It's a great day at Michael Leavitt & Co Home Inspections!!!
I
hope that your Thanksgiving celebrations went well and that you
spent it surrounded by loved ones. We successfully made it to
Dubois, Idaho. The 4 1/2 hour trip there took 7 1/2 hours due
to traffic and the restlessness of the four little ones. Four-year-old
Adam has about a 30-second warning from the time he says "Daddy,
I have to go potty" and he actually goes. The trip home was
4 1/4 hours and it is good to be back home. Inspections were steady
this past week and I was also able to get some great things done
on my computers. We also had the outside Christmas light decoration
unveiling to many oohhs and aahhhs!
MMM ACCESSLast week's feedback to the MMM was tremendous. Unfortunately none of it was worthy of sharing here because it shared no new inspection information. Instead, it said........... "How do I access the MMM? Where do the name and password go? Why can't it be as easy as it used to be to access the MMM?" All of those are valid questions, and I want you to understand that I did it for many reasons.
I will still continue to send you reminder E-mails each week that the MMM is ready. To shake things up even more, starting next week the MMM Back Issue directories will also be Password Protected. This Password Protection will change regularly (So don't be alarmed).
PLEASE NOTE: As of December 5th, you will not have access
to MMM's published before November 1998. I will be removing them
from my site. If you want reference copies you will need to save
them on your own computer or print them off this coming week.
OUT FOR
MY BLOODPRELUDE: Today's MMM deals with a topic that some of you have already encountered, but all of us probably fear: "What do we do when our business is threatened by a Broker?" On other national internet forums I always get too much of the macho "I don't need Realtors anyway!" attitude. I personally don't believe the puffed up display of arrogance portrayed by many Home Inspectors. I have always valued AII's forum because we are able to cut through the machismo (most of the time) and actually share real feelings, experiences and wisdom. The bravado approach may make us feel better, but the real life experiences and heartfelt advice from others is what really helps us out when we are faced with the same situation ourselves. I hope that you enjoy today's MMM and I look forward to your valuable feedback.
Last week I made the reference in the MMM to a major Broker who was out for my blood. This is not a fun situation to be a part of. In fact, it is very similar to being on a surfboard in high ocean surf with sharks swarming the waters. There is no way to win, the best that you can do is minimize your losses. In other words, how much business are you willing to lose?
If a Broker is dissatisfied with your services they can influence all of their agents, and spread out the "PLAGUE" warning to all of their Broker friends. In a smaller market like mine this can spell certain death. In bigger metropolises you can sign off a few offices and still be very successful. I have observed that many Brokers also love to live their lives knowing that they are all powerful beings. As a Home Inspector floating on your surfboard you get the option to either leave the water with part of your torso intact and severely bleeding, or stay in the water and be completely consumed by the beasts of prey. The only way to float safely in the water is to make a pact with the sharks and compromise your moral and ethical fiber, of which I will not do.
I refuse to make a pact with the
man-eaters, and currently find myself with at least part of my
torso intact, unaware of how much I am actually bleeding. I am
still unsure over how much influence the Broker will use to "Kill"
my business. I do know that I am not alone in my plight. In fact,
I think that it is impossible to be very successful in this business
and have everybody liking what you do. Doing our job according
to our Standards of Practice and Code of Ethics is contrary to
the "Close the deal at all cost" mentality of some of
the Agents and Brokers we deal with. That is not a cop-out on
my part, it is reality.
I was comforted as I was evaluating my missing body parts to read these words written by another inspector whom I respect on another internet forum........ A brief background. We did a buyer's home inspection. The selling agent, of a very large and productive real estate office, felt we hit his listing too hard. He called and I explained conditions and why we said what we said. He didn't like it. He told his Broker, who called and I explained conditions and why we said what we said and he didn't like it either. The Broker insisted that if my inspection business didn't cooperate, he would tell his agents not to use our services. I told him that the cooperation he was requesting was not possible. I attempted to explain agent liability relief, but he hung up. Hmmm, go figure!
I sent letters to each agent in the office that we have worked with in the past. I explained the disadvantages of "cooperating," the benefit of liability relief, Professional Standards, condition disclosure, etc. I also included some tips for better results: Example: Utilities on, accessibility, attend the home inspection, listing home inspections, etc., along with a invitation to continue referring our services.
I received a "flaming" letter from the very angry Broker congratulating me on achieving a new milestone in poor public relations. (As if his office is my "public" and I want that kind of relationship.)
The bottom line: I lost the support of the office, for now. It has an impact and it hurts, however, the "cooperation" the Broker suggested would be ugly, create bigger problems and eventually put me out of business.
FYI: Two plus years ago we went through the same thing with the same office. Only, that time a buyer's agent accused us of being too soft (after escrow was closed, of course) and was mad that I wouldn't write a check to cover costs of needed electrical repairs that we noted in our report.
It takes approximately 10 months for the evolution to take place and we will be referred, once again by this office. In my nine years of experience, I've seen it over and over again. If the Inspection Industry doesn't create change, this BS will continue!
This was comforting for me to read while I was still down on
my current situation. I was wondering if I was truly going to
permanently lose client's from this office..... Ten months is
a short wait for choosing to keep my integrity intact.
THE BROKER'S
CALLMy cell phone rang and the caller quickly let me know that it was "Broker Bill" and that he was upset that I was "Killing Deals" for his agents. He shared that six of their recent deals had been "Killed" by my inspection report. I could only smile as he went on and on about how thorough my report was, until his daggers pierced my heart. "Your reports are scaring the life out of the Buyers and are making it so that the Buyer's will not even continuing negotiating. If you don't change the way that you report you will be out of business. I know two other offices in the area that refuse to use you because you Kill The Deal every time and I'm going to have to tell my agents to stop using you."
At this point there are still options. I can lash back or I can be reflective. I always choose the latter and so I attempted to fully sound him out. I knew that he was also in this pretty deep because I had just inspected his house and his neighbor's house the week prior. It seemed that the out-of-state buyer across the street had backed out of the deal and blamed my report for their decision. Since they backed out, the neighbor's could not buy Broker Bill's home, hence a major source of anger.
The neighbor's house
was 10 years old and in very good condition. I could not for the
life of me figure out why they had backed out of the deal so I
continued to listen to Broker Bill. He, too, was unsure of what
it was in my report that made them back out of the deal, but he
was sure that he was going to figure it out. He had the report
in hand and was perusing it's every word to find any inaccuracies.
It is an interesting experience to have a Broker go over a report from the Listing perspective. He couldn't figure out why there were so many comments in the report that were there to "Protect Your Butt" he said. He was especially mad at the projected lifespans. He wanted an explanation as to why I had to report projected lifespans. Why couldn't I just say if it was working or not? Why did I have to tell them the lifespan?
As he scanned each page, here were the lifespans he found...
Now that doesn't seem like a lot of lifespans to me. He also had a major issue of my reporting the lack of Smoke Detectors in side the bedrooms. His logic was.... "They weren't required at the time of construction, so why do you have to report it?" This seemed like a fair request, so I explained why certain new standards are reported in the name of Health & Safety. I flashed back to our discussion of reporting standards at this year's Annual Meeting in Reno. I could also see that this conversation was a total power play on the Broker's part. He wanted me to not report on these items and all I could say was, "Thank you so much for taking your valuable time to share these concerns with me. I know that it wasn't easy to call, and I will gladly reflect on my report and change any overly alarming verbiage. I strive to report accurately and concisely and am always improving on my reporting style."
With that we hung up the phone. Frazzled, I wasn't prepared for the ring of the cell phone the following morning either. "This is Broker Bill again and I have called the builder and he said that he installed a 30-year roof on my neighbor's house and you said it was only a 15- to 18-year-old roof, so your report is wrong.... I also called the Lennox heating man and he said that the Lennox Pulse Heaters have a lifetime warranty on the combustion chambers and you said it was a 15 year projected lifespan, so your report is wrong again."
Broker Bill wanted to hear nothing of how projected lifespans come about. He only knew that I was wrong and that I better change or he would kill my business. Afterall, if his agent quit using me and my phone stops ringing, I would be out of business. It is times like those that I wish that I could record each cell phone conversation. I thanked him for the information and said that I would make some calls myself. He then called me back a third time to let me know that my water heater reporting was out of line. I wondered how many more times he would call.
I also wondered if he would like me to use those roof and heat exchanger lifespans that he shared, with the understanding that he would pay for any roof that didn't last 30 years or when the Lennox Pulse heater's combustion chamber failed. In fact, from the Buyer's Broker perspective all of the rules change. The liabilities are just too high, and he is only concerned with closing the deal.
LETTER
TO THE BROKERAfter calling Lennox Industries in Dallas, Texas, I wrote the following letter and faxed it to Broker Bill. I think that it will be quite informative for you, too. It said....
Bill:
I appreciate your phone calls in the past two days. As a result,
I am revisiting different aspects of my reports. Your phone call
this morning prompted my own call to Lennox Industries in Dallas
to inquire about their heating and A/C systems.
I called 1-800-392-4003 ext. 3142 and spoke with Mr. Leslie Wood with their Technical Support staff. He shared the following information.
1) It is true that Lennox Pulse heaters have a Limited Lifetime Warranty. This does not include labor in the replacement of faulty heat exchangers or normal cleaning and annual inspections.
2) The limited lifetime warranty does not transfer with the sale of the home. Instead, it drops to a 20 year warranty from the date of installation. This also does not include labor.
3) Lennox heaters that are not Pulse models come with either 20, 15 or 10 year warranties. He also said that their is no way to tell in the field what the warranty is because the warranties and models change so often. He said that their is no compiled information for field use and that the warranty can only be verified by calling the above mentioned number with the Model and Serial numbers.
4) Air conditioner compressors come with 5 and 10 year warranties only.
5) Mr. Wood quoted Consumer Reports
life average expectations for the following:
a) Heat Pump Systems - 8 to 12 years (Not prevalent in Utah)
b) Forced Air Heat Systems - 15 years (Our most popular Utah heating)
c) A/C Systems - 12 to 15 years
Mr. Wood said that Lennox has not done their own lifespan studies
but Consumer Reports is a credible, independent source.
I'm still checking the roof information and will contact you later. Hope this helps.
Michael Leavitt
UNSENT
LETTER TO THE BROKERMy wise wife said that I was too direct in the letter and appeared defensive, but I felt it was direct, clear and concise. We composed another letter but still have not sent it. I am still wondering if it will help and I can't figure out the proper way to end it and keep my shark-bitten torso intact. It says.......
Dear Bill:
Just wanted to write a follow-up to the fax I sent earlier today. (If you did not receive the fax I sent earlier today regarding Lennox Pulse heaters, call me and I can re-fax it.) I'm sorry it was so brief--I had to run off to do an inspection.
I want you to know that I really do appreciate your honesty and willingness to critique my work. I am always striving for excellence and find that there is always something to improve upon. I pride myself in producing a quality product and am glad you felt able to tell me where you found challenges in my report. I hope I did not come across defensive. I must admit, it is difficult to remain open when faced with direct comments about something I personally have worked so hard at creating. So if I started to get defensive, please understand from where I was coming.
I also wanted to express to you that I am trying hard to understand where you are coming from. I know it must be frustrating to have transactions affected by a home inspection report. I wish it didn't have to ever happen. Unfortunately, sometimes this is unavoidable. We both know that buyers are emotional and not very often logical when purchasing a home. This can cause them to react illogically to comments in my report. As a certified home inspector and a member of a national association for home inspectors, I have certain guidelines and standards that I must adhere to. These things are not flexible. However, I never want to be an alarmist or over-dramatize the challenges in a home. I thought I had done a good job in this area but your phone calls yesterday and today have made me rethink some of my reportable comments.
I can't imagine that someone would not buy a beautiful home because it did not have $5 smoke detectors in the bedroom. I have decided to modify the way I report on smoke detectors. Instead of listing it separately under each room, I will just note it under one section and hopefully this will be less alarming. I understand you feel I shouldn't note it at all because it wasn't required at the time the home was built. You must understand that I am not just trying to cover myself when reporting Health & Safety issues. I feel it is my responsibility to let my clients know when lives are at risk. Not having a smoke detector in a bedroom could cost someone their life. I know you would agree that a life is far more important than a real estate deal, and a $5 detector is not worthy of stopping a deal.
What if I didn't report this condition in a home and the unthinkable happened? I couldn't live with myself. Maybe this seems overdramatic to you, but this could happen and the responsibility is a heavy one on my shoulders. The responsibility to report these conditions is the Home Inspectors', not anybody else's. Because lives are at stake, I feel a enormous responsibility to inform my clients if I find any Health & Safety issues that, even though they were not required at the time the home was built, are standard safety features today. The day will come that Utah will follow California's lead and require smoke detectors in the sale of the home and then it will be a non-issue. Until then, my reporting of the condition protects my clients. If the buyers later fail to make the safety upgrade and the unthinkable does happen, then my report helps to defend every other involved party including Agents and Brokers from later litigation. My report offers protection to many parties in many different ways.
I think back to an inspection I recently performed for your son's clients. When I reported that the security bars that were installed years ago were welded in place and could not be removed in an emergency, everyone--including Todd--breathed a sigh of relief. The bars were permanently installed at each bedroom, including every window in the basement. The sellers, buyers and Todd had not even considered this. The resolution was easy: remove the bars. As with most Health & Safety issues, it is usually an inexpensive upgrade and should not be worthy of stopping the transaction.
I also appreciate your comments on the component lifespans that I report on. I am thankful for the new information regarding Lennox Pulse heaters and will now quote a 20 year life span instead of 15 years. I'm also glad I could pass along the information to you regarding the Limited Lifetime Warranty. (Isn't it just like a business to only warranty a product to the original buyer knowing that nobody stays in their homes for very long any more! That way, they rarely have to replace their heat exchangers-- "Oh, I'm sorry ma'am. It's been 21 years and you were not the original purchaser? Too bad for you. No more warranty.")
Again, I am always trying to improve my report. I originally changed the way I reported on hot water heaters and other lifespan components after several buyers were unclear when I only stated how old a component was. They would call me 3 to 6 months later when the component failed and state that they didn't realize that when I said the component was 20 years old (and the lifespan was 8 to 12 years) that that meant it might not last very long. After much thought and discussion, it was determined that I should be more clear that old components could last a day, a week, or 10 more years. There is no way to know. This is not intended to scare clients, but to remove their later pleas of ignorance and wanting me to pay for their needed new water heater.
The addition of the water heater lifespans was designed to protect myself as well as the Agents and their Brokers. I was surprised to learn from you that it caused one of your Agents to purchase a new water heater that hadn't failed for their sellers. I can't understand the reason why an Agent is responsible for replacing a seller's working water heater to begin with. I appreciate you bringing this to my attention. As to your asking why I can't just report that the water heater is working fine, without any mention of it's age or projected lifespan, it is because that would be irresponsible on my part. Afterall, water heaters do wear out. When they do, they usually leak or rupture. Most have a 5 or 6 year warranty, and a few have 10 year warranties. Industry averages are 8 to12 year lifespan for their use, yet I have seen working water heater units up to 27 years old. Buyers get upset when water heaters fail, yet they fail more than any other major component in the home.
Much of what you and I are discussing is the education process of both buyers, sellers and their Agents. I work very hard to be an information resource for all interested parties. As you know, many Agents do not properly prepare their buyer's for the conditions that will be encountered when buying an existing home and this is left up to me. Things will go wrong and the buyers will be making upgrades. Few homes are perfect, and all require continued upkeep. Without this understanding, buyers will move in and be dissatisfied with their purchase decision and become our worst headache.
The day will come that all homes will be pre-inspected by the seller and the report will be laid out on the counter for perspective buyers to review before they make an offer. This will prevent the "New Discoveries" that a traditional, after-acceptance buyer's home inspection many times reveal. If every listed home was pre-inspected, we wouldn't be having this discussion because the buyer's decision would be made based upon facts. Regardless, I strive harder than anybody to provide the best inspection service in our area. My heart and soul is completely invested in this career, but my reporting style is evolutionary.
Sincerely,
Michael Leavitt
What would your follow-up letter to Broker Bill have said???
Please Send
Your Feedback. E-MAIL ME NOW! I'm waiting for your feedback
before I send anything else. Please take a few minutes and help
me out. And if you can't come up with an actual letter, write
me what you would like to send but know you would be eaten alive
by the sharks in the water. NEXT WEEK: The rest of the story.
(Unfortunately, yes, there is more.)
QUOTABLE
QUOTES: "Computerization is
a constant evolution of growth and learning. There is no standing
still, for if you do, technology will pass you by." Michael LeavittCheck
out the American Institute of Inspectors Web Site at: www.INSPECTION.org