Working RE Home Inspector - Issue 15

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

Home Inspector Working RE

Winter/Spring 2021, Volume 15

SHARPENING YOUR PRE-INSPECTION AGREEMENT Training Certifications and Value-Add Of Infrared Turn the Page

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LOW COST E&O INSURANCE

Working RE

6760 University Ave #250 San Diego, CA 92115

Sewer Scoping (Part 2) How to Start a Multi-Inspector Firm

Home Inspector Working RE

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Winter/Spring 2021, Vol. 15

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From the Publisher Readers Respond

6 10 12

Sharpening Your Pre-Inspection Agreement

by Isaac Peck, Editor

Adding Sewer Scoping to Your Inspection: Part 2

by Mark Raumikaitis, InspectorCameras.com

Training Certifications and Value-Add of Infrared

by Christopher Casey, Monroe Infrared

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2021 Lens for Internet Marketing

by Max Cron, CMO at Benchmark Payment Networks

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Lower Premiums on E&O: Something to Smile About

by David Brauner, Senior Broker at OREP.org

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How to Start a Multi-Inspector Firm

by Ian Robertson, Inspector Toolbelt

Don’t Miss the Shingle Stagger!

by Tom Feiza, HowtoOperateYourHome.com

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Fuel Oil Tanks

by Reuben Saltzman, Structure Tech

34 36 38

How to Select a Call Center

by Kristin Davis, Digilatics

Lessons from a Service Business

by David Brauner, Senior Broker at OREP.org

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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.

David Brauner: dbrauner@orep.org

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

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

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Working RE Inspector Winter/Spring 2021

Editor Isaac Peck: isaac@orep.org

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

New Year, New Business

by David Brauner, Senior Broker at OREP.org

In another story in this issue I talk about how not to conduct business (See Lessons from a Service Business, pg. 36). Here’s the opposite side of the coin and the key to more business and higher fees.

Our yard had fallen into serious neglect and maybe it took me working from home to notice: overgrown, full of weeds and did not provide the perimeter firebreak that is recommended here in Southern California. So, I was looking for a serious one-time cleanup project—trimming trees, bushes, weeds, etc., along with a bid for ongoing maintenance—twice a month, to cut the front and back lawn, trim the trees and keep everything looking nice. I’ve always done the landscaping myself but obviously, not well enough.

I contacted numerous landscapers— very few responded.

The first rule of business in my mind is returning calls/emails promptly—I don’t care how busy you are or whether you “need” the business. Being courteous pays dividends and feels good.

The one or two who did respond, just didn’t feel right (another rule—people buy from those they like and trust). But one vendor responded immediately, answered all my questions patiently, came by to give me a quote on the work for free (many would not!), sent me pictures of their product—sold themselves. They have been in business 19 years (same as OREP/ WRE) and would be glad to furnish references. Their bid for the cleanup was high but the monthly maintenance bid was within my budget. So I said “yes.”

Well, they did everything they said they would and the yard looks great! Immaculate actually. I could have gotten a less expensive vendor but this turned out to be professional and hassle-free. They did the initial cleanup and have my ongoing business. I think that many homebuyers and real estate agents may approach hiring (and referring) home inspectors the same way. They are willing to pay more for a good product and good service. Those home inspectors who answer the phone the first time, communicate well, are professional, follow through on what they say, and deliver a high quality inspection are not only worth higher fees, but are pleasure for buyers and real estate agents to work with as well.

This landscaper did provide a good product, including reliable communication and a friendly, positive demeanor throughout (another rule of business). In the end, I didn’t mind paying more for a professional, hassle-free product. In fact, I’m grateful! I look forward to working with them for a long time. It was a smooth experience with great results and when I look out the window now, I’m content. WRE 4

Working RE Inspector Winter/Spring 2021

Readers Respond How to Price Your Services We follow the recommendations exactly as stated and have had no issues. Our company does Home, Radon, Termite, Sewer Scope, and Mold inspections. We are considering offering Thermal. We also price by the square foot to keep the very small homes more affordable. —Robert Robinson

History of Home Inspection Thank you for the information, Mr. Isaac Peck; it was informative as well as interesting to read. Thank you for putting in the hard work to bring this to us. —Michael Ivy

Inspecting During a Pandemic Peace to everyone in the home inspection business. Try to get by with one–two home inspections a week until these dangerous times come to an end! —Robert Dallas

Home Inspector Sued by the Seller I am the seller of a home in New York. The inspector stated that I had mold in my attic that would cost over $1500.00 to repair. How can a home inspector put a price tag on something like that? I contacted a mold assessor and showed him pictures of the attic. He said they were old moisture stains. The inspection, along with the mold assessment, prolonged the sale of my home and felt like it has ruined my home’s sale. Home inspectors should not be allowed to put a monetary figure on any report when they are not certified in that area. I have been in the construction field all my life. If you want to be a home inspector, you should have a background in the field. —Rondo We don’t put a number on repairs; we just recommend who should fix them. —Eric WRE

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Working RE Inspector Winter/Spring 2021

5

Sharpening Your Pre-Inspection Agreement

by Isaac Peck, Editor

As a professional home inspector doing your best to manage your risk, limit liability and avoid lawsuits, your pre-inspection agreement is unquestionably your first line of defense. Here are a few ideas on how yours may be improved.

First, realize how vital your pre-inspection agreement is to your business: it is your opportunity to clearly set expectations and outline exactly what your home inspection is, and what it is not.

As I probably don’t need to explain, most of your clients will have unrealistic expectations about what a home inspection is and what it covers. Many confuse a home inspection, which is a snapshot in time, with a home warranty, which is designed to “fix” covered items that turnout to be broken.

Homebuyers sometimes see a home inspection as an “insurance policy” or “guarantee” for the home they are buying, when in reality, it is neither. A home inspection is a non-invasive visual observation of a home’s condition at the time of the inspection.

It’s not a guarantee nor a prediction of the future.

The old adage that a home inspector “can’t see through walls,” is often said in jest by those of us in the inspection community, but it needs to be said—in writing! Your pre-inspection agreement is your opportunity to do so. It should clearly define the purpose, scope, and limitations of the services you are providing to your client.

Here are some things to know about pre-inspection agreements.

Scope of Work and SOP It’s important to identify the scope of work of your home inspection as well as which Standards of Practice (SOP) you are inspecting to. If you are conducting your inspection according to the American Society of Home Inspectors (ASHI) standards, you must say so. You don’t need to list all of ASHI’s SOPs in your inspection agreement, but you could include a link to it in your agreement. In a world where most reports are digital, you might consider including whichever SOP you follow as an appendix in your inspection report.

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. He can be contacted at isaac@orep.org or (888) 347-5273.

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Working RE Inspector Winter/Spring 2021

Just as important as having a clear scope of work outlining what you are inspecting and what you are responsible for, it is equally vital to state which home systems are not included in the inspection report. If you are not doing sewer scoping or inspecting for mold, then that should be clearly stated in your agreement. All of this adds to your protection. Having a separate line item where the client initials and affirms their understanding of each of these points is recommended. Wording that the home inspection is not a “guaranty” or a “warranty” also is advisable.

Consider an Arbitration Provision There are pros and cons to including a binding arbitration clause in your pre-inspection agreement. (Find the story Binding Arbitration: What’s the Deal? at WorkingRE.com, search “Binding Arbitration.”) One of the benefits of having an arbitration clause is that it can help get you dismissed from a “catch all” multi-party lawsuit, in which anyone involved in the transaction is dragged in—whether they have liability or not.

Many inspection claims involve multiple parties, with the homebuyer filing suit against everyone involved. In these cases, if you have an arbitration clause, it can force the claimants’ attorneys to either remove you from the lawsuit or litigate the case in two separate forums (court and arbitration). Sometimes where the home inspector is dragged in without any legitimate liability, the attorneys may find it wiser to dismiss them rather than go to the additional expense of arbitrating.

A sample home inspector arbitration clause from California reads: Any dispute concerning the interpretation or enforcement of this Agreement, the inspection, the inspection report, or any other dispute arising out of this relationship, shall be resolved between the parties by binding arbitration conducted in accordance with California Law, except that the parties shall select an arbitrator who is familiar with the real estate profession. The parties agree that they shall be entitled to discovery procedures within the discretion of the arbitrator. The arbitrator shall manage and hear the case applying the laws of the State of California to all issues submitted in the arbitration proceeding. The award of the arbitrator shall be final, and a judgment may be entered on it by any court having jurisdiction.

One of the downsides of arbitration is that it can be very costly.

So if you decided on this route, be sure you screen the arbitration provider in advance and weigh the costs. Some arbitrators charge several thousand dollars just to open up a case. A claims adjuster from OREP’s primary insurance program advises inspectors: “If you require mediation/arbitration make certain the provider is in business and is cost effective. Some of the contracts I have seen require AAA arbitration and it costs two or three grand just to get the process rolling.”

Statute of Limitations Including a provision that limits the statute of limitations to 12 months is another approach to help reduce claims. For example, in California the default time period is four years—within which a client would have to bring a claim against a home inspector. By contractually limiting the statute of limitations to 12 months, your client is agreeing that they have no grounds to bring a claim against you after 12 months from the date of the inspection. You want to be careful to make sure your wording is compliant with your state law, so do your research or consult with attorney beforehand.

While the majority of claims occur within the first year of the home inspection, a fair number are later than that, with some even arising many years later. Having a clearly defined limit or waiver of the statute of limitations is a good way to reduce these late-blooming claims.

Get It Signed It should go without saying that it is vital to get the agreement signed! We know it is not always easy, but this is a discipline that should be adhered to if you want to decrease your chances of trouble. A rushed home inspector often will perform an inspection and deliver the report before and without getting a signed pre-inspection agreement from the client. But because your pre-inspection agreement defines the purpose, scope, and limitations of your home inspection, it is a vital part of your defense, should your client bring a claim down the road.

This is why getting a signed agreement for every inspection should be routine. With many insurers, having a signed agreement is a condition of the E&O policy. So failing to get your agreement signed might jeopardize your coverage. If you can get it signed before the inspection, that is even better, in terms of your defense, because it shows that your client knew and agreed to the limits of your report before engaging you. Don’t you want to know what you’re buying before you buy it?

Limitation of Liability If you live in a state where a limitation of liability clause is enforceable, it is potentially one of the most important aspects of the pre-inspection agreement. Typically, this section of your pre-inspection agreement seeks to limit the amount of damages to the inspection fee or some other nominal amount.

One example of a limitation of liability is the following: The Inspector’s total liability in the event of any breach of this Contract or of its obligations imposed by law or for any losses, damages, claims or demands arising out of the work and services performed under this

contract, SHALL BE LIMITED TO THE AMOUNT OF THE FEE CHARGED FOR THE INSPECTION. Some agreements limit the liability to the inspection fee, others to 1.5 times the fee, and still others use an arbitrary number, such as $2,000, or $5,000. In any case, the goal is the same: limiting the amount the home inspector is liable for in the event of a dispute with the client later on.

These clauses are not a substitute for E&O insurance, nor are they a fool-proof way to get out of trouble, but when they are enforceable, there is often no better way to put an end to a lawsuit.

Enforceable—Maybe For those home inspectors who live in a state where a limitation of liability (LOL) has been upheld in court, or at least is arguably enforceable, the LOL is an excellent defense against potential claimants. The presence of this clause in your agreement can not only discourage disgruntled clients from bringing a claim in the first place, but it can also mean the difference between the successful defense of a claim and a large claim payout.

In states where LOLs are permissible, they are enforceable unless they are found by the court to be (1) against public policy or (2) unconscionable. Ultimately this comes down to state law and the state court’s particular interpretation of the law. And while precedent is typically followed in these types of rulings, the enforceability of these provisions is subject to change under a different set of circumstances.

Some states, like Wisconsin, have restrictions on the use of LOLs in inspection agreements, while others like Massachusetts and California, prohibit them altogether. California law says that “contractual provisions that limit the liability of the home inspector to the cost of the home inspection report, are contrary to public policy and invalid.”

Precedent already exists in most states about how these clauses are handled. State courts have different interpretations of what makes a contract “unconscionable,” but it’s widely understood in the legal community to refer to terms that are substantially unfair and one-sided. For example, South Carolina defines unconscionability as the “absence of meaningful choice on the part of one party due to one-sided contract provisions, together with terms that are so oppressive that no reasonable person would make them and no fair and honest person would accept them.”

In the New Jersey case of Lucier v. Williams (366 N.J. Super. 485, 841 A.2d 907), for example, the court held that the LOL was “unconscionable, in contravention of public policy, and is therefore unenforceable.” The New Jersey court explained why such clauses are unenforceable in that state: “To be enforceable, the amount of the cap on a party’s liability must be sufficient to provide a realistic incentive to act diligently… We can assume that the contract price here, a little under $400, is typical of fees page 8 8 Working RE Inspector Winter/Spring 2021

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7page 7 charged for this service. If, upon the occasional dereliction, the home inspector’s only consequence is the obligation to refund a few hundred dollars… there is no meaningful incentive to act diligently in the performance of home inspection contracts.”

spicuous, including the LOL. In so doing, you may greatly improve your liability defense. The importance of this point should not be underestimated. Here at OREP we have seen several cases where this was a critical factor in an inspector’s defense.

Header, Bold, and Initial For an LOL or any other vital clause to stand up in court, it helps that it be in a larger, bolder heading, and that an additional initial next to the line item be required. Even better is to put it in a separate box, with an extra-large, bold header, and require an initial next to it, according to the OREP risk management team.

OREP includes risk management services and pre-claim advice with its broad-coverage policy, specifically written for the unique needs of home inspectors. For more, call OREP toll free with expanded hours of 8 a.m. – 8 p.m. EST at (888) 347–5273 or visit OREP.org for a quote in under five minutes (most insureds). WRE

This may seem trivial and over-the-top but the importance can’t be overstated. Lawyers frequently attack vital contract clauses, especially ones between a “trained professional,” such as a home inspector, and the consumer-public, as being concealed or “hidden amongst unrelated clauses,” when the text for such clauses is not highlighted and distinct from the rest of the contract.

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For example, courts in Texas require that any provision in a contract “used to exculpate a party from the consequences of its own negligence” must be “conspicuous,” which under Texas law, means that “something must appear on the face of the contract to attract the attention of a reasonable person when they look at it.”

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Working RE Inspector Winter/Spring 2021

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Adding Sewer Scoping to Your Inspection: Part 2

Self-leveling Camera Head

Rotate so picture view is always right side up

by Mark Raumikaitas, InspectorCameras.com

In part one of this series, I explained how adding a sewer scope evaluation to your home inspection business is a good way to generate additional revenue. A sewer scope inspection will reduce liability for the buyer, property owner, real estate agents and most importantly, for you as the inspector. Additionally, adding sewer scope services will add $150 to $30 0 to your inspection fee. You should always recommend a sewer or drain line inspection in your home inspection report, even if you do not offer a sewer scope as part of your services.

In this article I want to touch on contracts/inspection agreements, inspection limitations as well as camera options and features.

I recommend that you always use a separate contract or inspection agreement when performing a sewer scope inspection, just as you would for the regular home inspection. Any contract or agreement should be reviewed by an attorney, of course. The contract protects the inspector and defines the limitations of the sewer inspection. Your contract should indicate the fee for your standard sewer scope service and show added fees, if any, for unusual conditions. You should indicate if there is a minimum service fee in the event the sewer scope inspection cannot be fully completed, due to site conditions such as restricted access due to a lack of cleanouts, inoperable cleanouts and/or damaged or deteriorated pipes where access will cause damage to the system.

As experienced home inspectors, you know how to define and set expectations for your regular home inspection clients; you should do the same for your sewer scope inspection clients.

The sewer scope inspection is performed on the accessible portions of the system, typically the drain line, starting at the foundation and going out to the city, municipal or community system. A typical sewer scope inspection does not include the interior drain, waste or vent pipes.

Mark Raumikaitis is a retired New Hampshire licensed Home Inspector and Septic System Evaluator who started inspecting residential and commercial buildings in 2000. Mark has earned InterNACHI CMI and ASHI ACI status and has been a speaker at ASHI Inspection World. He now represents septic and sewer cameras perfect for Home Inspectors, Plumbers and Drain Cleaners through his company InspectorCameras.com.

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Sonde Locator Visual and audio locate response Home inspectors are trained to conduct visual inspections only. You typically remove covers and access panels for your visual inspection, but a home inspector does not dismantle equipment or perform repairs during a home inspection; you inspect and report what you see. If a system or component is not accessible, you report it as such. I recommend the same standard be used for a sewer scope inspection. Removing a toilet to access a drain is beyond a standard inspection and in many jurisdictions requires a plumber’s license. Cutting open a pipe riser to install a cleanout is beyond what should be done during a sewer scope inspection. If access is not possible or restricts what you can see or inspect, then report what is inaccessible and recommend access be provided.

I am often asked, “what if I cannot get beyond a defect such as a blockage or collapsed pipe, how do I inspect the rest of the sewer line”? The simple answer is you do not. You document and report what you see. You have finished your inspection—discovered a problem and will recommend that a professional drain cleaner, plumber or sewer professional evaluate and repair as required. Your job is not to clear the line or remove the blockage. Your camera system is a precision visual instrument that should not be used as a drain cleaning device! Plumbing contractors, drain cleaning and pipe lining companies have specialized equipment designed to clear and open drains. High pressure jetting equipment, root cutters, pipe bursting and pipe lining equipment are used to clear lines and provide permanent repair as required. This specialized equipment costs tens of thousands of dollars and requires specialized training and experience to operate. Leave the cleaning and repairs to the professionals.

Scoping Equipment I want to shift the discussion to camera equipment—the desirable features, and some available options you will need to consider when purchasing a camera system. There are different types of camera heads to choose from. Camera heads are available with a fixed lens, where the camera head’s internal lens does not rotate. With these, the picture you view will be sideways or upside down, depending on camera orientation within the sewer pipe. Typically, this is not a problem for a trained operator, but may make picture or video viewing more difficult

for a client or real estate agent. Self-leveling camera heads are more popular. These camera heads have an internal precision bearing and counterweight system that rotates the internal lens by gravity, so the picture view is always right side up. Pictures and video provided to clients are then easier to understand and interpret.

Mechanical articulating camera heads are also available. These camera heads use small internal motors to rotate and orient the lens for a “side view.” Camera systems with this type of camera head are more expensive and often cost more to maintain and repair over time. These articulating camera heads also have a larger overall exterior diameter that may make movement through smaller diameter pipes more difficult. In our opinion a self-leveling camera head is the best choice for home inspectors performing sewer scope inspections.

Your camera system should have a meter or foot counter so that you can report to your client “how far out” the defect or issue is. The counter typically displays on the viewing screen and shows how many feet or meters of push rod cable has unwound from the reel. Always remember to subtract any length of cable not actually inside the pipe. The distance to the defect is from your entrance point or foundation wall. The cable length “on the floor” does not count. Some cameras have a “zero” feature allowing the counter to be reset to zero and start when the camera head is at the foundation wall or pipe entrance point.

Cable Length Finally, a few words about which cable length is best. In short, every cable has compromises; there is no perfect cable length.

One company, Ridgid, provides multiple cable reels to fit a variety of their camera monitors. Each reel choice is designed to satisfy a narrow set of conditions. This concept works well if your budget allows. Plumbing contractors may own multiple reels and monitors and use the appropriate setup as required on a job site. These contractors also have large work vans to carry the equipment and higher budgets than is typical for a home inspector.

A home inspector typically has one camera system, so their system must perform adequately across a wide range of conditions. A balance must be achieved between cable flexibility and stiffness also. A stiff, 200-foot cable will not perform as well in a two-inch pipe with tight elbows. A flexible cable designed for smaller pipe diameters will not push out extremely far into a larger pipe. Our experience has found that equipment designed for pipes between one and a half and four inches with a minimum cable length of 100 feet is a good starting choice for home inspectors. Try to keep the camera head diameter as close to one inch as possible to allow use in smaller pipes.

If the camera head is one-and-a-half inches, it is difficult to use in one-and-a-half or two-inch pipes. Once your business grows you can consider adding a larger system that will go out to 200 ft. WRE

Many inspectors choose to “locate” or show the client where the defect is out in the yard or driveway. This additional information is optional and not required as part of the sewer scope inspection. The decision to locate the problem is really a business decision regarding the level of service you want to provide. Locating requires optional equipment and adds time to your inspection process, so should be factored into your fee structure.

To locate the blockage you will need an optional “sonde” and a “receiver.” The sonde is simply a radio transmitter built into the camera head. This transmitter broadcasts on a fixed frequency, often 512hz. The radio receiver is called the locator.

The inspector performs a patterned walking search of the exterior using the locator. The locator device has built-in circuitry that interprets the incoming radio signal and gives the inspector visual and audio feedback allowing him/her to find where “X” marks the spot. Some locators provide estimated depth information but it should be understood that locator accuracy may be affected by many factors such soil type, moisture levels and even outside electronic interference—like an electric dog fence or nearby florescent lighting. When reporting location, it is wise to include a clause indicating that all location and depth information should be confirmed by the professional hired to perform repairs.

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The decision to offer locating services is up to each inspector.

Inspectors purchasing the camera systems we provide are evenly split 50 – 50 on the sonde option. If you know you will never provide location services, there is no need to have the added expense of including a sonde transmitter with your camera system.

Working RE Inspector Winter/Spring 2021 11

Training Certifications and Value-Add of Infrared

by Christopher Casey, CEO at Monroe Infrared

A few years ago, I wrote an article for Working RE entitled IR

for Home Inspectors Today, which focused on the three top misconceptions inspectors had at the time regarding Infrared (IR) inspections: that it is too expensive, that customers won’t pay more for IR, and IR will increase liability exposure. (Visit WorkingRE.com to find the article.) All three of these objections discussed in that story seem to be a thing of the past.

Today, the real focus with respect to Infrared and other Value-Added Services (VAS) is that they help you differentiate yourself from your competition. When you add more services, you stand apart from prospects and those ever-so-valuable affinity clients called real estate agents. The path to adding VAS is earning training certificates. The number of training and certification classes available for home inspectors today is truly huge! Here is but a partial list of what is available, and to one degree or another, recommended or expected: • • • • • •

Stucco Inspector Certification Mold Inspector Certification Lawn Irrigation System Inspector Wind Mitigation Inspector Indoor Air Quality Inspector Certification And there are many more!

Many value-added services (VAS) that home inspectors embrace today can provide real value to clients and generate tangible revenue to the bottom line. Most VAS help to alleviate fear of the unknown for your clients regarding such issues as moisture/ water leaks and mold, air quality problems, structural and sewer integrity, radon and the potential for health issues, and termites that are silently damaging the home, to name a few.

There are classes and related certifications offered by national and state associations as well as private training organizations like ours. How do you pick? The key is to choose the ones that will produce the greatest impact, value and differentiation for you and your business. Focus on return on investment (ROI) with respect to your own situation and do your homework on your competitors! Is the service being offered by inspectors in your marketplace? What is the cost to begin offering it: how much to get trained and certified and to get the word out?

Are inspectors charging for the service or simply adding it free? If they are charging, how much? How comprehensive is the inspection and report?

Christopher Casey is the President and CEO of Monroe Infrared Technology, a 36-year young Veteran Owned Small Business specializing in infrared certification training, IR camera and related equipment resourcing and commercial & industrial thermal inspections. He holds a Bachelor’s in Mechanical Engineering from West Point and a Master’s in Business Administration from St. Martin’s University.

12 Working RE Inspector Winter/Spring 2021

Figure 1: Water infiltration into Stucco by Christopher Stinnett, Foresight Property Inspections, LLC

The pen and clipboard days of home inspections are long gone. Those of you reading right now already realize that if you’re not embracing technology, you are rapidly falling behind your competition and the expectations of your clients. Today’s homebuyers, sellers and the agents who represent them are savvy technically with high expectations that nearly all information be made available digitally for review.

Technology is both respected and expected. And technology is noticed when it is absent or when an inspector fails to meet high expectations. All of which can lead to a prospective client calling another inspector or an agent recommending a different home inspector.

Infrared Inspections Infrared inspection is one VAS that is relatively new to home inspectors. An infrared camera is a powerful tool in the hands of a well-trained, competent and thermography-certified home inspector. Monroe Infrared has worked with and trained home inspectors for nearly 10 years. Monroe’s Certified Residential Thermography (CRT) class was developed for home inspectors, by working closely with the national associations. In 2012, most home inspectors considered infrared too expensive, not wanted by clients and a liability risk. Those objections are history, as I mentioned at the start of this article.

Interest in infrared began in movies and television where thermal imaging capability was, to be honest, a bit overstated. As the technology advanced and interest developed, so too did the

miniaturizing of thermal detectors in conjunction with lowering of the costs of IR cameras. Today’s home inspectors have an array of thermal imaging cameras to choose from that will absolutely improve their visual inspections. And to those inspectors who enhance their knowledge and fine-tune the nuanced skills of thermography (which are no different than other skilled trades such as electrical, plumbing, HVAC pipefitting, etc.), the spoils of business growth and increased profitability await.

Today the use of IR cameras by home inspectors is reaching 50% penetration across the country; in some areas it is closing in on 75% or higher. This means the use of an IR camera as part of a comprehensive home inspection is becoming the norm. Many home inspectors have told us they need to begin offering infrared or real estate agents will not continue recommending them because clients expect the added value perceived with infrared.

Training & Certification The home inspection industry has recognized that buying an IR camera doesn’t make you a qualified and confident thermal camera operator any more than buying a scalpel qualifies someone to be a surgeon. Identifying the training and recognized certification associated with successful completion of class provides benefits to you and your business.

The CRT certification and logo are earned by home inspectors

by completing the course and successfully passing a final test.

The use of a certification should be made available to graduates and used in their marketing and sales efforts to establish their credibility and differentiate themselves from competitors. The education of your customers is KEY to maximizing the value inherent with earning a certification because too often inspectors assume that clients understand.

Being certified for thermography means you’ve made the investment in technology and training to enhance and improve the overall quality of your non-contact, non-invasive, nondestructive visual home inspection. Be sure to talk confidently about thermal imaging as a value-enhancing capability that your business provides—and talk about it upfront not as an add on!

CRT graduates frequently share success stories as well as images like these (Figures 2 and 3, Page 14). In every case the CRT designation has helped them gain business while the knowledge gained and refined through practice helps them continue to impress clients and grow their business.

ROI To touch on return on investment (ROI) briefly, if your total up-front investment in Infrared Certification Training and Equipment is between $2,000 to $4,000, and your income from the page 14 8

Working RE Inspector Winter/Spring 2021 13

7page 13

Figure 2: Electrical Hot Connection by Bradley Scott, CBS Inspection Services

service will exceed $1,000 per month after 12 months, the decision should be immediate! So too may be the case for other certifications you do not yet possess, such as radon or sewer or mold. So the bottom line here is to evaluate what VAS you are offering today and which can be added. What measurable income

14 Working RE Inspector Winter/Spring 2021

Figure 3: Water infiltration into Stucco by Christopher Stinnett, Foresight Property Inspections, LLC

will those certifications provide to boost your bottom line?

We know that what we do today defines our tomorrows. As we enter a new year, now is a great time to take actions to move yourself forward and up onto the next level. WRE

2021 Lens for Internet Marketing

by Max Cron, CMO at Benchmark Payment Networks

What’s the state of affairs in 2021? Having a strong digital

presence is vital to attracting new business this year and from now on. Here are a few ways to improve your digital presence and grow your business. New customers are going to have a tough time finding your business in the vast sea of information that is the Internet. This is a modern problem that every business faces today. Being able to stand out from the crowd on the Internet is a must for your home inspection business.

First things first: finding a marketing budget. The best way to bolster your marketing budget is to decrease expenses in other areas. Outside of your payroll expenses (if you have them), take a close look at all your administrative and technology expenses. How much are you spending on office supplies, internet, subscriptions, phone services, credit card processing, and even your office coffee? We do a deep dive on our expenses once a year and we usually find several areas where we can reduce expenses. Can you negotiate a better deal with your internet or phone service provider? What about bigger discounts on your office supplies and business cards, etc.?

One approach that many home inspectors are finding effective at lowering their expenses is Benchmark’s Zero Cost credit card processing program. With this program, your business can completely eliminate the fees you pay to process your customer’s credit card payments. Instead of you paying the processing fee, your customer does. Right now, you’re probably paying around 3% to process payments. Now, you can bring that number to 0%. That means you can save thousands per month, and you can invest those savings into growing your online presence. Below, we have a few sections on how to expand your online presence, and get more clients.

Modern Website Means Modern Business You have a website, but unless you are updating it every few years, it will appear dated. Like any industry, online design evolves with the times. Having an easy-to-navigate and informative website is essential to communicating your message, and increasing sign-ups for home inspections. Talk with a professional about upgrading your site if you have not recently.

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.

16 Working RE Inspector Winter/Spring 2021

One simple fix is to add strategically placed buttons and easy to use sign-up forms. On our website (GOBPN.com), we recently added contact forms on more pages, and saw an increase in inbound leads. Another important part of your website is interactive content. This can be quizzes, image-based media that highlights parts of a home inspection and the reasons they are important, or anything that involves the potential client being more involved in how the content is displayed.

Importance of Landing Pages The creation of landing pages that are separate/in addition to the homepage is important. These are the pages that Google or Facebook ads link to on your site. Many people drive traffic to their website’s homepage, which I believe to be a mistake.

The reason is that the people who search for home inspectors on Google are more ready to buy than the average person who stumbles across your website. Therefore, you need to offer them a way to contact you or sign up for an inspection immediately.

The best landing page provides a bit of contact information and possibly information about your services and prices. The problem with sending people to your homepage is that it might be overwhelming. There might be pages and images and reviews and a blog and possibly more. You don’t want people who are ready to buy getting lost or confused on your website. Landing pages are key to converting ready-to-buy people into clients.

Run Social Media Ads to Capture More Clients Having a strong website is definitely step one. Now that your website is ready, you need to drive traffic to it. The best way to advertise a home inspection business is to run digital ads.

Having ads that run when people search “home inspector” or similar terms on Google is key. We have found it worth it to outbid our competition to be the first ad that is shown on the top of Google search results page in your local area. If you set up your website correctly with Facebook’s Pixel, you can send what is called remarketing ads to people on social media. This means that you can send follow up ads on social media to people who have visited your website after searching on Google.

Systematic Approach This system of first running ads on Google, and afterwards “remarketing” to prospects is extremely strategic; it is important you follow the order of where the ads are displayed. When

people search for your business on Google they are actively seeking your business. Some marketing companies will recommend advertising first on Facebook or other social media. While I think it is important to have a first touch presence on these platforms, it can waste your money unless you are only using social media for remarketing. This strategy is not for every business type, but for home inspectors, it is the way to go.

Step one is to run Google ads targeting keywords that you select and to outbid your competition. The people who see these ads are the ones who Googled “home inspector” or any other keywords you choose. The ads could target “Seattle home inspector” for example. From there, interested users will click on your ad and be directed to your website. Step two is applied to those who have visited your website from that initial Google ad. Step two is to run remarketing ads on social media to send potential customers to your website for a second visit. Make sure the remarketing ads are sent out on a very tight timeline. This is a simple feature in Facebook Ads Manager. You want to retarget people who have visited your website in the last 7 to 14 days.

Facebook’s automatic setting is to retarget people the past 30 days. For home inspectors, I believe this is too long of a sales cycle to convert. It’s essential to get them with remarketing ads while your business brand, logo, and website are on the top of their mind. Now that you have a great modern website and are running two rounds of ads, you need to come up with an offer.

Offers Are the Key to Conversions Have you ever seen a product online that was $25.99 and now is $19.99? Often those products were always $19.99, and companies add in a fake discount to incentivize people into buying.

The same thing works with a limited-time offer. You’ll see a

website have an offer that says “Only 10 left!” Often these are just marketing tactics to increase sales. While some of these offers can be a bit gimmicky, and others may not apply to home inspectors, there does exist some offer that is right for your business. There are many types of offers that you can implement to increase the number of conversions on your website. The key is figuring out which one is best for you.

Right now, Benchmark is offering a free 30-minute marketing strategy session if you sign up for the Zero Cost Processing Program. For your business, clearly a buy one/get one free offer is not applicable to home inspectors. Neither is a large discount like 30 percent off. But here is one offer that is used by home inspectors: “We offer inspections Monday–Friday, with Saturday inspections available upon request. Our schedule fills up quickly, so make sure you BOOK NOW!” Saturday is a day many people are not tied up with work and is a great day for a home inspection for many people—whether they work from home or not. By saying it is by appointment only, and being that it is a desirable day, it puts pressure on people to call and book now. Add in the text that says “our schedule fills up quickly. BOOK NOW”—this adds more pressure to call now.

This tactic works, and you should implement something similar.

Figure out your offer, and you will drive more people to convert.

Get More Business With Online Presence Let’s do a recap. First, get a better, more modern website with strategically placed contact forms and landing pages, if yours needs updating. Run ads on Google, and then retarget on social media. Have an offer that incentivizes buyers to make a decision now. The result for 2021 is that you’re getting more clients and have a system set up to keep them coming. WRE

Working RE Inspector Winter/Spring 2021 17

Lower Premiums on E&O: Something to Smile About

by David Brauner, Senior Broker at OREP.org

There are some advantages to getting older—one is perspec-

tive. And as we look forward into the New Year, we can find something to smile about by looking back (wait for it)… at home inspector E&O insurance. I know, I know. But give me a few minutes to make my case!

We’ve all had a rough road of late, so what is there to be “happy” about when it comes to insurance? First, the cost of E&O for home inspectors is about what it was 25 years ago when I first began servicing the insurance needs of this profession. As I recall, there were only a handful of carriers willing to even write inspectors. The minimum premiums were close to what they are today or higher and they did not include most of the coverages you find standard in most policies today: general liability and/or BIPD Off-Premises coverage, radon, pest, sewer, and so forth. No one offered coverage for mold or mold inspection in a home inspector policy—if you wanted that, you needed an environmental policy. And most deductibles were higher, too—certainly nothing in the range of OREP’s $1,500 deductible (most inspectors).

In those days, the average turnaround time for underwriting a home inspector’s application and producing a quote was 30 days! I can still remember when the company I was working for at the time introduced into the marketplace the first “fast application” that could quote most inspectors in minutes (similar to what we use online at OREP.org today). We sold a lot of policies back then with our “fast application” to inspectors who had never enjoyed good service before.

So, what happened to drive these improvements? Well, the trade of home inspecting became a more regulated profession, and as that unfolded, the insurance underwriters/ actuaries became more comfortable insuring it. Once states began regulating home inspecting—requiring licensing and a code of conduct/standards of practice—the insurance folks loosened their ties a bit and “embraced” the profession (many are still skittish at level of claim activity!). All along the way, groups like the American Society of Home Inspectors (ASHI) set the standards and drove acceptance of the profession to consumers and insurance professionals alike.

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.

18 Working RE Inspector Winter/Spring 2021

Free Market Wins Again Competition has brought premiums down and added valuable coverages and technology and innovation have improved service. Most home inspector policies have a very broad definition of coverage including the ancillary services that home inspectors provide. OREP’s policy, for example, includes coverage for termite inspections, pool and spa inspections, carbon monoxide testing, radon testing, lead paint inspections, drones, EIFS/Stucco inspections, and more. Mold, Septic/ Water Testing, and Cyber are also available upon request. All of this coverage at rates equal to or lower than what you might have paid for E&O only 25 years ago!

As noted, in “the old days” if you wanted coverage against breaking something at job site or hurting someone, you needed to buy a separate general liability policy. If you wanted to test air quality or for mold or radon, you needed an environmental policy—for another $2,500!

So Happy New Year to you and yours and all the best in 2021, including health. If you’re looking for an inclusive, competitively priced E&O insurance policy, look no further than my company, now in its 19th year—OREP. If you get anything less than stellar service at OREP, you can tell me about it directly at dbrauner@orep.org. WRE

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How to Start a Multi-Inspector Firm

by Ian Robertson, Inspector Toolbelt

Let’s

face it, starting a multi-inspector firm has at least crossed the mind of most (if not all) home inspectors. Whether we started out looking for something new, a second career, following in the family business, or however else—we likely have thought about it. But the question is—how do you do it?

Many of us may be great home inspectors but simply lack experience in going about something like starting a multi-inspector firm. Well, I have started three of them, and I will tell you I was nervous every time—but all three inspection companies are successful today.

So how did we go about it? Well, be prepared—there is going to be a lot of information below, because there are a lot of facets to starting a multi-inspector firm. But while there is a lot to learn, it is likely not as hard as you may think. So first of all, let’s talk about the roadblocks and how to overcome them. Then we will talk about the nuts and bolts of things: 1.

2.

3.

4.

5.

Overcoming the initial obstacles.

Having the proper company structure.

How/ how much to pay your inspectors.

How to lead and keep your inspectors from leaving.

Transition from “home inspector” to “business owner and manager.”

Overcoming Obstacles There are a lot of “obstacles” to overcome to transition from a single inspector to a multi-inspector firm. But obstacles are just roadblocks to keep the unambitious from crowding out your success. If you want it badly enough, you can overcome any obstacle. The biggest roadblocks to a multi-inspector firm mostly come down to the following.

Fear & Money: Fear is probably the biggest factor. Having enough work—making sure you have enough inspections for another inspector or two. Having enough capital is another.

First, let’s talk about fear. Fear is one of the biggest reasons people don’t do things in life. People are anxious about money, failure, people judging them, and what could happen.

You know what though, if you are not at least slightly uncomfortable with something, you probably are not pushing hard Ian Robertson is a veteran home inspector, owner of three inspection companies, owner of Full View Home Inspector Marketing, and one of the founders of Inspector Toolbelt. Inspector Toolbelt is simple administrative and scheduling software for home inspectors that makes running your inspection business easy and automated.

22 Working RE Inspector Winter/Spring 2021

enough. The best opportunities in life are the ones where fear stops many other people.

Being anxious is basically worrying about things that could happen—but that may never happen. But what if you failed?

So what… Thomas Edison didn’t invent the light bulb the first time. Walt Disney tanked on several ventures at first. The first American colonies all failed at first. Imagine if they had all given up. Don’t give in to fear—face it, look for it, and beat the tar out of it. Fear has no place in a multi-inspector firm.

Is It Time?

Now that I am done with my soapbox speech about fear, let’s talk about having enough work. Recently, a home inspector called me and said: “I am really busy and want to hire another inspector, how do I do that?” Whoa Nelly, hang on a second, I said. Just going out and hiring another inspector without planning is no way to go about it. So, I started asking questions: how many inspections did you do this year so far? Have you been turning down inspections? If so, how many did you turn down this month? How about how many you turned down this year?

Those questions are important because it turns out he wasn’t ready. He had only turned down a couple of inspections recently and was really busy—because it was the busy season. He hadn’t done as many inspections as he had thought; in fact, he didn’t even know how many he had done. Don’t let the “busy season fever” get to you. Step back and look at the numbers. In that vein, keep track of growth, how many inspections you do, how many you turn down, etc.

From my experience, once you get to at least 400–500 inspections a year is when you can take on another inspector. Some may disagree but it has always worked for me. The only exception to that is if you are doing high dollar inspections. We hired a second inspector once because our average inspection fee was almost $1,000 (that company does a lot of specialty inspections), so that was an exception. If you price your services too low, then you will need to do more.

You should really step back and look at your pricing before you ever hire a new inspector. Why do we say that? Well, imagine that you are charging $300 per inspection (way too low by the way). But if you do 500 inspections a year, your gross revenue is $150,000. So instead of hiring another home inspector at that point, why not raise your prices? Let’s say you raised your prices slowly up to $400 per inspection. Even if you lost 100 inspections a year because of your price increase, you would make $10,000 more a year and work less. That would also set you up to make more when you hire a new inspector.

However you cut it, be sure that you have enough inspections AND revenue to make it profitable to hire another inspector.

Now let’s talk about having enough capital (i.e. money). This is important because once you have other inspectors relying on you for a living, you have an obligation. So if you are living each week by the seat of your pants, then you are probably not in a position to start a multi-inspector firm. So what do you do?

Take out of every inspection you perform about 20 percent and put it in a high yield online savings account. There are several like Marcus, HSBC, Alliant, or whomever you prefer. Then save up AT LEAST six month’s worth of living expenses. This way you are covered if anything ever happens and work runs dry for a little bit. It’s hard to do, and it takes time, but having that cash there is a very important safety net. Think of not having it and then having to let an inspector go after spending so much time and money on training them—that is much more expensive than not having that money there.

So, once you have enough work, your prices are right, you aren’t afraid of the mountain ahead of you, and you have the capital for it—what next? Let’s get into the nuts and bolts of starting a multi-inspector firm.

How to Start a Multi-Inspector Firm Here are some of the things you need to start a successful multi-inspector firm. You will find a lot of different opinions on this, and a lot of different methods, but this has always worked for us. We will talk about the following points: Start Small I am a “go big or go home” kind of guy, but there is a time and place for that—especially when it comes to business.

The first person I hired was not an inspector, and it was the smartest thing I ever did. In my area, almost everyone gets a radon test. The problem is that driving around and picking up those tests were taking hours a week—gas, phone calls, coordinating with agents and homeowners—a huge time eater and was costing me inspection time slots. So I hired someone to pick up my radon tests—and it was awesome! So, I did the same thing for water test. Then I realized I could train a guy to inspect septic systems, and another guy for the pest inspection, and so on.

There is an inspector in my area who does three inspections a day and writes the reports in the evening. He hired a guy to drive him around during the busy season. He gets his ladders out, sets things up, and more. Now he writes his reports in

the passenger seat and does four inspections a day. He pays the person a couple of hundred bucks a day, but he gets a full fourth home inspection in at $550 and is home earlier with his reports done—so a win-win.

Just because you want to have a full-time home inspector right away does not mean that it will make you the most money. Do you do septic inspections? Hire a guy to dig the hole for you while you do the home inspection. Hire an assistant to check every outlet, window and door while you focus on the bigger stuff. There are a few specific benefits to this method.

1. 0You get to try guys out and train them before they get 0 put on as full inspectors.

2. 0You compartmentalize what they do—so you don’t have 0 one guy who knows every aspect of what you do. This 0 makes them less likely to leave to start an inspection 0 company of their own after you’ve trained them.

3. 0It’s quite a bit less pressure. Going back to the whole 0 “fear” thing, if you are nervous about hiring another 0 inspector, this is a great way to get your feet wet.

Paying Your Inspectors This is probably the most asked question, and everyone does it differently. There are basically two ways to go about it—1099 (as a subcontractor) or an “employee.” Which one you choose is up to you, but consider a few things.

Subcontractors: We went to a consultant for advice and she said there are certain criteria for hiring inspectors as subcontractors. First, you cannot provide their tools or uniforms —they need to buy those themselves. Also, you cannot be their sole source of income—they need to have income from somewhere else to show that they are a contractor and not an employee. Also, while not “required,” having disability insurance for them is important, as well as making sure they are covered under your E&O insurance. It is also good to make sure your client knows you use subcontractors in your agreement somewhere. You would pay a subcontractor by the inspection and not hourly according to the consultant.

Employee: While this will be shorter than the subcontractor section, it is actually more complicated in a lot of ways.

Having an employee requires you to file your taxes differently, withhold taxes for your employees, and have additional insurances—though there are services that make this easy for you.

This would be the right path for you if you want to pay hourly though, as the subcontractor really shouldn’t be paid hourly.

Payment to your employee-inspector depends a lot on their skill level and what they do. Are they first-year employees (not subcontractors)? Then $15 per hour should suffice depending on where you live. Are they your team leader? Then triple that would be more like it, along with a small profit share. For instance, if your lead inspector helps you get over $500,000 that year, he gets a cut of everything above that. If you have employees, the pay is pretty straightforward. page 24 8 Working RE Inspector Winter/Spring 2021 23

7page 23 Paying your inspectors as contractors is relatively easy as well. A starting guy in his first year will usually get 25 percent of the inspection fee. So, at $400 per inspection, that’s $10 0.

The average home inspector with 5–10 years under his belt will typically get a 50/50 split. After that, pay them more the better they do. For instance, I give a $50 bonus if they get a glowing review, or if they are requested specifically by an agent. Make it worth their time to make you look good.

You also need to increase their percentage. I have an inspector who I pay 75% percent to—I almost break even on him. But I don’t care because he brings way more value by running things, taking care of problems, and making us look great. Also, I don’t want to lose him and have to compete with him, so I keep him happy where he is. Keep your inspectors happy by treating them right, paying them well, and making them feel valued.

Splurge for lunch, take a company trip, hang out with them on the weekends. In this way, you become their leader and not just a boss, and you will keep better inspectors this way.

Back Office Stuff I knew an inspector who tried to start a multi-inspector firm with him serving as the lead inspector, answering his own phones, writing the reports on old software, and storing his documents in Dropbox. Needless to say, that didn’t last long.

The bigger you grow, the more you need your stuff in order.

You need two things—administrative software (like Inspector Toolbelt) and office people.

You need a way to easily manage your contacts, store and send documents, schedule inspections and keep track of your calendar. If you don’t have software that does that for you, mistakes happen and things get pretty crazy pretty quickly.

I know this part of the story seems self-serving but it’s true.

As for “staff,” you don’t really need to hire a full-time office person, as there are many ways around that. At first, you can have your significant other or a relative answer phones and schedule for you. Or a better option is a remote office/call center. Whatever you choose, answering your own phones is not the way to go. Some inspectors say that it costs too much to use one. But let’s be honest, if you can’t afford to pay someone to answer your phones, do you really have the capital and work volume to have a multi-inspector firm? You can disagree with that comment, but you need to spend money to make money.

Do a Test: spend the money to hire a call center or person to book your inspections and use Inspector Toolbelt’s online scheduling and administrative software for three months and then compare your sales from those three months to the same three-month time period the year before. You will likely be pleasantly surprised.

Hiring the Right People Not everyone is cut out to be a home inspector, so be careful who you hitch your horse to. I have always found that contractors in their 40s–60s usually work out well. That is young 24 Working RE Inspector Winter/Spring 2021

enough to still get around and old enough to command a room and get instant respect. But know that you will need to “kiss a few frogs before you find a prince,” so to speak.

I have never looked for the most knowledgeable person to hire as a home inspector, but instead, looked for ones who had awesome people skills and were honest. I have always said that I can teach anyone about a house if given enough time, but I can’t teach someone to have people skills or to be honest. We home inspectors are a bridge between people and the technical parts of their home, so people skills are very important.

The last point I will make about hiring the right people is that I don’t think about it as a financial decision. I know that sounds weird, but I don’t. When you say to yourself that you need to hire this guy because you are busy, step back and ask—is he a good fit? Hiring a bad egg because you are busy will cost you more than you will ever know. It’s better to lose opportunities and inspections than to hire the wrong guy.

You are building a team, so you need to be close to that team.

Everyone I have ever hired is someone I would/do hang out with. We do things together, grab lunch if we are inspecting in the same area, and we watch each other’s backs. Many big companies force their employees to do “team building exercises” to make them like and trust each other—so why not hire people who you can learn to trust and know would have your back in the first place. On that note—be careful about hiring existing friends and family, as the dynamics can be a bit awkward if things go south.

Conclusion Once you have capital, enough work, the right people and your “office” and E&O insurance are in place, you are good to go. In reality, owning a multi-inspector firm doesn’t change much else in your life as a home inspector. You still need to market your services, build relationships, and provide a great home inspection. But you will need to transition from a home inspector to leader. You need to take the bull by the horns and lead your company. If you look after your inspectors, they will be loyal to you. Don’t be afraid of stepping into the new realm of being a multi-inspector firm owner. Embrace the challenge and enjoy it. WRE

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Working RE Inspector Winter/Spring 2021 25

Don’t Miss the Shingle Stagger!

The Science Behind Your Inspection

By Tom Feiza, Mr. Fix-It, Inc. HowTo OperateYourHome.com

Do asphalt roof shingles really stagger? In my part of the country, they do. Stagger is a term some roofing contractors use for the shingle offset—that is, the spacing between butt joints of adjacent shingles. Some contractors call it “shingle offset” or “edge-to-edge spacing.” I like to call it stagger like the local boys do.

No matter what you call it, maintaining shingle stagger is really important to prevent roof leaks and to conform with manufacturers’ instructions. See Figure 1: Shingle Spacing Typical and Figure 2: Shingle Spacing, Starter, Deck as these are graphic representations of this technique.

If the shingle stagger is too small—less than 4 inches—water can travel into the shingle butt edge to the butt edge joint of the shingle below (less than 4 inches away) and leak in. You know what leaks cause: rot, mold and lawsuits. Do you check the shingle stagger when you inspect roofs? How do you check it on modern laminated shingles? Checking the old three-tab shingles was easy, but things have changed.

Shingles Have Changed I do miss the good old three-tab shingles! Until a few years ago we were always inspecting three-tab asphalt shingle roofs. Now it seems most of the asphalt shingle roofs consist of laminated or architectural shingles or some type of hybrid made to look like shakes or tile or wood shingles. In my market, about 85 percent of the asphalt shingle sales are some type of laminated shingles.

Figure 1: Shingle Spacing - Typical

Why do I miss the three-tabs? Because they were easy to inspect. The tabs were about 12 inches wide and separated by a slot. When installing a roof, the contractor just cut about 6 inches off the edge of the starter of each row of shingles, creating a simple stagger. When there are three-tab shingles on a roof, you can easily see the alignment of the tabs/slots and the edges of the shingles. This makes it easy to check the stagger.

(Photo 1: Three–Tab Shingles, Page 28).

In fact, unless there was a really unusual pattern of tabs or slots, I never checked the stagger with three-tab shingles, because it was always right. Maybe the contractors or DIYs got it right because the three-tab shingles were easy to install, or maybe because mistakes with stagger were easy to see.

The slots just didn’t look right if the spacing was off…and the DIY’s wife could see it from the ground.

The new laminated shingles (Figure 3: Laminated Shingle Nailing, Page 25 and Photo 2: Laminated Shingles, Page 28) have no tabs and no slots. When the shingles are properly installed, it is 26 Working RE Inspector Winter/Spring 2021

Figure 2: Shingle Spacing, Starter, Deck

areas with heavy rain or areas with freeze-thaw cycles, and with lower slope roofs.

The old “English” measurement three-tab shingles were about 36 inches wide, and the stagger was about six inches. The “metric” shingles are about 40 inches wide, and the stagger is still about six inches. If you mess up the stagger, the shingle tabs/slots will not look properly aligned, (Figure 4: Shingle Layout and Spacing Problems) and this is very easy to spot during a visual inspection.

With laminated shingles, the stagger ranges from six to 15 inches, depending on the type of shingle and the shingle manufacturer’s instructions. In a few cases, manufacturers may allow four inches, but that is not common. With laminated shingles, the appearance might change if the stagger does not follow the manufacturer’s directions, but this is often hard to see during inspection.

Figure 3: Laminated Shingle Nailing

Check Offset and Pitch Shingle offset (stagger) of less than four inches makes the roof prone to leaking. On architectural shingles I am always looking for shingle edges and visually measuring the edge-to-edge spacing. In my work as an engineer and roofing consultant, I have seen roofs with stagger of less than four inches, and they leak—random leaks right through the roof.

The pitch of the roof also affects roof leaks when there is a small stagger. The lower the pitch of the roof, the more it is prone to leaks. Remember that asphalt shingles shed water and do not constitute a membrane. Ice on the roof also limits the roof’s ability to shed water and can compound the leak and stagger problem.

What do you do when a roof leaks due to improper stagger?

You tear the whole thing off and start over. It’s an expensive defect. It’s also difficult to detect in a laminated shingle unless you know what you’re looking for.

I provided consulting on a huge laminated shingle roof over an indoor pool attached to a 3,500-square-foot home; this amounted to about 7,000 square feet of roof on which the stagger was as little as two inches, and the roof leaked in random locations. Due to leaking, this voided the warranty. The whole roof needed a replacement because the shingles were not properly installed, and also the attorneys made some money.

Figure 4: Shingle Layout and Spacing Problems

very difficult to locate the shingle butt edge. In fact, some shingles seem to have laminations that even cover the butt joint. Improper offset or stagger will allow leaking and will be very hard to detect visually.

Stagger Is important If the stagger (offset) is not adequate, rain can move through the edge of the shingle to the edge of the lower shingle, creating a leak. This is especially problematic in wet climates,

Inspecting Laminated Shingles To inspect laminated shingles for stagger, locate the edges of shingles in adjacent rows. Often this is difficult, but with a little practice you will notice subtle changes in appearance at the edge. At times I slightly lift an edge to be sure it is an edge and not just a lamination over a base felt. Remember that butt edges are a straight cut, perpendicular to the lower edge of the shingle. Edges of laminations are often cut at an angle.

Measure from edge to edge of adjacent shingles. (Photo 4: Stagger 1.5 inches, Page 28). If it looks too small, use a ruler and page 288 Working RE Inspector Winter/Spring 2021 27

7page 27 start taking pictures. Once you have checked a few shingles, you can almost be assured that the whole horizontal row of shingles will be correct. You must check for stagger on each roof plane.

If the stagger is off, you may also notice an irregular pattern in appearance. At times this is visible from the ground when viewing a larger area.

Always Be Suspicious of “California” Valleys A “California” or “Long Island” valley is one in which a vertical shingle is used to line the edge of the valley. (Photo: 3: California Valley). It could be an open metal valley or a closed cut valley.

You will notice a shingle laid parallel to the valley and then rows of shingles laid over the vertical shingle to the rake edge. You will see the laminated edges of the vertical shingle in the valley.

I anticipate installation problems with this California valley

Photo 1: Three-Tab Shingles

Photo 2: Laminated Shingles

Photo 3: California Valley

Photo 4: Stagger 1.5 inches

28 Working RE Inspector Winter/Spring 2021

because the rows of horizontal shingles are often just started in the valley and the stagger is too small. The roofing contractor is saving time and material by not trimming the shingle edge for proper stagger. It looks good, but it can leak.

The Role of Manufacturers Can the manufacturer help? I have found that manufacturers and their local representatives are useful resources for technical information. But when it comes right down to evaluating a shingle installation issue, they are often reluctant to criticize their customer, the roofing contractor. And that makes good business sense. They also may waffle a little with their statements. They guarantee their shingles for performance, but if leaks occur because of improper installation, this voids the warranty. Most manufacturers’ instructions for installing asphalt shingles don’t mention the California valley, but I have seen references to this type of installation in trade journals and instructions.

What’s a Home Inspector to Do? Always check for stagger with laminated shingles. Watch for those California valleys; at least the stagger is easy to see at the edge of the valley. Unfortunately, is it difficult to visually identify a stagger issue unless you are on the roof looking down at the shingles. If the stagger is five inches or less, start to look closely, documenting the condition and warning the buyer. If the stagger is four inches or less, document the condition, suggest that there is a potential for leakage, and refer the condition to a professional roofing contractor for further evaluation. Carefully check the attic and ceilings for leaks.

I suggest that the buyer ask the homeowner to document in writing the type of shingles, the name of the roofer and the installation requirements and warranties. Have the buyer make the seller responsible for the roofing issues. You are not paid to be responsible for improper roof installation. Don’t accept that responsibility. Do a little research. Gather and review a set of shingle manufacturers’ installation instructions for shingles commonly used in your area. You can find these instructions on the manufacturers’ websites. The Asphalt Roofing Manufacturers Association (www.asphaltroofing.org) also provides excellent reference materials. Carry the instructions with you to use as a reference. I provide the manufacturers’ instructions to customers when there is an issue. Installation instructions are also printed on every bundle of shingles. You can often find a spare bundle of shingles in the garage to identify the manufacturer and type of shingle.

Also, review these instructions in detail to see what they say about stagger. They may call it “offset,” but checking the shingle stagger is much more fun! Be knowledgeable about shingle stagger, because some contractors and some DIYs aren’t. 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.

Fuel Oil Tanks

by Reuben Saltzman, Structure Tech

If you’re inspecting a house in the Twin Cities, or possibly elsewhere in the country, if there are pipes sticking up out of the ground in the yard, heads up. You may have a fuel oil tank somewhere at the property. While most homes in the Twin Cities are heated with natural gas, there is still a small percentage of homes that are heated with fuel oil, and there are tons of houses with abandoned fuel oil tanks.

When a home gets converted from fuel oil to natural gas, the fuel oil tank becomes abandoned. Once the tank is abandoned, it needs to be dealt with.

Abandoned Tanks When a fuel oil tank is buried, it needs to be removed or filled in place when it becomes abandoned. If a fuel oil tank is left buried, it could eventually leak. A leaking underground storage tank (LUST) can contaminate the soil as well as the home, creating an environmental hazard that can cost a ridiculous amount of money to clean up. You can visit the EPA’s web site on LUSTs (https://www.epa.gov/ust) for more information.

When a tank is located inside the house but not buried, it needs to be properly disconnected, and sometimes removed.

A fuel oil tank takes up a large amount of room, so most people choose to have them removed, but requirements vary from city to city. For example, once a fuel oil tank is abandoned in Minneapolis, it needs to be removed from the property.

I don’t think I’ve ever seen a fuel oil tank that was less than 200 gallons. The tank shown in Photo 1 is a common 275gallon indoor tank. Another option for an abandoned fuel oil tank is to stick it out in your front yard and paint it like a cow. You think I’m kidding, but I’m not (Photo 2: Outdoor Fuel Tank, Page 32).

I even had another home inspector share a photo with me where someone did this in a basement. Let the good times roll.

Clues to a Buried Fuel Oil Tank The easiest way to spot a potential buried fuel oil tank is to look for a fill pipe and vent pipe at the exterior of the home.

Sometimes the pipes will go through the foundation wall of

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/age-related-home-problems

30 Working RE Inspector Winter/Spring 2021

Photo 1: 275 Gallon Indoor Fuel Tank

the home (Photo 3: Buried Fuel Oil Tank, Page 32). Sometimes they just go down into the ground (Photo 4: Vent Pipe, Buried Tank, and Fill Pipe, Page 32). When fuel oil tanks are removed, the fill and vent pipes need to be removed or cut off and filled with concrete. If you find pipes sticking out of the ground or foundation wall like the ones shown in Photo 4, it probably means one of two things: either the tank is still there, or it was removed by a hack. No professional fuel oil tank removal contractor is going to leave the vent and fill pipes looking like that. Why, you ask?

According to Dean Nething of Dean’s Tanks near Minneapolis, Minnesota, there were many “erroneous deliveries” that happened during the 60’s and 70’s, where one house address got confused with another and the oil was delivered to a home after the tank had been removed. About once a year, a basement would get contaminated with hundreds of gallons of fuel oil. In every one of these cases, the contamination was so bad that the fuel oil company, Standard Oil, had to buy the property so they could tear it down and dig out the basement.

This is why the fill pipes always need to be removed when the tank is removed.

When the pipes are right next to each other (Photo 4, Page 32) there’s a good chance that the fuel oil tank is (or was) located inside or under the house. When the pipes are separated from each other, there’s probably a buried fuel oil tank in the yard. Photo 4 came from a house in Minneapolis, and these pipes led to a 1,000-gallon tank buried in the yard. I recall another scenario where the fill and vent pipes were located in the front yard behind some bushes at a home. These innocuous, nearly hidden pipes led to an enormous buried tank in the front yard. There was a subtle vent sticking up out of the ground behind some bushes that led to a buried fuel oil tank.

And finally, one of the most non-so-subtle clues that we have page 328

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7page 30 ever come across was a huge marked-up area on someone’s driveway (Photo 5, Buried Fuel Oil Tank Clue #2).

Tank Images There are a few diagrams floating around online that show an indoor style of tank buried in the ground, like the big green one (Photo 1: 275 Gallon Indoor Fuel Tank, Page 30). That type of indoor tank is extremely unusual to find buried, according to Dean’s Tank. The vast majority of buried tanks look a lot more like big drums (Photo 6: Big Drum Tank).

Photo 2: Outdoor Fuel Tank

Photo 3: Buried Fuel Oil Tank

In another case when a fill pipe was sticking out of the ground, it had a cap that could be opened. I stuck my tape measure down the pipe, and it came out soaked in fuel oil. It smelled like fuel oil for the next two weeks, despite my efforts to clean it off. Fuel oil has a strong odor and takes a long time to go away. It’s easy to understand how a leaking tank can create such a nasty problem. The person buying this home had the sellers remove the tank and after it was removed you could no longer see the fill pipe.

What to Do if You Suspect a Buried Oil Tank If you suspect a buried oil tank, call a company that specializes in fuel oil tanks to determine if a fuel oil tank is present.

If you want to confirm the presence of a buried tank quickly, before you call in the expert, one fast and simple way is put your ear to one of the pipes sticking out of the ground, then bang on the other with a hammer. If there’s a buried tank, you’ll be able to hear it; the sound will be really obvious because you’ll hear what sounds like a big, echo-y cavern.

Photo 4: Vent Pipe, Buried Tank, and Fill Pipe

The cost of removing a buried fuel oil tank varies greatly from property to property, but costs in the Minneapolis area typically range from $2,000 to $3,000. Having a tank filled in place has a comparable cost.

Buried Fuel Oil Tanks and Home Inspection Standards Home Inspection Standards of Practice (SOP) specifically state that buried fuel oil tanks are not something that home inspectors are required to inspect. Here’s SOP language from the two largest home inspection organizations:

Photo 5: Buried Fuel Oil Tank Clue #2

Photo 6: Big Drum Tank

32 Working RE Inspector Winter/Spring 2021

• ASHI: Inspectors are NOT required to inspect: underground items including, but not limited to underground storage tanks or other underground indications of their presence, whether abandoned or active.

• InterNACHI: The inspector is not required to inspect fuel tanks or underground or concealed fuel supply systems.

Does this mean that if a home inspector sees obvious clues that a buried fuel oil tank is present, they should keep their mouth shut? Heck no. A buried fuel oil tank is important to know about when buying a house. If a home inspector has enough experience to suspect a buried fuel tank, they should call for an expert to come out and take a look. While it’s not a requirement, this has become the standard of care for home inspections in many areas. WRE

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How to Select a Call Center

by Kristin Davis, Digilatics

Many home inspectors look for advice on how to evaluate which call center is the best choice for their home inspection business. So, when it comes to outsourcing a call center, how do you choose the best fit for your business?

Bill Compton, owner of Inspector Call Center, says that when choosing the right call center for your inspection business, look for these vital services as part of a basic package: • • • • • • •

Scheduling inspections Industry knowledge Customer service Selling add-ons Arranging 3rd party services Keeping great notes in your database Collecting payment

In addition to offering vital services to your business, the right call center will align with your personal company strategies and goals. You should definitely feel as if you are on the same team! The communication and experience you have during the onboarding process with your call center of choice, is extremely telling of how the communication with your future clients will go. Take notice of what your chosen call center does to make sure you are understood and taken care of.

A call center should enable residential and commercial real estate inspectors to focus on the heart and soul of their business—inspecting—while it takes care of the nuts and bolts of administration. This includes all of your back-office support such as collecting payments, getting your pre-inspection agreement signed and uploaded into your database, scheduling your third-party inspectors for add-on services, etc.

Compton says great client coordinators are trained to help you gain additional inspections first and foremost, but after that, Compton says they help you in other ways. “A great call center works hard to sell your add-on services,” Compton said. “Our goal is to ensure you are making the most money you can on each inspection. A good call center should do that for you.”

Choosing the right call center ensures that your back-office is running smoothly also. With the right team, not only will your number of inspections grow, but so will your efficiency Kristin Davis is a “dropout teacher” and lifelong learner. Through a serendipitous twist of events, she found her niche and passion through freelance writing and marketing. To work with Kristin and her freelance services, please email knd4422@gmail.com.

34 Working RE Inspector Winter/Spring 2021

when it comes to tasks like collecting payments and keeping the revenue flow moving forward.

Client care coordinators become part of your team, so they should treat you and your customers accordingly. They handle scheduling and help increase sales and revenue. If your call center has a database like ISN, you will be able to see your inspection scheduled in real time, allowing you to see exactly what is going on at all times.

A great call center builds relationships with your customers and with your industry partners too. An agent or broker who knows they can count on quick service from you and that they will always be able to reach you/your company, will gain confidence that they can rely on you, increasing trust and repeat business. People want to work with professionals.

A call center will help your company grow beyond what is possible when working on your own. It will bring you to the next level. There are so many variables that go into choosing the right call center for your inspection business—these are just a few. The most important, however, is to make sure they are a passionate and engaged member of your team! Good luck in 2021! WRE

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Lessons from a Service Business

by David Brauner, Senior Broker at OREP.org

You may not believe this but it’s true. This story could be considered mundane, unless it concerns your livelihood—then it’s very serious. I hope it helps you and your business.

I have an all-glass, frameless swinging shower door that slips and rubs at the threshold. In the 12 years we’ve lived in this house, and in an effort to get it to swing properly without dragging, I’ve tightened the screws, replaced the screws, glued the screws, stripped the screws, realigned the door and left it partially open for days/weeks at a time when it couldn’t be fixed correctly. All so that the door would clear the bottom, swing freely and close completely. It has worked smoothly for months and even years at a time after an adjustment but eventually it always slips again, making it impossible to close the door all way.

Recently, I had the brilliant idea to hire a professional to fix it once and for all (duh!).

I called three glass companies to get a quote. No one would fix it. They all wanted to sell me a new $1,500+ glass door.

The glass is fine, I thought, why replace it? I decided to replace the hinges myself and priced them online. Finding the correct replacements is tricky in itself, by the way, unless you are prepared to drill new holes into the glass door/tile—which I was not. I priced them but did not buy them…maybe because I know my track record on DIYS home improvement (do it yourself). I called one more company.

The fourth glass company I called did not answer the phone, so I left a message. They didn’t call back. I called again. This time, someone answered. Let’s call her Sandy. She told me to email a picture of the hinges and they’d get right back. I did email the picture and after about three days of not hearing anything, I called again. I got Sandy again, reminding her of my issue. She said someone would call me back. No one did. I called again, got Sandy and was transferred to who I assumed was an owner or manager. We’ll call him Bill. Bill hadn’t taken a look at the picture of the hinge yet. He asked me to hold.

When he came back, he said the hinges looked fine and that it was probably just the gaskets that were worn out, causing the slippage—a seven-dollar item. If it is the hinges—they are about $150 to replace he said. So now I’m happy. Persistence pays off right? It took a few more email exchanges to get a quote (instead of just quoting me right then). Finally: it appears labor is about $250 plus the cost of the hinges, if they are needed. I emailed back immediately to accept. He replied that Sandy would call to schedule me (instead of putting her back on to schedule me right then). In any case, I’m feeling some pride in my persistence.

36 Working RE Inspector Winter/Spring 2021

After about four days, no one called to set up the appointment.

So I call. Sandy answers and says she is super busy but she’ll call me soon to schedule (instead of scheduling me right then).

Amazing. Even more amazing, she does call back that very afternoon. The tech shows up on time about a week later, is very nice and professional and is wearing a mask! He replaces my gaskets in about an hour and the door is fixed! It no longer drags at the bottom. The hinges do not need to be replaced and all is well—better than well.

I ask the tech how he will take my payment. He says he doesn’t do that. That’s unusual I think, but I wait about a week for the invoice to be emailed—nothing. So, I think maybe they are old school and still mail bills. I wait another week or so.

Nothing. Now it’s approaching three weeks after the fix, so I email Sandy for an invoice. No response. About a week later, I call and leave a voicemail asking for a bill. Again, no response.

I wait probably another week or more before emailing Bill directly, who you may remember, I believe to be an owner/ manager. No response from Bill. Let me ask you dear readers and fellow businesspeople: are you shaking your head at this point? And it gets worse.

About a week later, I call again…just trying to pay my bill. This time “Mary” answers. She assures me she is right person to take care of this because she is the accountant. She asks if I’d wait on hold while she goes “upstairs” to ask. I instead offer my phone number for her to call me back. She says great, she’ll call me right back. Two weeks go by and you guessed it—no one called back—not even “the accountant.” Why wasn’t my order somewhere she could look up, give me a price and take my money right then? I don’t know. Why don’t I just give up trying to pay? Well, they solved my problem when no one else would and I’m grateful.

Your Business So what does this have to do with your home inspection business you may be asking—whether you have a home inspection business or are employed by one? Well, if you have your own business, you know you have to do more than perform a great page 40 8

Working RE Inspector Winter/Spring 2021 37

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7page 36 home inspection to be profitable. Having someone competent to answer the phone, return calls and keep track of receivables is vital for the reasons I hope my story illustrates. This glass business has the staff, it seems, but something obviously is not working.

In my own journey, I have encountered businesspeople of every stripe who didn’t call back, didn’t show up on time or at all and who didn’t do what they said they would do, once they were hired—this includes landscapers, plumbers, contractors, electricians and professionals—dentists, attorneys and CPAs. I really believe this explains why so many businesses fail or just bump along year after year. My guess is that many of the businesses that fail, do so because they are run like this glass company that won’t let me pay them.

My advice, whether you run your own business or dream of doing so one day, is to take a look at your processes from time to time. How do you land business? How do you get paid?

Maybe ask an outsider to act as a new business client. After that, my recipe for success is pretty simple: do what you say and say what you do; never stop learning—be courteous and respectful of everyone, and when someone wants to pay you for services rendered, for goodness sake take their money!

Press time postscript: I called two more times to pay and left voice messages without any response. I just printed out the quote that was emailed to me and mailed them a check. Good luck to them and to you in the New Year! WRE

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