Is there room for more?

Originally Posted By: Joe DiGiacomo
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Hello, NACHI has some great things out there to support people like myself who would like to get into the HI business and I appreciate that. I have one major concern that has been bothering me… is there enough business out there to make a comfortable living ($50,000 plus) a year. I am looking to open my services in the Chester and Lancaster Co. areas, seems like a lot of private and larger agencies in this area. Is there an any way someone could give me some ideas of demand vs supply in this area and where it is headed after interest rates start to slowly climb again? I really enjoy this site and will be joining NACHI soon if the market will bare it.


Originally Posted By: jhagarty
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Joseph Hagarty


HouseMaster / Main Line, PA
joseph.hagarty@housemaster.com
www.householdinspector.com

Phone: 610-399-9864
Fax : 610-399-9865

HouseMaster. Home inspections. Done right.

Originally Posted By: rking
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Joe,


I checked the statistics of resale homes in my area, available through your local real estate association, or on government statistical sites, then went to local real estate offices and counted the number of brochures there for HI's, checked the yellow pages and internet to see if I missed any and then did the math. Divide the number of resale homes by inspectors and that will give you a good idea.
Good Luck!!


--
Muskoka Home Inspections
"Wisdom is the Anticipation of the Consequences"
Steering Committee Member At Large

Originally Posted By: Joe DiGiacomo
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Thanks for the advice guys.


Joe, I understand what you are saying and I am ready to dedicate time and commitment into my business, but just like a good business man would do, I believe you need to test your market and customers needs or demand verse the supply that is already available to that customer base. So I appreciate your response, but you really didn’t help me with my question.


Robert thank you for that info, was trying to save a bit of time and leg work thinking some of you may have already investigated this and had some data or suggestions as to the customer climate. However, I have started my research talking to a smaller realty firm and they tell me the approx percentage of their customers that request HI services are less than 30%. Is this the exception or the norm. If this is closer to the norm, than seeing how many home sale transactions vs HI available will not give me very accurate data.


Any other responses would be appreciated!


Originally Posted By: mbailey
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Joe D. ? you already wrote your own best answers in your post. Some things can not be pre-determined. Joe H. is correct in his statement. It is what you put into it ? total package from inception to success (or whatever else).



Mark Bailey


Stonegate Property Inspections LLC


Ponca, NE

Originally Posted By: rking
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Hi Joe,


Less than 30%?!!!

In my area, which is in Ontario, Canada, 90% or more of the homes sold have an inspection done either pre-listing or pre-purchase! That number gets even higher, approaching 100% in larger urban areas, my area is 75% rural and cottage.

But up here "A satisfactory home inspection" is now a standard clause in all offers to purchase (real estate is putting ALL liability on the HI).

Is it the same down there????


--
Muskoka Home Inspections
"Wisdom is the Anticipation of the Consequences"
Steering Committee Member At Large

Originally Posted By: Joe DiGiacomo
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Robert, Like I said I am new to this and still have alot of info to gather, but from what I understand the HI is not held liable for anything, outside of ethics and honest educated evaluation, maybe thats why such a low percentage, but remember that was only one very small office I spoke with. Need to research more. I thought I would have gotten more input on this board…maybe everyone’s on vaca?!


Originally Posted By: Joe DiGiacomo
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Robert, Like I said I am new to this and still have a lot of info to gather, but from what I understand the HI is not held liable for anything, outside of ethics and honest educated evaluation, maybe that’s why such a low percentage, but remember that was only one very small office I spoke with. Need to research more. I thought I would have gotten more input on this board…maybe everyone’s on vaca?!


Originally Posted By: rking
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Hi Joe,


I am not sure where you are going to be doing inspections but you should be talking to existing HI's in your area, check NACHI website for some.
In Canada in general, and I think, read THINK, that Hi's can be held liable for a lot of things just about anywhere.
Our laws up here hold me liable in 'Tort Law', negligence law basically, for "Six years from the date the problem is NOTICED"!!!!
Loosely translated this means FOREVER!!!!!!!!!!!
There are certain things that the client has to prove to get me on this, but it is possible.
Look up Tort Law, and check with other inspectors, I know rules and laws vary from region to region and state to state but you better beware before you jump.
Good Luck!


--
Muskoka Home Inspections
"Wisdom is the Anticipation of the Consequences"
Steering Committee Member At Large

Originally Posted By: Richard Stanley
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You do not allow as to where you reside. The national average is about 70% of residential transactions involve an inspection and that has increased from about 40% a mere 10 years ago. That little realty office is blowing smoke up your butt.


Originally Posted By: gbeaumont
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Hi Joe


you raise an interesting question as to how well the market is saturated in certain areas. as others have noted in some areas 90% plus of all real estate sales involve an inspection, plus there are many other types of inspections eg insurance inspections.


My own way of thinking about this is simple demographics, The US has a population of circa 270 million and there are reckoned to be about 25 -30,000 full and part time inspectors working in the US, so you have to start with an average of 1 inspector per 10,000 of population.


But the inspection business is like any other the failure rate on new business start ups is about 50% over the first 3 years of operation, and the top 20% of inspectors do 80% of the business. There are undoubtedly opportunities for new inspectors as the market expands, and older inspectors retire. and good inspectors can always take work from week ones.


I hope this helps

Gerry


--
Gerry Beaumont
NACHI Education Committee
e-mail : education@nachi.org
NACHI phone 484-429-5466

Inspection Depot Education
gbeaumont@inspectiondepot.com

"Education is a journey, not a destination"

Originally Posted By: Joe DiGiacomo
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Thanks guys good info. Sorry, Southeastern PA area. Would like to hear from people in the area too, like Joe M, heard good things about you. Also more about the liability issue would be great. Thanks for your time.


Originally Posted By: jmyers
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Joe D.


I don't know who you were talking too but they are liars! I deny it, I was not even there that day. icon_biggrin.gif

I have to agree with Joe H. How successful you become in this business will be more dependent on how much effort you are going to put into it.

As with most of the area around here, it just keeps growing. The plus side of real estate is that no matter if it is a seller's market or a buyer's market the market is there, people will always need homes to live in.

The liability issue is a difficult one at best. Most inspectors limit their liability to the fee paid for the inspection. There are certain other things that you can do to limit your liability.

One of the most common mistakes that I have heard is to make recommendations on "how" to fix issues, this is not your job. Your job is to simply find them and report them.

Here is what happens. You observe and report the attached garage on a house is not up to current codes because the attic space between the house and garage are not separated by fire rated drywall. You recommend adding the drywall to the attic space to bring the house up to current code standards.

Here are the some of the problems that I have with this statement.

1. You are not a code enforcement official. While it is good that you are familiar with current codes you should never place yourself in the position to be anything but a lowly home inspector. When you start quoting codes, the attorney will maintain you placed yourself in that position and you should have found all code violations in this home, which you could not possibly do in a million years.

2. You recommended adding the fire rated drywall to the attic space. Now you are placing yourself in the position to be a contractor. Remember you are a lowly home inspector. So a contractor comes in and adds the fire rated drywall into the attic space just like you recommended. Later a fire destroys the house and one of the occupants is killed because the drywall was not properly installed. Another contractor gives an opinion that they garage area should have been drywalled instead of the attic space and there was no way the other contractor could have possibly made this installation safe, but this is the fix you recommended.

Here is the jest of what is being said here. Report exactly what you see, on the day of the inspection. If you see rust on the exterior of the heater, report rust on the exterior of the heater, no more.

Does that help?

Joe Myers


Originally Posted By: jhagarty
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icon_question.gif



Joseph Hagarty


HouseMaster / Main Line, PA
joseph.hagarty@housemaster.com
www.householdinspector.com

Phone: 610-399-9864
Fax : 610-399-9865

HouseMaster. Home inspections. Done right.

Originally Posted By: rking
This post was automatically imported from our archived forum.



Joe M,


That is a very good explanation of the liability tricks. You helped me with that one! Probably even helped Joe D. Good job!
But "lowly inspector", do we even make it that high on the ultimate scale??


--
Muskoka Home Inspections
"Wisdom is the Anticipation of the Consequences"
Steering Committee Member At Large

Originally Posted By: Joe DiGiacomo
This post was automatically imported from our archived forum.



Wow, now we’re talking…for a minute I thought everyone was reading my question and thinking it was too stupid to comment on. Really thanks a lot! I have been trying to talk with others in the business and get info from other organizations for months and there’s like some secret wall I could not get past…this is a great site and NACHI seems to be a very user friendly and helpful organization with helpful members.


With that all said, I am very surprised at what you said Joe H. making money is certainly one of my main motivators. Don’t get me wrong not looking to make millions, just a comfortable life style for me and my family. Tired of working long and hard in order to make someone else rich. Getting too old and wise to put up with some of these companies out there that just don’t give a damn. Thought I would give it a try myself and control my own destiny (I really enjoy construction, grew up around it)…started my own construction related business years ago on the side, but it grew to fast and I took the safe route and stayed with my full time job at the time and dropped the business. But let me ask you, isn’t that why we work… to make money, otherwise I would be traveling the world with my family. So I guess you are onto something there Joe H if there is no money there to be had, I’ll need to find another field of interest, if that were the case I would be a priest or something, than I could get a big audience each week. I may take you up on the call, I would love to talk to you a bit, Also Joe M sounds like a good one to talk to if he has time, maybe I can set up a ride along too.


I guess I am at a point in my life I need a change, control of my own destiny, have lots of experience, education and knowledge to put to use, but YES I do want to make a nice living and potentially grow my business. Your response would be appreciated. Do most HI people have another source of income???


Originally Posted By: jmyers
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Joe D.


While your intentions are good, you may want to re-think getting into business for yourself. Being in business for yourself does not mean you are going to work less harder or even fewer hours than if you worked for someone else. I would even venture to say that you end up working harder and longer. When you work for someone else you are done when you leave, that is not the case when you are working for yourself.

Ultimately you do have the choice when you work and how hard but if you plan on eating you will take what you can get when you can get it. You can really plan on not doing anything but working hard and long for at least three years to even have a chance at being successful. With some it comes quicker and easier but they are more the exception than the rule.

I like working for myself because it allows me flexibility. If I don't want to eat, I don't work.

BTW....I work every day of the year except Christmas! icon_biggrin.gif

Joe Myers


Originally Posted By: rray
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I work every day of the year. There are lots of people here who are not Christians and so do not celebrate Christmas. Give me daylight and I’ll work.



Home inspections. . . .


One home at a time.


Originally Posted By: Joe DiGiacomo
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Joe M. did you read the whole sentence, ‘tired of working long and hard in order to make someone else rich’, ( you can’t read half the sentence Joe, kind of like inspecting half a house, HAHA) I don’t mind working hard, especially when I can create my own high quality, standards and efficiencies. I am well aware of the small percentage of new business that fails, but am also aware of many but not all of the ways of avoiding that happen. I guess my original question is up to me, seems as though there are HIs out there full time making a great income, some scraping by, some out of business, others semi retired and so on. Not really what I wanted tro hear but I guess it is what it is. My biggest fear is taking that chance…it is a chance, and not having a consistent secure environment for my wife and children. Would Joe H and Joe M be interested in me tagging along for an inspection, how much notice is reasonable so that I can work it around my current employer?


Originally Posted By: jmyers
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Joe D.


Maybe I did not explain this well enough. You will be working longer and harder without ever making yourself RICH! It takes a while if you want to live comfortably and it will depend on how long and hard you work to get there. icon_biggrin.gif

Better?

Joe Myers