Working RE Home Inspector Edition/Fall 2012

Working RE

Home Inspector Edition Fall 2012

Examining Agent-Inspector Relationship Home Inspection: Staying Safe E&O Insurance- Prices Drop Time to Shop Marketing- Tape Measures Measure Up Manufactured Homes- One that Almost Got Aw

ay

In Search of Perfect Home Inspection Putting On Salesman Hat New: Insurance Complete Coverage Low Rates (pg. 31)

Working RE 6760 University Ave, #250 San Diego, CA 92115

Examining Agent-Inspector Relationship- 4 By Isaac Peck, Editor

Staying Safe Out There- 7 By Peter Hawley

E&O Insurance: Prices Drop, Time to Shop- 15

2 Working RE Home Inspector Edition/Fall 2012

I

-

[email protected]

eck - [email protected]

is published by OREP.org- r Inspectors

Working RE’ Home Inspector’s E dition is published quarterly. The ads and specific mention of an y proprietary product contained

By David Brauner, Editor

Marketing: Tape Measures Measure Up- 21

By Isaac Peck, Associate Editor

Manufactured Homes: One that Almost Got Away- 22 By Russell Kirk

In Search of Perfect Home Inspection- 25 By Rick Bunzel, CRI, AC

Insurance Program Complete Coverage, Lower Rates- 30 Putting On Salesman Hat- 31 By Amy McIntre

Working RE Publisher 6760 University Ave, #250 David Brauner - dbrau San Diego, CA 92115 (888) 347-5273 Editor Fax: (619) 704-0567 Isaac PWorkingRE.com [email protected] Note: These stories first appeared in Working RE Email edition, which publishes twice a month. Click to OPT IN. Working RESpecializing in low-cost E&O insurance fo

within a re a serv ice to reade rs and do not impl y endorsement by Working RE . No claims, repres entations, or guarantees a re made or implied by their publication. The contents of this publication may not be reproduced either whole or in part without written consent.

mailto:%[email protected]

mailto:[email protected]








6760 University Ave. #250 • San Diego, CA 92115 • Fax: (708) [email protected] • David Brauner: Calif. Insurance Lic. #0C89873

(888) 347-5273

Are you paying extra for “add on” coverages, or worse, going without full coverage to save money? No need to pay more or go without full coverage any longer! Broad coverage included in minimum premium. Minimum Insurance Premium: $1,250**Cadillac Coverage: Includes Errors and Omissions (E&O) & Premises Coverage (Bodily Injury & Property Damage while on site), and most incidental coverages, such as termite, radon and commercial, in minimum premium.

Call us today for fast,

friendly service.

“We answer the phone.”

** $1,250 Coverage Limit is for $300,000 Aggregate/$100,000 each Occurrence. Choice of coverage limits and deductibles available. Easy Financing.

New Lower Rates & Broader Coverage

n “A” Rated Carrier, Prior Acts, Additional Insured for Agents and other Referring Parties

n Convenient: Fast, Self-Rating Application gets you quoted and back to work in minutes.

n No Policy fees, no Taxes

n Includes discounts on ASHI/NAHI/state-approved education & training, access to group medical coverage (Calif.) and more.

You Deserve the Best

Home Inspector’s E&O Insurance

Find details at www.OREP.org


Examining Agent-Inspector Relationship By Isaac Peck, Editor

The home inspector’s relationship with the real estate agent is a

topic often discussed among home inspectors and agents. Some

home inspectors tout strong relationships with real estate

associations and agents as the best way to grow an inspection

business. Others say the reliance of the home inspector on

agent‐referrals is a key problem when it comes to keeping the

home inspection profession honest, ethical, and professional.

The fact is, a large percentage of home inspectors rely on agent

referrals to bring in work and keep them in business. While this

is not necessarily a negative, many inspectors argue that there is

an inevitable conflict of interest inherent in such a relationship,

as ambitious and unethical real estate agents select home

inspectors who aren’t thorough and don’t find problems. Some

home inspectors complain that on numerous occasions they’ve

had realtors combatively ask them if they are “deal killers,”

sometimes right in front of the buyer!

Those who follow the relationship between real estate

appraisers and mortgage brokers, agents, and lenders may see

some similarities between the way the appraiser is pressured

into meeting “value” and some home inspectors are encouraged

to “sign‐off” on a home after a quick hour inspection. Sean

Wiens, a home inspector from Vancouver, Canada sees agent

referrals as a threat to the integrity of the profession, saying that

those home inspectors who are the most successful are the ones

“who cater to the agents.” The result, according to Wiens, is that

inspectors end up not looking out for the buyer’s best interest

and as a result the standards of the profession are lowered.

Dennis Robitaille, Director of Independent Home Inspector’s of

North America (IHINA), believes that the home inspector’s

reliance on agent referrals creates a serious conflict of interest

and this belief is what led him to found IHINA. According to

Some home inspectors complain that on numerous occasions they’ve had realtors combatively ask them if they are “deal killers,” sometimes right in front of the buyer!

Robitaille, some agents have a list of two or three home inspectors who have been

prescreened as not being deal killers. “The list, however, will be long enough to protect the

agent from any referral liability should the buyer want to blame the agent for any inspection

mistakes.” This results in no liability for the agent for the referral‐ the buyer "chooses" an

inspector the agent prefers but the buyer's choice is limited to home inspectors who will not

hurt the sale, Robitaille says.

On the other hand, there is a strong argument for why an ethical agent’s referral adds value

to the buyer and benefits all involved. A seasoned real estate agent has years of experience

and expertise in the local market and an agent who is honest and has integrity will save a

buyer a lot of time, money and frustration by referring a competent and thorough home

inspector. Lenn Harley, a real estate broker serving Maryland and Virginia, says that good

agents have learned to recognize good inspectors and other service providers to

homebuyers. “Our buyers rely on our experience for matters as important as a home

inspection,” Harley says. According to Harley, there is a trend in the real estate industry for

agents to avoid risk by not making referrals and not attending home inspections. But her

position is that the agent referral actually adds value to the buyer. “When homebuyers ask

me for a home inspector referral, I refer them to the most competent and thorough inspector

I know,” says Harley.

Serving the Client

Dick Greenberg, a real estate broker from Colorado, says, “We never hesitate to make

recommendations, whether they are inspectors, lenders, handymen, carpet cleaners, etc.

Our reason is because what we care most about is the client's satisfaction. Our favorite

inspector has ‘killed’ several deals for us, and we and our clients were grateful.” In other

words, for the ethical agents and brokers out there, it’s a question of serving the clients and

building strong relationships. “Our commission comes from our clients, not a particular deal,

and it has never made sense to jeopardize a client relationship by recommending an

inspector who would do less than serve his client's needs," says Greenburg.

As far as there being a conflict of interest when it comes to agents referring home inspectors,

Greenburg says, “For that concern to be valid, you'd need at least two people to ignore their

duty to their client ‐ the agent and the preferred inspector. While it’s certainly not an

impossibility, those are the same agents who bend or break the law and code of ethics as a

matter of routine. The answer is to clean up our act by getting rid of them, not by limiting the

service we provide on the presumption that we're all like them,” says Greenburg. In other

words, for the many honest and ethical real estate agents, brokers, and home inspectors—

Working RE Home Inspector Edition/Fall 2012 5

building strong relationships and referral arrangements is a way to help all involved. It

provides the home inspector with business, the real estate agent/broker with a

knowledgeable, reliable, and thorough home inspector to refer to home buyers and helps

home buyers by providing them access to a dependable home inspector.

Of course, not all real estate agents/brokers are honest and ethical, so perhaps the best route

a home inspector can take is to diversify. Work closely with and market to real estate

agents/brokers and find the ones who want ethical work, while also building up other

avenues of business through direct marketing to home buyers, building a presentable

website and working to optimize it on search engines, engaging in online marketing, and

other marketing techniques that directly target the home buyer. Building a diverse business is

the best safeguard against an inspector becoming too reliant on agent‐referrals and it’s

arguably more sustainable and profitable in the long run. WRE

About the Author

Isaac Peck is the Editor of Working RE Magazine Home Inspector Edition and Marketing

Coordinator at OREP.org, a leading provider of E&O Insurance for appraisers, inspectors, and

other real estate professionals in 49 states. He received his degree in Business Management

at San Diego State University. He can be contacted at [email protected] or (888) 347‐5273.


http://www.orep.org/agents.htm


Editor’s Note: Inspector Peter Hawley reminds us how important safety concerns are.

Staying Safe Out There by Peter Hawley

A few years ago, in my hometown, I was surprised to learn that a

home inspector friend of mine had died. It was shocking and

surprising because he was a fairly young man and still in good

health. When I asked what he passed away from, I was expecting

an answer like a car accident or an unexpected and sudden

health issue. Imagine my amazement when I was told he died on

the job as a home inspector because of a failure to maintain

routine safety measures.

rule:

to help.

A few years ago, in my hometown, I was surprised to learn that a home inspector friend of mine had died...on the job.

This particular incident motivated me to be more careful and to

examine the practices and routines that I had settled into so

comfortably. I learned that one of the reasons my friend died was

very preventable. He had gone to a vacant home to do an

inspection where the agent and client were not present. For

most of us, this is an ideal situation but he forgot one simple

nobody knew where he was. Nobody knew what time he was

going to be there. Nobody knew what time he was expected to

be finished. Because no one knew where he was, when he

injured himself, and I say injured, not killed himself, nobody was

there

My friend slipped and fell through a garage ceiling while

inspecting the attic and crashed onto the concrete garage floor.

During the fall he struck his head and fell unconscious. He was

still very much alive and probably would have survived if he had

gotten help quickly. Unfortunately, no help was coming because

no one knew he was injured. He lay on the floor of the garage for

an estimated four to five hours until somebody finally came

looking for him and discovered his lifeless body on the floor of

the garage. This brings me to my most important safety point;

always make sure somebody knows where you are and what

time you will return.


Better yet, have someone with you whenever possible. This can be your agent or client,

the seller or simply your spouse waiting in the car for you. Make sure you answer your

phone when being checked on. This is just one example of how a simple safety measure

can save your life.

I know some people think that this is taking safety to an extreme but a death like this

makes you realize that what is considered a mostly safe job can pose serious risks, and

that to stay safe, certain procedures must be observed. We are always in an unfamiliar

environment and sometimes that environment is hostile, particularly when the sellers

learn you are not there for their benefit or if we are forced to enter a place where our

safety is in question.

What is “Safe?”

I live and work in a state that provides licensing and guidelines for home inspectors

(Nevada). This is a wonderful thing even though I cringe each time I have to renew my

license. The guidelines very clearly state what is considered dangerous and that we are

not required to put ourselves into dangerous situations. In addition to these guidelines,

however, the state includes into the licensing codes the concept that the final decision as

to whether something is dangerous or not is up to the inspector. This statement allows

discretion by the inspector on site based on each individual situation. This concept is in

the NAHI, ASHI and NACHI Standards of Practice and that of other organizations. I

encourage all inspectors to keep this idea in the back of their minds when considering a

potentially dangerous situation. The basic rule for safety is: never place yourself in any

situation that will compromise your ability to continue working at the same level you are

currently.

Hook and Ladder

As home inspectors we are constantly on ladders: do you inspect your ladder on a regular

basis? Most of us make sure the ladder functions correctly when we buy it but how many

of us check to make sure all the parts are still where they need to be and working

correctly? How many of us make sure the ladder is rated for what we do and is considered

stable? When you are climbing the ladder, do you make sure it is on solid ground and

angled properly to support your weight without slipping?

It’s Electric

We are also inside electrical boxes with current that could easily kill or severely disable us.

We must recognize the fact that many homeowners think they are electricians and modify

the main electrical panel and wiring with alarming regularity. Most of the time, these

page 10 >>


<< page 8

modifications are far from proper; add

another unknown that we are forced to

deal with. A simple check for electricity

in the metal casing will prevent a

shocking surprise. This check should be

done on any metal disconnect or panel

before you touch it.

My favorite crawlspace story deals with my own unpreparedness. I entered a crawlspace and was at the far end from the opening when the battery in my flashlight died.

Another idea may be as simple as the screwdriver you use: Is it rated for electrical work?

Yes, they are more expensive but I promise you they are well worth it. How about gloves?

We are all in such a hurry to finish that many of us don’t want the hassle of gloves. And

every one of us has opened an electrical box while standing in a puddle of water from the

previous night’s rain or sprinklers that just shut off. Having come from a family of

electricians, I have seen many minor jobs have major consequences.

There will always be a small element of the unknown in what we do and where we are

expected to go and inspect. We climb over, move through, check behind and look under

many things we take for granted. In our own home, we know what to expect but we are

not in our own home and we do not have the comfort of knowing what is in that dark,

dank space. Remember the last time you opened a cabinet door and a rat/mouse/spider

surprised you and you jumped back to avoid it? Gloves would have provided at least a

small amount of protection if you had been attacked by that critter. In addition, if you had

simply positioned yourself to be able to move quickly if necessary, by taking notice of any

objects in your immediate vicinity, you could avoid the possibility of injuring yourself by

striking something in the room if you are forced to move suddenly.

Crawlspaces

I know little critters are a favorite of all of us who have to enter crawlspaces (not). I

always save that task for last because I really don’t enjoy it and of all the places in a home,

I think the crawlspace has the most potential for injury. There are so many situations that

can occur in a crawlspace that you can be sure I am not going to be able to address them

all. My favorite crawlspace story deals with my own unpreparedness. I entered a

crawlspace and was at the far end from the opening when the battery in my flashlight

died. I did not have a backup and had to crawl in pitch black darkness to the area where I

thought the opening was. I was under that house for over an hour trying to get out. You

can bet that now I carry a second light source at all times. In addition to the second light,

proper attire is also essential: long‐sleeved shirt, long pants, boots and even some sort of

head protection. This can be accomplished by purchasing jumpsuits for use during the


crawlspace inspection.

Attic

Now we can address the other end of the home, the attic. Most of the same things that

apply to a crawlspace apply to an attic. And yes even some sort of head protection should

be worn: remember all the nails that construction crews put in but do not remove when

they miss the truss member when installing roofing material?

How about the roof? How casual have you become because it is “just another roof”? I

guess I should consider myself lucky because I have a fear of heights and therefore am

very careful on all roofs. Again, we are in unfamiliar territory, this area is exposed to all

the elements of weather and rarely checked on. Walk softly and carefully, be aware

where the truss or framing members are and place most of your weight directly on the

framing member. If the roof is soft, proceed very carefully and don’t walk where you feel

it may not be able to support twice your full weight.

Other considerations should be observed also. What is the pitch of the roof and is it safe

for you to be on it? What is the weather? Is that aspect going to change the conditions

enough to prevent me from doing my job safely? Can I obtain the same results from doing

my inspections though binoculars or second story windows and other vantage points at

the roof’s edge? If you get the same results, why endanger yourself and your livelihood?

One of my favorites is when I enter a home and the first thing I’m asked is to remove my

shoes. I always politely decline informing them it is against company policy. I am sure you

are asking why decline such an innocent and harmless request, since many of us do this in

our own homes. Again, I must remind you that you are in unfamiliar territory. You do not

know the condition of the floor or any objects you will be standing on. One inspector in

my company stepped on a nail that was protruding from a floorboard and spent the rest

of the day in a hospital emergency room going through the very unpleasant task of getting

a tetanus shot. This is the reason it is now against company policy to remove shoes.

Always carry booties as a regular part of your toolbox. You stay safe and your client is not

upset at your wearing dirty shoes in the home. This is the very definition of a “win/win”

situation and good customer service.

Garage

My last major area is the garage. This is such a distinct area of a home that building codes

require different regulations than most other structures. We all have excess stuff in our

garage that doesn’t belong in the house, like the half‐full gasoline can that we use to fill

our lawnmowers. We all take gas for granted but fail to realize that not only is gasoline

page 13 >> Working RE Home Inspector Edition/Fall 2012 11

Home Inspector Pro was designed from the start by home inspectors, so you get exactly what you want; an easy to use, fully customizable, affordable program that runs on Windows, Mac, Android and Linux.

OREP Special $499 - Save $150

Use Coupon Code OREP150OFFPayment Plans

Available

Download a free 90 day trial at www.HomeInspectorPro.com

Features:

• Create unlimited templates to fit all YOUR inspection needs• Professional looking colored reports suited to your style• Extremely quick selection of comments, rarely requiring a keyboard• Import hundreds of photos in seconds • E-mail or upload reports directly or print on site• Insert documents anywhere in the report• Create sketches and floor plans• Annotate photographs from within the program• Summary page generated automatically• Integrates with RecallChek and ISN• Animated tutorials to help get you started

Receive 3 months free of our website hosting and report upload service!

Call Toll Free 1-888-750-4777

<< page 11 explosive but the fumes from gasoline are explosive also. In a former career, I saw the

results of this firsthand when an entire garage was gutted (with two cars and two

motorcycles inside) when a homeowner was using gasoline to clean automotive parts and

decided he needed a cigarette. Even though he was on the other side of the garage near

an open door, it still ignited. We never know what we will run into. Safety “To Do” List

Simply put, we need to be aware of our situation and act accordingly. I cannot emphasize

strongly enough that we are in unfamiliar territory when we are inspecting: we must be

willing to explore but must do so with the utmost care and safety. Safety is in the back of

our minds but rarely at the top of our “to do” list. So I challenge you to make a goal to re‐

evaluate your mindset and thoughts at least once a month. Think about what has

happened in the last month and make adjustments for any errors you may have made.

Make a pact with yourself to never make that mistake again. Do your own research into

any incident you hear about within the home inspection industry no matter how minor.

Inspect and repair all your tools at least once a month.

Finally let me make a small list to be

aware of for safety’s sake. This is far

from comprehensive but still is

important.

Dress appropriately.

Inspect all equipment regularly

and replace anything that is

defective.

Make sure you have the proper

tools to do your job right.

Be conscious of your

surroundings.

Make sure someone knows

where you are and for how long.

Never enter any situation that

you consider dangerous.

Never allow anyone to coerce

you to do something you are

uncomfortable with.


In addition to all this, remember that this is your livelihood. Never do anything or go

anywhere that will compromise your ability to provide for you and your family. If you

follow that simple rule, you will have a long, prosperous and safe career in the home

inspection industry.

Pete Hawley is author of the online course Home Inspection Safety, offered by Mckissock

Education ($45/3 hrs. ASHI, NAHI, NACHI approved and by 15 states). The course is

available at administrative costs to home inspectors who are insured with OREP.org (cost

is $5.74‐ varies by state). For more on the course, click here. WRE

About the Author

Author and inspector Peter Hawley is a graduate of the Professional Association of

Building Inspectors (PABI) Training Institute with over 145 credited hours of residential

inspection procedures and technical training. He is a Licensed General Inspector in

Nevada and has 20 years’ experience in residential maintenance, remodel and repair, 18

years’ experience as a residential contractor and 15 years of hydraulic leak detection.

Hawley is a member of the National Association of Home Inspectors (NAHI) with a

Certified Real Estate Inspector designation (CRI). He is a registered State of Nevada Radon

Inspector with certificates from the National Radon Proficiency Program (NRPP) and

National Environmental Health Association (NEHA). He is also a Certified Heat Exchanger

Expert as qualified from Heat Exchanger Experts Inc.


E&O Insurance: Prices Drop, Time to Shop By David Brauner, Senior Broker OREP

Instead of the now familiar direction to “shop ‘till you drop,”

current insurance conditions suggest instead that inspectors

should shop because they’ve dropped. We’re talking about

rates for errors and omissions insurance of course. The market

has softened (prices dropped) over the last few years and that

means more choices than ever for you– broader coverages and

lower rates.

If you are a single inspector and haven’t shopped for awhile, you will be surprised at the

lower premiums now available. Minimum premiums for policies with very broad

coverage including bodily injury property damage (or premises coverage/general liability),

prior acts, coverage for referring parties, radon, pest, commercial and more, are back

down to the $1,250 range! Multiple‐inspector firms also are benefiting from the new

market‐especially with programs that don’t charge or charge minimally for additional

inspectors and independent contractors.

Years ago it was hard for home inspectors to find inexpensive insurance‐ the choices were

few. Today, the tables are turned. Here are a few tips to help you make an informed

decision about these and other issues, such as Occurrence versus Claims Made, preserving

prior acts and more.

Covering Multiple Inspectors

If you pay “per inspector” to cover your multiple‐inspector firm you are probably paying

more than you have to. This also is true if you pay extra for premises coverage/general

liability, “corporate coverage,” pest, radon or commercial inspections. If you have risked

not covering every inspector or contractor doing work for your firm because the cost was

prohibitive, there are programs today that will cover all inspectors for one low premium,

including independent contractors.

Simple Rules for Maintaining Prior Acts

If you are reluctant to switch carriers because you are worried about losing coverage for

past inspections, or if you pay more year after year for an Occurrence policy, believing

that this is the only way to preserve prior coverage, or your current agent leaves the


Start the process early so you can shop and don’t give in to the pressure to make a quick decision. If you’re getting close, ask your agent about your grace period.

impression that you can’t switch programs at renewal

time, know that most programs offer prior acts for free.

You can enjoy the lower rates of a Claims Made policy

and switch programs and still preserve your prior acts.

Claims Made provides coverage for claims that are

made and reported during the policy period. What does

this mean? It means that claims are covered for as long

as the policy is in force‐ one year, ten years or longer, as

long as coverage is continuous (no break in coverage).

Here’s how to avoid a break in coverage and preserve

prior acts:

• Don’t let your policy lapse: if you are renewing with your current carrier, renew on

time (on or before expiration) to preserve your prior acts.

• If you switch carriers, the rules are the same: bind with the new carrier on or before

expiration. (If switching carriers, make sure to get prior acts coverage from the new

carrier‐ most provide it for free.)

• If you stop inspecting and no longer need or want insurance, purchase optional

Extended Reporting or Tail Coverage to cover the inspections completed while insured.

Contact your current agent for pricing and terms.

Renewing

If you're renewing your policy with the same company, make sure to renew on or before

expiration. It’s that simple. OREP provides multiple reminders as your expiration draws

near to make certain you know your policy is expiring and what is at stake, including by

mail, email and phone. If money is tight, financing typically is available. It is always wise to

follow up to make sure your new or renewal application has been received by mail, fax or

email.

Switching Carriers

To qualify for prior acts from the new carrier, there needs to be continuous coverage.

What does this mean? It means you must switch on or before your current policy expires

so there is no break in coverage. Most companies have a question on the application for

insurance that asks if you have current coverage. If you indicate you have insurance, you

will be asked to provide proof of coverage (your Declarations Page). If you can’t find your

page 18 >>


http://www.orep.org/home-inspectors-e&o.htm

Don’t let them. Introducing the new InspectIt® HomeReport™ software for iPad

New Features:Faster & easier interface | Enhanced screen display | Checklist & narrative versions

Plus many more!

Enhance your inspection business with new and improved software from the leaders in home inspection since 1993

Visit the App Store for a free demowww.ahit.com 1-800-441-9411

Your home inspection reports shouldn’t be wasting your time or money

<< page 16

Declarations Page, ask your current agent to resend it. That’s what you pay us for. Always

check the dates on this document to make sure coverage goes back as far as it should.

Don’t be Bullied

Give yourself sufficient time to shop before expiration for the reasons explained above

but if your insurance company pressures you for a renewal decision well in advance of

your expiration date (or they imply you risk losing your prior acts coverage if you don’t

renew in advance), they may be trying to limit your ability to shop. You can guess why.

Remember this: you don’t have to stay with your current company to preserve your prior

acts. You can switch and preserve your prior acts as long as you switch coverage before it

expires. With OREP, if you renew on the day of your expiration or even a few days after,

you are typically not in danger of losing prior acts. Most companies have a grace period of

at least a few days after expiration. Each company is different, so make sure to ask your

agent how long your grace period is, in case you need it.

Start the process early so you can shop and don’t give in to the pressure to make a quick

decision. If you’re getting close, ask your agent about your grace period.

The same goes for inspectors who work for a franchise company where the head office

requires you to purchase your policy from a particular agency or limits your choice to a

select few programs. If it’s not a true group policy written for the franchise, you should

ask why they insist you buy it and see if their response passes the “smell test.” Without

the freedom of choice, you may be paying more than you have to for less coverage. This is

not in your best interests.

Extended Reporting or Tail Coverage

If you choose to stop inspecting and to terminate or not renew your insurance, you can

keep coverage for past inspections with optional Extending Reporting Period or Tail

Coverage. Extended Reporting or Tail Coverage is offered by most Claims Made carriers

for additional premium.

Tail coverage provides coverage for work completed during the policy period for a

number of years into the future (after your policy terminates). What does this mean? If

you have a Claims Made policy and decide to stop inspecting, you can purchase tail

coverage for inspections completed during the policy period for as far back as you’ve been

covered continuously, for a number of years forward after the policy expires.

Page 20 >>


ORIZON

Works on Apple and Android smartphones and tablets

Ability to collect report data when there is no wireless connection

Save time by adding photos directly to the proper sections of the report

Easy and fast navigation thanks to our color coding by system

No additional cost for this great new toolfree

Make the leapto horizon

The report is easy to read, write and looks very polished when published.There are many customizable options and all of my customers love theprofessional reports.

– Joe Morales,

Finest Home Inspections Inc

”

“

Report Writing has never been faster andeasier with Horizon Mobile:

To learn more about Horizon Mobile, visit:carsondunlop.com/horizonmobile

<< page 18

Peace of Mind

There is peace of mind in knowing you’ve done the numbers, understand the issues and

are making an informed decision. Due to changes in the insurance market, if you haven’t

done the numbers lately, you owe it to yourself and your business to compare coverages

and prices. This is especially true if you pay “per inspector” for your multiple inspector

firm or if you pay extra for premises coverage/general liability, “corporate coverage,”

pest, radon or commercial inspections. The insurance market has changed in the last few

years. You have more choices, make your decision an informed one. WRE

Disclaimer: This article is written from an insurance perspective and is meant to be used

for informational purposes only. It is not the intent of this article to provide legal advice,

or advice for any specific fact, situation or circumstance. Contact legal counsel for specific

advice.


Marketing: Tape Measures Measure Up by Isaac Peck, Editor

Home inspection is a niche, but still a very competitive profession where home inspectors have to stay on the lookout for effective ways to market their businesses without breaking the bank. Home inspectors take many different approaches to their marketing, but sometimes keeping it simple pays off.

Raymond Wand, a home inspector from Ontario, says that giving out 50‐page, 4”x5” scratch pads with his company logo has been effective for him, adding that, “It’s like handing out 50 business cards.” Still others say that fridge magnets work best for them. Meanwhile, some home inspectors swear by the tape measure—saying that it’s useful, long‐lasting, and not likely to be thrown away. Inspector Dan Harris, from Arizona, says he has experimented with a variety of approaches and found the one that works for him. “I've tried giving out coffee mugs, pens, note pads, chip clips, calculators and a few other trinkets, but the most effective tool that everyone seems to appreciate is tape measures,” says Harris. Harris says he can directly credit over 100 inspections in the past two years from simply handing out tape measures. It turns out that giving out tape measures is cheaper than you might think. Shrewd home inspectors can buy tape measures for $1 each when buying in bulk, then have a small label produced with company information for about for 10 to 20 cents, for a total cost per tape measure of under $1.50. Dan Harris says he can find 16’ tape measures at the dollar store for $1 each, and he’s found a place that can make stick‐on company logos for .04 each, giving him a total cost of just over $1 each. Welmoed Sisson, a home inspector in Maryland, has had similar success when it comes to using tape measures as an affordable marketing tool. Sisson says, “Tape measures are without a doubt what has worked best for us. We've had clients and agents call us after several years, because they kept the tape measure. I think there are a couple reasons why they're kept so long. First, they're useful, plain and simple. Second, they feel hefty, substantial and expensive, so people are more inclined to keep them, a pen is easy to toss in the trash.” As small business owners in a competitive field, inspectors understand the importance of spreading the word about their businesses and finding affordable ways to grow their clientele. On that note, Dan Harris advises home inspectors to develop a targeted marketing strategy. Harris says that if you can focus your marketing dollars on promoting your own company, instead of a local home inspector association, and limit your expenses to $1 per “promotional product,” you are well on your way to developing a marketing strategy that maximizes your budget. WRE


Editor: Wow! This might be every inspector’s nightmare.

Manufactured Homes: One that Almost Got Away by Russell Kirk

I had my most satisfying inspection today. I always pull the

public records prior to an inspection and this one showed a 979

square foot (SF) single family residence (SFR) built in 1972. The

buyer's agent told us that it was a 1,500 SF SFR, confirmed by

the listing agent's flyer as a 1,498 square foot SFR.

When we got to the inspection, something just didn't look right. The stuccoed foundation

was huge, about two feet tall; very unusual. The rear had cracks every four feet, again

very unusual. It looked like a raised foundation at the right and rear but with a tall slab at

the front and left. Weird. There was no access to the crawl space.

In looking at the cracks at the rear, I decided to take off one of the vent screens to see

what I could see. We typically don't remove vent screens since we usually have access via

a crawl space opening.

Well, low and behold. A manufactured home! The

cracks at rear were where the skirt sections met. They

were metal but had been stuccoed to match the rest of

the house.

g,

a

r $475,000.

The buyer and buyer's agent were aghast, not to

mention pretty angry. The reason? The house was

selling for $475,000, definitely the price for a 1500 SF

house in that neighborhood (San Diego, Calif.). The

most expensive manufactured home in San Diego

County that I could find, however, was $175,000 and

that was for a 2300 SF, 2004 double‐wide, double‐lon

double‐tall, double this, double that model! That’s

$300,000 difference. Whoa! Of course, now that I had

opened the can of worms, the home would never

appraise fo

page 24 >>


COA Support App FREELive support on your smartphone!

www.HomeInspectorSupport.comCall 866-363-1330

Offices of Casey, O’Malley Associates for more information

Available on iTunes or Google Play

*Benefits vary depending upon membership level & longevity. See website for details.Premier, Premier-Plus, Elite and Corporate memberships available.

Live Technical

Support,

$0 Deductible

on your E&O,

COA Conferences

& Risk Management

all for FREE!!

www.HomeInspectorSupport.com

COACOANetwork

Support

Live Technical Support 24/7*

Risk Management*

Free Inspector Education*

$0 Deductible on your E&O*

Live Technical Support 24/7*

Risk Management*

Free Inspector Education*

$0 Deductible on your E&O*

The most beneficial service ever created

for inspectors comes from Casey, O’Malley Associates

The most beneficial service ever created

for inspectors comes from Casey, O’Malley Associates

“Like having an expert in your pocketthat only you know about - it’s cool”

Take a picture, ask a questionGet the answer fast

<< page 22

The interesting thing is that the current owners paid $235,000 in November 2000, and the

owners before them paid $165,000 in June 1994, all normal prices for 1500 SF houses in

this neighborhood at those time periods. Conclusion? No one ever had the home

inspected before and no one had any idea that it was a manufactured home.

The current owners are within their five and half year discovery period, so I see a lengthy

lawsuit, which may lead nowhere depending on where the 1994‐2000 owners currently

reside and what they claim they did and did not know.

Liability Nightmare

In this part of the country, if there's a lawsuit, everyone even remotely involved is sued.

Now where would I be if I had not taken off those vent screens and just disclaimed the

crawl space because there was no access? Notwithstanding anything I might have said in

my report about further evaluation by structural engineers after access is gained, etc., I

can guarantee you that I would be part of a lawsuit down the road when someone found

out that it was a manufactured home.

The $300,000 in potential damages is a significant amount of money, and even if I were

found to be one‐eighth liable (seller, seller's agent, former seller, former seller's agent,

home inspector, title company, throw someone else in for good measure), that would

have been $37,500 minimum, with court costs not included. And if the former seller has

moved to a different state and the former seller's agent dead or can’t be found, I could be

one‐sixth liable ‐ $50,000 or more. And it could get worse, much worse. That’s why I carry

E&O insurance. I suspect I'll be doing another inspection for them quite soon. WRE


OREP007

Typewritten Text

Plans available to real estate professionals on a guaranteed issue basis. Kaiser Permanente offers eleven plans including the new Tax Advantaged Health Savings Account Plans.United Healthcare offers three HMO and four PPO plans. Allied National offers four Limited Benefit PPO Plans that offer highly affordable first dollar coverage including doctor office and emergency room visits and prescription drugs. Plans available to California residents only through OREP (OREP membership not required). Please visit OREP.org/Benefits or email [email protected] with medical benefits in the subject along with your name and phone number in the body of the e-mail. A qualified agent will call to go over the options.

OREP007

Typewritten Text

OREP007

Typewritten Text

OREP007

Typewritten Text

OREP007

Typewritten Text

OREP007

Typewritten Text

OREP007

Typewritten Text

OREP007

Typewritten Text

OREP007

Typewritten Text

OREP007

Typewritten Text

OREP007

Typewritten Text

OREP007

Typewritten Text

OREP007

Typewritten Text

OREP007

Typewritten Text

OREP007

Typewritten Text

OREP007

Typewritten Text

OREP007

Typewritten Text

Editor’s Note: According to veteran inspector Rick Bunzel, business efficiencies used by

the most successful corporate giants can also mean good business for inspectors.

In Search of Perfect Home Inspection By Rick Bunzel, CRI, ACI

As I approach my 10th year in business I am still learning about homes and perfecting my

trade. Our clients expect a perfect inspection that will catch 100 percent of the issues.

However, few are willing to spend the time or money such an exhaustive inspection

would require.

Agents wouldn’t support it because a multi‐day inspection would inconvenience sellers

and buyers and likely nix the deal. Like all inspectors, I don't like getting the phone

call from an upset client about an issue they found in their newly purchased home that

they feel I should have caught. Mike Holmes’s Show, “Holmes Inspection” doesn't help

either, as his favorite line seems to be, "The inspector should have caught that." So the

question remains, can we deliver a near‐perfect inspection in the few hours we spend in a

home?

Companies like Boeing must have processes that produce 99.9 percent defect‐free

airplanes or they wouldn't remain in business. McDonalds is another example‐ they have

to create a menu of items that are consistent around the world. One might say that the

inspection business is different because we are not producing a standardized product. But

I disagree. Our inspection report is a product and we can take some of the techniques that

companies like Boeing and McDonalds use to create a better product. Both companies

thrive on certain core fundamentals:

• Standardization: a Big Mac is a Big Mac and a Boeing 737 built in 1968 can use parts from one built in 2010.

• The highest levels of quality possible: planes can't fail and the food must be pure and taste the same regardless of location.

• A production process approach: different work cells combine to make the finished product.

• Quality processes throughout their systems: from suppliers to management oversight, checks are built into each process.

• Production systems which are reproducible and easy to teach to new employees.

• Lean production: steps are broken down and analyzed to get the most from each employee.


Translation Please

What can we learn from these companies that translates to the home inspection

business? I looked at the process and broke down the components into the following:

initial contact, information flow, scheduling, arrival at the property, physical inspection,

creation of the report, delivery of the report, follow‐up and after inspection issues.

Initial Contact

In many areas of the country, real estate agents give their clients the names of multiple

inspectors, so frequently we get calls from clients shopping for a home inspector. My

business partner/wife and I share the office duties so it’s important that we are consistent

in what we say and quote to the client. We have built processes into our business to

ensure that every client goes through the same process, from the time they first contact

us through the follow‐up survey. We have a paper form that gets filled out and goes into

our Office Management System. This step includes calling the agent to get access to the

home and ensuring that the utilities will be turned on.

A confirmation is sent out with the time, date, location, cost and a copy of the inspection

agreement for their review. We have learned that setting expectations is an important

part of customer satisfaction. Most home buyers are bewildered by the home buying

process. The more education we can provide upfront the better they will understand the

information they receive down the line.

Information Flow and Scheduling

It’s important that I receive information prior to arriving at the site, beginning with the

initial contact from the agent. When the client is booking the inspection, we identify their

concerns and issues. I usually will look over the schedule and inspection details the

evening before. Since we have been performing inspections for some time in this area, I

am familiar with the neighborhoods and their particular issues. We usually block out four

hours for an inspection because you never know what you will find until you show up at a

property. The last thing we want to do is rush through an inspection due to a scheduling

crunch. Our information forms capture cell phone numbers for both the client and agent.

If we are running late we can call and let them know when we will arrive.

Inspections

All inspectors have their own way of handling the physical inspection of a home. The key

is standardization. Like McDonalds, you want a systematic approach that allows you to

adequately view the property and identify issues. Like many inspectors, I try to get to the

property before the client to do a “sizing up.” This allows me to do some pre‐planning on


where to access the roof, the order of things to be inspected and to identify features, such

as out buildings that weren't disclosed. I also begin cataloging issues that will need further

examination, such as LP siding or hazards like overhead wires. If the client and agent have

not arrived yet, I will start taking pictures of the exterior. Usually I shoot the front

elevation and each side of the home and roof. Photo documentation is part of my

standard process. In a small home inspection I will take close to 100 pictures and use

about 25 in the report. Clients will frequently forget the condition of the home but if

there is a disagreement on the condition they have a hard time arguing with a picture.

Master craftsmen spend hours perfecting their trade. As they learn, they build muscle

memory. This muscle memory makes it easier to get the tasks right time after time. Most

inspectors already have muscle memory. For example, when I first got my telescopic

ladder I looked pretty awkward opening and closing it. I have now used it more than 1,000

times and can select the height, extend the ladder, get the right climbing angle and check

it while I am talking to the client. I have done it so many times I have perfected the

process. Most experts will agree that to master a process you have to perform it at least a

1,000 times. Practice your inspection process and be consistent. We can't control our

inspection environment but we can master the inspection process so we can perform it

regardless of the environment.

A critical step in my quality control process is loading information into my reporting

system onsite. I have my forms setup to follow my physical inspection process. I will

normally setup my laptop in the kitchen and enter data there. If it’s a large home or multi‐

building complex, I will inspect an area and then enter it into the computer. If it’s a

smaller home, I will enter data at the end of the physical inspection. If I am missing

information, such as the size of the furnace, I can go back to get the information.

Occasionally I will miss a concealed water heater or an electrical panel hiding behind a

painting. My inspection software will remind me that I am missing a piece of information.

I also have several check boxes at the end that remind me to verify that the oven is off

and the furnace and water heater temperatures are returned to original position.

The Report

I will create most of my report on‐site but I don't complete it until I get back to my office.

I've tried it other ways but have found that I had to recall and update the report more

often than I wanted to. Even though I would tell customers that this could happen, I felt

like I was sending out reports with potential errors. For this reason I don't send out

reports until I get back to the office. This allows me to digest the information from the

inspection, do research if needed, enter the pictures and fine‐tune the wording. This


allows me to digest the information from the inspection, do research if needed, enter the

pictures and fine‐tune the wording. We have reduced the number of errors that go out in

the reports to less than two percent. I use pictures as one of my quality controls. If I find a

defect, I take one or more pictures of it. As I going through the report I am looking at the

pictures and comparing it to the comments I have entered. Frequently, I will find a small

item such as a broken sliding door latch that didn't make it in the initial report. During this

pass I will ensure that I have all the issues documented and pictures entered. My last

steps are spell checking, looking at a summary of issues and creating the PDF. The final

quality control check is looking at the finished report & making sure it printed as I want it.

The Report

I will create most of my report on‐site but I don't complete it until I get back to my office.

I've tried it other ways but have found that I had to recall and update the report more

often than I wanted to. Even though I would tell customers that this could happen, I felt

like I was sending out reports with potential errors. For this reason I don't send out

reports until I get back to the office. This allows me to digest the information from the

inspection, do research if needed, enter the pictures and fine‐tune the wording. We have

reduced the number of errors that go out in the reports to less than two percent. I use

pictures as one of my quality controls. If I find a defect, I take one or more pictures of it.

As I going through the report I am looking at the pictures and comparing it to the

comments I have entered. Frequently, I will find a small item such as a broken sliding door

latch that didn't make it in the initial report. During this pass I will ensure that I have all

the issues documented and pictures entered. My last steps are spell checking, looking at a

summary of issues and creating the PDF. The final quality control check is looking at the

finished report and making sure it printed as I want it.

Setting Expectations

Even the best, most thorough inspection can produce an unhappy client. If your customer

is unhappy with your service, then you have failed at your job. In my experience, the most

common reason is poorly set expectations. Most customers don't understand what a

home inspection is and what it isn't. We all have contracts that stipulate the terms of the

inspection but how many clients read the contract? For this reason, I encourage the client

to attend the entire inspection. This is a business decision for each inspector and from

informal polls I have taken, about 50 percent of inspectors encourage clients to attend the

inspection while the rest prefer the clients show up at the end.

I do a pre‐inspection briefing when the client shows up as part of my process. The briefing

page 30 >>


FIRST PRIORITYHOME INSPECTION

I n t e r N A C H I - C e r t i f i e d

FIRST PRIORITY

HOME INSPECTION

I n t e r N A C H I - C e r t i f i e dJeremy RubyInterNACHI Certified Professional Inspector ®

CERT

IFIE

D P

ROFESSIONAL INSP

EC

TOR®

CPI

InterNACHI

[email protected]

(717) 713-7574

FIRST PRIORITY

HOME IN

SPECTIO

N

I n t e r NA

CH

I - Ce r t i f

i ed

Are you a member of InterNACHI?What are you waiting for?

Find out what you’ve been missing. Visit www.NACHI.org and join today!

The International Association of Certified Home Inspectors (www.NACHI.org) is the world’s largest association of residential and commercial property inspectors, with chapters in 65 countries around the globe, including the U.S. and Canada.

We provide our members with free access to dozens of accredited online Continuing Education and state-of-the-art video training courses, courtesy of NACHI.TV.

And the hundreds of valuable, free member benefits we offer are unrivaled by any other association anywhere:

• inspection business custom logo design services• custom inspection brochure design services• $10,000 Honor Guarantee™• Internet-generated inspection leads• exposure from listings in multi-million hits-per-month websites• use of Certified Professional Inspector (CPI)® designation• use of InterNACHI-copyrighted images• access to our Inspection Legal Case Library• access to our Inspection Graphics Library• royalty-free use of InterNACHI’s International Standards of Practice for Inspecting Commercial Properties• access to Inspectopedia, InterNACHI’s inspection-related article library filled with professionally written inspection articles, with free reprint privileges• optimized website with free hosting forever• marketing consultations to help you get greater response from your brochures, ads and flyers• and so much more!

When you become a member of InterNACHI, you can expect the leadership, support and camaraderie that come with being a part of the largest and most respected inspector association in the world.

<< page 28

covers what I will be doing, checking to see if they reviewed the inspection agreement,

safety (please don't follow me on to the roof) and finding out if they will be staying for the

entire inspection. This briefing helps set the client's expectations and lets them see what I

am seeing. If there is an area that is not accessible, I tell them and why it won't be part of

the inspection. Occasionally I get clients (and their family) who are all over the place,

pulling me in different directions. In this case I gently encourage them to hold questions

until the end or have the buyer/client collect the questions and ask them when I am done.

This does extend the time it takes to inspect a home but the majority of our clients get

more out of the inspection and feel more confident about their purchase after reading the

report.

Follow up

In most cases, we do our inspection, collect a check, deliver the report and never hear

from our clients again. Many of us take the head in the sand approach: no news means

we are doing okay. But how do we know that we are doing great and that our clients are

bragging about how happy they are with our services? How many of us ever check back

with our clients? I would wager that less than 10 percent of inspectors have some type of

formal feedback system. Companies like Boeing and McDonald have established customer

service metrics that are constantly measured. At this point I don't have a formal system,

but I know I should. I do encourage clients to review me on Google, Yellow Bot, Bing and

Judy's Book. I also poll the agents who refer me for feedback. I consider them a secondary

client as many clients depend on the agent to recommend an inspector. In our state they

are required to supply three names.

The quest for perfection should never end. Our markets are changing and we must change

to continue to meet the expectations of our customers. We should never get lax and think

that we are delivering a good inspection and that this is good enough. Can we live up to

the standards that Mike Holmes talks about? Probably not because he goes far

beyond ASHI Standards and the homes featured in his shows are setup to make good TV.

However, Mike does give us something to strive for. WRE

About the Author

Rick Bunzel is the principle inspector with Pacific Crest Inspections and an ASHI Certified

Inspector #249557. He holds a BA in Business Marketing. He is past Chair of the Marketing

and Public Relations Committees for a national home inspection organization. Locally, he

Chairs the North Puget Sound Board of Realtor’s Communications Committee and is a

firefighter/ EMT with the Mt. Erie Fire Department in Anacortes, WA.


Editor’s Note: Inspectors no longer have to pay more for the complete coverage they need. OREP’s new insurance program includes most coverages in the minimum premium ($1,250/$300,000 limit), including radon, pest and premises coverage.

Insurance Program- Complete Coverage, Low Rates OREP (Organization of Real Estate Professionals) is proud to announce its updated insurance program that allows inspectors to have complete coverage and save money! David Brauner Insurance Services/OREP has been servicing the insurance needs of home inspectors for over 10 years. Program Highlights * Includes Errors and Omissions (E&O) and Bodily Injury/Property Damage (premises coverage), as well as most incidental coverages, such as termite, radon, and commercial coverage. * “A” Rated Carrier, Prior Acts, Additional Insured for Agents and other Referring Parties. * Convenient: Fast, Self‐Rating Application gets you quoted and back to work in minutes. * No Policy fee, no Taxes.

This new Home Inspector E&O program includes most coverages in the minimum premium, including Bodily Injury/Property Damage (BIPD) or Premises coverage for when you are onsite at the inspection. “Home inspectors who are paying extra for ‘add on’ coverages, or worse, going without the full coverage they need to save money, don’t need to any longer. Broad coverage is included in the minimum premium, including E&O and premises coverage,” said David Brauner, Senior Broker at OREP. Brauner has been serving the insurance needs of home inspectors for over 20 years. OREP’s new program also includes most incidental coverages, such as termite, radon, and commercial coverage. The Minimum Insurance Premium is $1,250, which provides a Coverage Limit of $300,000 Aggregate/$100,000 each Occurrence for E&O/BIPD. Choice of coverage limits and deductibles are available. Find details at OREP.org (click home inspectors) or call toll free (888) 347‐5273. [email protected]. OREP is a leading provider of insurance for real estate inspectors, appraisers, agents/brokers and mortgage field professionals. WRE David Brauner Calif. Insurance License: #0C89873



Editor’s Note: Every weekend, there are myriad opportunities to increase business.

Inspector Amy McIntire shows you how.

Putting On Salesman Hat

By Amy McIntire

Our motto is that if you want business, you have to go out

and create it. Which isn’t easy for home inspectors, since

inspecting and selling are two different jobs and should be

treated as such, although there are some similarities.

As a home inspector, you would never go to an inspection without all the tools, supplies

and information need. The same is true of selling: you must have a plan and be prepared.

With a little preparation and planning, your sales hat will fit comfortably and even

become enjoyable to wear.

Home inspectors don’t always react positively when I suggest open‐house prospecting to

build relationships with realty agents. But any sales coach will tell you to step out of your

comfort zone and try something new. From experience, I know open‐house prospecting

can generate business if approached correctly. Remember, it is a sales call on a

prospective referral source, and you must approach it as such or it can end up working

against you. More than 50 percent of our current business comes from referrals from

agents we met at open houses. Shouldn’t this be in your marketing plan, too?

Four things before going to Open House

1. Have a positive attitude and smile!

This sounds simple, but when you are thinking of what you want to say, you can forget to

smile. So, stop and smile at yourself in the mirror before you get out of the car. Wear your

smile whenever you’re wearing your salesman hat.

2. Planning who you want to see is critical to time management.

Look in the paper or on company websites for open houses. Pick an area and make a list

of 10‐15 potential stops. For each, include the time of the open house, agent’s name,

company name, open house address and town. Locate the addresses on a map, then plan

where to go first, second, third, etc. On average, I see six‐eight agents each Sunday. I’m

not speed prospecting, rather I’m developing relationships to get future referrals.

3. Plan what to take.

Almost everyone likes sweets and chocolate, so take along a treat with your business


card, brochure, flyer or other marketing materials. Put it all in something that is easy to

carry and access. We use a small wooden basket with handles that holds our chocolate‐

covered strawberries, business cards, brochures, newsletter and a pen for taking notes. A

small toolbox also would be perfect for prospecting. The treat represents you, so make it

something special. I make chocolate‐covered strawberries in the morning; package them

in baggies and tie our business card on top with a ribbon. Find something that works for

you that can become your signature treat. Agents will remember you by it.

4. Plan what to say.

This is extremely important! Break the sales call into five steps.

1) Greeting: Your greeting to the agent sets the tone for the conversation. Be upbeat and

smile as you introduce yourself as a home inspector and add, “I came to see you!”

2) Quick company story: Write out a few sentences that you are comfortable with,

memorize them to use when the agent asks about you. For example, “I have been an

inspector for a few years now. I am a member of several professional organizations and

am based out of Smithville and serve the surrounding counties. I’ve worked in the

construction field all my life and have many years of hands‐on experience building and

renovating homes. Becoming a home inspector was a natural fit for me!” (smile!)

3) Questions: This is your opportunity to find out information. A salesperson knows that

the person asking the questions is in control and that people like talking about

themselves. Sample questions include:

• How long have you been in the real estate industry?

• Which office do you work out of?

• How do your clients choose a home inspector?

• Do you have a home inspector who you refer regularly?

• Does your office have a list of inspectors?

• Who would I contact to be added to the list?

• On what day does your office have meetings?

Be comfortable asking questions, be patient and listen to the answers. The more

prospective referral sources talk, the more you learn about them.


4) Company benefits, storytelling & countering objections: Every company has its own

benefits. My partner, Terry, has a strong background in HVAC and construction, so we

discuss how we are able to give our clients extra knowledge about the HVAC system in the

home. Because there are two of us at the home inspection, we manage time and people

well. You’ll want to tell a short story or two about your business to paint a visual picture

and create a solid memory.

The biggest concern agents want to talk about is a home inspector being a “deal killer.”

We know this even if they don’t bring it up. Instead of ignoring concern, discuss it and get

it out of the way. Say with a smile, “I can’t change what I find at a home inspection (bad

roof, broken furnace), but what I can do is make sure that any concern is delivered in a

professional and non‐threatening manner. I have a lot of experience working with people,

and I know how to talk to them without scaring them.”

A second concern for the agents is how to nicely tell you they won’t use you. Tell them

you know that. Say, “I heard it takes five‐seven times meeting a real estate agent before I

get a referral.” (You have their attention now.) Continue with, “I’m hoping that it only

takes three or four times meeting YOU before a referral.” (smile) Now let them talk. This

is when they will tell you how they met the home inspectors they are working with now

and how it works for them.

5) Wrap‐up and goodbye: Before you leave, you must get their business card or contact

information. By this time, they should have all of your literature and the treat. If not, hand

it to them and ask for their business card. Shake hands. Tell them it was nice meeting

them and that you are sure you will see them in the future. (smile!)

Three rules for open houses

Most open houses have few visitors so, for the most part, agents are glad to have

someone to talk to when you walk in. Respecting agents at their open house is critical.

There are three rules to follow to make your trip worthwhile.

Rule #1: Never create the impression you are there to see the house.

I carry a basket with all my supplies. Most times, agents notice my basket and know I’m

there for a different reason. If they do start their sales presentation about the house, I

say, “It looks like a nice house, but we already have one. I’m here to see you!” Smiling, of

course.

Rule #2: Know when to leave.

Leave on a high note. Get out while everyone is smiling and laughing. After you are gone,

hopefully they will read your literature as they eat the chocolate. If the agent is involved


in a deep discussion with a possible client, leave your information, get theirs and leave. If

there are too many people at the open house, leave your information on the counter, get

the agent’s business card and leave. If an agent isn’t there, be nice to whoever is there

and leave. If the agent isn’t being friendly, be courteous as you leave. If you do not have a

positive attitude about meeting new people, do not leave your home. Wait until next

week.

Rule #3: Always get agent’s contact information and keep it organized.

Make a contact book, which will be a tool for your marketing plan. Tape the business

cards to notebook paper and write a few notes about the meeting. Keep these pages

organized by offices. This will help you remember who you meet and when.

Good luck in your prospecting adventures! WRE

About the Author

Amy McIntire is an owner in TK Home Inspection with her inspector partner, Terry

Kleptach. Before home inspections, she was the director of sales training for a 12‐office,

125‐person sales force based out of Cleveland, Ohio. Since then, she has applied her sales

knowledge and tactics to grow their home inspection business. In the Salesman Hat

Series, Amy shares some of her knowledge and action steps to develop relationships to

get agent and broker referrals and more home inspections. She can be reached for

comment or questions at [email protected].

Copyright © ASHI Reporter. Reprinted with permission. This article originally appeared in the May 2012 issue of the ASHI

Reporter. To learn more about the American Society of Home Inspectors go to www.ashi.org and www.ashireporter.org


Low E&O Rates, New Policy Servicing Department…and Yes, We Still Answer the Phone! Appraisers E&o Min. Prem. $501 (varies by state)inspectors E&o Min. Prem. $1,250Real Estate Agents/Brokers Min. Prem. $429 (varies by state)

OREP has a new policy servicing department to streamline insurance requests from our cli-ents, including renewals. Simply email your policy-servicing request to [email protected] to get the assistance you need, usually same day. Whether you’re an existing client or someone calling for the first time, you can reach us by phone anytime during business hours (8–5 M–F Pacific Time).

Business by the golden RuleOur mission at OREP is pretty simple: “Business by the Golden Rule.” It means we treat you the way we want to be treated: with honesty, courtesy and efficiency. This is David Brauner, Senior Broker and Principal of David Brauner Insurance Services/OREP.org. Call us to see what you’re missing if you’re missing great rates, great service and business by the Golden Rule. Yes, with OREP you can have all three. Call toll free today: (888) 347-5273 or visit OREP.org. Policy servicing: [email protected]. OREP publishes Working RE magazine. WRE

“WOW! Thank you very much. You are the fast-est and most efficient insurance agent I have ever done business with !!!” —Aloha, James

oREP now in our 10th year! back: (L-R) Kevin, Ashley, David, Clark, Michaelfront: Lori, Maria, Mary, Carolynn, Cary, Chantel

David Brauner Insurance Services: Calif. Lic. #0C89873

Thank You! great Service...Easy, fast, affordable! —Patti Tai, Certified Residential Appraiser


http://www.ashireporter.org/

OREP007

Typewritten Text

OREP007

Typewritten Text

Documents

Working RE Home Inspector Edition/Fall 2012