It's a great day here in Orem, Utah. This week has been a busy one and next week doesn't look any lighter. We are grateful for the business and don't want to be seen as ungrateful. We hope all of you are cashing in on the summer busy time as well.
This week will be even more challenging because as soon as the week fills up, my next opening won't be until August 7th. Last week was completely booked by Monday afternoon and Shelly was scheduling into this week. I managed to work in 3 other inspections after the week was already "full". This week we are starting out with Thursday as our next availability which means that reasonably I have room for 8 more inspections (including Monday the 1st). Then I am off to the High Uinta mountains for a 5 day, 35-mile hike which will include the highest mountain in Utah at 13,528 feet. We will be fishing in over 20 lakes and I am REALLY looking forward to getting in some relaxing fishing time. The lakes in the Uintas are filled with trout just begging to be caught. The only drawback to the trip is I will be hiking with eight 12-14 yr. old boys and only 2 other adults. If I can motivate them to keep hiking with the heavy backpacks on their backs, I can do anything!!
How do you handle your schedule when you go on vacation?? Do you tell your clients you are going on vacation? Or do you just tell them that your next availability is 7 days out? Which method have you tried and which method have you found to be most successful? (Successful = coming back from vacation to a business that is still thriving.)
In last week's issue, we looked at an assortment of opinions on whether to bill clients who cancel their inspection with little or no notice.
The questions was asked: "So what is your cancellation policy? Do you process credit card orders that would allow you to get payment? How do you feel about the inconsiderate clients who rob a time slot from you?"
Reggie Ayres comments: "Good luck collecting a fee charged for time lost due to an agent mistake. I have had cancellations that I was not notified of, no power at scheduled inspections, cancellations the morning of a scheduled inspection,etc., and have yet to ever collect even a modest fee for the lost time. How many of you have done inspections for a realtor's personal purchase? Did you charge them the normal fee?"
Bill Bergstedt responded back with: "I have never had a last minute cancellation in the 4 years that I have been inspecting homes. I do get 3-4 a year that cancel several days before the inspection. The reason that I am usually given is "contract problems," etc. Most of my calls are from Realtors, Realtors referrals and in this area they almost always have a signed contract for the sale before ordering the inspection. Same subject, (MONEY), different aspect, I performed my largest inspection last March. $42 Mil. and over 25,000 sf. of home, etc. The realtor ordered the inspection, I inspected the property and the buyer backed out of the sale without sending the inspection fee or putting money into escrow. The Realtor and Broker paid that inspection fee since they were the ones that ordered it. Another thing comes to mind, I have always been paid on ALL inspections that I have performed/billed out. (Thanks, Louie and Guido). I have been reading your interesting comments, just been so darn busy this year and last to get very involved (crazy Lake Tahoe market!)" Bill Bergstedt, Tahoe Certified Home Inspections
I think the general consensus was..."It's a nice job if you can get it...." Basically, we would love to be able to bill people who waste a slot that could have gone to a PAYING client. But the bottom line is they are flakes, that is why they are canceling and therefore will not fork over any money without spilling some blood first. It doesn't appear to be worth the effort. So try and be positive when a cancellation happens to you. Use the time to respond to MMM's or write an article for the MMM or read back issue's of the MMM or catch up on phone calls and other business tasks. (Do you see a reoccurring theme here?)
I ran across this CPSC release and thought it would be good for those. The next time the buckethead electrician tells the realtor or seller that the challenges you found are not an issue, offer to send them this information. This would also make a good article for those who are aspiring to write articles in your local papers or for your local Board of Realtors. Use excerpts from it and it can make a great article.
May 25, 2000 Release # 00-112
WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission (CPSC)and the National Electrical Safety Foundation (NESF) are urging consumers to look for and correct electrical safety hazards in their homes. Each year, incidents involving electrical equipment, such as extension cords, outlets and light bulbs, result in more than 41,000 residential fires that claim about 350 lives and cause over 1,400 injuries. These fires also cause more than $620 million in property damage annually.
"Many of these electrical-related incidents are preventable," said CPSC Chairman Ann Brown. "The simple act of removing electrical cords from under rugs could help prevent many house fires. If every household installed ground fault circuit interrupters (GFCIs), deaths from electrocution in and around the home could be reduced by one-half. I urge consumers to look around their homes and correct electrical hazards."
Consumers can help protect themselves from electrical hazards by taking a few minutes to check their homes for unsafe conditions.
These safety tips, along with many more, are published in the pamphlet entitled, A Home Electrical Safety Check. To receive a free pamphlet, go to NESF's web site at www.nesf.org, or consumers can send a 55 cent stamped, self-addressed envelope to NESF, 1300 North 17th Street, Suite 1847, Rosslyn, Va. 22209. NESF is a non-profit organization, which was formed in 1994 with the belief that, through its efforts, electrical-related incidents can be prevented and lives saved.
I received this email from a fellow inspector a little while back. I apologize for the delay in posting. It is for all those inspectors using handheld computers.
"Michael: Keep up the good work on your MMM. I always look forward to reading it every week. I'm interested in more information about the CE Handheld PCs/Pocket PCs. I have found a great number of these systems for sale on eBay. That seems like a good source for some great deals. I'm curious if any of your readers are using the Mobilon TriPad PV-6000 CE 2.1 Handheld PC and whether they find it easier to operate and use than the Pocket PCs. It sells retail for around $1200 but I've seen it sold on eBay for a lot less. I'm very hesitant in purchasing another "bookshelf system" and want to investigate all my options for a useful and reliable system. I would appreciate any feedback." Regards, Joe Lyvers Home Inspectors of NW Florida
As most of you know, I endorse the Casio E110 or E115 for many reasons. Please check the back issues if you want to review what I had to say about handhelds, and in particular, the Casio. I took advantage of the June 30th deadline to trade in my Casio E110 for the E115 for $200 but have yet to receive the new one. The great thing is I don't have to turn in my old one until I receive the new one. The bad thing is I am not a patient man! I want my new, faster, greater Casio NOW!
So if anyone has a comment or has heard good/bad things about this Mobilon TriPad PV-6000 CE 2.1 Handheld PC machine, email me here and I will pass it along.
"I can help Joe with his question..."
Your Name:
I recently went through a challenge with a past client that almost resulted in a bad business decision...or maybe not. You be the judge. In my years of inspecting, I have been lucky enough thus far to avoid the legal bug. I have yet to be sued. (Knock on every piece of non-termite infested wood around!) I have yet to pay out any money to a past client for a mistake. I have yet to pay out any money to a past client just to shut them up. Until last week....
It all started with a phone call from a "how high" realtor that you have all heard me talk about a few times in this forum. It is the 6'4" female realtor that deals with high-end homes and sends me quite a bit of business...not to mention she could snap me like a twig! It is the kind of phone call nobody likes to get but I nominate me as the one who wants to get these calls the least out of all of you. I just take it WAY too personal. But anyway, I digress...
"Michael, do you remember that home in Spanish Fork at such and such address that you inspected for the Wantsomeonetopay's?"
"Yes, I do," says I.
"Well, they moved into the home about 6 weeks ago and started remodeling and stripped back the wallpaper and they found termite damage behind the wallpaper. They paid $450.00 for that inspection that you did and they are really upset about finding this termite damage. They are having a termite company come out tomorrow to tell them what the damage is. You know, they paid about $450 for that inspection and you didn't even find evidence of termites. What are you going to do about this, Michael?"
My brain starts racing trying to remember the details on the home. Your first reaction is probably similar to mine. My mind went blank as to what response I should be giving back to her. It wasn't until I called our Wood Destroying Insect expert Ron Cloyd that I realized the answer was simple.... "We do not do destructive discovery on our Inspections!"
The damage was hidden behind the wallpaper and the sellers didn't even know about it. I asked her if there was any evidence around the wallpapered wall and she admitted that there wasn't. As I scrambled to find that inspection report and see what I wrote, she gave me the buyer's phone number and asked me to call them and discuss it with them. "Afterall, Michael, they did spend $450 on an inspection." She must have mentioned that at least 4 times in the course of the conversation. They spent $435 because it was a 5,200 sq. ft, 17-yr-old home with 2 kitchens. It was vacant when I inspected it and I noted many things on my report. But I did not note anything about termites.
I found the report and guess what...... "Uh-oh," you say. Ahhh...but no. They did not even order a pest inspection with their home inspection. I was not contracted to even look for termites. So why did this conversation last more than 2 seconds?? End of subject. No payee...no lookey. I even had a back-up defense-- no outward sign of active termites. The only reference made in my report to termites was in the Basement section and I quote..... other than
PEST ACTIVITY: A Wood Destroying Insect evaluation was not contracted with our firm.
That gets right to the point doesn't it? To top it off these termites were long gone and the damage was hidden behind wallpaper. So why then was I picking up the phone and calling the Wantsomeonetopays (I like to call them that to protect them from their real identities). I was calling them because I was unsure how much responsibility I should shoulder for this and I didn't want to upset this Realtor....... Let's face it..... I'm a wimp. This one agent will send me at least 25 elite home inspections every year. Should I commit business suicide?
I spoke with Mr. Wantsomeonetopay and he didn't seem too upset and simply stated that they were having a termite company come out later and assess the damage. I told him to let me know what they said, never discussing whether I should or shouldn't have found this hidden damage or whether it was my fault or not. It was a pretty generalized phone call with no commitment from me or requests by him.
But this was tearing me up. Did I shoulder some responsibility because I did not even offer the pest inspection to them? Do we have the responsibility of informing every person who calls about all the added services they could have performed on their prospective new home? If we don't offer the pest inspection or radon test, are we liable to them later? Shelly says a flat, "no." I wasn't so sure. I quickly called the AII™ Pest and Dry Rot Expert, Ron Cloyd. Let me just plug Ron right here and now. This man knows his stuff. If you ever have the opportunity to take his Pest and Dry Rot training, I highly recommend it. Even if you are not allowed or don't want to do Pest and/or Dry Rot inspections, the knowledge gained is a "must-have" as a home inspector. Okay...enough Ron Cloyd accolades.
Ron's first response was to remind me that we don't do destructive discovery and that I was not liable for concealed termite damage. After telling him that I didn't even do a pest inspection for them, he was even more confident that they had no case. Ron is great at getting right to the point. In fact, if this MMM article was his it would have said. "The Agent called and said they had discovered concealed termite damage and we want you to pay. I told them that we don't perform destructive discovery and that I would not be paying." It doesn't make for a long article, but that is the way he would handle it.
Back to my plight........ I thanked Ron for helping me to see the clear picture on my liability. "But Ron," I said, "what about the fact that this 'how high' realtor thinks I should shoulder some responsibility? How do I handle that?" We talked for awhile about my options. Let me publicly thank you, Ron, for your feedback and willingness to spend time talking with me. I hung up feeling better about my legal position and with a few options for how I could proceed.
After discussing this all with Shelly, she was adamant that we offer to pay nothing. She stood by the legal side and the lack of liability based on their not contracting with me to do a pest inspection. I was torn. On the one hand, I agreed with Ron and Shelly. On the other hand, I wasn't completely sure I was Scott-free because I didn't even offer the pest inspection to them.
What do you think? Which side do you agree with? Email me now with your thoughts before you read on...
"What say Ye?"
These conversations took place 2 days before our family reunion trip. I chose to ignore the phone call and concentrate on all the inspections and reports that I needed to get done in order to take 2 1/2 days off. While at Brian Head, I picked up my emails and received the following from the agent:
Dear Mike,
I'm wondering in light of the problems with the Wantsomeonetopays termite situation if you are willing to contribute some to their termite treatment. I feel particularly bad about this and I'm feeling that if we have no responsibility to our clients then what good is it? I have heard of an inspector that guarantees with their inspection.
I understand that it was a difficult thing to detect but in light of an inspection fee of $450.00 I'm wondering if you could do something to promote good will.
Ms. Agent Who Can Break You Like A Twig
There are so many reasons why this email irks me. Notice the mention of the amount of the inspection once again. Notice the reference to "promoting good will." Notice the reference to another inspector who "guarantees with their inspection." She is referring to a HouseMaster franchisee in the area who uses this marketing tool exclusively to deceive and lure away agents and buyers. (I have a guaranteed inspection....don't get me started on why this is a bad marketing tool. That will have to wait for another issue.) What he really offers is a lousy home warranty that covers nothing of substance. It certainly would not have covered concealed termite damage when no termite inspection was contracted!!
What about the understatement that it was a "difficult thing to detect?" I would venture to say impossible without destructive discovery!
Here is where the first heading, "I almost cut off my nose to spite my face..." comes in. I almost took Shelly's advice and told the realtor and the buyers to take a flying leap. I didn't need the inspections she sent my way. I had plenty of other people referring me and a good reputation in the county. My business certainly wouldn't die if I stuck by what was legally right.
Then I called Bill Schwahn in Belgrade, Montana. My exact words to him were, "Bill, I am about to commit business suicide." After telling him the whole story, he had a different perspective. Keep in mind that Bill also performs Inspections in a State where they are not mandated and not restricted to Licensed Pest Control Operators. The California Inspectors reading this story are laughing because they would have all just said.... "That is the Termite guys fault." The Oregon and Washington Inspectors are saying.... "It is only old damage in one wall.... That is nothing." Bill was a little more sympathetic to the situation because he himself had been in "Goodwill" situations before.
Bill called it a "nuisance" claim and said I might consider paying it. He recommended calling my E&O insurance and getting a release form from them. Then he recommended I sit down with this realtor and her buyer and ask them what they wanted and hand over the money only after they signed the release form. His point was that it would first of all, make it go away and stop causing me sleepless nights. Second, it would make the realtor feel good about my willingness to accept responsibility...even when it wasn't legally my fault.
I called the realtor and asked what the buyers wanted from me. She said they wanted $200.00 from me. $200.00??? Is that all?? And then I would never have to speak to them or about it again?? Done! I had Allen Insurance email a release form, typed it up and dropped off the check and the release form with the agent with specific instructions that the check was not to be given to the buyers until after they signed the release form. (There were mitigating circumstances that prevented me from meeting face-to-face with the agent and the buyer, so this was the next best thing.) Did I do the right thing? I don't know. Shelly hated the idea of giving the Wantsomeonetopays any of our money and "admitting" some fault. She firmly stands by her position even if it did mean losing this great agent and possibly having a law suit to defend. Being right is all that matters to her. As for me, I am glad it is over and done with and for such a painless amount. The agent is happy, the buyer is happy and I am semi-happy.
How would you have handled this? How have you handled situations like this in your business? And most importantly, do we have any responsibility if we don't offer added services and the challenge is later discovered? Or should it be "let the client beware?" They should research everything before contracting anyone's services and know what they want and what is offered.
Last week's 3-part Photo Challenge drew only one response. It must have been a busy week for everybody.......
Looks like a thirty amp service to me. I would tell the client to anticipate installing a new service. Jon Gudnason, Placerville, CA
Jon your answer may be correct, but I think that Ken is identifying a condition on the far right breaker....... What say ye now?
This is a wood burning fireplace with a gas log conversion. The home was vacant, but the reportable condition happened while renters were in the home..... What do you think was the cause? NOTE: I know that we are not supposed to spend time figuring out the cause, but knowing what created the reportable condition will greatly help us better report on them in the future. The "What was the Cause?" answer may surprise you.
"What do you see, what do you think was the cause, and what would you report?"
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