ASK THE INSPECTORS

Question: On a new home sale, I overheard the builder representative talk to the buyer about something called an Arc Fault Circuit Interrupter. What do these devices do and should they be installed in older homes also? ? Anna, Keller-Williams Agent in Phoenix

Problems in home electrical systems, like arcing and sparking, have been associated with more than 40,000 fires every year. That translates to over 350 lives lost and 1,400 personal injuries annually. This new electrical safety device called an Arc Fault Circuit Interrupter (AFCI), was recently developed and is expected to provide significant protection from fires resulting from these unsafe wiring conditions.

Ordinary household fuses and breakers do not respond to early arcing and sparking conditions. By the time a fuse or circuit breaker stops the flow of electricity in a circuit, the fire may already have begun. Several years ago, a Consumer Products Safety Commission (CPSC) study identified arc fault detection as a promising new technology. Since then, the CPSC engineers have tested the new AFCI’s on the market and found them to be very effective.

A few important facts to note:

The most recent edition of the National Electrical Code (NEC ? January 2002), the widely adopted model code for electrical wiring, requires AFCI’s for all bedroom circuits in new residential construction. Future editions of the code, which is updated every three years, could expand the required areas. Don’t confuse AFCI protection and GFCI protection. Both AFCI’s and GFCI’s are important safety devices, but they have different functions. AFCI’s are intended to prevent fire hazards; GFCI’s prevent shock hazards. Combination devices that include both AFCI and GFCI protection in one unit will become available soon. Current configurations, as depicted above, have a reset button on the breaker in the electrical panel. Future designs might change the location of the reset. It is wise to install AFCI protection in older homes. Aging wiring systems are often at the most risk for arcing and sparking. Be sure to have a qualified electrician install AFCI’s; do not attempt this work yourself. Expect to see home inspectors recommend AFCI’s for all dwellings. Many people would be alive today if only they had an AFCI installed prior to the fire that claimed their lives. Home inspectors are likely to be the ones bringing this news to the public.

by Mike Holmes

Too many people think of home inspections as tools for homebuyers only. An inspection is a critical part of any home purchase — I’d never advise anyone to buy a home without one — but I’m here to tell you that inspections are as useful for sellers as they are for buyers.

You’re probably thinking, “Why should I pay for an inspection on the home I’m about to sell when I’m already about to pay for one on the house I’m about to buy?” I get that. Inspections cost money. They take time. And a vendor is not always legally required to guarantee the condition of a home for sale, so there’s no obligation to do a pre-listing inspection.

But there are a ton of reasons to hire a qualified, registered home inspector to evaluate your home before you list it. Here are the most important.

Set the right price

Selling a home is an emotional process. You’ve invested years of your life — and thousands of your hard-earned dollars — into those four walls. You know what the building means to you, and you have a pretty good idea of how much money you’d like to recover on your investment. Emotion, however, is the enemy of good judgment. The average seller is unable to see the real condition of his or her house when setting an asking price. Emotion trumps judgment, the seller inflates the price of the house, and the property takes ages to sell.

A pre-listing inspection can help you determine your home’s true value. A qualified inspector will go through your home and accurately assess what’s good and what’s bad about the building. Small maintenance jobs that you put off years ago may have grown into large problems. New problems may have cropped up since you last had an inspection done (which, if you’re like most people, was when you bought the house). On the other hand, expensive renovations may have boosted the value.

Read more at Nationalpost.com.

David Swartz, a Phoenix home inspector from Advantage Inspection Service, tells John Cunningham the 3 key points to selecting a quality home inspector.

Even when everything looks fine to the untrained eye, many hazards can be lurking around a home. Here’s a few pictures of some heating a cooling hazards we’ve run into.

AC unit not bearing on stand

Coil hail damage

Condensate to gas can

Duct insulation skin failure

Furnace gas flex into cabinet

Open duct seam

Sewer vent too close to cooler

These are trying times for anyone in a real estate related profession.  Of course, Phoenix home inspectors are not immune from the business pressures that exist and a concerning development is occurring that you should be aware of.  In order to reduce costs, many home inspectors do not carry insurance for their clients.

These are trying times for anyone in a real estate related profession.  Of course, Phoenix home inspectors are not immune from the business pressures that exist and a concerning development is occurring that you should be aware of.  In order to reduce costs, many home inspectors do not carry insurance for their clients.

Errors & omissions insurance is a critical protective measure that is vitally important for all parties to the real estate transaction.  Unfortunately, not all home inspectors carry insurance.  The Board of Technical Registration allows a home inspector to carry nothing more than a $25,000 bond in order to perform home inspections.  The only way to collect on a bond, is for the claimant to prevail in a lawsuit and get a judgement before the bonding company will pay.  As you likely know, it could cost that much in legal fees just to get the judgement.  This can be a disaster for the buyers and for the real estate agents who are also usually a defendant.

Beyond errors & omissions insurance, a quality home inspection company will also carry general liability.  General liability insurance covers things like damage to property or injury to occupants caused by the inspector.

“IF YOUR HOME INSPECTOR DOES NOT CARRY ERRORS & OMISSIONS AND GENERAL LIABILITY INSURANCE YOU ARE TAKING AN ENORMOUS RISK” The best insurance coverage provides one more important element.  It covers referring real estate agents and brokers against wrongful acts by the home inspector.

That means even if you recommend a specific inspection company you are covered under the inspection company policy for his or her negligent actions.  This helps alleviate the concern about having to recommend more than one firm.  If you have a great home inspection company and they have this coverage, you can recommend them with confidence.

The bottom line is: check out your Arizona home inspector before hiring by asking insurance related questions.  Call us if you have any questions or to give us a try.  Of course, as it relates to insurance we carry the good stuff including errors & omissions, general liability and referring agent/broker coverage.