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When Things Go Wrong! 1) What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

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Page 1: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

When Things Go Wrong!1) What could possibly go wrong

2) Anticipating, Preparing and Preventing

3) When Things Go Really Wrong!

Page 2: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

Stress accompanies a real estate sale for most everyone involved in the process.

There are so many steps to buying or selling and each step can hold an opportunity for a road block. Navigation throughout this process can be tedious and trying even for the most seasoned professionals.

Page 3: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

Having a systematic and logical approach prepared can improve success allowing you to make better overall decisions.

And research shows that as you increase your confidence with

solving problems, you'll be less likely to rush to the first solution – which may not necessarily be the best one.

The most effective way to solve a potential problem is to anticipate and prepare for the

most common hurdles.

Page 4: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

They're time-consuming.

They muscle their way into already packed schedules.

They force us to think about an uncertain future.

And they never seem to go away!

So, it makes sense that…good problem solving skills are fundamentally

important to be successful in the Real Estate Business!

Of course we never want things to go wrong or to become a problem

Page 5: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

Setting Realistic Expectations

In the inspection profession we’ve learned “When Things Go Wrong”

it almost always comes down to unrealistic expectations.

To address and help prevent these unrealistic expectations We have prepared for them and we address the

10 most common apparent oversights with your client.

Let’s look at just a couple examples:

Page 6: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

We include a document along with our reports and it’s titled:

When this happens, there are some things they will need to keep in mind.

When things go wrong

It explains to your client that there may come a time when he or she discovers something with

the home that they feel may have been missing from the

home inspection report.

Page 7: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

(Ex: 1) Intermittent Problems:

For example:Some shower stalls leak when people are in the shower,

but do not leak when you simply turn on the tap.

Some roofs and basements only leak when specific conditions exist.

Some problems can only be discovered by living in a

home. They cannot be discovered during the few

hours of a home inspection.

Page 8: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

(EX: 2 )Why Didn't We See It?

There are several reasons for these apparent oversights:

The first is that most contractors have no clue what's inside or outside the scope of a home inspection

and many have a tendency to "blame the Home Inspector" for any issue found, regardless of whether the issue is

within the "scope" of the standard home inspection or not.

My contractors said, the home inspector should have found this problem.

Page 9: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

These previous examples are common problems but what about real difficult clients or issues that can arise such as

a complaining threat of litigation

Again being prepared and putting together a process for each scenario can

greatly increase the likely hood of a positive resolution.

Page 10: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

Client complaint e-mail.We are remodeling my house you inspected.

After ripping up the carpet, my boyfriend crawled under the house and said the floor was rotten, which you never mentioned in

the inspection. I feel like I didn't get my monies worth on the home inspection.

Me and my realtor trusted your work and now we are left very disappointed!

Let’s walk through a real life situation of how our plan is supposed to work…

and how Things Can Really Go Wrong!

Red flag that the realtor is not your friend!

THE PLAN!

Page 11: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

The next step after receiving a complaint is to stop and analyze what

has happened and why…

Respond to acknowledge your receipt of the concern and that you will follow

up with them in a timely fashion.

But always resist immediately responding without understanding the

complaint from your clients perspective.

Emotions may be high so remain calm and follow your plan…

Page 12: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

Hi __ We received your email and are very sorry to hear that this issue has been discovered and even more sorry that you feel disappointed with your inspection. Rest assured that we take your concern very seriously. We know nothing can be worse than moving into your new home only to discover issues that you feel should have been in your inspection report. (Acknowledge your sympathy)

Please know that protecting your family from these unpleasant surprises is our number one goal. Your realtor knows this about us and that’s why she refers us to her clients. We have forwarded your email on to William, the owner of the company. He will meet with your inspector and review your report. Please know that you will hear back from William and or your inspector as soon as possible. (Identify a procedure not a complaint department)

Here’s our initial response template

Page 13: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

Having an appropriate chain of command as part of the process will

often ease the frustration of the disgruntled party.

Research has shown that just by allowing an unhappy client to complain to a higher authority

often gives gratification and the feeling of being somewhat vindicated.

Page 14: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

A formal complaint process can be crucial to achieving a positive

outcome and even more critical to reducing your liability

Sending a client to a complaint department on the other hand

can send a very negative message!

Whereas, informing a client that you have a procedure in place to ensure the best results and that you will help them

through it can be seen as positive

Page 15: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

Hi _____, I reviewed your inspection photos and report. Because of the standing water and muddy conditions, very limited access was allowed. I was concerned enough about this to include multiple statements regarding it in the report. We reviewed and discussed these items during your review and you can find them on (pg #16 item # 3) (pg # 17 item # 1 and # 3) (pg #18 item # 8)(pg# 31 item # 4) and (pg # 34 item # 4).

The report states that the inspection was very limited due to the water and accessibility within the crawlspace and excessive storage present throughout the home. Several items are listed as defective with both the crawlspace and structure. Were these concerns evaluated and corrected by a professional? If not , anyone of them could cause flooring issues to develop and/or worsen.

Please take a moment to carefully review your complete report and if you still feel that we have not performed or even exceeded the licensing requirements, I have attached an incident report for your completion and would like to return to the home to have a look, if possible.

To review the licensing standards you can click here.

Williams response to the clients concern

Page 16: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

Now…normally this resolves 99% of issues. Once the client really reads the report and

understands the true scope of the inspection, they understand that we are not superman.

Specifically in this case…we do not crawl through water and can not see through

the carpet for example.

However, in this scenario, things went really wrong and straight down hill from this point.

Instead of hearing back from our client, we are surprised by a response from

the clients realtor.

Page 17: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

This was totally missed on the home inspection. The buyer has every reason to be upset with the person she paid to protect her interest and you missed altogether the seriousness of the matter.

I cannot get over the fact you could not have seen this and advise my client not to purchase this home. I am really disappointed . Lets just face it, you made a BAD mistake! Trying to cover it up, just does not cut the ice. Now I see when a big problem arises, you’re hiding behind cowardly words like limited access and unable to view.

Realtor response on behalf of the client and copied to everyone involved including the clients parents.

Page 18: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

Here’s where things get interesting!The realtor has now not only supercharged the clients belief that we are at fault and failed to do our job. But now the likelihood of a positive result has been greatly diminished and a win-win is unlikely.

Now instead of helping the client we have to defend ourselves.

To do the “right thing” and remove any doubts, We hired a structural engineer and

returned to the property to gain an unbiased evaluation of the concern.

Page 19: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

The first step with any formal complaint is to gather all the

pertinent information in writing.

Having a client complete a questionnaire will give you more

information regarding the circumstance and force’s the

client to think and break down the process of what has lead to

their dissatisfaction.

The

Page 20: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

Giving a client a tool to walk through and document the events of what went wrong

can help bring them into reality and separate emotions from facts.

HOMEOWNER INCIDENT REPORTING FORMPLEASE COMPLETE THIS FORM IN ITS ENTIRETY AND RETURN TO OUR OFFICE

Date of Inspection__ Home Was Occupied Or Vacant?__

Did You Attend The Inspection?_ Did Inspector Review Findings?___

Date of Pre-Closing Inspection _ Date of Closing ___

Date Moved In _ Detailed Description of Condition: _

Condition observable at inspection?_ Date you became aware of the condition__

Did you learn of this condition prior to closing? ___ If Yes, how_____

Did Seller provide Disclosure?__ If Yes, was this condition identified?__

who first observed and apprised you of the condition?__

Page 21: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

William, Thank you for your response and we look forward to your return on Wednesday. The damage was found merely by accident. We wanted to put in bigger trim in the master bedroom and when they tore out the existing trim, they noticed the rotten wood. My husband then cut a hole in the flooring from above and saw that the decking was splintered and the joists were deteriorated. You are correct, no one here is a professional contractor.

Here’s the clients response to our email and complaint form

Page 22: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

Hi__I have forwarded the engineers report to you and wanted to follow up after returning and seeing the issue for myself. I truly regret that your daughter is faced with this issue and if I could have caught this during my inspection it would have been included in your report. As I originally stated, I was unable to access this portion of the home due to standing water. The photos of the structure under this area show no evidence of decay and as the engineer explained, it this fungi grows inside the wood and can not be seen. (see attached photos) This is why identifying it is beyond the scope of our licensing.

Your inspection report and contract both make it very clear that the identification of molds including this “wood destroying fungi” fall beyond the scope of our licensing and training. The IHILB include the following as examples of environmental hazards beyond the scope: the presence of, or any damage caused by, any biological activity, including wood destroying organisms or mold. I always inspect as if I were buying the home and report my findings in detail. It is then your choice to take action on those findings. Contrary to your realtors statement, I absolutely never advise any client to purchase or not purchase a home. Your report and contract also make this clear.

Our response back to the client after returning with a structural engineer

Page 23: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

Thank you for coming out to the house and also for the structural engineer report. We had our own inspection done following your return which revealed powder post beetles being the problem and this was not detected by you, the pest inspector nor the engineer. Furthermore, I would hope that wood rot fungus would be a red flag during your inspections and explained to a 22 year old home buyer. This is my formal request to put your insurance carrier on notice. They may contact me at-----

Clients response to the engineers report and my email.

My last response…..I have supplied my E&O carrier with all documentation including your personal contact information.

Page 24: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

In this worse case scenario, you’ve done all you can do and

once a notice has been given, it’s really out of your hands.

All that matters is if you can look in the mirror and honestly tell the person you see that you’ve done

your best - John McKay

This is where your documentation of the events, including all

communications, needs to be turned over to your E&O carrier

mmmmm

Page 25: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

Miles -Please be on notice of this potential claim. The insured is Certainty Inspections. There's no claim here. The real estate agent is related to the client and stirred this into a mess. Had she stayed out of it, the insured would have neutralized the situation. Please note that the person making the "formal request" is not the potential claimant. It is her mother and no actual claim or demand has been made. Insured has air tight report from his evaluation and a licensed structural engineers report. Any questions, call me.

Joseph A. Ferry, EsquireTwo Penn Center PlazaSuite 200Philadelphia, PA 19102

Claims examiner’s conclusion of documentation and notice to E&O provider

Page 26: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

As you have been advised, our Insured completed a visual inspection limited by access. The contract states he does not deal with wood destroying fungi. Every issue that could lead to this was listed in the report as an area of concern including ventilation, slope, moisture, gutter issues etc. The 2nd inspection was done AFTER the floor was removed and also stated these same conditions. We do not see any liability here and must respectfully deny any claim being presented.

Catherine DalySenior Professional Liability Claims Examiner

E&O response to clients mother.

Page 27: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

When it goes this far, the sad truth is that even though it’s been

established you we’re in the right and did your job correctly,

you still lose.

In this case the clients family including this realtor will never refer you any business and will be quick to inform anyone looking for your

services what a terrible experience they had.

Page 28: When Things Go Wrong! 1)What could possibly go wrong 2) Anticipating, Preparing and Preventing 3) When Things Go Really Wrong!

This is a real example of why you should always be a professional who anticipates

and is prepared for When Things Go Wrong

It’s critical to carry adequate E&O for those times

When Things Go REALLY Wrong