHIE manuals are now available as e-books: Mechanical Systems and NHIE Content Manual Structural Systems and Business Manual.

The new NHIE e-books contain the same great content as the hard copies and have features that allow for an immersive experience, such as highlighting, creating notes and ﬂashcards, a read-aloud feature, and more. These manuals are designed to help you prepare for the exam and include helpful insights into the types of questions on the exam and techniques for success.

Purchase yours today: https://nationalhomeinspectorexam.org/books/ Working RE Inspector Summer 2021 35

Water Heater Reference Guide

How to Determine Water Heater Age by Peter Gray, Sensible Digs

As a home inspector, it’s crucial to be able to identify the age of a water heater to prevent corrosion and unnecessary water bills. Most hot water heaters are good for no more than 10 to 15 years. But how exactly can you tell?

In this article, we’ll walk you through some of the leading water heater brands and manufacturers, and give you a handy guide on how to gauge the age. So let’s get started. Determining water heater age is simple on most newer models—the installation date is generally recorded on the information sticker. On older models, however, it’s likely you’ll need to do some detective work. You may want to start by decoding the serial number—find the details toward the side of the heater. It’s usually placed nearby the energy guide or warning labels. The serial number holds two crucial details: the month and year of construction. But this is where it gets a little tricky. Manufacturers tend to use different patterns or formats so you’ll have to find your specific manufacturer or brand in order to do this. To help you decipher your serial number, we’ve put together a guide plus examples from multiple brands and manufacturers. A.O. Smith: A.O. Smith (Figure 1) uses a very basic system which should be straightforward to figure out. For their older, pre-1997 models, they state the year and week within the first four numbers. For example, YYWWx x x x x x. Current models use the same sequence. For models pre–2008, you should see a number followed by a letter ranging from ‘A’ to ‘M’ (excluding ‘I’). ‘A’ equals January and ‘M’ equals December. The two following numbers indicate the year. Rheem: Rheem (Figure 2) also adopts a simple approach for their different brands. Their newer models, (constructed after 2000) are identified by the month, then the year of manufacture. In the first example we can see the first and second digits are the month. The third and fourth are the year. However, if you look at example two, you’ll notice the numerical order has changed slightly—instead of being the first four digits it’s displayed as the third to sixth. Rheem sometimes presents the key dates in this alternative way. For their older pre–1999 models, Rheem used weeks instead of months. Navien: This manufacturer takes a totally different approach (Figure 3). On newer models, you’ll see four numbers followed Peter Gray has been a homeowner for 35+ years and has always done his own repair and improvement tasks. As a retired plumber, Gray now spends his time teaching others how they can fix leaks, replace faucets, and make home improvements on a budget.

36 Working RE Inspector Summer 2021

by a single letter. After this letter, there’s a number indicating the year of production followed by another letter. On older models, Navien simply put the year after the first four numbers. They’ve also chosen not to indicate which month or week their units were built. Bradford White: Instead of using numbers, Bradford White uses two letters (Figure 4). The first indicates the year and the second signifies the month. American Water Heater: Because American water heaters are, as of 2001, a subsidiary of A. O. Smith, they now use an identical serial numbering system. If you look at our examples in Figure 5, page 38 is a pre–2000 and the second is pre–2008. In example one, they’ve referenced the year as the initial two digits. The next two figures relate to the week number. In example two, we see a system consisting of the letters ‘A’ to ‘M’, excluding ‘I’, to represent the month. The third and fourth numbers indicate the year. State Industries: For State Industries, we’ll show you three examples. They have two general formats—one using only numbers, and another using letters and numbers (Figure 6, page 38). For the first example, numbers one and two represent the year, and numbers three and four indicate the week. In our second and third examples, State Industries uses the same code structure—letters to indicate the month and numbers for the year. However, the format of the third is slightly different—it has an extra non-relevant number in front of the date sequence. For the letters, they use ‘A’ to ‘M’ (excluding I)—‘A’ being January and ‘M’ December. Then the two following numbers indicate the year of production. For example, 06 equals 2006. Lochinvar: Similar to Bradford White’s—Lochinvar uses letters for the month and year (Figure 7, page 40). Rinnai: Rinnai products carry two serial number patterns (Figure 8, page 40). On their newer models, they use letters to indicate both the month and year. For their older water heaters, pre–2010, Rinnai used numerical references. The first two for the year and the following two refer to the month. Their current system starts from the year 2009. When Should You Replace Your Water Heater? A water heater that is made from durable material and regularly maintained should last many years. However, no matter how good your water heater is, it won’t last forever. Here are a few signs to watch for that could indicate your water heater is running out of steam.

Water Heater Reference Guide

Included brands

Examples of serial numbers

Included brands

Examples of serial numbers

A. O. Smith

Example one: 9808****** (1998, week eight) Example two: *F06******* (June 2006) Example three: 1617******* (2016, week 17)

Bradford White Jetglas

Example one: DG******* (July 2007); Example two: NK******* (October 1996)

Year (1st letter)

Month (2nd letter)

PermaGlas Glascote

S = 2018 Figure 1: A.O. Smith Included brands

P = 2017 Examples of serial numbers

Rheem

M = 2015

Richmond

L = 2014

Vista Therm

K = 2013

Aqua Therm

J = 2012

Energy Master

Intertherm & Miller

ABS Mainstream

A = January B = February

H = 2011

Lowe’s

Citation

N = 2016

C = March D = April

G = 2010 Example one: 1110****** (November 2010) Example two: **1298****** (week 12, 1998)

E = May

F = 2009

F = June G = July

E = 2008

H = August D = 2007

Cimarron

J = September K = October

C = 2006

Servi-Star Van Guard

B = 2005

True Value

A = 2004

Ruud

Z = 2003

Coast to Coast

L = November M = December

Y = 2002

Montgomery Ward

X = 2001

Figure 2: Rheem

W = 2000 Included brands

Examples of serial numbers

Navien

Example one: ****C14X******* (production year is 2014) Example two: ****-2005-****-**** (production year is 2005)

Figure 3: Navien

T = 1999 S = 1998 P = 1997 N = 1996 Figure 4: Bradford White

page 388

Working RE Inspector Summer 2021 37

Water Heater Reference Guide 7page 37 Included brands

Examples of serial numbers

Included brands

American Water Heater

State

Champion

Kenmore

Riviera

Freedom

Aquamatic

Freedom/Nipsco

Aqua Therm

Ambassador

Raywall

Ace

Best Deluxe

Barnett

King-Line

Crosley

Whirlpool Environtemp Deluxe Prestige

Examples of serial numbers

Example one: 9510****** (1995, week 10) Example two: *E05******* (May 2005)

Century Nationaline

Example one: 1210******* (2012, week 10) Example two: E03******* (May 2003) Example three: *E03****** (May 2003)

President Energy Stretcher

Sentinel Thermo-Ki Proline Proline-Plus Aqua Temp Premier Nationaline King-Cleen Revere Apex Figure 5: American Water Heater 1. Age of the Unit: The first question to ask yourself is “How old is the water heater?” The general lifespan could be in the region of 10 to 15 years. Using this guide should help you determine your water heater’s age. Most experts, however, will likely suggest replacing your unit by the time it reaches its 15th birthday. Even if it’s still working efficiently, its performance may soon begin to drop due to its age. 2. Less Hot Water: If you suddenly begin to notice a decline

Regency Reliance Mission Figure 6: State Industries in the volume of hot water, it might be time to consider a replacement. Most people begin to notice a lack of water temperature—instead of hot water, it may flow lukewarm. Or perhaps the water heater suddenly struggles to provide enough heat for an average eight-minute hot shower. 3. Higher Heating Bills: A considerable amount of household energy is spent on heating water—18 percent. When an old water heater begins to reduce in performance, so does its efficiency. As a result, you may notice a rise in your heating bill. 4. Corrosion: Noticing corrosion on your water heater is a sure sign it’s time for a replacement. This shouldn’t, and rarely does, appear until the unit is significantly old. One sure way of spotting this is when you see red discoloration in the water. Red tinted water may mean rust inside the water heater. page 408

38 Working RE Inspector Summer 2021

Working RE Inspector Summer 2021 39

Water Heater Reference Guide 7page 38 Included brands Lochinvar Knight Golden Knight Energy Saver Year (1st letter)

Examples of serial numbers

Included brands

Examples of serial numbers

Example one: PA******* (January 1997)

Rinnai

Example two: XF******* (June 2001)

Example one: JB. **-****** (February 2017) Example two: 04.03-****** (March 2004)

Year (1st letter)

Month (2nd letter)

A = 2009 B = 2010

A = 2004

C = 2011

B = 2005

D = 2012

C = 2006 D = 2007

E = 2013

E = 2008

F = 2014

F = 2009

G = 2015

G = 2010 H = 2011 J = 2012 K = 1993 L = 1994 M = 1995 N = 1996 P = 1997

A = January B = February C = March D = April E = May F = June G = July H = August J = September K = October L = November M = December

H = 2016 J = 2017 K = 2018 L = 2019 M = 2020 N = 2021 P = 2022

A = January B = February C = March D = April E = May F = June G = July H = August J = September K = October L = November M = December

R = 2023

S = 1998

S = 2024

T = 1999

T = 2025

W = 2000

W = 2026

X = 2001

X = 2027

Y = 2002

Y = 2028

Z = 2003

Z = 2029

Figure 7: Lochinvar

Figure 8: Rinnai

Age Is Not Just a Number Water heaters don’t last forever—on average, most will need to be replaced within 10 to 15 years of service. However, unless you’re keeping track of its birthdays, you’ll have to

determine your water heater’s age for yourself. Fortunately, this is fairly easy as long as you know the serial number and brand name—and you have a handy guide to help you decode it. WRE

40 Working RE Inspector Summer 2021

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CALL OR VISIT (888) 347-5273 µ OREP.org OREP—Organization of Real Estate Professionals Insurance Services, LLC. Calif. Lic. #0K99465 • Fax: (708) 570-5786 • info@orep.org • E&O Insurance Experts (www.orep.org)