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Introduction to Home Inspections
With thousands of homes sold each year, the home inspection industry
is growing rapidly. Homebuyers are becoming aware of the benefits and
demanding a home inspection to be a part of the buying transaction and
it may satisfy disclosure for sellers. Realtors can benefit because
it builds trust with buyers. Buyers feel they have been given the
opportunity to know the condition of the home they're purchasing.
Many inspectors are doing inspections after retirement but the fastest
growing group is those making long-term career changes. You can control
your schedule and do as many inspections as you desire. Those with
knowledge about construction mechanical systems or engineering have an
excellent background for doing inspection. It adds up, there's never
been a better time to get into home inspections.
Home inspections require a small investment. An average home inspection
lasts approximately 2-3 hours and 3-4 inspections can be scheduled each
working day. The average fee is approximately $200-300.00 nationally.
It also doesn't take much money for tools and equipment. We sell a line
of tools but the most useful is the gas detector and moisture meter.
Anyone serious about home inspections should have these two tools. Check
our tool line at
http://www.hreporters.com/Catalog.
You can begin by doing inspections on weekends and later advance to
full time inspecting. If an inspector performs an inspection for
$200.00 for 50 weekends a year, they can gross $10,000 annually for
2-3 hours of work weekly.
What is a home inspection?
The inspection is a reasonable effort to disclose the condition of the
property on the day of the inspection. A look at the home with an
experienced eye. Most people purchasing a home hire an inspector to
check the roof, exterior, foundation / basement / structure, plumbing,
electrical, heating, fireplaces, air conditioning, insulation, and interior.
Who is an inspector and what does he do?
Home inspectors are generalists with broad knowledge on many topics.
Some home inspectors are engineers and some are not. A good inspector
must be well versed in all fields of residential construction and have
good communication skills. They do not know or see everything. They
are not experts on every item or system. The home inspector gives an
overview of the condition of the property and reveals major defects.
Is there anything an inspection does not cover?
Yes, according to the national standards and states where there
is licensing, and inspection does not reveal information on the concealed
areas or items of the house. E.g. Insulation in the visible areas of
the attic does not imply insulation under the attic floor. Pre-purchase
inspections do not cover asbestos, radon gas, lead paint, ureaformaldehyde,
toxic or inflammable chemicals, etc. Some inspection companies offer
these as extra services but under a separate contract. Personal property
such as washers, dryers, refrigerator, portable appliances, playground
equipment, hot tubs, and fireplace inserts, are not inspected. Inspectors
cannot find things that have been intentionally concealed.
Does the inspection reveal code violations?
NO. The inspector may have a general knowledge of local codes,
but a pre-purchase inspection is not designed to revel specific code
violation.
Does an inspection predict future performance?
Not Really. Statistically, a one-year-old water heater should last at
least 5 - 10 years. It may not. A twenty three-year-old asphalt shingle
roof probably will not last another year. However, it may last 5 more
years. Water, use, heat settings, and maintenance differ from owner to
owner.
The following are some questions you will need answered.
- How many inspection companies service the same area? How many
inspections is each company doing each year? Who is the
strongest competitor and why?
- What do they charge? Selecting a competitive price that reflects
valued service is hard to figure. There will always be those
that are cheaper or higher priced. Shopping your competition
on a regular basis is also helpful. Keeping a file on each
competitor with copies of their brochures, pricing, etc can be
helpful when planning your business. To have a prosperous
business you must know your competition well.
- What kind of service do they provide?
- How many years have they been doing inspections?
- What are the qualifications of each inspector in your area?
- How many real estate sales are there in your area each year for the
past five years? Community size and the number of houses being
sold each year can affect the possible future growth. Find out
the turn over rate for your area.
- How many Real Estate companies are there in your area and the
number of realtors in each office?
- How many realtors in your area recommend home inspections to their
buyers and sellers?
- What are the average sales price of the average house in your area?
- What is your service area? Define this area by drawing it out on a
map. You must be able to drive across your service area in no
more than 30-45 minutes if you plan on performing 2 - 3
inspections each day.
- How familiar is your area with home inspections? Some areas are
more familiar with home inspections than others. An area just
beginning to use home inspectors will take patience and many
presentations to make the realtors and public aware of your
service and its benefits. This can be expensive in time, effort,
and sometimes frustrating. It may take years before a home
inspection in these areas becomes the norm. So how are you
going to educate and make your area aware of your service and
also the benefits of having a home inspection performed?
- What is the growth plan of your area? What is the 10-year and
20-year plan of your county or city?
- Does your state have licensing of home inspectors? Contact your
state agency to obtain these licensing laws and rules and regulations.
After doing the detailed research, you will know more about your business
and the competition in your area than ever before. After compiling all
the statistics, it is time to determine your goal. Set goals in several
different areas (e.g. public awareness, inspector training, office
procedures.expansion, image. You will also be able to make decisions
about the type of reporting system, name of your company and logo, etc.
Write specific objectives on how you intend to reach these goals, when,
and the cost. All flyers and brochures needed should be purchased weeks
prior to starting your market plan.
Your marketing plan should be updated during the year and read often.
This plan should never be filed away. Use it, write notes in the margin.
Note the date when an objective has been met. A good plan can erase the
tension of "what you're going to do next" - it's already written and
thought out. At the end of the year, this plan will be the beginning
for the following year.
Growing a business is easier with a detailed road map. Planning and
understanding the forces affecting growth can brings many rewards and
much success to your home inspections business
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Checklist & Contract
- Try a Sample Set!
- 1 inspection report checklist
- 1 std. contract

Start-Up Pkg
- 2 inspection report checklists
- 2 std. contracts
- 100 Ways to Market a Home Inspection Business
- Brochure samples
- 100 Article series
- Home Inspections: "The Nuts & Bolts"
- Forms to assist in appointment scheduling

Pro-Sample Set
- 1 inspection report checklist
- 1 standard contract
- The Home Reporter Home Inspection Manual
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