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  #1 (permalink)  
Old 12-15-2007, 07:05 AM
Jack Feldmann's Avatar
Jack Feldmann Jack Feldmann is offline
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Re-inspections
I would like to re-address re-inspections. I know we have covered this before.

You would think that after 18+ years in this business, I would have it all figured out. But just can't get this worked out.

Used to do re-inspections all the time. Charged a minimum fee to do it.

Still tell clients (and Realtors) to get professionals to do the work, get receipts etc and all that. Some do, but many don't and lots of times the homeowner or his contractor buddy will do some of the repairs.

I also tell clients that they don't really need me to come back for a lot of repairs that they can see for themselves. That fogged window? The rotted wood trim around the windows? They can see that.

Tried to make the policy of NOT doing re-inspections. That just didn't work out well, in fact it created some ill will with agents that have used us a long time, and know that I used to re-inspect all the time.

Many times during the re-inspection I found, like many others here, that some or all of the work was NOT done properly or at all. That meant ANOTHER trip out, etc.

I struggle with trying to provide my clients with the best possible service and still turn a profit at the end of the day. I also struggle knowing that my insurance will not cover me for re-inspections. I have covered that with a contract that says I am not responsible for the repairs, but not sure how that would end up in court should something happen.

I am asking how others handle this and what has worked, and what is not working (kind of like where I am).

I have found that saying WE DON'T is just not working.

And doing them and trying to charge what is reasonable for my client and profitable for me is something I can't seem to get worked out. My clients are not in the same class as Jerry's, so money IS an issue with almost every one of them.

I look forward to comments form others.
JF
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Old 12-15-2007, 07:36 AM
Phillip Smith Phillip Smith is offline
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Re: Re-inspections
I will do them for at lest 60% of the inspection fee.

I have to have in writing what was agreed to be fixed. Along with the paper work from the repair persons.

There is a lot of clients thank you should do them for free.
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Old 12-15-2007, 07:40 AM
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Erby Crofutt Erby Crofutt is offline
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Re: Re-inspections
I do them, reluctantly, but don't let them interfer with an inspection slot and charge appropriate for my time. Usually done early morning or late afternoon.

Yes, money is an issue for a lot of my clients too, but it is also an issue for ME! I don't often feel like working for free. (Though I sometimes do because I want to but it is not generally inspection related.)

Sometimes, there's not any one else for the client to rely on, i.e. out of state clients.
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Old 12-15-2007, 08:08 AM
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Kevin Luce Kevin Luce is offline
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Re: Re-inspections
I also offer re-inspections. The % of people asking for re-inspections are low and most of my jobs are 15 minutes or less from my house. I have my prices set so I average $50.00 per hour for my time, $25.00 for material and add $25.00 on top of that to cover re-inspections (if asked for).

I have experienced in this area that people will pay a little more if you offer services that others do not (I'm still not the most expensive). It makes my company stand out because (as far as I know) everyone else does not offer re-inspections or they charge $100.00 (I make sure the buyers know this). I found that people don't mind paying once, twice they feel you are trying to nickel and dime them.

When it comes to informing your client or their Realtor that you do not provide this service, the insurance comment would be the best thing to use. The Realtors that refer you will get use to it.
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Old 12-15-2007, 08:56 AM
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Eric Barker Eric Barker is offline
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Re: Re-inspections
Jack,

Re-inspections do not bother me and my carrier does cover them. By not doing re-inspections I think that the inspector has left their client high and dry. As I have said in previous posts, if we can understand when something is wrong then it stands to reason we understand when it's right. Since the limitations that we have (visual only) on the first inspection are going to be the same for the follow up visit, I don't understand the reluctance.

Since I don't like to see clients having to send more money for a second inspection I ask if they can get receipts for repairs from the seller. As already mentioned, repairs are often wrong as are receipts.

I attached one receipt (of 4 that were provided) as an example. Note that there's no contractor info. #1 - I reported drain line separation in mbath shower (picture), not the hall bath. #2 - he got that right. #3 - Heating bubba's repairs were a joke and he ignored the rusted through vents so this guy replaced them. #4 - Missing mortar was in the smoke chamber and firebox, not outside. Of the other three receipts, each listed work that was done wrong or simply not done at all.

To be honest, if we decline re-inspections we have abandoned our client and their agent and left them to the irresponsibility of others. I can understand their dis-satisfaction with an inspector who will not provide such follow up.

BTW - collecting these receipts has become a hobby of mine, it's amazing what crap is written.
Attached Images
File Type: jpg Nameless contractor.JPG (91.6 KB, 46 views)
File Type: jpg Non-existant separation.JPG (81.7 KB, 42 views)
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Old 12-15-2007, 08:56 AM
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Jerry McCarthy Jerry McCarthy is offline
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Re: Re-inspections
Jack and others who perform re-inspections; I recommend thoroughly reading your local real estate contracts. Most have a section dealing with repairs and it would be a good thing to know exactly what that section states. California real estate sales contracts are very clear on this issue and put the ball squarely into the home seller’s court. A re-inspection performed for a fee or even free is nothing more than the inspector guaranteeing whoever did what to fix something they reported needing fixin did it correctly. So how long is your guarantee good for? If the fix fails do you think the client will call the person who fixed it or the guy who put in writing that the fix was acceptable? Will your re-inspection fee cover the cost of any potential damage resulting from a less than perfect repair? As Jack said, your E&O insurance is not going to cover you for that type of inspection. Would you drive your car without insurance and feel that the money you saved would be enough to pay for any claims from any possible accident no matter who was a fault? I think not so why make such a truly bad business decision? I’d much rather have a few disappointed clients than stick my neck into that type of noose. Sorry for the rant, but I feel you fellows are walking the plank on this issue.
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Old 12-15-2007, 10:13 AM
Jerry Peck Jerry Peck is offline
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Re: Re-inspections
I fully second West Cost Jerry's post.

... but ...

... if you are going to do re-inspections, you will want to have your client ...
- provide you with the written quotes for the work to be done,
- provide you with the written work order stating what was done,
- provide you with the written invoice marked "Paid In Full",
- provide you with the company name, address and phone number and the person who is licensed license number,
- provide you with that company's in$urance certificate,
- provide you with that company's guarantee covering the work which was supposed to have been done (whether or not they did it, if you wrote it up and they did not do it, that means they felt it did not need doing, which means there is nothing wrong with it, which means they should guaranty that not-done work too),
... and last but not least ...
- provide with a reason your client still needs you to do a re-inspection.

If they provide all of that to your satisfaction, and you still want to do a re-inspection, then stipulate, and have them sign, a simple contract for services which states that they, the client, will hold you harmless for any and all items related to the original inspection and the re-inspection, that you are not verifying 'what was done where' or 'was it done properly', only that "something" was done "here".

If your client still wants you to do a re-inspection, well ... a person representing themselves as their own attorney has a fool for a client ... and your client fits right there with that fool.

I can't say about other states, but *in Florida*, the seller is *obligated* to have ALL repairs done by licensed contractors ... PERIOD. There are no exceptions. Not only is that in the real estate contract, it is in state statute too.
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Old 12-15-2007, 10:30 AM
Matt Fellman Matt Fellman is offline
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Re: Re-inspections
I couldn't agree more with the OP... I've struggles with those exact issues. Flat out not doing them is just too unfriendly. Also, it's a regional thing and if guys in your area are doing them you can't be the only one not.

I've tried just raising the price to ridiculous levels and that's really same as just refusing to do them... almost worse because your clients are almost insulted sometimes.

In the end the best thing I've found is to do as some other say.... Get receipts and an addendum prior to heading out. That alone seems to eliminate over half of them. We also have a big blurb on our report that recommends all work be done by lic/bond contratcors so if/when we ask for receipts and there are none we can basically refuse to go.

The funny thing is the times we do re-insp are the times they're really not needed.
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Old 12-15-2007, 11:38 AM
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Kevin Luce Kevin Luce is offline
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Re: Re-inspections
[quote]
Quote:
Originally Posted by Jerry McCarthy View Post
A re-inspection performed for a fee or even free is nothing more than the inspector guaranteeing whoever did what to fix something they reported needing fixin did it correctly. So how long is your guarantee good for?
How long will you guarantee an item that you inspected during the original inspection? Example: The sellers put the house on the market, a storm comes through and causes damage to the roof. The sellers fix the problem and inform the buyers, the buyers inform the home inspector that damage to roof had occurred a couple of weeks ago and they fixed it two days ago. For a home inspector that does not inspect other peoples repairs because of the liability factor, do you ignore that area of the roof and write it up as a limitation?

Quote:
If the fix fails do you think the client will call the person who fixed it or the guy who put in writing that the fix was acceptable?
If the report is written up correctly, then I did my job. The person that "so called" fixed it needs to go back.

Quote:
Will your re-inspection fee cover the cost of any potential damage resulting from a less than perfect repair?
That's what you get for not inspecting and reporting properly.

Quote:
As Jack said, your E&O insurance is not going to cover you for that type of inspection.
Through Allen Insurance, re-inspections are covered. If the insurance he carries does not include re-inspections, then that is a no brainer. Don't do it or get different insurance.

Quote:
Would you drive your car without insurance and feel that the money you saved would be enough to pay for any claims from any possible accident no matter who was a fault?
Different subject. I don't think the price of the insurance to cover re-inspections is the issue.

Quote:
Sorry for the rant, but I feel you fellows are walking the plank on this issue.
I disagree about the plank. We provide a service by looking at a component or components and reporting on our visual finding. The only difference is during a home inspection, we are looking at many more components than during a re-inspection.

If a home inspector wants to do re-inspection or not, that's his decision. If he wants to charge extra or not is still his decision. But to say that he is walking the plank, is not correct.

How many houses do we inspect where the liability is higher than other houses we inspect, but yet we inspect them anyways.
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Old 12-15-2007, 11:41 AM
Chris Roust Chris Roust is offline
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Re: Re-inspections
How about lenders in your areas? One of the main reasons I do re-inspections is that major local lenders require an inspection and re-inspection before they will approve the loan. I assume this is to protect the lenders interests in case of default. Home inspections are not pushed by most local agents so many times the only reason the buyer ends up having a home inspection is to satisfy their lenders. I am in a quite isolated area and this may be only a local quirk but I wonder if this happens in other areas as well.
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Old 12-15-2007, 11:50 AM
Matthew Barnicle Matthew Barnicle is offline
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Re: Re-inspections
Hey Eric B...Who is your carrier? I would like to find one that covers re-inspections. Thanks.
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Old 12-15-2007, 12:04 PM
David Banks David Banks is offline
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Re: Re-inspections
Through Allen Insurance, re-inspections are covered. If the insurance he carries does not include re-inspections, then that is a no brainer. Don't do it or get different insurance.
Kevin

Kevin. I have Allen Insurance and here is statement by Bob Pearson on re-inspections I just got with my renewal for 2008.
"I would like to share my thoughts in re-inspections. For example if you call out for a roofing contractor to further evaluate and repair problems you observed DO NOT go back and re-inspect the work. If you do so you are assuming the liability exposure of the repairs. You did not do the repairs so how do you know the work was performed correctly and/or solved the problem.
Do not perform re-inspections unless you like to write checks or call your E&O carrier with claims"
Now this does not say you are not covered but the insinuation is dire enough for me to stay away.
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Old 12-15-2007, 01:57 PM
Dave Mortensen Dave Mortensen is offline
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Re: Re-inspections
I think Erik Baker said this in another post, but if we inspect the first time why can't we inspect the second after a fix? Clear expectations to the client is key...CALL THE CONTRACTOR who performed the work if something goes awry. Have the language about no guarantee in the re-inspection document and if you can't verify a repair then say so. When a work invoice says a heat exchanger was visually inspected, how do you confirm that? The work invoice supplied to the client, the lender and appraiser seems to work to get a loan approved with no liability resting with the lender or appraiser for accepting it when a re-inspection is not done, why should it be different when a re-inspection is performed? Dave
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Old 12-15-2007, 01:58 PM
Dave Mortensen Dave Mortensen is offline
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Re: Re-inspections
Sorry,... Eric Barker!
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Old 12-15-2007, 02:44 PM
Rick Cantrell Rick Cantrell is offline
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Re: Re-inspections
Sounds like your E&O will cover you.
"...Do not perform re-inspections unless you like to write checks or call your E&O carrier with claims"
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Old 12-15-2007, 03:00 PM
David Banks David Banks is offline
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Re: Re-inspections
Quote:
Originally Posted by Rick Cantrell View Post
Sounds like your E&O will cover you.
"...Do not perform re-inspections unless you like to write checks or call your E&O carrier with claims"
Here is the last line in my statement. "Now this does not say you are not covered but the insinuation is dire enough for me to stay away"
I agree we are covered but Insurance does not recommend re-inspections.
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Old 12-15-2007, 03:24 PM
Aaron Miller Aaron Miller is offline
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Re: Re-inspections
The Jerrys have it. I might add to the long list of things that Peck suggests that, if you are looney enough to do reinspections, then you should require that all repairpersons provide you with digital photos of before, during and after the repair.

Aaron
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Old 12-15-2007, 03:53 PM
Matt Fellman Matt Fellman is offline
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Re: Re-inspections
Quote:
Originally Posted by Aaron Miller View Post
The Jerrys have it. I might add to the long list of things that Peck suggests that, if you are looney enough to do reinspections, then you should require that all repairpersons provide you with digital photos of before, during and after the repair.

Aaron
I'm totally on board with this and what the Jerrys say..... but, how do I pull this kind of stuff off without my clients and realtors just thinking I'm being ridiculous... I know, I know.... it's my business and I can run it how I like but there's an element of customer service in here somewhere that I try to maintain.

If I called my HI for a re-inspection and was given a list like this thread contains I'd be insulted.... I'd rather just be told 'No'. And, if I were a realtor