Understanding the "Product" you sell (This information could save your clients THOUSANDS of dollars) *  Three (3) simple termite lessons can save you and your client BIG $$$             Failing to understand your options can cost your client $$$Thousand$$$.            *  Followup comments on the Emergency Gas Safety Valve Law   Last Minute Inspection Discount Offer NBI is now offering new inspection services: * One Year Builder Warranty Inspections * Apartment and Commercial Building Inspections NBI's Tidbits (Snippets of life from NBI)  * Locating a mysterious water leak!   (This is a MUST SEE video.) A little Humor to brighten your day   * The English language is easy to learn.....Right???   NBI's "Most Popular" Newsletters   * Links to NBI's most read newsletters over the past several years.   Time to Read: 5 Minutes or Less Routinely, agents confess how little they know about the physical product they sell…(the house). At times, they are embarrassed that they can’t answer client’s questions regarding the physical aspects of the house. In each publication, you will find helpful comments and pictures to help build your knowledge base. This information is not to make you a home or pest inspector. It’s to increase your core knowledge to make you even more valuable to your client. Three (3) simple "Termite Report Lessons" Learn them to save you and your clients $$$Thousand$$.   Ignoring them could cost you and your clients BIG $$$.    Lesson #1:   Understand California fumigation laws.        XYZ Termite Company found drywood termites in this home and recommended a full fumigation.  They charged the customer $5568.00 to perform this fumigation.   Ready to close escrow; the agent called the termite comany and asked for the Notice of Work Completion form.  The termite company office staff mistakenly faxed over the fumigation company's invoice of what they charged XYZ to perform the fumigation.  OOOOPS! ! ! !       If you look closely, you will see that the fumigation company charged XYZ Termite only $1645.00.   Then XYZ Termite charged the home seller $5568.00.....making nearly $4000 NET PROFIT for simply making a phone call.    (Fumigation companies do not perform inspections....they only perform fumigations.  If you contract for a fumigation through a regular termite inspection company, they simply "call" the fumigation company and place the order.  Often times, the termite company will upcharge 100% or more.   This termite company charged nearly 350% more than the actual cost of the fumigation.)   Lesson to be learned.   Since 1995, homeowners are allowed to contract directly with fumigations companies rather than going through the termite inspection company.... thereby eliminating exhorbitant upcharges such as the one above.    Don't be fooled by pest control companies.  Simply ask the question....."Do you hold a "Branch 1" fumigation license?"   If the answer is no....you are dealing with a "Branch 3" termite inspection company.  If you contract through them for your fumigation, you WILL be charged EXTRA....(the only question is how much extra.)     (Call our office at (925) 935-6115 for a list of fumigators in the Bay Area.)   -------------------------------------------------   Lesson #2:   Understand the full scope of work to be performed.    Read this termite statement VERY CAREFULLY.  Try to understand EXACTLY how much damage exists and what the termite company is doing for its bid price.   ITEM: 17   FINDING:   The subarea framing members at intermittent areas are damaged by wood dedstroying beetles.    RECOMMENDATION  Remove, reconstruct or reinforce damaged wood member(s) with new materials. *****This is a Section 1 Item *****   Repair Price:   $2560.00   Even after 20 years in the business, I'm shocked at how many homeowners sign a contract based upon these vague comments.      This company didn't state "how much" damage existed?   They didn't state the extent of the repairs they will be performing.   They simply said...they would repair it.     Based upon the statement made above, it would be perfectly legal for the termite company to install these two 2x4's and charge $2560.00.     RED FLAGS: Beware of any company that doesn't quantify the amount of repair work they will be performing for the $$$$ they are charging.  If they include 2-3 repair options, there should be 2-3 bid prices.  Obviously, it would be a LOT easier to "reinforce" wood than it would be to remove and replace it.   "Reinforcing means nailing one board next to the damaged board." "With today's technology, there can only be ONE reason termite repair companies don't include pictures of the damage and of the repair work they will be performing."    (NBI is the only known termite inspection company that includes pictures in every report.)   Lesson #3:   The termite bid IS A BINDING CONTRACT! !      An agent recently called me to express her concern about a termite treatment performed.  The termite company had performed a "localized" treatment for subterranean termites.  When she asked about guarantees, the inspector said..."I guarantee ALL of my treatments for two years".   She asked..."Are you only guaranteeing the area you treated or the entire house?"   He said..."I guarantee the entire house....as I said...I guarantee ALL of my treatments for two years."   I informed the agent that she had good reason to be concerned and that the ONLY way to know exactly what is guaranteed is to read the Contract.   Yes...the actual inspection report IS the contract.    In reviewing the contract, the guarantee was quite clear.  Hidden in small print, the contract read: The methods of repair and treatments are at the discretion of XYZ Termite. The specific areas treated will be guaranteed against renewed infestation for two years.  (The report has never outlined the area that would be treated.) No other guarantees are expressed or implied unless in writing. Here is the translation of this contract: XYZ Termite can repair the problems any way he wishes and the consumer must pay. XYZ could treat 4 sq. ft. of soil and only guarantee that area against a reinfestation.  If the infestation re-appeared 5' away, the homeowner would have to pay for another treatment. XYZ Termite can say ANYTHING verbally......because only what is in WRITING is enforceable.  Learning these three simple lessons will save you a lot of grief and save your clients $$$THOUSAND$$ over the years.  Take a moment to read your last termite report and you will see exactly what I'm talking about.     Have a question on your inspection report (NBI's or others)?  Send your questions to Answerman@goNBI.com.  I'll be happy to offer additional guidance Free of Charge.           Emergency Gas Shutoff Valve Law (Update)   WOW ! !  This topic continues to be a hot spot.    (January 2, 2007, Contra Costa County mandated that all homes sold within the county jurisdiction be equipped with emergency gas shutoff valves.   In our previous newsletters, we outlined what we knew about the new Contra Costa law. I recommend you read that newsletter to bring yourself current. )    Here are our latest findings:   Over 20% of the homes in the County are not being equipped with these safety valves. Plumbing permits are not being taken out on over 70% of those valves being installed. One specialty company isn't even a licensed plumbing company. Reputable plumbing companies that follow the rules are being severely penalized. Several Contra Costa Cities are now requiring these new valves. ------------------   1.  We've been informed that a multitude of homes under the County jurisdiction are closing escrow without these valves being installed.  I believe agents that are allowing this to happen are taking a big risk.  As soon as the buyer understands that these should have been installed, he will be asking "someone" to pay for this installation.   With the seller out of the area....guess where he's going to be pointing the finger.   2.  We've only found a few plumbing companies that are routinely taking out building permits for these installations.  The vast majority of the plumbing companies are breaking the law.  The law is very clear.  Building permits are REQUIRED!   We found one seismic valve being installed on the WRONG side of meter.  Obviously this plumbing company didn't know what they were doing.  He also broke the law by not securing a building permit.  If it weren't for a home inspector, this installation would have gone unnoticed.  Allowing these valves to be installed without a building permit places the agent and the seller at risk.   3.  We uncovered an Alameda County based company that is promoting and installing these safety valves WITHOUT a plumbing license and WITHOUT securing building permits.  Their web site cleverly avoids claiming they are a plumbing company so they don't have to publish a plumbing license (as required by law.)   Amazingly, they are even on the approved installer list for Allstate Insurance that requires these valves be installed on all new policies written.  (I wonder if Allstate realizes that?)   4.   On a daily basis, I'm hearing the "war stories" from plumbing companies that are trying to follow the rules by getting proper building permits.    Each County inspector will have his own little "hot button" that he wants to enforce.  To make matters worse....that "hot button" changes on a daily basis. Two weeks ago, we found a building inspector that was requiring the installation of a specific gas valve.  That valve had been taken off the California approved list and is no longer manufactured.                 Original flex valve                         New flex line required   Now, some inspectors are requiring new gas flex lines on all appliances even though the old one is still serviceable.  The plumbing companies aren't saying the inspectors are always wrong.....but it does put them at a severe disadvantage to those companies that don't get permits and don't have to abide by these rules.    RED FLAGS: There are several red flags that can indicate a potential problem.  Installer doesn't provide document of work performed.  Installation price is “suspiciously” lower than the competition.    Installer recommends the homeowner secure the building permit themselves.   1.   We've seen valves installed and the homeowner doesn't have any receipt or building permit.  These installers don't want anything in writing that ties them to this installation.  They could face severe fines if they were ever caught. When ordering, ask....."Do you issue a document on your letterhead with a license number?"  If not....hang up the phone and call someone else. 2.   The cost to install these valves (depending upon the number of appliances) should run between $400 and $600.  (This includes a building permit).  Beware of any company coming in substantially less.  They probably aren't getting a building permit; aren't insured, aren't paying Workers Compensation, etc.  All of which can place you and your client at risk. When ordering, ask for a breakdown of the costs.  Additional charges could occur if new flex lines are needed or an appliance needs to be brought up to code. 3.  This is the most common "red flag".  The laws are very clear.  A homeowner cannot secure a building permit as an “owner/builder” on homes they intend to sell; therefore, they would be violating the law if they did.  (The owner can take out a permit if he is hiring a licensed contractor; however, he must show proof the contractor is licensed and carries all of the proper insurance. The owner can then be held liable for that installation.)   When ordering, ask....."Does this price include a building permit? "  If they intimate that the homeowner should get the building permit....hang up the phone and call someone else. Buyers and buyer's agents should require a copy of a signed off building permit for these installations.   Having one provides the greatest amount of protection for eveyone involved. 5.  A number of agents have reported the City of Orinda is requiring these valves be installed.   Call the City Planner's office for confirmation.   Other agents have said that the City of San Pablo are also requiring these valves.   Stay Tuned.....I'm sure there is more to come! ! ! Send any questions you may have regarding these safety valves to Answerman@goNBI.com.  (We're becoming quite knowledgeable about them now that they are part of our inspection process.) ___________________________________________ PLEASE, PLEASE, have your listings inspected prior to entering into a purchase contract.  NBI's non-biased inspections will offer your clients the very best value.   We don't have a vested interest in your client's home; therefore if there are repairs to be performed, we can offer you the most practical repair methods... rather than those that are the most profitable for the repair contractor.  ___________________________________________ Call our office at (800) Go-NBI-NOW (800) 466-2466.  Place your inspection order NOW! ! Place your inspection orders on-line, 24 hours per day, 7 days per week.  To the Top       We need your help! ! Our records are showing that thousands of our emails are being swept out to Sea by overzealous spam filters that filter on graphic text and pictures.  If you feel that NBI's newsletters are informative and helpful, we would really appreciate you jumping up and down, waving your arms during your next sales meeting asking all of the other agents in your office to put us in their email address book.  They are missing out on very worthwhile information. Thank You Last Minute Inspection Discount FREE Termite Inspection !!! NBI has only two things to sell….unequalled construction knowledge and “TIME”.  We understand that we will never be able to sell “TOMORROW” again.  NBI would rather give your client a GIANT discount for acting fast, than not filling an open time slot.     By ordering a “Last Minute Home Inspection”, we will include NBI's famous "Non-Biased Termite Inspection" for FREE! ! Our normal single inspection rates are: (Based upon homes under 2000 sq. ft.) (Prices may vary between market areas.) (San Francisco and Fresno County prices are slightly different.  Please call our office for exact fees.) Home (Only) Inspection: $425.00 Termite (Only) Inspection: $260.00 Combination Inspection.. $525.00 If you order a home inspection and fill a vacant time slot for the following day; your client will receive a FREE termite inspection! (Example: If you call NBI on Monday and you are able to fill an open time slot we have on Tuesday, you will receive a FREE termite inspection.) (Note 2: Our condominium Home inspection prices are $265 without crawlspace and $395 with crawlspace.) LIVE UPDATE! ! NBI has created a "Last Minute Inspection" web page so you can instantly check to see if we have any "next day" time slots in your area.  Open this web page and drag the Icon onto your desktop.  Each time you need an inspection...simply click on our web page.  It doesn't get any easier than that. Place your inspection orders on-line, 24 hours per day, 7 days per week.  Call our office at (800) Go-NBI-NOW (800) 466-2466 for complete details. For additional information about our company, please visits us at www.goNBI.com. Have you missed previous Straight Fax Newsletters?  Click HERE.  We have many posted for your review.  They contain a lot of great information. One Year Builder Warranty Inspections Apartment and Commercial Property Inspections NBI is now performing Builder Warranty Inspections plus Apartment and Commercial Property Inspections.  A warranty inspection is performed just before the builder's warranty is about to expire. This inspection is intended to uncover defects or imperfections that exist in the residence so you can present them to the builder prior to the expiration of the warranty. NBI has inspectors trained and qualified to perform home and termite inspections on 5 to 500 unit apartment complexes.  Our inspectors are being flown throughout the United States to perform commercial property inspections because the quality of NBI's inspections "are worth the extra expense".  Call our office at (800) Go-NBI-NOW (800) 466-2466 for complete details. For additional information about our company, please visit us at www.goNBI.com. To the Top (Snippets of life from NBI)   Locating a mysterious waterleak problem! !   Jennifer and Jim kept getting huge water bills. They knew beyond a doubt the bills weren't representative of their actual usage. No matter how they tried to conserve, the high bills continued. They couldn't see anything wrong.  They had everything checked for leaks or problems: first the water meter, then outdoor pipes, indoor pipes, underground pipes, faucets, toilets, washer, ice maker, etc. -- all to no avail.    One day Jim was sick and stayed home in bed, but kept hearing water running downstairs. He finally tore himself from his sick bed to investigate, and stumbled onto the cause of such high water bills.  Apparently this was happening all day long when they were not at home.  Knowing that few would believe him, he video taped a segment of the 'problem' for posterity.   ---------------------- Click HERE.....Turn up the volume and have fun chuckle.  This would win "America's Funniest Videos".   Gather the young kids around your computer.....they are going to LOVE this one.         * The English language is easy to learn.....Right??? Check out this conversation....   "Hello, Information? I need the number of the Caseway Insurance Company." "Would you spell that, please?" "Certainly.                   (Read these out loud for greater impact.) C as in Cue. A as in Aye. S as in Sea. E as in Eye. W as in Why. A as in Are. Y as in You." "Just a minute, I'll connect you with my supervisor."   NBI's "Most Popular" Newsletters Click on any link below to read NBI's most popular newsletters of the past! ! December 2006 New Emergency Gas Shut-off Valve Law ! ! January 2006   Homes "Designed" to fail.  (Beware of common construction techniques that will fail.)   October 2005 (Highest readership of all NBI's Newsletters)   Support the Economy...Build a Wood Deck. (Traditional wood decks will rot...don't throw away your money.)   Create a Beautiful Waterproof Deck. (Step-by-step instructions to building a beautiful slate tile deck.)   February 2005   There's no reason to have a pre-sale inspection on a new home! RIGHT????? January 2005 Would you pay $9600 to repair this countertop? (One apartment buyer was going to.)   Creative Termite Report Writing ("Creatively written" termite reports can cost your client $1000's)   October 2004   FREE rain gutter cleaning tool ! Easiest way to remove moss from your roof!   September 2004   Fumigations – Critical facts and secrets that can save your clients THOUSANDS! !   To the Top Like NBI's Straight FAX Newsletter?   New agents each month are asking to receive our newsletter.  Encourage everyone in your office to register for this worthwhile information. Send to, Answerman@goNBI.com. What issues would you like us to discuss in future Straight Fax Newsletters?  Electrical, Plumbing….Roofs???   Proper interpretation of pest control reports???   Let us know. HAVE QUESTIONS or concerns regarding a potential home problem, ask NBI's AnswerMan at Answerman@goNBI.com  Editor Notes:  Dale J. Luger founded National Building Inspectors in 1986.  Mr. Luger has purchased; rehabilitated and sold over 1000 residential units in his career.  His credentials as a General Contractor, Roofing Contractor (1976), CA Real Estate Broker (1982), Pest Control Operator (1987) make him uniquely qualified and knowledgeable of all aspects of real estate transactions.    We never want to send unwanted mail.  To remove your name from our e-mail list, simply reply with the word REMOVE in the subject line.