The influence your inspector has on a transaction...

With the somewhat tumultuous nature of the existing real estate market, a real estate professional needs to capitalize on everything in their tool belt to ensure a successful transaction.  How do you make that happen?  Some advice from the other side of the table; not the real estate professional, the buyer, but the home inspector.

A real estate professional that takes the bull by the horns, so to speak, will make the transaction smoother and increase the probability of a happy transaction for all parties involved.  How do you ensure your client is well represented in the home inspection arena?

1.  Attend the home inspection!   Buyers want to know someone is going to hold their hand through the entire process.  If you cannot make it to the inspection, at a minimum you should be there at the end of the inspection to go over the inspection report with the inspector.  A thorough home inspection is a two-part system; the verbal aspect of the inspection findings and the written report.  To see the entire picture, both halves must be understood!  

2.  Make sure your inspector is FULLY insured!  In the last few years insurance premiums have gone up both with Errors and Omissions & General Liability.  Most inclusive policies for professional full-time home inspectors will run around $3,500 for a single inspector firm to over $8,000 and up for a multi-inspector firm.  If an inspector screws up, which happens from time to time, it is imperative that the inspector's policy has a "referring Realtor protection clause" which will limit the liability to the home inspector alone and no one else involved in the transaction.  Premiums are a significant monthly expense - can you afford NOT to use an inspector who isn't fully insured?

3.  National professional affiliation is critical.  How do you know your inspector is going to be in business next year?  How serious is success to the longevity of your inspector?  These questions can be answered, in part, by professional affiliations.  The largest and most respected home inspector organization is ASHI (American Society of Home Inspectors) followed by NAHI (National Association of Home Inspectors) - both organizations are not-for-profit and exist to maintain very high ethical standards within the home inspection industry.  There are a few organizations that exist to make money and membership is sometimes as simple as writing a check.  Both ASHI and NAHI require a comprehensive home inspection knowledge exam and an ethics exam.  

4. Local professional affiliation is also critical.  The Aurora Chamber of Commerce, the Aurora Association of Realtors, and the Denver Better Business Bureau - all organizations that increase accountability and legitimacy of a home inspection company.  It's not always about what these professional organizations give to you, rather what you can give back to the community that supports you!

5.  Professional appearance.  Jeans, t-shirts, dirty car, etc.  Home inspecting isn't a “job,” it is a profession where people are placing their trust in you that you will best represent their financial and personal interests.  It is vital that your inspector dress the part and exceed everyone's expectations.  Enough said.

6.  Report generation protocol.  The days of three form carbon copy reporting is dead and buried.  Your inspector should be able to complete the report as he/she is conducting it, ideally with integrated digital photography.  When your client is sitting at the supper table that night going over the report, they should understand what the issues identified are, specifically why they were identified, and what corrective measures are required to rectify the problem.  

7.  One-stop-shopping.  Your inspector should be a jack of all trades, ready to perform any additional testing your client requires.  Radon testing, water quality testing, indoor air quality testing, mold sampling (air and swab), EIFS/Stucco system evaluation, EDR Neighborhood environmental reporting, and Home Tune-uP Energy Surveys will make your life (and your paperwork) easier.  The inspector never wants to be the guy everyone is waiting on. 

8.  Service is King.  Your referrals are keeping the inspector and his family fed.  Does his business and interaction with clients reflect this fact?  This is self explanatory.

I sincerely hope my notes will help you to ensure you are getting your money’s worth with your inspector.  If you are in the market for a new one or if your old one just retired, I am most certainly for hire and would be honored with your business.  My contact information is as follows.

Thomas A. Recke

 

Pillar To Post

http://www.pillartopost.com/aurora

(303) 337-6713

thomas.recke@pillartopost.com

 
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24 Comments on The influence your inspector has on a transaction...

Sounds like you know what you are doing.  Lots of luck

04/13/2008 05:02 PM by Gene Allen Realtor Hampton Roads Real Estate (Resh Realty Group)


Inspectors are huge. I have been using someone who has been doing an excellant job.

04/13/2008 05:04 PM by Chuck Carstensen (Re/max Associates Plus inc)


Now I do wear clean and non-faded jeans from time to time it all depends on the inspection!  Khaki pants and dirt and grime just don't go hand in hand!

One time while inspecting a home that I can't say who now owns it, I had a request by the buyers agent to wear a sport coat with an open collar shirt!  Hey, it was their dollar.  Coat was on when I entered the door and off shortly afterwards.  Back on when I met with the client.  Well worth the extra effort$$!

04/14/2008 08:50 AM by Scott Patterson - Middle TN Home Inspector (Trace Home Inspections)


Great post Thomas.  Great points.

04/15/2008 05:46 PM by Richard Ives (RE/MAX AT HOME)


Nice post Thomas. Like Scott I do solmetimes wear clean non- faded jeans. Even though I do wear coveralls when I have to climb under a pier and beam, I do not wear coveralls for the attic inspection. I always carry an extra changing of clothes with me, something I learned to do the first year I was in the business.

04/18/2008 05:22 PM by Carl & Ceil Winters (Complete Inspection Service, New Braunfels, Texas 78133)


Most of the inspectors I have seen dress for the occasion.  Business dirty I call it.  They are always in clean clothes that look good for the job they are doing.

04/18/2008 06:49 PM by Denise Allen Realtor@ Chesapeake (GSH Real Estate)


I see a lot of comments on this post about the clothing choices. My company has been in business for almost 15 years and I insist that all of our home inspectors wear a uniform which consists of Khaki pants and a dark greean buton down shirt. They have a jumpsuit that they wear to do the crawl space and they all seem to keep pretty clean out there. I think that you definitely should look professional.

I also believe that in this business you have to be a step ahead of the rest. Through extensive surveying of real estate professionals in the Los Angeles area I have found that the top items they want from a home inspector are: 1. ON-TIME 2. THOROUGH 3. EXPLAINING REPORTS IN A NON-ALARMING MANNER. We try to always incorporate these items into our inspections and we print the report on-site for everyone involved as well as email the report with color photos as needed.

04/25/2008 04:23 PM by John LaRocca (LaRocca Inspections)


Sorry, but I must disagree on your point concerning the "driveway-generated" report.  Nice and convenient for the inspector and possibly the realtor and the seller, but definitely NOT for the buyer.  NO software exists which can thoroughly address EVERY issue on EVERY home via the ****canned comment.  Your clients deserve a more detailed explanation, even if it does inconvenience the seller, the agent or the inspector...neither of which are writing you the check.  All marketing propaganda aside, the buyer simply deserves a better product.

04/25/2008 10:28 PM by Jimmy Breazeale (Sherlock Home Inspections)


I completely agree with Jimmy.  Home inspection is a lot like being a detective.  We bring together sometimes disparate clues, to determine issues.  It seems very important to me to spend some time, away from the house, realtor and client, thinking about what I saw.  My report then more thoroughly reflects the  actual condition of the house.

04/26/2008 11:41 AM by David Helm, Bellingham,Wa. Home Inspector (Helm Home Inspections)


Thank you David, and nice to "see" you. As we all know, and many of us have discussed in the past, certain organizations and/or individuals actually like to brag about their ability to produce the driveway report. Anybody COULD do that. The only reasonable explanation of such crowing is that the marketing plans of such individuals and organizations are clearly directed toward convenience for the agent....and NOT due dilligence and service to the paying client. Lord forbid that we should deter that poor agent from his/her goal of getting to the closing table, even for one day!

04/26/2008 12:17 PM by Jimmy Breazeale (Sherlock Home Inspections)


I have to agree with brothers Jimmy and David.  I have the opportunity to review many reports a year from inspectors, unfortunately most are involved in litigation.  An overwhelming theme are the site produced reports.  They are the ones that consistently have errors and blatant omissions of information or misinformation in the reports.  Almost all of them are produced on commercial home inspector software that the inspectors are using right out of the box.

Do yourself and your client a favor, start doing your reports back at your office or head to a local coffee shop and finish them.  You can produce a better report when you are not in a hurry to get it done and you have the opportunity to look questionable items up.  I have been doing this for over 13 years, and I have yet to figure a way to maintain all of the knowledge in my brain about a home and it's systems.  Anyone that can do this is a champion of champions and I have yet to meet them.

I have yet to see any reason that the client can't wait a couple of hours for a report.  If you go over the major issue at the home with the client, then they know what to expect.  As for agents needing a report at the home?  The same goes for them.  No need for a report at the home.  Now if everyone has waisted the allotted time away for the inspection and they are working on a deadline then, that is their fault.  The inspector should not be rushed to provide the report. When you rush you make mistakes.  And this is one of the reasons that I have a good expert witness business!

04/27/2008 10:57 AM by Scott Patterson - Middle TN Home Inspector (Trace Home Inspections)


Very, very, very well said, Scott.  I could go on and on and on about this issue.  The worst part is, lots of driveway reporters are, shall we say, a bit lacking in knowledge.  Talk about errors and ommissions!  They drive up the cost of insurance for the rest of us by getting sued repeatedly, all while undercutting the true professionals on price.  I can't say I blame the agents involved, since they often don't really know the difference, and convenience to them IS attractive.  That's why these driveway report marketing plans work.  They are put together by the franchise marketing geniuses, who know that agents are very time conscious.  After getting hooked in the first place, the franchisee has little choice but to follow the plan or go belly-up.  I've yet to see one whose marketing plan is TRULY directed toward service to the client, and challenge any of them to prove it ain't so.

I was in a realtor's office in Olive Branch recently.  I saw a brochure from one such driveway report franchisee.  He was advertising a $175 inspection on any home under 2000 SF, and on top of this providing a $75 off coupon.  That's a $100 dollar inspection, folks.  How much customer service do you think is involved in a $100 inspection?  Uh-huh.  And probably under one hour spent at it, too.

Here's what I and many others provide on a 2000 SF home:  AT LEAST 2-2.5 hours for the inspection, sometimes more, depending on the condition and construction of the home.  Another 45 minutes to a couple hours, sometimes more, writing....and I mean actually writing....the report.  That's 3-5 hours, not counting travel time.  NO ONE, and I mean no one, can effectively and accurately and fully inspect ANY home in one hour or less, much less produce a good product in that length of time.  I have seen some of these "reports."  What a joke!  Broken English, s**tcanned comments, often unclear and occasionally not even relating to the accompanying photo, because the poor jerk couldn't find a s**tcanned comment on his PDA that fit the situation.  The sad thing is, the rest of us are paying a premium on E&O insurance because of such business practices.  In effect, we're being forced to subsidize very poor public service.

Please, don't get me started!

04/27/2008 11:44 AM by Jimmy Breazeale (Sherlock Home Inspections)


Scott and Jimmy,  You guys been sitting in my brain.  Don't think I could have said it any better.  For me, a 2000 sq ft house will take a minimum of 3 hours, and often goes longer depending on the issues.   Admittedly, I am also doing WDO during this time. .  .  and I don't give discounts. . . and I do charge accordingly (my minimum for a single family is $375).  I don't want to bash the franchises, but it does seem that they are usually the ones doing low cost, quick and dirty, report in the driveway "inspections"!

04/27/2008 01:39 PM by David Helm, Bellingham,Wa. Home Inspector (Helm Home Inspections)


Sounds like quite a number of sweeping generalizations to me, specifically toward "driveway report franchisees" and the like...

Additionally,  "I don't want to bash the franchises, but it does seem that they are usually the ones doing low cost, quick and dirty, report in the driveway "inspections!" - Well you don't have a way with words because bashing the franchisees is exactly what you are doing.

"I have seen some of these "reports."  What a joke!  Broken English, s**tcanned comments, often unclear and occasionally not even relating to the accompanying photo, because the poor jerk couldn't find a s**tcanned comment on his PDA that fit the situation.  The sad thing is, the rest of us are paying a premium on E&O insurance because of such business practices.  In effect, we're being forced to subsidize very poor public service."

I for one, as a Pillar To Post franchise owner, hardly fit the mold so eloquently outlined in the above comments.  There is no reason you cannot generate a comprehensive and professional report at the job site.  Primarily this is a function of time, of which my inspections are typically between 3.5 to 4.5 hours.  My inspections are hardly "quick and dirty" or for "$100" (I won't touch a single family detached structure for less than $300 and most are around $350) - It sounds to me like your business is threatened by the presence of us "professional franchises."  I cannot stand bargain basement "$150" inspections, and we ALL loose business to them each week.  As far as the E&O generalization is concerned, David, I have never had a claim against my insurance (or ANY claim for that matter) - so how can I be effecting your premiums?

I think your complaints should be against the part timers who aren't in this for the long haul, or to feed their family.  I have seen four inspectors leave the industry in the last six months in my area.   

It comes down to customer service, time management, attention to detail, outstanding/intuitive software, and professionalism.   Having the support of a franchise system and brand might not be up your alley but, speaking on behalf of my franchise specifically, the good generated throughout the industry because of our presence greatly outweighs the negatives.  I won't go so far as to say this is the case with all home inspection franchises because I too see the crap turned out by some of the smaller organizations in my area.

A superior product delivered in a timely manner is what this country was founded on - regardless of the industry !  Quality is the key!  

04/27/2008 02:41 PM by Thomas Recke (Pillar To Post)


It could be part-timers in some areas of the country, but in Jimmy's area and my area we just don't have the part time inspectors.  We are both in licensed states that have mandatory E&O and the cost of doing business is just too high for a person that is not doing this full-time.  In the unlicensed states and those states that have poor home inspection licensing, you will find a good number of part time inspectors. It is just too easy to start a business and when they see what a home inspection fee is, they just see $$ signs!  They don't have a clue as to what it takes or cost to be a professional home inspector.

Historically part timers don't care about the profession or much of anything else as long as they can make a supplemental income.  I could see part-timers driving the fees down and hurting the profession.  The same can be said for just about any profession, the real estate profession is most likely the largest profession with part-timers in it.  As with everything you will have exceptions to the norm.

I don't know why so many franchise operations work for so little, it is most likely a numbers game for them but it is a common issue with many franchise owners around the country.  I have three very good friends that own a HI franchise.  One is a Home Team and the other two are AmeriSpec.  I must say that none of them offer discount inspections,  The two AmeriSpec guys start at $300/$325 and the Home Team starts at $325, so they are well above many non-franchise inspectors for a small home.  They are in it for the money but also to provide a quality product that will provide repeat business and a good client referral base.

I would say that us solo inspectors are not complaining as so much as we are just stating the facts of what we see across the country.  Many of us have been in business longer than some of the franchisers have been selling franchises!  The advantage we have over franchises is the we can do as we want.  We don't have to pay a royalty fee to anyone,  so during those slowdowns we don't have to get creative and or lower our fees just to keep sales rolling in to pay those fees.  One reason many solo inspectors who once owned a franchise got rid of them.  

As for Ruth Chris, well they have an overpriced piece of meat that comes from the same place that local restaurants can buy from and who will sell it for far less!

 Don't knock the Mom & Pop operations, this is who built our country and makes up about 75% of the home inspection companies in the United States!

04/27/2008 04:36 PM by Scott Patterson - Middle TN Home Inspector (Trace Home Inspections)


Well, I had a big ol' rambling comment all typed out and had actually pushed the submit button, but, as luck would have it, a thick cloud cover had blocked communication between my dish and the satellite.  I took that as an omen, so I will soften my comments a little bit.  Thomas, if you are spending that much time on an inspection, it's entirely possible that you're putting out a more-than-credible product.  But if it were me, I'd still want to check my facts back at the office without distractions.  And you have to admit that the marketing geniuses of your organization and others gear their efforts toward convenience for the realtor.  Some franchisees see the opportunity to take this to the extreme by cutting corners.  I suppose there are non-franchisees who do this also.  So far as Mom and Pop are concerned, as Scott said, there is no way to make the overhead in these parts without going whole hog in this business.  The same is true for David out in Washington.

We all have to market through realtors at some level.  They simply have too much power in the whole transaction, and they are the ones who constantly have the client's undivided attention.  We're the "tail enders" in most cases.  But I still believe, and hold adamantly and passionately to the idea, that we should not market to realtors in the sense that we are trying to make their walk to the closing table on every contract easier.  If we do that, then we run the risk of losing a measure of objectivity and not serving the check writing client with full integrity.  I suppose I could have made that point in the beginning and left it at that, but, as Scott and David both know, I get a bit impassioned now and then.

So, Thomas, just respond to one question, if you will, which should put the matter to rest:  Do you believe that you could serve any client on any inspection well if you spent less than, say, two hours and handed them a report on the spot?

04/27/2008 06:14 PM by Jimmy Breazeale (Sherlock Home Inspections)


First, let me apologize if I offended any of the non-franchise home inspection companies out there.  Please trust that this was not my intent.  It looks like Jimmy's brain was engaged well before his thoughts hit his keyboard, unlike me!  (subsequently I took out the smart a#$ comment about Ruth's Chris...)

With regards to your refined question Jimmy, No I do not think I could best represent my client with an inspection that took less than two hours.  I barely can fit an inspection into three hours and typically am running at about 3.5 right now (assuming my clients are helpful and understanding).  From the get-go though, I was trained to write what I see and try my best not to get distracted.  I can see both the good and the bad to delivering a report on the spot but I sincerely believe a quality inspection and report can be generated on site without "cutting corners" or using "s**tcanned comments" - I, as do many of you, take a great deal of pride in both my inspecting and reporting abilities, both of which are part science and art.   

If it came down to cutting corners on the inspection JUST to be able to print a report on site, then rest assured that I would take the data home to compile the report.  The highest priority to me is an outstanding inspection.

I hope this answers your question, and once again please forgive me if I offended anyone.  My intent here is to play nice!  =) 

04/27/2008 07:50 PM by Thomas Recke (Pillar To Post)


Let us all forgive each other.  Blame it on the testosterone.

04/27/2008 08:32 PM by Jimmy Breazeale (Sherlock Home Inspections)


 Jimmy Breazeale said

"We all have to market through realtors at some level. "

I couldn't disagree more. If you said we all have to deal with real estate agent I would agree.  Please if you IMHO are marketing to real estate agents you integrity might be in harms way. If you truly beleve that all real estate agent only have their clients best interest at heart then go ahead. 

Otherwise be careful who you market too. 

 

04/28/2008 10:14 AM by Mitchell Captain Home inspections in Broward, Dade, and Palm Beach (AllSpec Professional Property Inspections Inc)


Now, Mitchell, we're not really going to beat that old horse again, are we?

04/28/2008 10:35 AM by Jimmy Breazeale (Sherlock Home Inspections)


I guess your right. No sense in telling  "your" client that you maybe inspecting to please the real estate sales agent and not them.I don't think we should go there either.

It's just too shocking for the general public.

Jimmy do you ever notice on this site and others that they keep repeating themselves. Blogging about Mold, plumbing, electrical, structural, roof,foreclosure, dirty houses ,clean houses, stupid things homeowners do and alike. I think it would be a good idea if we stopped that also.

04/28/2008 03:43 PM by Mitchell Captain Home inspections in Broward, Dade, and Palm Beach (AllSpec Professional Property Inspections Inc)


Now, Mitchell...bro', you know you is jist tryin' to start some s**t!  That's MY job!  We've already been around the block with you IHINA guys about this.  You know I luv ya and respect your position, but anybody ought to have enough sense to know and understand who they are dealing with.  And, I might add, direct consumer marketing is much easier when you live in a fairly large, contiguous metropolitan area.  The fact is, honest, forthcoming inspectors and realtors NEED to find each other.  I'm sure you noticed how I went on yet another tirade on this thread about marketing to the convenience of the realtor.  As I said several times before, we have much more in common than you sometimes think.  I just don't feel the need to shut ALL realtors out of my plans.  You Hyena...uh, IHINA guys are the equivalent of an inspector purist cult...no personal insult intended.  Kind of like the difference between Episcopalians and Snake Worshippers...

04/28/2008 07:08 PM by Jimmy Breazeale (Sherlock Home Inspections)


Jimmy Breazeale 

I'm not a purist I just believe there needs to be a separation between agents and inspectors.  

And you are correct as to marketing in small and large markets. I do feel that in small markets the agents are a little more concerned with their clients. If all agents cared as much as small market agents I wouldn't have to pray to snakes. 

It's getting hard to breathe. Where did I put that anti venom? 

 

 

04/29/2008 07:22 AM by Mitchell Captain Home inspections in Broward, Dade, and Palm Beach (AllSpec Professional Property Inspections Inc)


And the headlines read:

JIMMY AND MITCHELL HIJACK YET ANOTHER THREAD

Mitchell, I had almost forgotten how much I enjoy jawing back and forth with you.  But, as you may have noticed, no one is biting on this one.  Perhaps you should reopen this can of worms snakes in another thread?  Debate is good for the intellect.

04/29/2008 10:23 PM by Jimmy Breazeale (Sherlock Home Inspections)


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Inspector: Thomas Recke (Pillar To Post)
Thomas Recke
Aurora, CO
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