Understanding the "Product" you sell (This information could save your clients THOUSANDS of dollars) *  Hidden costs of repair.  "Elevating a furnace off garage floor"          (Be careful when advising your clients.)   *  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)  * "Fool Proof" way to determine active water leaks! ! A little Humor to brighten your day   * Spoof on government employees! !   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. Beware of "Hidden Costs of Repair" Home and pest inspections routinely uncover problems in the home that are need of repair.  Identifying the problem is first....understanding the costs and ramifications of the repair is another.  In this section, NBI will attempt to unvail potential hidden costs that could dramatically impact your client's decisions. "Elevating a furnace off garage floor" Most of you are familiar with the law that requires all gas fired appliances be lifted off the garage floor 18".....right??   That's because gasoline fumes are heavier than air and will settle onto the garage floor.  Keeping the flame of gas fired appliances 18" off the garage floor prevents the possibility of gas explosions. Recently, NBI performed a pest inspection in San Rafael.  The buyer said his home inspector recommended the old "gravity furnace" be elevated off the garage floor.  When asked "What would it cost to raise the furnace?"  The inspector replied.... "probably $600-$800."  With that information...the buyer and his agent were planning on asking the seller for a $1000.00 credit on the purchase price.  By not understanding the true problem and not asking the correct question; the buyer was about to make a serious mistake.     This is the 60+ year old gravity furnace.  Notice...the burner is approximately 6" off the garage floor.  This condition does create a safety hazard and should be corrected.  It isn't, however, as simple as placing this furnace on a platform similar to the water heater.           Above the furnace are large "asbestos wrapped" ducts.  Traditional heating companies will not touch asbestos.  Specialty asbestos abatement companies will need to be called in which cost MONEY! ! The problems don't stop there.   Here is a list of "catch-22" complications that would be involved with "simply" raising this furnace.  If you raise the furnace; you will need to hire an asbestos abatement contractor to relocate the existing ductwork.  These old gravity furnaces typically operate at a 60% efficiency compared to today's furnaces operating at 90-95% efficiency.   That means 35% of your heat is going up the chimney. Asbestos wrapped ductwork is not insulated.  A large percentage of your heat is also lost through the ductwork making the system even less efficient. By simply raising this furnace, you will end up with an "old" inefficient furnace with asbestos wrapped ducts.  If a decision is made to install a new furnace; you will be faced with the new energy efficient laws that are in force around many Bay Area cities requiring all ductwork to be "pressure tested".   This asbestos wrapped ductwork, would never pass that test and would need to be replaced.   An asbestos abatement contractor would need to remove all the existing ductwork and the heating contractor would need to install a new furnace PLUS new ductwork.  The total cost of this upgrade could cost $10,000 - $15000. .....NOT the $1000 the buyer was originally negotiating for.              Here are two other homes.  Look at the ductwork for these gravity furnaces.  Think of how much it would cost to replace all of this ductwork.  YIKES! ! !   Look at the amount of space they take up in the garage.        Here are a few hints that I've learned over the years:   Make decisions based upon what the "next" buyer will want...not just what "you" are willing to accept.  Even though you may not be worried about asbestos in your house.....the next buyer might.  Even though you are not concerned about having the furnace sitting on the garage floor....the next buyer might be.   Asbestos will always be a thorn in your side.  Added precautions are needed when working around it or when alterations are needed.  Eventually "someone" will want it removed....when that happens...it will be expensive.  Eventually this furnace WILL fail.  When it does, it will be very expensive to replace. Replacing an old gravity furnace will dramatically reduce energy bills. Removing asbestos ducting will remove a 'cloud' that has hung over this house for 30+ years.  Consider the "total value" of an alteration....not just the hard cost.  Gravity furnaces and ducting take up a tremendous amount of valuable space. (Look at the pictures above.) Often times, they consume 100+ sq. ft of useable space.  A new furnace will use less than 10 sq. ft.   At $300+ per sq. ft. for Bay Area homes, that is valuable space that can be used for other purposes. The purchase of a home (especially in a buyer's market) is the perfect time to correct two problems at the same time.  (Old furnace and asbestos ducting.) The next time you and/or your client are faced with repair decisions, think them through carefully.  There could be "Hidden Costs of Repair".     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 (Followup)   WOW ! !  This topic has become red hot over the last month.  In our previous newsletter, we outlined what we knew about the new Contra Costa law. I recommend you read that newsletter to bring yourself current.     We are finding that everyone is in a learning curve regarding these valves....including Contra Costa County officials.  The County has changed the territories they control three times since NBI's original interview with them.   Here are some of NBI's new findings:   Plumbing permits are absolutely mandated.  A plumber is violating the law if he installs these valves prior to securing a building permit. Valves are being installed improperly lending them inoperable. Improperly sized valves are being installed. Many valves look like standard piping.  Without proper documentation, it will be difficult to prove a valve has been installed. Gas "meter" valves are being installed to satisfy insurance requirements; but "appliance" valves are not being installed to satisfy the County requirements.   Excess Flow valves installed on the meter must be installed in a "vertical" position in order for them to operate properly.          The short pipe on the right with the writing is a properly installed "excess flow" meter valve.  This is how most of the installations should look.   (This valve was installed by Earthquake Plumbing which is the only company we found that specializes in these valves.)              Notice this excess flow valve has been installed horizontally.  This valve is completely inoperative and is of no value to the homeowner.  This valve needs to be installed vertically for proper operation.                   This valve "appears" to be properly installed.  That is....until you read the ratings on the paper tag.                Upon closer investigation, you will notice this valve is rated at 275,000 BTU's.  This is a very large house, with 3 furnaces, 2 water heaters, 3 fireplaces, a gas range PLUS a swimming pool and spa.   The total BTU's of all appliances is far in excess of the 275,000 rating for this valve.  If multiple appliances operated at the same time, this valve would activate and shut off the gas to the house.    NOTICE:  These excess flow valves look very much like regular piping.   As soon as the paper tag wears off...or the pipe is painted....it would be very difficult to prove a valve has ever been installed.         Lessons to be learned:   Hire a company that is thoroughly knowledgeable of these valves and the local laws. ALWAYS secure a building permit.  (1) Plumbers are legally required to get a permit BEFORE installation;  (2) The new Contra Costa law requires a signed off permit prior to the close of escrow and (3) most insurance companies will require a signed off permit as proof of installation. Require a document that outlines "what type and size of valve was installed".   The building department doesn't require this information and can never be found in public records.  There wouldn't be any way of telling what was installed once the pipe has been painted. 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)   Learn NBI's "Fool Proof" way to determine active water leaks! !   99% of the time, when we report water stains or water damage, we have to add “we don’t know whether the leak is active or not”.   Dan Schwartz (NBI's inspector) has discovered a new method to determine whether the leak is active or not.       He was inspecting the bedroom ceiling of a manufactured home and noticed water stains in the corner.    Can you tell whether it is active???     Look closely.     OK…..I’ll give you a little better view.                    Now can you see????   Look really carefully! !             Yes…..It’s a family of FROGS! !     HA!      NBI will be creating a new code “FROGS”….which will translate to “There is an active water leak at the [LOCATION].    If we don’t see frogs….I guess we'll have to continue saying we can't determine whether the leak is active or not.         Thanks Dan for the great pictures.         Spoof on government employees! !   Over the years, I've dealt with a number of people like the ones in this short movie clip.  I suspect you have also.   (I think I saw these two at the DMV last week.  Maybe it was at the building department.)   If you want a good chuckle....OPEN THIS LINK (Make sure you turn your speakers up so you can hear the conversation.)      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.