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Everything You Need For Your Home Inspection Business.

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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Page last updated Friday April 21 2006 14:57:00 EDT.