The premier source for home inspection news and information. Whether you're a homebuyer or a licensed home inspector, you'll find valuable insight on the world of home inspection training and competency on this blog.
Earthquake Retrofitting and the Real Estate Inspection
Americans are in love with the west. Each year, despite predictions to the contrary, Americans move from colder parts of the country to the sunshine states of
People who want to become home inspectors, however, must be far more practical when seeing that older homes have been correctly retrofitted for earthquakes - a real estate inspection will go a long way toward making sure someone's dream house doesn't turn into a nightmare during an earthquake.
Allied Schools, www.homeinspectioncourse.com
Georgia May Require License - Students Will Need Better Home Inspection Training
State legislators in
The state's efforts will hopefully root-out poor inspectors. Gary Duncan, operations manager for the Georgia Association of Home Inspectors, recently told the
One of the major signs that an inspector is not qualified is their price: a quote of $150 (in
Individuals who want to become a home inspector should make sure that they attend a nationally-accredited home inspection school. A quality home inspection course will ensure that students get a solid foundation for their home inspection career.
By Robert Fay, Allied Schools, www.homeinspectioncourse.com
Real Estate Home Inspection and E&O Insurance
Honest mistakes happen regardless of a person's level of professionalism, training or good intentions. And certified home inspectors, like everyone else, must take the possibility of error into account every time they climb into their car and head to a new real estate inspection.
Understanding that lawsuits are commonplace these days, home inspectors should look closely at the benefits of Errors & Omissions insurance (E&O). E&O insurance is liability insurance that covers your company if a client claims that you did not live up to the terms of the business agreement.
Future home inspectors should realize that there's more to consider than just the nuts and bolts of a home inspection job when you undertake a home inspection career.
As home inspections become more common, clients increasingly expect home inspectors to go beyond their job description, acting as mold inspectors, building code experts or licensed contractors. A very simple and pain-free way for home inspectors to protect themselves from risk is the pre-inspection agreement, which lays out what you will and won't do during a home inspection.
Yet even a pre-inspection agreement won't cover a home inspector from a wide range of legal action - that's where E&O insurance comes in. It's more reasonable to believe that you might never get sued over a mistake, than to suggest that you and your inspectors won't ever commit a blunder on the job.
Home inspection business without E&O insurance can go belly up after a devastating lawsuit; clients can and do sue for millions of dollars if a home inspector overlooks something that later leads to trouble. A home inspection business with E&O insurance, however, will only pay the policy deductible, which may be the difference between spending a few thousand dollars and a bankrupt business.
People looking at home inspection training should inquire whether a prospective home inspection school has relationships with professional home inspection associations. Some schools offer waived or discounted membership fees to associations, many of which offer reduced rates on E&O insurance. Don't wait until it's too late to protect yourself and your business from a devastating lawsuit.
By Robert Fay, Allied Schools, http://www.homeinspectioncourse.com/
Common Real Estate Inspection Defects by Region
Just like accents, cooking and sports loyalties, common home inspection defects vary by region across the country. Jennifer G. Prokopy in the Jan. 2008 edition of the ASHI Reporter writes about the local inspection variances that keep certified home inspectors from Seattle to Key West on their toes during a home inspection career.
Here's some common things to look out for by region (the list is by no means exhaustive):
Northeast
Damaged roof trusses and I-Joists
Clogged HVAC systems
Ancient chimneys
Poorly installed siding and trim
Southeast
Roofs (damaged from sun and heat)
Termites
Issues with code authorities
Poor workmanship during the recent building boom
Midwest
Poor workmanship during the recent building boom
Moisture intrusion from poor roof jobs
Wood rot
Water in basements
Badly constructed decks
Northwest
Moisture intrusion
Poor drainage systems
Inadequate exterior grading
Wood destroying insects
Poor workmanship in general
Southwest
Improper flashing for shingle roofs
Poorly installed roof trusses (even on custom-built homes)
Electrical wiring issues
Certified home inspectors are certain to encounter regionally-specific defects as the progress through their careers. Yet Prokopy points out that home inspectors should always be ready for that new, surprising deficiency that breaks the mold. One of the best ways to prepare for the unexpected is to receive home inspection training from a quality home inspection school. When you become a home inspector, you'll have to contend with both common and uncommon defects. Home inspector training prepares you for as many scenarios as possible so you'll be prepared for professional success.
Grow Your Real Estate Home Inspection Business
As the New Year begins, prognosticators are doing their best to get a handle on where the real estate market will end up in 2008. Yet the fact remains that millions of homes will be bought and sold regardless of where the market ends up. When you become a home inspector, you'll be part of a profession that simply doesn't stop during a market slowdown.
For certified home inspectors who own their own inspection businesses, knowledge of sound business practices are useful no matter what the market is doing. And graduates of accredited home inspection schools should expect their courses to include information on starting an inspection business.
In the November/December 2007 issue of The NAHI Forum, Rick Bunzel of Pacific Crest Inspection in Anacortes, Wash., outlined 10 ways that a home inspector can succeed when the real estate market is sluggish.
Mr. Bunzel's tips are an excellent resource for both veteran business owners, as well as recent graduates of home inspector training. The following is a summary of his business advice:
1.) The Market Doesn't Stop - Beware of negative media stories. Despite slowdowns, buyers are still making offers on homes.
2.) Business Plan - Devise a business plan with a marketing component. Consult this plan as you move forward
3.) Time Management - Block out your time. Deal with certain aspects of the business at certain times each day.
4.) The Pitch - Develop a 90-second pitch that will sell realtors on your home inspection jobs.
5.) Rise Above the Pack - Market slowdowns make good home inspectors look even better. Home inspectors with poor training and even poorer skills won't last long.
6.) Know the Numbers - Hire a good accountant and stay out of the red!
7.) Optimism - Successful salespeople and businessmen stay clear of negative people.
8.) Get Mentored - Find a successful home inspector or realtor and pick their brain. Share your business plan with them; get professional feedback.
9.) Work/Life Balance - Schedule time for your family and friends. Slowdowns are an opportunity to have more time with loved ones.
10.) The Comback - The market will pick up; be ready!
Becoming a home inspector means that you'll have to be both a skilled certified home inspector and a competent business owner, but not to worry, an accredited home inspection course will prepare you to succeed.
Marketing Your Home Inspection Business
The following article is an abridged version of a presentation that Scott Swickard, owner of InspectOC, and president of the Orange County Chapter of California Real Estate Inspection Association and American Society of Home Inspectors (CREIA/ASHI), gave in Costa Mesa, Calif., this past fall.
Don't let anyone claim that there is a "magic formula" for successfully marketing your home inspection business. If there was, everyone with the formula would be successful. No one can utilize all marketing methods consistently, and still have time for the business that you hope to generate. You must decide what you are comfortable doing, what fits your personality and business goals, and choose what's comfortable. In no way should the following list be considered exhaustive.
Branding
Branding is simply how you want your company to be known by your clients and referring agents. It does not matter whether you prefer to be known by your name "Joe Smith Inspections," or something unique like "See More Inspections." It could also be a unique tag line, such as "Joe Smith Inspections: We treat Your Dream House as our Own." Whatever name or tag line you choose, plan to have it prominently displayed on all your materials. This includes business cards, brochures, a website and inspection reports.
Passive vs. Active Marketing
There are two general methods for getting your name out, passive, where clients or agents find you, and active, where you initiate contact. We will not debate here whether it is more effective to actively market to prospective home-owners, sellers, buyers or real estate agents. Much of my business comes from clients who are repeat buyers, investors or have told friends or family members about his services. This is a great compliment, and is the result of outstanding service that was provided.
Passive
Examples of passive marketing include the Yellow Pages or other business phone listings, your outgoing message on your voicemail and website listing in search engines. This also includes having your business listed in any of a number of association search features. Wherever a potential client finds you, the creativity of your brand, or strength of your outgoing message may help capture the phone call, versus someone without a distinct business identity.
Passive marketing means simply having your business listed in a location where a potential client may be searching for your services. The more prominent you can be in these locations, the better your chances of securing the client.
Active
Active marketing should be your primary focus. It includes all outgoing communication, written, verbal and personal contact to prospective clients or agents. The following are a few examples of active marketing that have proven to be effective in the home inspection profession.
Personal Contact - Don't forget that before, during and after every inspection, you are marketing your business, through the first phone contact, face-to-face with everyone at the inspection and follow-up contact. How you present and conduct yourself, communicate your findings and follow-up are important to gaining future business.
Mailing - While this can be relatively expensive, a targeted mailing can be effective in getting a brochure or other selling message out to clients/realtors. Mailing lists can be purchased for a low cost, and can be customized as needed. This method can also be used to send a mailing to target a new housing neighborhood for 11-month warranty inspections. Printed material can have an unlimited life.
Email - Much less expensive than physical mail, email blast messages can have a broad reach, but may be less effective. The messages are easy to delete without reading, and do not have the same impact as a printed page. You can also be listed as a "spammer" which can interfere with normal electronic communication. However, if proper rules are followed for creating and maintaining your contact lists, you can reach many more potential clients through this method.
Newsletters - Newsletters can either be mailed or sent electronically. One benefit from an effective newsletter is that you can become the "go-to" expert if a potential client or agent has a question.
Advertising - This could include classified advertising in the local newspaper, or specialty advertising in trade publications. There are many such publications by local real estate organizations and other vendors soliciting the real estate industry. If these ads are seen by agents and brokers, or potential clients, it may be worthwhile.
Visits to Open Houses - Agents are frequently sitting on open houses during weekends. This may be an opportunity for you to go out and meet agents without pressures of time restraints. Be prepared to offer brochures and samples of your reports.
Real Estate Office Visits - This is a way to deliver brochures and get to know agents working in the office. You can also ask about office meetings held, and whether vendors are permitted to present general information or provide training to agents.
Association Membership - Most realtors belong to a local chapter of the National Association of Realtors (NAR) or similar organizations. Most of these chapters allow affiliate membership, which provides the opportunity to attend numerous events attended by realtors.
Agent Training - Most real estate offices are looking for vendors to provide training to their agents. If you have a quality presentation, and a reputation for giving a good presentation without putting people to sleep (it takes practice!), you may be called upon to conduct training sessions. You may have to provide lunch or snacks, but it is a small price to pay to be looked upon as an expert.
Website - While passive in some respects, a good website can become a powerful active marketing tool. If you have a website, make sure it goes beyond just the basics of describing your services and home inspections. Information about common defects, pictures of problems, and links to other important sites (CPSC, mold info, asbestos, defective furnaces, etc.) can become a valuable resource for agents and clients to use frequently. Publication/Articles - If you are good at writing original articles, there are numerous publications, including industry news and even the local newspapers, looking for information that would be useful for their readers. If the information in your article puts the inspection industry in a positive light, or you offer helpful ideas to the readers, they will hopefully have your contact information as part of the article to contact you later for business referrals.
Concluding Thoughts
When business is going strong, as many of us may have experienced in the recent real-estate boom, it is easy to overlook marketing efforts, or put them on the back burner. The key to marketing is consistency. Every week, a certain number of hours should be committed exclusively to marketing. This should include networking or office meetings, getting out and meeting agents or prospective clients face-to-face, or preparing and mailing marketing correspondence not related to a specific inspection. The number of hours is up to you, just stick to it.
To learn more about Scott Swickard and InspectOC, please visit www.inspectoc.com.
Who's Chewing on the House? Certified Home Inspectors and Termites
Insect infestations are a concern to all home buyers and sellers, which makes it something that certified home inspectors should know something about. And when it comes to house invaders, the termite is certainly the king of damage.
Each state has laws concerning the regulation of termite inspections.
On a home inspection report, you may be restricted only to the most general comments about termites; depending on where you live, you might have to call in a professional termite inspector. Before you get your real estate inspection career off the ground, check with local agencies to see what you can and can't say during a home inspection job regarding termites.
Despite that caveat, it's important that a licensed home inspector understands some of the habits of this pesky bug. There are thousands of termite species in the U.S., but we'll look at the characteristics of four termite species that can cause great problems in and around the home.
Subterranean Termites:
-Live underground in protected nests
-Resemble grains of rice
-Feed on wood
-Develop wings in the spring
-Dried insect wings are a sign of their presence
-Build tunnel systems
Drywood Termites:
-Create nests above ground
-Infest attic or high spot in home
-Don't require a water source
-Football-shaped pellets fall from nest
Dampwood Termites:
-Rarely found in the house
-Usually adjacent to house near moisture
-Do not construct tunnels
Formosan Termites:
-Mainly found in Texas and Louisiana
-Colony is usually larger than subterranean termite colonies
-Able to chew through metal and plastic to reach wood
There's nothing nice to say about termite infestation, but it's a reality that home inspectors will encounter time and time again. Professional home inspection training will certainly expose you to the general characteristics of termites and their ways, but it is each inspector's responsibility to know the applicable local laws regarding inspections and termites.
