Changes to ASHI Standards of Practice

Effective March 1, 2014, The ASHI Standards of Practice Were revised.

These are the standards that professional Home Inspectors Follow.  As an experienced Lehigh Valley Home Inspection Company,  We have always exceeded these ASHI Standards.

Below Is a Summary of the changes and my comments in italics.  

Changes that REDUCE the scope of a home inspection.

• Not required to probe structural members, although an inspector may probe if damage is suspected. Probing is not required but a good idea. 

  • Not required to describe electrical service voltage, since almost all homes are 240 volt o If a home has 110 volt only, this would be reported as deficient beyond describing.  
In 17 years I have never seen a house with 110 Volt Electric. Maybe in some areas of the country, but not here.  

• Not required to describe the presence of solid conductor aluminum wiring.  
No, but we are required to report on type of conductor. Solid 110Volt aluminum wire is a serious issue, It definitely is part of our report.  

• Not required to describe ALL wiring methods, only the PREDOMINANT wiring method.
 OK, This makes sense.  

• Not required to inspect floor coverings (formerly mentioned only carpeting as outside the scope)
Floor coverings are not really a home defect, however - they may indicate a defect. (ie cracked tiles) 

• Not required to describe chimneys for fireplaces and wood burning stoves.  

Describe no- point out defect yes.

  • Not required to enter crawlspaces that have less than 24 inches of vertical clearance between components and the ground or where access hatches are less than 16 inches by 24 inches.

 We get in almost every crawlspace. But if it is too small, obviously it cant be entered.

• Not required to traverse attic load bearing components that are concealed (insulation or other)  
This makes sense. Can cause injury or property damage.  

• Not required to measure water flow and pressure, and well water quantity.  
This Makes Sense. This requires special equipment. 

• Not required to fill shower pans to test for leaks Every home inspector should be testing tile showers. We always have and always will. This is a potentially expensive repair that a home inspector must find.  

• Not required to inspect heat-recovery and similar whole-house mechanical ventilation systems.  
We inspect them.  

• Not required to determine the adequacy of combustion air components  
Sometimes a difficult calculation is required for this.  

• Not required to check window coatings or hermetic seals between panes of window glass.  
We try to identify failed seals. Not always possible, some are only visible at certain times of the day.

 
Changes that INCREASE the scope

• Inspect Arc Fault Circuit Interrupters (added to requirement to inspect GFCIs)
Good Idea, however there is no requirement to test AFCIs, just inspect them. 

• Inspect at least ONE function of specified built-in kitchen appliances using normal operating controls to activate primary function. Includes: ovens, ranges, surface cooking, microwave ovens, dishwashing machines, disposals  
Most inspectors already do this anyway. We do. (note other appliances such as refrigerators and trash compactors are excluded)

• Describe presence or absence of Carbon Monoxide alarms (added to the requirement to describe smoke alarms)  
good Idea to add this. 

  • Inspect distribution systems for heat  
Heat should be installed in every finished room.

Examining Agent-Inspector Relationship

Examining Agent-Inspector Relationship

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 thing, 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 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. Robitaille says that 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, says Robitalle.

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 home inspectors and other service providers to home buyers. “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—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. This is the best safeguard against an inspector becoming too reliant on agent-referrals by building a diverse business that is arguably more sustainable and profitable in the long run.

About the Author Isaac Peck is the Associate Editor of Working RE Magazine 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 Bachelors in Business Management at San Diego State University. He can be contacted at Isaac@orep.org or (888) 347-5273.

Reprinted from www.WorkingRE.com, published by www.OREP.org, providing broad insurance coverage for home inspectors and other real estate professionals at the most competitive rates. Call toll-free (888) 347-5273. info@orep.org. David Brauner Calif. Insurance Lic. #0C89873.

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Thursday October 7, 2010

Bethlehem Home Inspector

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