New Inspector....Any Tips?

It nice to see a response from someone who is in this busniness for more than just the money. Don’t get me wrong I need the income but am willing to stick it out for better times because I love sharing my knowlegde with others.

An agent told me once that “we don’t know what is wrong with some houses because of the report”

I offered some advice but am now thinking that this is a what some of them want.
A confusing report that is chock full of items that do not apply to the house and check marks where you have to refer to the legend etc.

Then the agent can honestly tell the client “the report looks ok”.

Would you believe that many people actually let the agent read the report instead of reading it themselves?

My report is easy to read and when one agent saw it she called me and complained that she had to get a “contractor out there to fix the house”
I was so floored that I just said yes that happens sometimes.

There is a website dedicated to home inspection startups. It offers articles and marketing insights to get your company booked solid. Give it a look over, it might be for you. InspectorSuccess.com

Sincerely,

Bob Kille

Bob, that appears to be a site you own or are affiliated with; some vendors with similar services offer NACHI members a 30-day free subscription. You may consider that. . .

Paul,
I’m new to inspections but had 20 years of construction experience. I just started inspecting about five weeks ago, and have had only 4 paid inspections, all referrals from friends and people I used to work with.
I called the home inspector friend of mine who trained me last year and asked him what my expectations should be for getting referrals from real estate agents. He told his experience (he has been a h.i. for six years) is that he would have to do about 8 inspections before one of those inspections would result in a realtor putting him at the bottom of their referral list. Then over time, as he made himself available on weekends and rush inspections, etc. he would slowly work his way to the top of their list. He said it takes about 40-50 realtors referring work to stay busy year round, allowing for a little slowing in winter. This is just one inspectors experience, but you can crunch the numbers from there.
He is also a very thorough inspector, so he is not likely to please a certain kind of realtor. But he has completed almost 2000 inspections and not a whiff of a lawsuit. I went on several inspections with him over a period of several months and was impressed with the realtors that were referring him work. They all seemed to have the client’s interest at heart and wanted their clients to know what the defects and deficiencies were in the houses he was inspecting, which made his job very easy and stress free.
He also told me that I should plan on working full-time this year in my construction job, part-time next year, and maybe by the third year I could stay busy enough to be working h.i. full-time. I have a little bit of the “let the game come to you” mentality. I’d rather have the referrals come from satisfied clients, rather than worry about marketing to realtors. The inspection I did this week was a referral from my first client a month ago. Eventually, I hope to get those 40-50 realtors referring work, but I like the kind my friend is getting referrals from, it makes the work environment so much more pleasant.
Two things he emphasized were, always be consistent in what you call out in your inspection reports, and make yourself available to answer their questions promptly when they call.

Excellent post Troy.

I’m only in my second year of HI, my business is now taking off. With the thoroughness of my inspections, clear advocacy for my clients and easily readable reports, my business comes from client referrals and from a growing group of (dare I say?) reputable and ethical realtors. These realtors give me plenty of repeat business because they realize that I am also covering their *sses too. As long as one has good ethical standards and sticks to them, the business will come. I personally don’t want referrals from the commission at any cost realtors.

You guys are making me feel alot better. I have been open and ready for business for several months, have done four inspections, and am now contemplating my marketing technique. I do have an excellent and flexible full time job that allows me to take my time and not feel panicked about getting inspections. Right now, if I get enough inspections to cover my business expenses (which is about five), I am happy. Eventually, however, I do want to be a home inspector and home inspector only. Hearing everyone say that in year two or three they begin to take off, relieves some of the expectations I have. I will just be patient and my marketing technique should find me. I find that I have a naturally thorough inspection technique that has pleased all my customers to date. NACHI is the best thing I have done so far for my business. I even got my first job from someone browsing NACHI’s website. To all new inspectors, it is best to have a second job as this will relieve the stress. Just make yourself available several days during the week and if someone asks for an inspection during a day which you have to work your full tim job, say you are booked, not busy!

Let me first say I’m new here. I have TONS of question too. I’m looking to get into Home Inspection.

What about insurance? What does that run for a year? Do you have to have it?

Welcome, Scott.

You’ll find as many answers to your questions as there are members here at NACHI.

Me? I would never work in a litigious industry such as this one without errors & omissions insurance. I currently pay $4,400 annually.

As to whether or not you have to have it, that’s up to your state, your attorneys, your CPA, and your bankers, I guess.

Hi. Scott;

Wish you luck in your endeavors and belonging to NACHI is the best experience network of education that you could belong too. Join us.

Don’t feel scared by RR’s response of E&O insurance costs of $4000 +, here in Maine as a single Inspector, the cost is $1000.

RR is a prominent HI that has people working below him that I have gathered. That price reflects that or RR has been messing up ha. ha. Sorry RR, I had to throw that in.

The key is to take advantage to this board wealth of information, base your own standards based on that information and go from there. We are all hear to help and promise you that is exactly what this board is all about.

Follow the SOP, and COE from this Educational Membership, and you will find yourself to a good start.

Feel free to ask any questions you may have.

Welcome and join.

Marcel :slight_smile: :slight_smile: :slight_smile:
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We just finished a company meeting–margaritas, jalapeno nachos, margaritas, Star Trek, margaritas,The Beatles, margaritas, well, you get it–and I fired everyone–I fired 'em–I mean, I fired 'em–they never knew what hit them–of course, there go my unemployment premiums into outter space! Now I’m a one-man show, a single inspector, a nobody like everyone else around here! :mrgreen:

What insurance company? Where do you find a business insurance? I’m just starting to look in to the business part of this. What else do you need for the business part?

There is just some much information here that I’m just lost!!!

Where do I start? I know what I want but just don’t know how to get there or start a business.

Sounds like you need a business plan. As someone famous once said, “If you fail to plan, plan to fail.”

Go to Borders.com and find a book on business plans. The best books will have examples and worksheets.

There are many companies offering insurance. Without knowing what state you are in, it’s difficult to tell you where to go. I’m a franchise, so I have insurance through franchise business partners which typically is less expensive than being just a single inspector; insurance companies see me as one in a market of 15,000 HomeTeam inspectors rather than just one inspector.

I live in Central Pennsylvania.

We do have a plan for the business. I just don’t know how to get there. I have 2 other friends that plan to join in. I’m just going to start it. Really, there is a H.I. who inspected my house who said about selling his biz. He is a member here.

We plan to do more then home inspection. All 3 of us are in the civil engineering biz. I’m a bridge inspector / bridge drafter. One friend is a Civil PE with Boring Inspection and the other is in Civil Construction Management / drafter. With out blowing the covers off. We have a great plan that will take off. There is a big list of inspections that need to be done in the engineering biz. and someone has to do them.

Hey, Scott.

There’s a difference between a “plan for the business” and a “business plan.” Lots and lots of people have plans for the business, but because they don’t have a business plan, they fail. Fortune 500 magazine regularly reports that something like 70% of businesses fail within 5 years, and one of the main reasons is the lack of a business plan–they had no idea “how to get there” or the didn’t update their business plan for years 2-5 after year 1 was finished, so they were now operating under false presumptions without analyzing good data.

So if you “have a plan for the business” but “just don’t know how to get there,” then you need a business plan.

Don’t underestimate a good, sound business plan, and don’t overestimate plans for the business.

Hi. Scott;

RRay has me confused too, but I believe he is talking down these lines;

**Business **is the organized effort of individuals to produce and sell, for a profit, the services that satisfy society’s need.

No person or group of persons actually organized American business as we know it today. Rather, over the years individuals have organized their own particular businesses for their own particular reasons.

A person who risks his or her time, effort, and money to start and operate a business is called an entrepreneur.


To organize a business plan, as RRay mentioned, an entrepreneur must combine four kinds of resources: material, human, financial, and informational.

In all cases, the ultimate objective of every firm must be to satisfy the needs of its customers.

Laissez-Faire Capitalism

Quote from the theories of Adam Smith, a Scot in 1776:

"Every individual endeavors to employ capital so that its produce may be of greatest value…And he is in the led by an INVISIBLE HAND to promote an end which was no part of his intention. By pursuing his own interest he frequently promotes that of Society more effectually than when he really intends to promote it. "

It appears that since there are three of you in this venture, an association is being formed. A general partner would be one who assumes full or shared operational responsibility of a business.

I believe, that since you are planning a business, that you and your partners have sat down and made a business plan, as RRay mentioned, to assure that all aspects of business , marketing, and service to the consumer as HI’s has been addreesed as it has ethically been defined by NACHI.

E & O insurance in Maine is available through any Independent Insurance Company Agent. The amount of inspections anticipated for a year will affect your premium costs.

If you plan to expand into the Commercial Market, you need to expect that your PE partner license will be exercised. A lot of building experience and knowledge is required to identify inspections in this area. I know I build them.

Hope this does not confuse you anymore. Please feel free to ask.

Marcel

One of my past students called last week and was really upset. He’s been out doing HI’s now for 1 year and just had an upsetting experience. Once he got out of HI school, rode with me 6 months and then went out on his own - one of his first steady realtors was someone that goes to his church, sold him his last 2 houses and is his personal friend.

He’s probably done 7 inspections for her, no problem. On his last inspection he discovered a 10 month old composition shingle roof installed over wood shakes AND told the buyers they ought to have the city code people or the lender address it because in his opinion it was installed improperly. He also discovered that the A/C unit was 34 years old. It was apparently operational but in his report he mentioned that the unit was nearing the end of its lifespan and that they ought to start budgeting for replacement.

The buyer called the lender, his insurance company and the city and was assured the roof was installed improperly and would need replacement (the roofer could not be found). The buyer asked the seller to split the cost of a new A/C with him because the seller had disclosed the unit was 4 years old (had a 4 year old fan motor). The seller refused to do either - the deal flipped. My past students buddy - the realtor called him - chewed him out for “Killing the deal and being such an ALARMIST”. Told him she couldn’t use him anymore unless he quit the ALARMING stuff and just did his job of telling the buyer if something was working or not.

A grown man calling me wondering what he did wrong and why his BUDDY was mad AND wondering how to get back in her good graces.

This is the part of our profession that made me gag 28 years ago & still does.

Tell your friend he did nothng wrong. He did what he was suppose to do and nothing less. As for getting back in the good graces with the realtor, forget her! You don’t need friends or referrals like that.

I would ditto that.

I have a lot of Realtors who haven’t used me in quite a while for their buyers, but they always call me to have an inspection done on something they or their family/friends are buying. Their first comment on the phone is a sort of apology for not using me: “I haven’t had any buyers, but I sure have a lot of listings.” Of course, that provides me with the opportunity to tell them about my LIST inspection, rewarded with silence.

So recently I found out how to search the MLS here to see what any individual Realtor did last year, last week, yesterday, five years ago, whatever–how many buyers, how many sellers, how many properties they double-dipped on, etc. Interesting that while I’m on the phone I can now pull up the records and say, “Really? The MLS shows you closed 34 escrows last year, and only six of them were listings. The rest were buyers.”

I look forward to getting to the point where I don’t need their business at all, so that when they call for an inspection on their home, I either quote them an extremely high price or a time frame a few months off. Or call them on their lie.