New But Defective: Journey of a New-Build Home Inspector

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New But Defective: Journey of a New-Build Home Inspector

by Isaac Peck, Publisher 

New construction starts for single family homes are on the rise and are expected to approach 1 million in 2024, with over 725,000 new homes projected to be sold for the year, according to the National Association of Home Builders (NAHB). With existing home sales slowing to a level not seen since 1995, new home sales are now a sizable part of the single-family purchase market (15 to 20 percent).

What this means for home inspectors is obvious: Inspections for newly constructed homes are an increasingly large part of the average home inspector’s business. (Or at least they could be!)

One Arizona home inspector, Cy Porter, has built his business around this new home niche exclusively. As the principal inspector for CyFy Home Inspections in Phoenix, Porter now focuses his business solely on doing new home inspections. His keen eye for new construction defects and his bold marketing tactics have made him something of a home inspector celebrity, with buyers of newly built homes turning to CyFy to perform their inspections. Porter is booked an unbelievable 14 months out.

Unfortunately, Porter’s aggressive pursuit of the new home inspection market has also landed him in hot water with one of the largest builders in the United States, Taylor Morrison, headquartered in nearby Scottsdale, Arizona.

Here’s an inside look into how Porter built a business focused exclusively on new-build home inspections, as well as some of the challenges he’s had to face along the way.

Building a Niche with Social Media
Cy Porter has been a home inspector in Arizona for over eight years and spent the first half of his career working under another inspection firm before launching his own business.

For the first half of his inspection career, as well as in early days of running his own business, Porter mostly did resale inspections, with the occasional new-build thrown in. However, as his clients began to recognize his expertise surrounding Arizona laws and new-build buyer warranty rights, he began to build up a reputation in his area as a specialist in new-build home inspections.

Porter used his social media accounts to build on that reputation in an appealing and creative way, regularly posting comical and educational videos about defects that he found while inspecting new homes. He says he was inspired to create his social media accounts by his wife. “I wasn’t into social media at all, but my wife suggested I start to share my stories on Instagram. Back then, they weren’t even called ‘reels’—I think it was ‘stories.’ My previous employer was on Instagram with around 3,000 followers, and I was jealous. Once I started on Instagram, people suggested I try TikTok, so I did,” Porter recalls.

At first, he only had 1,000 followers across his social platforms, but once he started advocating for his new construction clients, and homeowners started seeing his success, more people took notice. Then local news started covering his work, and his number of followers exploded.

Porter explains that there’s a popular misconception about newly built homes, that they don’t need inspections at all. After all, people reason, the home is brand new! “When I first started, 99.9 percent of new-build homeowners didn’t think they needed an inspection. Builders and even some realtors propagate that idea. So that’s been a key focus of my social media videos: yes, you do need an inspection, and here’s why,” says Porter.

Today, CyFy Home Inspections has over 250,000 followers on TikTok, and over 300,000 followers each on YouTube, Facebook, and Instagram. Several of his videos have over one million views and Porter has a passionate fanbase following his videos and supporting his work.

As a result of his very engaged following and his strong reputation, Porter reports being booked 14 months out. But wait—as a home inspector, how is that even possible? For starters, he’s not doing any resale inspections, or even pre-closing inspections for new construction. Since new homes in Arizona are generally completed in eight to nine months—from breaking ground to completion—Porter is typically not available for booking on any resale or pre-closing new-build inspections. The home inspections his clients are booking with him 14 months out, are one- and two-year new construction warranty inspections.

Builder and State Warranties
One of the reasons for this is that in Arizona homeowners have a two-year period where they can hold the builder accountable and force them to adhere to the warranty that has been codified into state law. It is these rights with respect to defects found in their new homes that put Porter’s specialization in such high demand. “When I inspect a new build, I’m looking for issues the builder is legally required to address,” Porter says. “In Arizona, builders have state-implied warranties they must follow. My job is to check if they’ve met those standards.” This legal framework provides a unique layer of protection for Arizona homeowners, setting the state apart from others.

In some cases, Arizona law offers significant protection to homeowners through an implied warranty that cannot be waived. This warranty mandates that builders fix certain issues even after the homeowner takes possession. Porter explains, “The state-implied warranty in Arizona is something homeowners cannot waive; no contract can void it. If a builder refuses to fix something, homeowners can call the state, which sends out an investigator. If the issue is validated, the builder has 30 days to resolve it.” This warranty provides a unique advantage to Arizona homeowners, allowing them to bypass costly litigation in many instances.

However, not all builders are willing to comply without pushback. Porter recounts how some builders try to sidestep responsibility, especially when dealing with smaller issues. “Most builders initially contest my findings,” he says. “But when they realize I know the laws, they tend to comply.” For homeowners, knowing their rights is crucial. “If a builder contests my findings, I advise homeowners to file a state complaint, which usually gets things moving,” Porter adds.

While Arizona provides uniquely consumer-favorable protections to new homeowners, there are also markets for new-build inspections in other states. Porter explains that if he was operating in another state, his inspection would be done based on the builder’s warranty contract with the homeowner, instead of the state-implied warranties. “So every single thing in that contract is what I would be looking for,” he says. The fact that the state has codified these warranties into law and homeowners can file a complaint with the state to enforce the law provides homeowners with an added layer of protection though, whereas in other states homeowners often have limited recourse outside of suing the builder.

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Inspector E&O

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The New-Build Inspection Process
New home, or new-build, home inspections are a lot like resale inspections, but much more advanced, according to Porter. “For a new build, I’m inspecting for resale standards plus warranty items,” he explains. “Technically, I have to meet Arizona’s state inspection standards, but the scope of work is broader. In addition to the state standards, there are over 100 items that I’m checking that are specific to the new-build warranties.” This extended inspection time is necessary because new builds often have hidden flaws that aren’t immediately obvious.

Items to inspect for installation-specific standards include siding, plumbing, insulation, drainage and grading, and more.

This obviously makes the inspection process take a lot longer. “I might be on-site for four to eight hours, depending on the property. It takes longer than a regular home inspection. Now that I’m training other inspectors, I notice that a normal home inspection might take them a couple of hours. But when they do my process, a simple home will take them eight hours. As they get better at it, those times improve. And the same thing for me. Some of these new builds would take me eight-plus hours, but now I can get them down to about four hours,” says Porter.

Porter says he always finds defects. From broken tiles on rooftops to improper insulation, he has seen it all. “About 95 percent of the time, I find something wrong with the roof—broken tiles, roof leaks, you name it,” he says. His inspections reveal issues like broken or improperly installed trusses, insufficient insulation, and inadequate stucco installation. “I’ve never seen stucco installed to minimum standards, and insulation is subpar 90 percent of the time,” he notes. According to Porter, these issues are widespread, systemic, and occur because of untrained subcontractors. “Many of these findings show that the people doing the work aren’t experts. They don’t know the proper codes, and that’s why we see these recurring issues,” he says.

Builder Responses
Builders have reacted in varied ways to Porter’s popularity on newly built home inspections. Some superintendents and warranty reps welcome his insights and promptly address the issues he finds, but others resist, forcing homeowners to take matters to the state. “It really depends on the site manager or warranty rep,” he explains. “One of the best site managers I’ve worked with accepted everything I documented without pushback. They see it as an additional quality check and opportunity to improve. Meanwhile, others refuse to fix anything until forced by the state.”

Porter believes the causes of most problems with new builds are related to speed and lack of expertise. “There’s so much construction happening in Arizona that city inspectors can’t keep up. Builders are often using unskilled labor, which results in shortcuts,” he says. He thinks it’s a systemic problem, not just coming from one or two individual builders. “When you look at improperly installed tubs or showers, for example, it’s not just a one-off error. These mistakes are being repeated.” Builders will reach out to contractors and the contractors will push back, insisting they did it correctly. “They might even cite the wrong code,” Porter says.

What if builders refuse to address the problems Porter calls out? He advises his clients not to argue with the builder. “Anytime the builder says no to repairs or takes too long, you need to be filing your complaint with the Arizona Registrar of Contractors (ROC). they will send out an investigator and if they order the builder to fix it, the builder will then have 30 days to fix it or their license is in jeopardy,” he advises.

To make matters more complicated, each builder has their own rules and standards about home inspections—about where an inspector can step, what they can turn on and off, how they are allowed to test things in the home. KB Homes, a company in Porter’s area, explicitly forbids a home inspector from walking the roof, going into the attic, operating appliances, bringing a ladder onto the property, or engaging in “destructive testing” like filling the bathtub to overflow. KB also requires the home inspector be accompanied by a KB Homes representative at all times.

Because of these very stringent requirements, Porter says he never inspects homes built by KB Homes pre-close. He always does the inspection after the homeowner has taken possession. He recommends that homeowners get the home inspected within 10 days after closing, but he also does many one-year inspections for his clients as well.

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120-Day Warranty

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Dispute With Taylor Morrison
While the regular torrent of videos that Porter posts to his social media channels typically are a mix of educational content and humor, some of his critics believe that his content goes too far.

One of the largest builders in the United States, Taylor Morrison, has recently taken issue with Porter’s inspections, as well as his social media posts. “Taylor Morrison was once supportive at a corporate level, helping me resolve issues with site managers who refused to fix defects,” he explains. However, the relationship soured following an incident in which he documented an interaction with a site manager who blocked him from inspecting a home pre-closing.

As Porter explains it, an attorney from Taylor Morrison then sent him a letter (he refers to her as “Debbie” in his videos) and listed off a strict set of requirements if Porter wanted to continue to inspect Taylor Morrison’s homes pre-closing.

No problem, Porter responded: He would simply stop inspecting Taylor Morrison homes pre-closing. And that’s when they “seemed to lose it,” Porter says. Taylor Morrison filed a complaint with the Arizona regulatory board, alleging that the social media posts were unprofessional and damaging to their reputation.

In total, the company flagged about 20 videos they deemed problematic, although only a few actually involved Taylor Morrison properties. “Their complaint was mostly about my videos, not my actual inspections,” Porter explains, adding that the board’s reaction surprised him. “I expected the board to dismiss it outright, but they took it seriously enough to conduct an investigation.”

At the hearing with the Arizona Board of Technical Registration, the builder came out swinging—asking the board to suspend Porter’s license. “Taylor Morrison is asking that you control this kind of advertising, that you suspend his license until he has taken appropriate professional ethics training so that he has a much better understanding of what it means to be in this profession,” a Taylor Morrison representative said at the hearing.

Taylor Morrison’s accusations against Porter included blatant fraud and misrepresentation in his videos (claiming he fabricated the defects he reports on), as well as sexual harassment of “Debbie,” the builder’s legal counsel who actually attended the hearing and accused Porter of calling her a prostitute.

One video that became a sticking point in the Taylor Morrison complaint featured Porter humorously addressing a gas meter issue with an exaggerated reaction clip. Taylor Morrison argued that the video misrepresented the issue and painted them in a negative light. Porter disagrees, viewing the post as harmless satire. “That video was clearly labeled as satire, but they claimed it was false advertising,” he says.

The dispute between Porter and Taylor Morrison was covered by both local and national news, with some critics saying that the national builder was only further hurting their reputation by going after a home inspector to begin with.

Ultimately, the board decided against pursuing disciplinary action against Porter, but they did issue him a Letter of Concern, a minor reprimand that Porter considers both puzzling and frustrating. “They said it was false advertising, but it wasn’t even an ad,” he argues. Nevertheless, he says he’s definitely learned some lessons from the ordeal, saying that from now on he will only inspect Taylor Morrison homes post-closing and that he’s much more careful to blur things like logos. “I’ve learned to be more careful. I avoid sharing potentially offensive comments. It’s all about showing the facts and letting people draw their conclusions without my commentary,” Porter says.

Still More Complaint Drama
Unfortunately, the drama for Porter was not quite finished. After the Taylor Morrison complaint, Porter says, he was served with two more complaints from other home inspectors. In the videos he posted to his social media accounts, Porter says that the home inspectors repeat the same complaints that the builder made, but just in a different way. The crux of the complaints is that the home inspectors are upset that Porter posted videos online. They alleged that Porter “personally attacked” them online and that they’ve been getting death threats, dealing with stalkers, threats of violence, harassment online since then.

At the hearing with AZBTR, Brad Patterson, a home inspector in Arizona, testified that Porter’s comments about him online have “literally caused harassment and harm to my family, our business, and more importantly fake bookings, causing harm.” Nevertheless, the Arizona board promptly dismissed both complaints against Porter, meaning that he has now successfully defended his license against three complaints.

Moving Forward With Purpose
Porter’s mission is straightforward: protect homeowners and hold builders accountable. “Most new build homeowners don’t think they need an inspection,” he says. “My goal is to show them why they do, by providing real examples from my inspections.” In many cases, I’m able to uncover defects that would cost new homeowners tens of thousands, and even hundreds of thousands of dollars to fix. All on a brand new home!” Porter exclaims. Given Porter’s incredible reach online, he’s also serving as a great example for why homeowners everywhere ought to get an inspection, whether buying a new-build or a resale home. Many of Porter’s videos have thousands of comments and his most popular videos have several million views.

His experience with Taylor Morrison and the Arizona regulatory board has been a learning curve for Porter, but it hasn’t diminished his resolve. He’s adjusted his approach, focusing more on educating homeowners and providing value without unnecessary commentary. “I’ve learned to keep it straightforward, show the evidence, and let people make their own judgments,” he says.

In term of advice for other home inspectors, Porter recommends getting familiar with the builder’s warranty contract and your state law if you are doing new-build home inspections. Failing to do that, according to Porter, does a disservice to the homeowner.

“Homeowners deserve to know what they’re getting,” he says. “It’s about transparency and holding builders to the standards they’ve promised. As long as I can keep doing that, I’m willing to deal with the pushback.”

To check out Porter’s social media accounts, search “CyFy Home Inspections” on TikTok, Facebook, or Instagram, or visit:

Facebook: https://www.facebook.com/cyfyhomeinspections
TikTok: https://www.tiktok.com/@cyfyhomeinspections
Instagram: https://www.instagram.com/cyfyhomeinspections

About the Author
Isaac Peck is the Publisher of Working RE magazine and the Senior Broker and President of OREP.org, a leading provider of E&O insurance for savvy professionals in 49 states and DC. Over 14,000 professionals trust OREP for their E&O. Isaac received his master’s degree in accounting at San Diego State University. Reach Isaac at isaac@orep.org or (888) 347-5273. CA License #4116465.

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OREP Insurance Services, LLC. Calif. License #0K99465

 

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Comments (2)

  1. Peace to everyone in home inspections business,try to get by on 1-2 home inspections a week until thses dangerous times come to a nearing End!change your diet try eating light
    85 % more,vegetables ? And social life cut back 90% and if we follow this pattern we should all have a safe and effective peaceful Environment and Peaceful New year Good luck ?

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