Take a Kid Fishing

The current climate of today's real estate market has us all working twice as hard for half the money we are accustomed to even in our Georgia Home Inspection business. This is not necessarily a bad thing as a lot of us are learning a very valuable lesson. This is also cleaning up the industry as a whole. Most of us have been working non stop over the past 12 months or so, myself included, just to make sure we scratch up every bit of business we can. Our Atlanta home inspectors are doing everything they can to stay busy.

Well, yesterday I decided to take some time off to spend with my son. I mean real time off as in no email access and no cell phone. We went fishing for a few hours and that few hours will probably last a lifetime for both of us. For those of you feeling the pinch of today's market, whether it be a Georgia Home Inspector or a Georgia Realtor or anyone involved in Georgia Real Estate, please take some time off. It is my personal opinion that we should all take at least a little time to reflect on what is important to us.

For more information on public you can visit the Department of Natural Resources at www.georgiawildlife.dnr.state.ga.us

Foreclosures In Atlanta

Our inspectors have been seeing more and more vacant foreclosures pop up in their schedules lately. You would be surprised to see the condition of many of these neglected properties! Due to vandalism and theft these homes are being stripped of all their plumbing, wiring, and other mechanical parts.

In addition, many of them are being lived in by homeless people who are setting up camp.

The inspectors often see evidence of drug use and other shady activities.

This Just In....

Here at Home-Probe, Inc. we think it's important to keep you updated on all the current industry news. Take a look at the following release.

FOR IMMEDIATE RELEASE
Tuesday, May 27, 2008
WWW.USDOJ.GOV
Justice Department Announces Settlement with the National Association of Realtors
Settlement will Result in More Choices, Better Services and Lower Commission Rates for Consumers
WASHINGTON — The Department of Justice announced today that it has reached a proposed settlement with the National Association of Realtors (NAR) that requires NAR to allow Internet-based residential real estate brokers to compete with traditional brokers. The Department said the settlement will enhance competition in the real estate brokerage industry, resulting in more choice, better service, and lower commission rates for consumers. NAR has agreed to be bound by a 10-year settlement to ensure that it continues to abide by the requirements of the agreement.
In September 2005, the Department’s Antitrust Division filed a civil antitrust lawsuit in U.S. District Court in Chicago, against NAR challenging policies and related rules that obstructed real estate brokers who use innovative Internet-based tools to offer better services and lower costs to consumers. The Department said that the policies prevented consumers from receiving the full benefits of competition, discouraged discounting, and threatened to lock in outmoded business models. The case was scheduled to go to trial in July 2008 before Judge Matthew F. Kennelly.
If approved by the court, the proposed settlement would require NAR to change policies and adhere to certain conduct remedies to resolve the Department’s competitive concerns.
Under the terms of the settlement, NAR will repeal its anticompetitive policies and require affiliated multiple listing services (MLSs) to repeal their rules that were based on these policies. NAR will enact a new policy that guarantees that Internet-based brokerage companies will not be treated differently than traditional brokers. Under the new policy, brokers participating in a NAR-affiliated MLS will not be permitted to withhold their listings from brokers who serve their customers through virtual office websites (VOWs). In addition, brokers will be able to use VOWs to educate consumers, make referrals, and conduct brokerage services. Such brokers will not be excluded from MLS membership based on their business model. NAR will report to the Department any allegations of noncompliance. NAR also has agreed to adopt antitrust compliance training programs that will instruct local Associations of Realtors about the antitrust laws generally and about the requirements of the proposed settlement specifically.
“Today’s settlement prevents traditional brokers from deliberately impeding competition. When there is unfettered competition from brokers with innovative and efficient approaches to the residential real estate market, consumers are likely to receive better services and pay lower commission rates,” said Deborah A. Garza, Deputy Assistant Attorney General of the Antitrust Division. “In addition, under this settlement, NAR will foster compliance with the antitrust laws by educating its members and its 800 affiliated MLSs.”
NAR is a trade association of more than 1.2 million residential real estate members who operate in local real estate markets nationwide. In almost every area of the country, brokers have organized MLSs through which they share information about homes for sale in their community. Brokers regard MLS participation to be essential to their ability to compete, and virtually all brokers participate in a local MLS. More than 80 percent of the approximately 1,000 MLSs in the United States are affiliated with NAR. NAR oversees rules governing how its affiliated MLSs operate. The Department’s 2005 antitrust lawsuit challenged NAR policies adopted in 2003 and 2005 that obstructed competition from brokers providing residential brokerage services via the Internet. One way that brokers use the Internet to provide brokerage services to their customers is through password-protected Internet sites, known as VOWs. VOWs allow a broker’s customers to search real estate listings themselves instead of relying on a broker to conduct searches for them. Delivering listings via the Internet enables customers to control their search process and educate themselves about the real estate market in their area on their own schedule. These VOWs have allowed brokers to be more productive, and some VOWs have passed these efficiencies on to consumers in the form of lower commission rates to home sellers and rebates to home buyers.
The first rule challenged by the Department required MLSs to permit traditional brokers to withhold their listings from VOWs by means of an “opt out.” NAR does not permit brokers to withhold their listings from traditional broker members of an MLS. Many local MLSs adopted NAR’s policy before NAR suspended its policy during the Department’s investigation. In one market in which the MLS adopted the policy, all brokers withheld their listings from the one VOW in the community, which was then forced to discontinue its popular website.
The second rule prevented a broker from educating customers about homes for sale through a VOW and then referring those customers (for a referral fee) to other brokers, who would help customers view homes in person and negotiate contracts for them. Some of the VOWs that focused on referrals also passed along savings to consumers as a result of increased efficiencies. Collectively, NAR’s policies prevented consumers from receiving the full benefits of competition in the residential real estate industry.
The proposed settlement, along with the Department’s competitive impact statement, will be published in the Federal Register, as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments regarding the proposed final judgment within 60 days of its publication to John R. Read, Chief, Litigation III Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, NW, Washington, DC 20530, 202-307-0468. At the conclusion of the 60-day comment period, the court may enter the proposed final judgment upon a finding that it serves the public interest.

Dekalb County Plumbing Ordinance

You may have already heard the news, but just in case you have not we wanted to share a new Ordinance that was just passed in Dekalb County. This ordinance will effect the resale of all homes in Dekalb County built before 1993. Don't be surprised if other local governments enact similar legislation going forward. Here is a quick summary of new ordinance for your review.

Dekalb County Inefficient Plumbing Fixtures Replacement Plan Ordinance

1. General Description. Requires the replacement of all inefficient water fixtures on residential properties built before 1993 before water service will be turned on.

2. Effective Date. June 1, 2008. (Commercial Properties Jan. 1 2009). Only affects properties in Unincorporated Dekalb County (not affected if within city limits)

3. Certificate of Compliance. A certificate under oath with penalties of perjury that all inefficient plumbing fixtures have been removed from the structures.

4. Who certifies? A licensed plumber, home inspector (not defined) or county official from Watershed Management.

5. What?
a. Toilets. Ultra Low Flow Toilets (1.6 gals per flush)
b. Urinals. 1 gal per flush.
c. Showerheads. 2.5 gals per minute
d. Lavatory Faucets. 2.0 gals per minute
e. Kitchen Faucets. 2.2 Gals per minute.

6. Disclosure. Ordinance requires that you disclose the requirement to potential purchasers prior to entering into contract.

7. Penalties
a. No Water Service. If no certificate received no service.
b. False certificate or other violation. Fines starting at $250 up to $500.

8. Exemptions
a. Built after January 1, 1993.
b. Any property being advertised for foreclosure.
c. Tear Downs.
d. Conveyances between immediate family members.
e. Extreme Hardship. $1,000 per residential toilet or $2,000 per commercial toilet

9. Economic Aid. Dekalb County has a rebate plan that rebates $50 per 1.6 gal toilet and $100 for each 1.28 gal toilet with a maximum of 3 toilets per household.

We suggest to start budgeting for the replacement of your plumbing fixtures in the near future. You may not be planning to sell any time soon, however its better to be prepared then to have to face the changes at the time of sale.
If you would like further information on the ordinance, the related documents or a representative from our company come to your office please don't hesitate to call or email us.

Toilet Retrofit Rebate Program

DeKalb County Department of Watershed Management
Toilet Retrofit Rebate Program
Application Guidelines

Beginning January 8, 2008, the Department of Watershed Management offers a Toilet Retrofit Rebate Program to DeKalb County water customers whose homes were built prior to 1993. This program will assist customers in replacing their old toilets with efficient water-conserving toilets to conserve water and money. The toilet retrofit rebate program will only honor purchases starting on January 1, 2008; no purchases prior will qualify for rebate. Toilets being replaced must have been installed prior to 1993.
Toilet Rebate: There are two rebate options. The first is a $50.00 rebate for the purchase of any approved 1.6 gallons per flush toilet on the list of eligible toilets (click here for list). The second option is $100.00 rebate for the purchase of any approved 1.28 gallons per flush toilet on the list of eligible toilets (click here for list).
Only the exact model names and number combinations on DeKalb County’s list of eligible toilets will qualify for the toilet rebate. These toilets have been tested in specific combinations for performance and water savings – tank and bowl number cannot be "mixed and matched" from different models. Other models may be available for purchase, but WILL NOT qualify for a rebate. Customers will only be allowed to apply for a maximum of three (3) toilets per household.
Program Requirements:
• Toilets must be installed in a property located in DeKalb County.
• Toilets must be installed in a property that is an individually metered residential dwelling as defined by Section 27-31 (click here for Section 27-31) of the DeKalb County Code (a DeKalb County Water and Sewer account verifies that a home is individually metered).
• There is a limit of replacing three (3) toilets per household. To receive the $50.00 or $100.00 rebate, each new toilet must be replacing an existing old, large capacity toilet installed prior to 1993. The $50.00 rebate option applies to 1.6 gallons per flush toilets, and the $100.00 rebate option applies to 1.28 gallons per flush toilets.
• Old toilets cannot be reused. Participants agree to dispose of their old toilets.
Program Participants:
• Please check the list of qualifying toilets before you make your purchase. Only the model names and numbers listed on the eligible toilet lists will qualify for a rebate.
• A completed application form (click here for application form) and original sales receipt(s) must be mailed to: Department of Watershed Management
ATTN: Toilet Retrofit Rebate Program
1580 Roadhaven Drive
Stone Mountain, GA 30083.
• Application form and original sales receipt(s) must be submitted within sixty (60) days of purchase.
• Rebate checks will be mailed within sixty (60) days, and will be mailed and made payable to the property owner.
• DeKalb County Department of Watershed Management reserves the right to modify this program at any time.
• For any questions or further clarification, please call 311 or 770-270-6243.

Changes On The Way

There are some changes on the horizon for home inspectors in Georgia. Senate Bill 334 has just passed and, it is going to require state licensing for home inspectors. I am always partial to having the government involved only when they need to be. There have been some issues that have come to pass that this bill will help resolve but, I believe the consumers did not need the government in order to make their own, educated choices. The most important component of this bill is going to be the requirement of passing a minimum exam to get your license as a home inspector. However, there are already organizations in place to make sure the educated consumer is protected.
Under the current law, there are no licensing requirements for home inspectors. Which creates a buyer beware environment for those people shopping for a home inspection. If a buyer is wise they do their homework in advance and, they know that there are several national and state organizations already in place which, if an inspector chooses to align him or herself with them, require some basic standards from it’s members. For example, American Society for Home Inspectors, ASHI, requires that members pass an exam, complete continuing education classes, and have adequate insurance coverage. With no state regulation, the home inspection industry in Georgia has become divided. There are inspectors that become members of some organization such as ASHI to provide their customers with some reassurance and those that have not. Here at Home-Probe, Inc., we require all our inspectors to meet the requirements of ASHI. It does take more time, effort and money to meet their standards but, we’ve come to understand that the customers want peace of mind and to know their inspector is trained and educated. Some of our competitors have been folks that are in this business to earn “a little spending money”. And although these people may make great inspectors and have their client’s best interest at heart there is no hard evidence of that for the customers to rest upon. Then there are always a few bad apples that may one day pick up a flashlight and decide to begin doing home inspections with no insurance, no prior experience, and limited knowledge of the trade. If a customer is unaware and uneducated they are definitely taking a risk just by choosing a home inspector and price is usually the deciding factor.
The law currently being passed by the Georgia Legislature is going to try to take some of the risk out of shopping for a home inspection. A board is being organized which will basically mimic these already existing national and state organizations. Everyone acting as a home inspector will be required to obtain a license through the board. The licensing requirements are going to include minimum insurance coverage and the passing score on an exam. The effects of this new law on the industry can only be speculated at this point. It may drive several good inspectors, who serve customers in their spare time to earn, “a little spending money” to hang up their hats and get out of the game completely. It may allow some of the bad inspectors to pass minimum requirements and be able to claim “licensed” and provide false security to their customers. It may unify the industry and provide the protection and reassurance that customers really want. Right now, it is wait and see and hope for the best.

Dekalb County Plumbing Retrofit Approved

On February 26, 2008 Dekalb County approved the Inefficient Plumbing Fixtures Replacement Plan. Any home built prior to 1993 must have low flow toilet and plumbing fixtures installed before the homeowner can obtain water from the county.
Effective June 1, 2008, sellers will be required to disclose the Dekalb County Ordinance when selling their homes. Listing agents in Dekalb should add a notice of this ordinance to the seller’s disclosure and/or sales contract. Before the new homeowner can obtain water service, they must provide written proof from a home inspector, licensed plumber, or a Department of Watershed Inspector. This certificate will be required with their application for water service.
Single family homes and condos will need to have the following:

1. Toilets can have a max of 1.6 gallons per flush

2. Shower heads can put out a max of 2.5 gallons per minute

3. Lavatory faucets can put out a max of 2 gallons per minute

4. Kitchen faucets can put out a mac of 2.2 gallons per minute


Based on average home sales statistics, Dekalb County foresees saving 360,000 gallons of water a day by enacting this ordinance and predicts it will take more than 33 years to replace all of the older water guzzling toilets and fixtures.
There are some exemptions to this ordinance and they include the following:

1. Foreclosure sales

2. Family sales > from spouse to spouse or from parents to their children

3. Homes that will be demolished after the sale

4. Circumstances where the cost of the toilet will be over $1,000.00 per toilet change out


If you violate these new laws, you are subject to the following penalties:

1. First violation will be warning

2. Second violation (within 12 months of first violation) will be $250.003.

Third violation (within 12 months of first violation) will be $500.00



The article above was orignally published at http://pruittpulse.com/ by the Senior Vice President, Managing Broker of the Sandy Springs office on March 31, 2008. It is so interesting and informative that we felt we should share it with our customers too!