Home Warranty

[rray (Russel Ray)]

@wthurber

As far as what he suggests the industry do, I am surprised the industry has never lobbied to make it illegal for real estate agents to recommend any home inspector as it can obviously be a conflict of interest. That being said, I feel that would actually be detrimental to my business. I’ve created awesome relationships with the realtors who I work with, most if whom are really good agents with their clients best interest in mind, and I love working with them. The ones that think I’m too harsh or thorough, well i don’t want the stress of working with their clients anyway, so I’m glad they don’t refer me. All you can do is be the best type of inspector that you are, whether it’s thorough and knowledgeable, or a powder puff. Unfortunately there’s a market for both. But I don’t want to have to spend tens of thousands of dollars on branding and advertising just to have the privilege to work with more clients of the bad realtors and less of the good ones. I’d prefer to continue working with the realtors who’s ethics match with my own. Much less stress and bs that way IMO.

Before I opened my home inspection company here in San Diego in 2001, I had spent the previous 8 years flipping properties. When I was considering home inspections, I approached about 50 of my Realtor friends with the idea. 100% of them said, “Russel, you’d be a great home inspector.” I thought so, too. So I went into home inspections.

Two years later and not a single one of those 50 Realtors had given me any business. Why? Well, one of the Realtors lived just a couple of blocks from me. One day I saw that he was having an open house at one of his new listings. I stopped in to see the house because I had always been interested in it and because I knew Tom. After several minutes, I asked Tom why he had not referred any business to me. He said, “Russel, I have no doubt that you are a great home inspector. However, I’ve been a Realtor for 27 years. I have lists of 10 home inspectors, 10 plumbers, 10 electricians, etc. I have worked with them in the past 27 years. I know everything about them. I know what kind of vehicle they drive, what kind of tools they have, what clothes they will wear to the inspection, how they talk, how they act, how they write. I’m comfortable with them. I would be happy to put you on my list as #11 but you should know that I rarely have to go past the fourth or fifth inspector.”

The key sentence in all of that is, “I’m comfortable with them.” People like to be comfortable. They like to be around other people who make them feel comfortable. They like to work with people who make them feel comfortable. Personally, I believe all this brouhaha about inspectors writing soft reports is just a bunch of hogwash. Every time I hear an inspector complain about another inspector writing soft reports, I simply think about the first inspector that s/he doesn’t understand basic marketing. MHO.

I thanked him and took off. Never in my 14 years did I get any business from him, or from the other 49 Realtors.

During the real estate bust and the Great Recession, I had something like 450 Realtors who referred me as one of their three inspectors. More importantly, I had 47 Realtors who referred me exclusively. Those 497 Realtors got me through the real estate bust and the Great Recession, and I helped them, as well, by doing a good, thorough job so that neither the buyers, the sellers, the Realtors, or the home inspector ever got caught up in a lawsuit.

[rray (Russel Ray)]

@dbowers

Wayne I’ve been involved fighting home inspector bills in 4 different states and it has always amazed me how many inspectors I’ve met that whine and moan about being pushed around by REA’s or being under the REA’s thumb that when push came to shove would NOT do anything that might make the realtor community unhappy.

Inspectors that would complain BUT refuse to write complaint letter to their legislators rebutting the REA’s telling how vitally important it is to national security, etc that they get HI’s licensed. OR inspectors that would complain in HI meetings BUT refuse to take off 1 day and go to a legislative hearing AND stand and testify rebutting the REA’s comments to legislators about the thousands of problems there are with inspectors AND how all the realtors want is well trained, knowledgeable inspectors.

In short MANY inspectors would fight to the death to NOT get something in a real estate bill that would prevent agents from referring inspectors … Their entire business has been built on pleasing an agent AND if they had to change that and market the general public, they’d be out of business.

My Economics 301 professor at Texas A&M University was none other than U.S. Senator Phil Gramm, before he became a career politician. I made a C in his economics class (or maybe he gave me a C because he knew that 20 years in the future, I would hate his politics…). However, I did take away one very important aspect that I have practiced throughout the years, and that is to write my legislators and representatives. Gramm taught me to let them know what I thought, to complain about things I didn’t approve of, and to offer solutions. He taught me that just complaining won’t get anything done, but if you complain AND offer a solution, it’s likely that your voice would be heard. It doesn’t even have to be an original solution. I could simply say, Here’s the problem as I see it, and John Doe over here has what I think is a great solution.

That tactic has garnered me a lot of personalized letters with real signatures from the likes of Ronald Reagan, George Bush I, George Bush II, Bill Clinton and on down to State, County, and City levels.

During my tenure as a home inspector, I wrote all my representatives on the first Saturday of each month. I was, and still am, a big proponent of licensing for home inspectors, if for no other reason than the fact that it makes absolutely no sense whatsoever that an unlicensed home inspector is providing an opinion on the work of the licensed general contractor/builder, the licensed plumber, the licensed electrician, the licensed HVAC technician, the licensed chimney sweep, the licensed roofing contract, even the licensed landscaper. I got a few responses–Senators Boxer and Feinstein among them–but no legislation was ever proposed.

[rray (Russel Ray)]

@wthurber

Dan - I agree with what you said 100%. That’s the definition of a whiner to a tee. Complaining and whining that outside sources are their problem, then refusing to do anything about it.

I went through a short period where I had the same feeling, however I quickly kicked my own butt and realized a few things.

a) Regardless of the rules and regulations, I won’t get them all. As long as I know I am doing my best and marketing and educating to the best of my ability, in the end it will work out. My marketing can always use a huge improvement, so if I’m feel slow, I can blame myself for it and be motivated to do more, rather than wallow in self pity. I’m actually just in the process of getting Home Binder set up now so that I’ll have yet another reason to market why my services can better help agents who choose to refer me.

b) If I currently have 1/3 of the local market share, and at this point I am happy with all the agents that refer me and I can look forward to almost every inspection knowing I can do my job as required without concerns about having to unnecessarily kiss butts. Where there is also another 1/3 of agents out there who I don’t even want to work for, if I just randomly got business from websites, signs, adds, etc. I’d be doing alot more for the bad ones and alot less for the good ones. I hate doing inspections for clients of realtors who hate me so much that they refuse to step foot in a house that I’m inspecting (it’s happened, lol).

c) SEO, high end websites, signs, newspaper and radio ad’s, the race to have the most widgets, etc are extremely expensive and is like trying to shoot fish out of a barrel. Only one out of 5,000 people reading the newspaper are looking for a home inspection that morning if you’re lucky for example. Where building relationships with quality agents is actually very inexpensive if you understand basic marketing and also keep their interests in mind as well. And no that doesn’t mean soft reports, anyone who understands marketing at all will understand what I mean. Those who don’t understand are probably in the wrong business.

Everything you say there indicates to me that House Key News would be a great marketing weapon in your arsenal.

[escanlan (Emmanuel Scanlan, TREC# 7593)]

@jfrederick

You’re exactly right. And at least you can admit it. Most like to pretend it doesn’t happen or try to come up with lame excuses on why.
Regardless, my problem, though, is you’re in a place where you can get away with not working with these types of people due to the massive amounts of population and more REA’s. You can just move on, because there’s so many other people. Obviously, didn’t have any effect on you.
In my area, that’s not the case. I also have to deal with the small town “grapevine” effect as well - all of the “little” REA’s that “look up” to the “bigger” agents, hear about the Home Inspector to stay away from. Not to mention all of the home buyer’s that hear the same unjustified things.
The biggest problem, though, is that the HI profession knows exactly what’s going on, just lets it happen, & doesn’t do anything about it.

@jfrederick

Enlighten me & those who don’t understand. We’re all here to help and I’m asking for your help, please. thx in advance.

You are asking for help and as such it is easier to help when we can understand your thought process. So what do you recommend the HI profession do about this?

[dbowers (Dan Bowers, CMI, EDI)]

Russel …

it makes absolutely no sense whatsoever that an unlicensed home inspector is providing an opinion on the work of the licensed general contractor/builder, the licensed plumber, the licensed electrician, the licensed HVAC technician, the licensed chimney sweep, the licensed roofing contract, even the licensed landscaper.

If I understand you correctly … you live someplace where the trades you mentioned above have mandatory state wide licenses. Is that amazing or what??

[rray (Russel Ray)]

@dbowers

Russel …

If I understand you correctly … you live someplace where the trades you mentioned above have mandatory state wide licenses. Is that amazing or what??

Yep. Even hairstylists are licensed. However, I never comment on one’s purple, red, green, or blue hair, or some of the interesting haircuts these licensed hairstylists create.

[dbowers (Dan Bowers, CMI, EDI)]

Licensed tradesmen, builders, etc … Ain’t that a hoot.

[jolson8 (John Olson)]

So what is the best warranty company to use?

[rray (Russel Ray)]

@jolson8

So what is the best warranty company to use?

Probably depends on your personality.

[frotte (Frank Rotte)]

@rray

Probably depends on your personality.

And your ethics.

[rray (Russel Ray)]

@frotte

And your ethics.

And your marketing skills.