Overdue Reality Check

rreusse · March 9, 2012, 10:48pm

By now it should have become apparent to everyone that there are several categories of home inspectors around these days, and that this business is risky and not suited to generate easy money as often assumed or promised.

One category are old-timers who were able to establish themselves years ago. Than there are many part-timers who have entered this business only to replenish their pension income from an earlier career.

Another category of home inspectors are the one’s who have entered this business believing that spending some money on a training course, or purchasing a franchise, will lead to success and riches. The reality is that real estate agents are collecting these days tens of thousands of dollars on commission from each transaction with little or no exposure to liabilities, but that inspection fees have become stagnant for years at less than $500.00.

Many newcomers will not succeed even if they are dumb enough to reduce their rates even further to create business by trying to outbid the competition. In today’s market the odds are simply not in their favour. Even established veterans are being affected more and more by the growing competition.

Joining CAHPI/OAHI - or obtaining their designations - has simply no advantages. The fact remains that the bulk of home inspections is being arranged by real estate agents who are highly motivated to engage the services of their “preferred” home inspectors. These salespeople certainly do not care about credentials. Their only selfish concern is that the inspection will not jeopardise the pending sale. Even consumers who are smart enough to hire an unbiased home inspector by themselves are often more concerned about costs than designations.

In addition to the necessary knowhow - marketing has become equally important to succeed in this highly competitive business. The willingness to work 24/7 does not help if the phone is not ringing.
.
Thirty-five years after home inspections were introduced to the marketplace, I only know of a few people who really have financially succeeded in this business. Two of them are *Alan Carson & Robert Dunlop *who started as “self-taught” home inspectors in 1978, but soon had the foresight that teaching or selling training courses would be more lucrative and less risky than performing inspections. They certainly were correct.

Another person is Nick Gromicko, who launched his own trade organisation in 1990. He now conducts his business mostly via a computer from the picturesque Colorado foothills of the Rocky Mountains. Selling memberships and marketing advice is certainly a clever business concept how to profit risk-free from the home inspection industry.

RUDOLF REUSSE - Home Inspector since 1976- Retired

smay · March 10, 2012, 4:48pm

rreusse:

By now it should have become apparent to everyone that there are several categories of home inspectors around these days, and that this business is risky and not suited to generate easy money as often assumed or promised.

One category are old-timers who were able to establish themselves years ago. Than there are many part-timers who have entered this business only to replenish their pension income from an earlier career.

Another category of home inspectors are the one’s who have entered this business believing that spending some money on a training course, or purchasing a franchise, will lead to success and riches. The reality is that real estate agents are collecting these days tens of thousands of dollars on commission from each transaction with little or no exposure to liabilities, but that inspection fees have become stagnant for years at less than $500.00.

Many newcomers will not succeed even if they are dumb enough to reduce their rates even further to create business by trying to outbid the competition. In today’s market the odds are simply not in their favour. Even established veterans are being affected more and more by the growing competition.

Joining CAHPI/OAHI - or obtaining their designations - has simply no advantages. The fact remains that the bulk of home inspections is being arranged by real estate agents who are highly motivated to engage the services of their “preferred” home inspectors. These salespeople certainly do not care about credentials. Their only selfish concern is that the inspection will not jeopardise the pending sale. Even consumers who are smart enough to hire an unbiased home inspector by themselves are often more concerned about costs than designations.

In addition to the necessary knowhow - marketing has become equally important to succeed in this highly competitive business. The willingness to work 24/7 does not help if the phone is not ringing.
.
Thirty-five years after home inspections were introduced to the marketplace, I only know of a few people who really have financially succeeded in this business. Two of them are *Alan Carson & Robert Dunlop *who started as “self-taught” home inspectors in 1978, but soon had the foresight that teaching or selling training courses would be more lucrative and less risky than performing inspections. They certainly were correct.

Another person is Nick Gromicko, who launched his own trade organisation in 1990. He now conducts his business mostly via a computer from the picturesque Colorado foothills of the Rocky Mountains. Selling memberships and marketing advice is certainly a clever business concept how to profit risk-free from the home inspection industry.

RUDOLF REUSSE - Home Inspector since 1976- Retired

Bang On! Educate Educate! Hence the formation of ontarioachi!

gromicko · March 10, 2012, 6:36pm

Correct. Especially in comparison to www.nachi.org/benefits.htm

ryoung7 · March 12, 2012, 7:08am

rreusse:

By now it should have become apparent to everyone that there are several categories of home inspectors around these days, and that this business is risky and not suited to generate easy money as often assumed or promised.

One category are old-timers who were able to establish themselves years ago. Than there are many part-timers who have entered this business only to replenish their pension income from an earlier career.

Another category of home inspectors are the one’s who have entered this business believing that spending some money on a training course, or purchasing a franchise, will lead to success and riches. The reality is that real estate agents are collecting these days tens of thousands of dollars on commission from each transaction with little or no exposure to liabilities, but that inspection fees have become stagnant for years at less than $500.00.

Many newcomers will not succeed even if they are dumb enough to reduce their rates even further to create business by trying to outbid the competition. In today’s market the odds are simply not in their favour. Even established veterans are being affected more and more by the growing competition.

Joining CAHPI/OAHI - or obtaining their designations - has simply no advantages. The fact remains that the bulk of home inspections is being arranged by real estate agents who are highly motivated to engage the services of their “preferred” home inspectors. These salespeople certainly do not care about credentials. Their only selfish concern is that the inspection will not jeopardise the pending sale. Even consumers who are smart enough to hire an unbiased home inspector by themselves are often more concerned about costs than designations.

In addition to the necessary knowhow - marketing has become equally important to succeed in this highly competitive business. The willingness to work 24/7 does not help if the phone is not ringing.
.
Thirty-five years after home inspections were introduced to the marketplace, I only know of a few people who really have financially succeeded in this business. Two of them are *Alan Carson & Robert Dunlop *who started as “self-taught” home inspectors in 1978, but soon had the foresight that teaching or selling training courses would be more lucrative and less risky than performing inspections. They certainly were correct.

Another person is Nick Gromicko, who launched his own trade organisation in 1990. He now conducts his business mostly via a computer from the picturesque Colorado foothills of the Rocky Mountains. Selling memberships and marketing advice is certainly a clever business concept how to profit risk-free from the home inspection industry.

RUDOLF REUSSE - Home Inspector since 1976- Retired

Mr. Reusse
You have giving an exemplary explanation to a certain part of the Canadian industry.
I myself see the Canadian industry as mimicking the American industry.
Only a small surface of the real inspection business being tapped as of yet.
No real thinkers opening up the full scope.
Yes to many lowering themselves for small dollars.
I will say no more because my competition has mirrored most every move I make in my city when I post it on line and yes the are all InterNACHI EAR PIECES.
Seeing so have have true vision, I will leave it at that and bid my time quietly and say, I disagree with your scenario.
I hope you enjoy your retirement.
Best of help.
Mr.Cooke has the same outlook.
He speaks highly of you.

ryoung7 · March 12, 2012, 7:17am

Mr. Reusse
I see you have had several impressive Ontario friends look-in.
You like to leave little for others to view.
Very wise.

I do not agree with your assessment in full.

You have assessed the business well in any case.

Mr Cooke thinks highly of you. I can see why.
Good day sir.
Best of health and enjoy your retirement.

belliott · March 12, 2012, 5:01pm

rreusse:

By now it should have become apparent to everyone that there are several categories of home inspectors around these days, and that this business is risky and not suited to generate easy money as often assumed or promised.

One category are old-timers who were able to establish themselves years ago. Than there are many part-timers who have entered this business only to replenish their pension income from an earlier career.

Another category of home inspectors are the one’s who have entered this business believing that spending some money on a training course, or purchasing a franchise, will lead to success and riches. The reality is that real estate agents are collecting these days tens of thousands of dollars on commission from each transaction with little or no exposure to liabilities, but that inspection fees have become stagnant for years at less than $500.00.

Many newcomers will not succeed even if they are dumb enough to reduce their rates even further to create business by trying to outbid the competition. In today’s market the odds are simply not in their favour. Even established veterans are being affected more and more by the growing competition.

Joining CAHPI/OAHI - or obtaining their designations - has simply no advantages. The fact remains that the bulk of home inspections is being arranged by real estate agents who are highly motivated to engage the services of their “preferred” home inspectors. These salespeople certainly do not care about credentials. Their only selfish concern is that the inspection will not jeopardise the pending sale. Even consumers who are smart enough to hire an unbiased home inspector by themselves are often more concerned about costs than designations.

In addition to the necessary knowhow - marketing has become equally important to succeed in this highly competitive business. The willingness to work 24/7 does not help if the phone is not ringing.
.
Thirty-five years after home inspections were introduced to the marketplace, I only know of a few people who really have financially succeeded in this business. Two of them are *Alan Carson & Robert Dunlop *who started as “self-taught” home inspectors in 1978, but soon had the foresight that teaching or selling training courses would be more lucrative and less risky than performing inspections. They certainly were correct.

Another person is Nick Gromicko, who launched his own trade organisation in 1990. He now conducts his business mostly via a computer from the picturesque Colorado foothills of the Rocky Mountains. Selling memberships and marketing advice is certainly a clever business concept how to profit risk-free from the home inspection industry.

RUDOLF REUSSE - Home Inspector since 1976- Retired

Interesting insights Rudolf.
Now can you please use the experience you have gained to suggest correction rather than reflection?

Not sure how much market there is for 10,000 schools and associations.

cwalsh · March 12, 2012, 7:22pm

Mr. Reusse…I guess Kudos would be in order, then, to Alan Carson, Robert Dunlop and Nick Gromicko for having the forethought to get into thier respective lucrative business adventures.