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It's a great day at Michael Leavitt & Co Home Inspections. I said that this week's MMM was going to deal with the Lead-Based Paint training, but it will have to wait. Two other topics have come up with greater urgency and will be addressed in this issue. The Chimney Inspection topic will be of special interest to those attending the Sacramento Chapter Meeting. The other is the Dollar Per Transaction topic talked about last week.
NOTE: Today's MMM is very long due to the complete posting of the Chimney Inspection standards. I felt that it was really good information and I didn't want to leave any out.
To follow-up on last week's MMM regarding fee totals, I received many responses. Most dealt with the importance of higher Dollar Per Transaction increases. I spoke with one Inspector on the phone who expressed the concern that all he wanted to do was home inspections. This caused me to reflect on the angle of my soap box presentation and I wanted to clarify two points.
I hope that I did not offend anybody by saying that we should all be adding services to increase our home inspection business. In the beginning, it is extremely important to focus solely on home inspecting. Too many irons in the fire will get anybody into trouble. I do not think any less of those who do only home inspections.
Roger Ball shared this about Dollar Per Transaction......
"Your fee per inspection is exactly how to measure your business' increase or decrease. I learned way back in the good old days while manufacturing imitation food products for Hickory Farms and Swiss Colony Franchise Stores how they measured a store's success: Average Sale. If the average sale went from $3.50 per sale to $5.25 per sale - management was pretty happy with this 50% increase. Works the same in this business.
My observation is that Home Inspectors feel that they are all experts in their field. Technical, Marketing, Human Resources, Finance, Consulting are just part of what we all do. To be in business takes a type "A" personality or a person with enough guts to jump out of their comfort zone and go into business for themselves. It is very difficult to get past your own self importance to evaluate others objectively. Hence the "Yeah But"." Roger Ball - BrickKicker - Toledo, Ohio
The second issue regarding Dollar Per Transaction I don't think came out crystal clear last week. I now have my fees posted and this has really helped prep the buyer for the higher fees. I definitely charge the highest fees in Utah County and it used to be when people called and I quoted them my fee, they were taken aback by the "higher than others" fee. Buyers now are usually ready for the higher fee and they are aware of the added services I provide without having to sell them the benefits on the phone.
I don't know why, but in my first year or two I would not quote the full fee over the phone for the larger homes for fear that it would sound too high and they would go with somebody else...... I hate to admit that, but it is true. It was uncomfortable to quote a high fee because I knew they could get someone else to do it for a lot less. Plus, I had lost a few potential clients because my fees are higher. Now I have confidence in my service and I don't squirm when I quote the fee. I've even had people ask me if I negotiate the fee or if I could discount the fee for them. My response is, "No, I have set fees." That usually settles it. They just accept the fee and book the inspection.
This discrepancy in fee quoting was most obvious about 8 months ago when one of my past client's called to schedule an inspection for his recently divorced daughter. The home was a 2200 sq ft structure and the fee was $255 (now it is higher). He was shocked because 2 years earlier I did his home for $285....... His home was 4,000 sq ft and took a lot more time. He was figuring that his daughter's inspection, based on the fee/sq footage of his home, would be about $150.
This is where underquoting affects your business in both the short and long terms. Now how did underquoting this man help my business? I didn't get more money the day of his inspection=lost revenue and he was unprepared for the fee quote 8 mos. later and I had to re-sell why my fees were so much higher. It is a confidence issue. When business was going great, I had no qualms quoting the full fee. But when things got slow and finances tight, I used to get the tendency to underquote the home to get the inspection. I don't think this tendency is mine alone. I think that is human nature. But I could be wrong.
KEY POINT - Now that my fees are published and a big part of my advertising and internet ordering process, it has increased my DPT. Publishing my fees has been to my advantage and has greatly increased my DPT.
INVITATION - I invite readers of this MMM to re-visit my Online Order Form. I have just increased my base fees again. I lowered my 1800 sq ft base inspection fee to 1400 sq ft and smaller. This created a 1401 to 1800 sq ft category. If you look at my cutoff points, you will also notice some changes. I used to have square footage fee breaks at 2,400, 3,200 and 5,000. When a buyer or an agent would quote the sq ft, they would commonly say 2,400 and it would turn out to be 2,471. Or they would say about 5,000 and it was really 5,100. This would always result in a lower fee quote than what it should have been. I eliminated this by putting these square footages within the middle of the higher range, thus a higher DPT. In my area I have learned that the typical break off points are 1,600, 2,400, 2,800, 3,200, 4,000, 4,500 and 5,000...... They are probably different in your areas.
I also spent some time designing a new, rollover "ORDER ONLINE" graphic that is a part of all of the client and agent pages on my site. When I want to change the special, all I do is change the words in the box and it automatically is updated to all of the pages on my site. By clicking anywhere on the following graphic box it will take them directly to my online ordering form.
The second way that I am eliminating lost fees is by defining and quoting Duplex and/or In-law Apartments on my online order form. I was getting tired of showing up to properties that had a second, unmentioned kitchen and increased rental liability. This may not be a challenge for a lot of you, but here in the land of the "Harvey Homeowner finished basement" it is very commonplace. Put this together with the fact that we are near a major university, and people try to cash in on the rental income and design a small, non-zoned and non-permitted rental unit in part of their basement. Because of this challenge, I added the following to my Online Order Form.......
Home Inspection
When the client clicks on the CLICK HERE above, I then spell it out in plain English..........
For the sake of providing an accurate fee quote, you need to determine if the home is considered a Single Family Dwelling, Single Family Dwelling with In-law unit, Duplex, or a Multiple Family Dwelling.
Single Family Dwelling - This is a home designed for a single family. It will generally have one electrical service, one water service and one gas service. There will be one kitchen and the home will not be designed for renting out part of it to another family or family member.
PLEASE NOTE: Pre-1978 properties are target housing for Lead-based paint. It is strongly recommended that a Lead Hazard Screen be performed, especially if children under six and/or elderly people will be residing in the home.
Single Family Dwelling with In-law Unit - This is a home designed for a Single Family, but the home also has provisions for a separate living area. A sure indicator of an In-law unit is a second kitchen. Kitchens require more time, thus a higher fee. There is usually also a separate entrance, but not always. In-law units also place more liability upon the buyer if they ever decide to rent out the space. Knowing this, extra care is taken to identify any Health & Safety improvements needed to protect the Buyer's liability.
PLEASE NOTE: Pre-1978 properties are target housing for Lead-based paint. It is strongly recommended that a Lead Hazard Screen be performed, especially since this might be a rental situation.
Duplex - A true duplex is a structure that is designed with separate services. This includes separate gas, electric and water hook-ups. If the property is a true Duplex, then everybody will be telling you, i.e., Seller, agent, etc. It is still good advice to verify with the city as to the zoning and allowed uses for the property.
PLEASE NOTE: Pre-1978 properties are target housing for Lead-based paint. It is strongly recommended that a Lead Hazard Screen be performed, especially since this will be a rental situation.
Non-Conforming Duplex - This type of duplex is much more common in Northern Utah. The Non-Conforming Duplex is a partially changed Single Family Dwelling that allows a second family to move in. Liabilities are higher due to Health & Safety issues and the lack of a true Duplex design. Mechanical systems are intermixed and the utility hook-ups are generally combined. If you are considering purchasing a Non-Conforming Duplex, it is strongly recommended that you check with the city records to verify what the property is zoned for. It is not uncommon for a new buyer to later find out that the city will not allow renting out the Non-Conforming Duplex to another family. It may be a potential "can-of-worms", but it is better to open it before you buy than after.
Multiple Family Dwelling - This is a property with provisions for 3 or more families. The fee quotes cannot be posted on this site because each property is different. It requires specific quoting depending on the scope of the overall inspection. Please call us at 801-225-8020.
The following Chimney Inspection proposal was passed along to me by Bob Priesing from Havelock, NC. It seems that Chimney Sweeps are approving inspection standards for members of the National Chimney Sweep Guild to adhere to. I don't know if this will be adopted Nationally or if this is mainly an East Coast group..... Maybe those attending the Chapter Meeting in Sacramento on Tuesday can ask the Chimney Sweep about this proposal. I found the proposal so interesting that I am sharing it with you in its entirety. You will want to pay special attention to the different levels of inspections.
NCSG Inspection Proposal to NFPA 211
The following pages contain the contents of the Chimney Inspection Proposal to NFPA 211 from the National Chimney Sweep Guild. NFPA will accept comments on this proposal until April 2, 1999. Members of the National Chimney Sweep Guild are encouraged to send their comments to the Guild's Chairman of Codes & Standards
Jim Brewer 938 Providence Road Chesapeake, VA 23325
If possible, please send comments via E-Mail to jbrewer@magic-sweep.com
Please send your comments by March 29, 1999
Add new definitions as follows:
Accessible.* Capable of being exposed for inspection, maintenance or repair without damage to the chimney or building structure or finish, but which may require the removal of doors, panels or coverings using commonly available tools.
Accessible, Readily.* Exposed, or capable of being exposed, for operation, inspection, maintenance or repair without the use of tools to open or remove doors, panels or coverings.
Concealed (Inaccessible). Not capable of being exposed for inspection, maintenance or repair without damage to the chimney or building structure or finish, or without the use of special tools.
Chapter 10 - Make the following changes in Chapter 10.
[Delete 10-2 and 10-3, and substitute the following.]
10-2 Annual Inspection. Chimneys, fireplaces, and vents shall be inspected at least once a year in accordance with the requirements of Section 11-3. Connectors, spark arrestors, cleanouts and tee fittings connected to chimneys and to oil and pellet venting systems shall be inspected at least one a year in accordance with the requirements of Section 11-3. Cleaning, maintenance, and repairs shall be done if necessary.
Exception: Type B and Type BW gas and special venting systems.
10-4 Appliance replacement. Before replacing an existing appliance or connecting a vent connector to a chimney, the chimney passageway shall be cleaned, lined, or repaired as necessary.
10-4 Appliance or connector replacement. When an existing appliance or connector is replaced, or a new appliance is connected to a chimney, the chimney flue shall be inspected in accordance with Chapter 11. The chimney shall be cleaned, lined or relined, or repaired as necessary.
10-7 Evidence of Damage. Chimneys, vents, and fireplaces shall be inspected, cleaned, and repaired if there is any evidence of damage to the chimney, fireplace, or vent or to the surroundings. Inspections required by this section shall comply with the requirements for a Level II Inspection in accordance with Section 11-4.
Item 3 - Add new chapter as follows: NOTE - All of Chapter 11 should be underlined to indicate new text, but the underlining has been omitted for ease of review.
Chapter 11: Inspection of Existing Chimneys
11-1 General*. Where the need for an inspection of an existing chimney has been identified, the inspection shall be conducted in accordance with this chapter.
Exception*: Inspections which are incidental to a chimney maintenance or repair task not shown in Table 11-2 shall not be required to comply with the minimum levels of inspection set forth in this chapter. However, defects which are observed or observable during the course of such work shall be reported to the property owner or occupant.
11-2 Type of inspection. The scope of the inspection, the areas of the chimney examined, and the degree of invasiveness of the inspection shall be appropriate for the conditions giving rise to the inspection. The type of inspection shall be determined in accordance with Table 11-2.
11-2.1 The type of inspection performed shall be based on the circumstances which give rise to the inspection. For situations shown in the Circumstances row of Table 11-2, the minimum level of inspection shall be that indicated by column in which the situation is found. For situations not shown in the Circumstances row, the type of inspection shall be based on the descriptions in the Indications row.
11-2.2 Nothing shall prevent the examination of all or part of the chimney at a higher level than the minimum indicated by Table 11-2. Partial examination of the chimney at a higher level shall not require that the entire inspection be conducted at the higher level.
Table 11-2
Selection of Inspection Type
Basic soundness of chimney structure and flue
Lack of obstruction or combustible deposits in flue
Basic appliance installation and connection
All subjects of a Level I inspection
Proper construction and condition of accessible portions of the chimney structure and all enclosed flues
Proper clearances from combustibles in accessible locations
Size and suitability of flues for connected appliances
All subjects of Level I and Level II inspections.
Proper construction and condition of concealed portions of chimney structure and enclosed flues
Proper clearances from combustibles
Annual inspection as required by Section 10-2
During routine cleaning of chimney flue
Upon direct replacement of a connected appliance with one of similar type, input rating, and efficiency.
Upon addition or removal of one or more connected appliances, or replacement of an appliance with one of dissimilar type, input rating or efficiency.1
Prior to relining or replacement of flue lining.
Upon sale or transfer of the property
After an operating malfunction or external event likely to have caused damage to the chimney.
Where necessary for the investigation of an incident which has caused damage to the chimney or building.
Where a hazard detected or suspected as the result of a Level I or II inspection cannot be fully evaluated without access to concealed areas.
1 The inspection shall not be required when the last connected appliance is removed and the chimney will no longer be used.
11-3* Level I Inspections. A Level I inspection shall be utilized when verification of the suitability of the chimney or flue for continued service, under the same conditions and with the same or similar appliance or appliances, is needed.
11-3.1 Circumstances. A Level I inspection shall be conducted under the following circumstances.
11-3.1.1 During annual inspections in accordance with section 10-2.
11-3.1.2 During routine cleaning of a flue or flues within the chimney.
11-3.1.3 At the time of direct replacement of one or more connected appliances with an equal number of appliances of similar type, input rating, and efficiency, in accordance with 10-4.
11-3.1.4 At other times as indicated in section 11-3.
11-3.2 Scope and Access. Level I inspections shall include examination of readily accessible portions of the chimney, and accessible portions of the connected appliance and chimney connection.
11-3.2.1 The basic soundness of the chimney structure shall be determined by examination of the chimney exterior and surroundings at locations which can be accessed without removal of panels, doors, or coverings. Where panels, doors, or coverings are opened as part of performance of another task, such as chimney cleaning, such locations shall be examined as part of a Level I inspection.
11-3.2.2 Areas of the chimney flue which can be observed through existing openings, or openings which can be accessed with the use of tools, such as a thimble, cleanout opening, or flue termination, shall be examined for the presence of a continuous flue liner, proper installation, and freedom from damage or deterioration.
11-3.2.3 Where an inspection is conducted in accordance with Section 10-2, the inspection shall include all chimney flues and connected appliances. An inspection conducted during cleaning or appliance replacement shall include the flue or flues being cleaned, and the appliance or appliances connected to each.
11-3.2.4 The inspection shall include verification that the flue or flues being inspected are free of combustible deposits and blockage or obstruction.
113.2.5 The connected appliance or appliances, their chimney connectors, and surroundings shall be examined for proper clearances, floor mounting and protection, damage or deterioration, and evidence of operating malfunction.
11-3.2.6 Chimney connectors shall be examined for proper support and fastening of joints, pitch, and securement to the chimney. Connectors shall be examined for internal blockage or obstruction and freedom from combustible deposits. Accessible thimbles and combustible wall penetrations shall be examined for compliance with Section 6-7.
11-3.2.7 Internal surfaces of fireplaces and smoke chambers shall be examined for damage and deterioration, freedom from combustible deposits, and evidence of operating malfunction. Fireplace inserts, stoves, or accessories shall be removed from the fireplace as necessary to permit such examination. The means of connecting a fireplace insert or stove to the chimney flue shall be examined for compliance with Section 9-4.5
Exception*: Fireplace inserts, stoves, or accessories shall not be required to be removed when the venting system can be thoroughly cleaned without such removal.
11-4* Level II Inspections. A Level II inspection shall be utilized when verification of the suitability of the chimney for use under new or changed conditions is needed, or when a thorough evaluation of the continued serviceability of the chimney is needed.
11-4.1 Circumstances. A Level II inspection shall be conducted under the following circumstances.
11-4.1.1* Upon addition or removal of one or more connected appliances, or replacement of an appliance with one or more of dissimilar type, input rating or efficiency.
Exception - The inspection shall not be required when the last connected appliance is removed and the chimney will no longer be used.
11-4.1.2 Prior to relining of a flue or replacement of flue lining, in accordance with section 4-1.10.
11-4.1.3 Upon sale or transfer of the property.
11-4.1.4 After a building or chimney fire, weather or seismic event, or other incident likely to have caused damage to the chimney.
11-4.1.5 At other times as indicated in Section 11-4.
11-4.2 Scope and Access. Level II inspections shall include all accessible portions of the chimney exterior and interior, including areas within accessible attics, crawl spaces and basements, and accessible portions of the appliance and chimney connection.
11-4.2.1 The inspection shall include examination of all areas covered in Section 11-3.2 for Level I inspections.
11-4.2.2 Proper construction and acceptable condition of the chimney shall be determined by examination of all areas of the chimney and its surrounding which can be accessed without removal or destruction of permanently attached portions of the chimney or building structure. The inspection shall include examination of locations within attics, crawlspaces and basements which can be accessed through doors, hatches or other openings that do not require removal of permanently attached parts of the building.
11-4.2.3 The inspection shall include examination of all areas of all chimney flues, and the internal surfaces of all flue liners, incorporated within the chimney. Video scanning equipment or other means shall be used as necessary to observe these areas.
11-4.2.4 The inspection shall include nondestructive performance testing, such as a smoke test or pressure test, as required by this standard for putting a chimney into service or verifying continued serviceability.
11-4.2.5 The inspection shall include verification of proper clearances from the chimney to combustibles at all locations which can be accessed as described in section 11-4.2.2.
11-4.2.6 The inspection shall include evaluation of proper type of flue lining material and flue sizing for the type and input rating of the connected appliances. Sizing of flues for gas appliances shall be in accordance with NFPA 54, National Fuel Gas Code. Sizing of flues for liquid fuel appliances shall be in accordance with NFPA 31, Installation of Oil-Burning Equipment. Sizing of flues for solid fuel burning and pellet fuel burning equipment shall be in accordance with this standard.
11-5* Level III Inspections. A Level III inspection is indicated when the construction of all or part of the chimney is deemed critical to the renewed or continued use of the chimney, and where access to concealed locations is necessary for proper evaluation of chimney construction or condition. A Level III inspection shall be required only for those areas which cannot be properly evaluated by a Level I or Level II inspection.
11-5.1 Circumstances. A Level III inspection shall be conducted under the following circumstances.
115.1.1 Where necessary for the investigation of a building or chimney fire, weather or seismic event, or other incident known to have caused damage to the chimney or building.
11-5.1.2 Where a hazard detected or suspected as the result of a Level I or II inspection cannot be fully evaluated without access to concealed areas.
11-5.1.3 At other times as indicated in section 11-5.
11-5.2 Scope and Access. A Level III inspection shall include examination of all areas deemed critical for safe use of the chimney, including concealed locations.
11-5.2.1 The inspection shall include examination of all areas covered in section 11-3.2 for Level I inspections, and in section 11-4.2 for Level II inspections.
11-5.2.2 Examination of the chimney shall include concealed areas, which can only be accessed by removal or destruction of permanently attached portions of the chimney or building structure, as necessary to determine compliance with this standard.
Add new items as follows:
A-1-5.2 Accessible. Access can be described as being reached for the purpose of inspection, maintenance or repair. Access may first require the movement or removal of a panel, door or other covering and may require the use of ladders, and may require the use of common tools, such as a screwdriver or wrench. Access does not require any destructive actions to the building or property.
A-1-5.2 Accessible, Readily. Readily accessible can be described as quickly or easily reached for inspection, maintenance or repair. Readily accessible would not require the use of tools for opening or removal of any panel, door or other covering nor would it require the use of ladders.
A-11-1 General. This chapter covers the inspection of chimneys and is intended primarily for the inspection of residential chimneys but at the discretion of the inspector may apply to industrial or commercial chimneys serving certain appliances. This chapter may be used by anyone who is involved in inspections or has a concern or interests in conducting an inspection of chimneys.
There are different types of inspections, ranging from superficial observation, to an in-depth inspection in which portions of the chimney or building structure are removed, or other destructive methods are used to check hidden portions of a system. Inspections may be triggered by many circumstances, ranging from routine maintenance activities to a complete reevaluation following a destructive event such as an earthquake. This chapter is intended to delineate, as precisely as possible, the inspection activities which are appropriate for different circumstances. The application of these requirements to specific situations will require judgment on the part of the inspector and should be in accordance with the Indications shown in Table 11-2.
Although this chapter is concerned with the inspection of chimneys, the chimney cannot be considered apart from the appliance connected to it. Therefore, certain aspects of the appliance and connector type and installation are also included in some of the inspection procedures.
A-11-1 Exception. Certain minor tasks, such as installation of a chimney cap or flashing repair, are so limited in scope that they do not trigger a full inspection of the chimney. However, any defects or potential hazards encountered during such work should not be ignored, and should be brought to the attention of the responsible party.
A-11-3 Level 1 Inspections. A Level I Inspection is required to ensure the minimum acceptable levels of safety for a chimney. Unless otherwise stated, a Level I Inspection is limited to readily accessible areas. The following list gives an indication of the items to be included in a Level I Inspection, to the extent that they are readily accessible and included in the installation being inspected:
A-11-3.2.7 This exception is provided for cases where removing the device is not necessary in order to gain access to flue passageways needing inspection. This includes devices such as grates or heat exchangers that do not fill or block the fireplace opening. It also includes fireplace inserts or stoves which are directly connected to the chimney flue, where combustion products are contained in the connection and do not contact the fireplace surfaces.
A-11-4 Level II Inspections. A Level II Inspection is limited to accessible parts of the chimney to include attic, basement and crawl spaces. The following list (in addition to the list above for a Level I Inspection) gives an indication of the items to be included in a Level II Inspection, to the extent that they are accessible and included in the installation being inspected:
When conducting a Level II inspection on any type of factory-built chimney or appliance the inspector should attempt to locate the product installation instructions for review prior to completing the inspection.
A-11-5 Level III Inspections. A Level III Inspection encompasses a complete evaluation of the chimney including verification of proper materials and clearances to combustibles. The following list (in addition to the lists above for a Level I and Level II Inspection) gives an indication of the items to be included in a Level III Inspection, to the extent that they are included in the installation being inspected:
A-11-4.1.1 This shall not be interpreted to include the removal/disconnection of an appliance and subsequent replacement/reconnection which occurs during the course of routine cleaning and maintenance activities.
This proposal is divided into four items. Item 1 is the addition of three definitions in Section 1-5.2 which are needed to define terms used throughout this proposal. Item 2 makes several changes in Chapter 10 which are needed to bring current requirements in line with the requirements of the new proposed Chapter 11. Item 3 adds a new chapter to the standard, ìChapter 11: Inspection of Chimneys.î Currently, the requirements of Section 10-2 require that ìchimneys, fireplaces, and vents be inspected at least once a year for soundness, freedom from deposits, and correct clearances.î This sentence is essentially the only guidance provided in the standard about the inspection of chimneys. In many cases, it is impossible to determine correct clearances after the home is built and to require that clearances be checked each year poses an undue burden on the person performing the inspection. The objective of the proposed new Chapter 11 is identify the circumstances under which inspections occur and the inspection tasks that are appropriate in different situations. In our proposal we have identified three levels of inspection beginning with the most basic inspection identified as Level I and progressing to the most detailed inspection identified as Level III. For each level of inspection we have detailed the Scope of the inspection, the Degree of Access Required, the Circumstances that give rise to the inspection, and the Indications for the inspection. This proposal provides the much needed guidance for the requirements for chimney inspections. This proposal will establish uniform procedures and expectations for chimney inspections so that professionals will know what is expected of them and consumers will know what they can expect. Essentially, this proposal defines the term "Chimney Inspection".
Item 4 of the proposal makes several additions to Appendix A and provides explanatory material for the new proposal. We have included a suggested list of items to check with each different level of inspection.
Copyright ©1998 National Chimney Sweep Guild
Now I realize that he preceding information is long and difficult to digest. The Reader's Digest version is that the NCSG is establishing 3 clear cut levels of Chimney Evaluation. The level two is the one that is recommended during the sale of Real Estate. That does not mean that we are supposed to be the ones that are to do it, but that we should be recommending a Level 2 evaluation to our client's. I was amazed at the scope of the different evaluations..... Every time I sit through a chimney or wood stove training session I sit back and ponder all of the things about chimneys, flues, and stoves of which I am flueless, I mean unknowing.
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