Originally Posted By: gromicko
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http://www.nachi.org/marketanalysis05.htm
http://www.nachi.org/marketanalysis05.htm
Originally Posted By: lkage
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Is the existing market demand for inspections equal to homes sold?
Originally Posted By: wdecker
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Nick;
Please supply the statistical norms and assumption related to this anaylsis.
Partial data is suspect.
Originally Posted By: mtimpani
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very nice
Originally Posted By: jhagarty
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Nick:
Interesting chart as this is how I base the analysis of my Business with regard to percentages of Market share.
William:
(Being simplistic as there are other factors that add/subtract from the calculation...) To assess your marketing efforts:
In each month, you need to know the number of housing units available for Sale as well as the number of units Sold.
Compare the number of housing units Sold by the average number of homes that would be inspected in your Market to determine your Market share.
Recognize the physical number of Inspectors in your market with regard to housing units available to determine the focus of your continued marketing efforts.
Originally Posted By: jhagarty
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Originally Posted By: mboyett
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Regardless of the details and statistical validity of the numbers the end result is obvious, i.e. NACHI can attract a lot more inspectors. That would be hard for anyone to deny. For instance, as of Sept there were 4,037 licensed, active inspectors in Texas. There are 272 NACHI members in Texas, that’s only 6.7% of the existing inspectors!
I do think the assumed 400 inspections per year is way, way too high. According to a recent study the average full time HI performed 222 inspections last year. Using that figure would reduce the NACHI inspectors % to almost half of what’s shown, an even more daunting challenge.
Originally Posted By: cradan
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.
Farewell.
Originally Posted By: aatkinson
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Your always welcome to come to the" great white north"
–
–
Allen Atkinson
President
NACHI GTA Chapter
ACISS Home Inspections Of Peel
Brampton, Ontario
(416) 550-4345
allen_atkinson@sympatico.ca
Originally Posted By: Nick Gromicko
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The # of inspections needed to be performed per year (existing market size) was based loosely on residential sales and the # of inspectors needed to satisfy the existing market’s demand for inspections is based on 400 inspections per year per inspector which is what I think would be the most a full time inspector could knock out. Both of these are high in that even though many homes that aren’t for sale get inspections and many homes for sale get inspected more than once, the number of homes sold is still likely much greater than the number of inspections performed but the 400 number is also high as it represents what one could categorize as a full-time inspector and as we know the market is full of part time inspectors. Obviously not every home for sale gets inspected and obviously not every inspector is working full time. Both of these numbers are impossible quantify exactly but I am quite certain that they are both biased in the same direction… high, and so the # of inspectors needed to satisfy the existing market’s demand for inspections, which is merely the one divided by the other is not so affected by these same direction biases.
In other words, though the number of inspections needed to be performed may be high, the number of inspections performed per inspector per year is also likely high. Increasing (by the same degree) the numerator and denominator of a fraction doesn't change it.
Or said even simpler, I have some confidence about the number of full-time inspectors needed for each state/province.
Originally Posted By: wdecker
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Thanks, Nick, for the clarification. Most of it is based upon conjecture, but pretty accurate conjecture, I will admit.
The best numbers I have seen in Illinois is that only 38% of the residential RE transactions get inspected. This leaves PLENTY of wiggle room for us. Illinois has about 3000 licensed inspections. I would say that about 1000 were only first licensed in this last year (like me!).
I would also say, based upon my personal experience, that a good number of those are part time or have never done an inspection (I know someone who was licensed WAY before I was, but has done only 3 inspections, so far.
That is why I work to educate, EVERYONE, as to the need. The major work around my area is new, tear down, McMansions, built by 3 - 5 houses a year GCs. At 1.2 to 2.4 Mil per sale. this is a good market. We are having good experiance in education, the buyer, the Realtors, the lawyers AND the builders about the need for inspections in new construction.
Works for me.
Originally Posted By: Nick Gromicko
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I have some other reasons to think I’m on target as well.
1. REALTORs only have 13 closings per year on average. That means that a home inspector needs to have 31 REALTORs on average to survive (400 inspections per year divided by 13 inspections per REALTOR per year = 31 REALTORs needed for every inspector). 1.2 million REALTORs divided by 31 REALTORs per inspector means that the market needs 38,710 inspectors. See the bottom of the third column in http://www.nachi.org/marketanalysis05.htm
And...
2. Today Kay handed me her database of N. American home inspectors and it is 36,137 records long.
Originally Posted By: phinsperger
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Who’s Kay?
Originally Posted By: whandley
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Originally Posted By: Nick Gromicko
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agents were a pain in the butt as they always wanted to hang out for the inspection, tried to knock down my price (to their own client’s detriment), didn’t like me showing up early for the inspection and tied me up so that I wasn’t available when one from my flock needed me.
Originally Posted By: jsieg
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Nick,
Is there any EASY way to get my states info broken down into counties or some kind of smaller reigns… My business area is in Michigan, the thumb to eastern areas. Out here you can not drive 5 miles without seeing 30+ houses for sale & that does not include the fsbo’s. Nothing looks to be selling.
I would like to know where the housing is selling so I can market where the houses are selling.
In the last 4 months I have only had 2 calls. 1 I lost because I was on the phone with my city inspector due to a neighbor complaining about a fence I put up 2 years ago that the inspector approved (jealous neighbor). The other called at 10:00pm wanting an inspection the next day. They called back at 10:45pm saying they could not get a hold of the sellers who live in the house to let me inspect. They never called me back & they never returned my calls to them.
p.s. when will spell checker be back?
Originally Posted By: rbunzel
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Jason,
If you are doing analysis at this level and you've only had two calls and no jobs in the past several months, you are looking at your business incorrectly. You need to take your marketing back down to a tactically level. For example how many realtors have you talk to today? How many this week? How many last week. If the cumulative numbers total less than 40. You need to look at you tactics again. If you want to know what selling and where - talk to realtors!! If they see your on the same page, their more likely to hire you!!
Many inspectors believe that if they open their business, distribute a few business cards and sit back, the business will just happen. It just doesn't happen that way. You have to work for the business and get out there and promote yourself. There is plenty of info here on this site that discusses that and Nick is a master at self promotion,
--
Rick Bunzel, CRI
Pacific Crest Inspections
Anacortes, WA
360-588-6956
Originally Posted By: Nick Gromicko
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The best thing a home inspector can do is to mentally erase all distinction between marketing and inspecting. GO TO WORK EVERY MORNING… if you don’t have an inspection scheduled, you should be marketing for a full 8 hour day. Look at this business as you would a full time job.
When you ARE busy doing inspections, you won't have time to market which works out perfectly because you don't need to drum up work you are too busy to do.
When you are NOT busy doing inspections, you WILL have time to market market more which works out perfectly since you need more inspections.
EVERY INSPECTOR HAS FULL TIME WORK EVERY DAY.
Originally Posted By: Nick Gromicko
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Jason,
Of the "30 houses for sale" you mentioned, how many have you sent a letter to offering a Seller's Inspection?
http://www.nachi.org/prelisting.htm
This is like throwing a 5 way combination punch in that...
1. You hit the seller to inspect the home he/she is selling.
2. You hit the seller again on the home he/she is buying as most sellers are also local buyers (gotta be moving somewhere).
3. You hit the seller's REALTOR of course.
4. You hit every REALTOR that shows the house.
and the big right cross...
5. Copies of your gorgeous report with your contact information gets handed to every home buyer that tours the home. Wow! An actual example of your work in the hands of buyers who are about to need a home inspector! Talk about target marketing (and you got paid for it to boot  ).