Q How can I market to get more inspections?
A Joseph and Michael Scaduto have published an excellent marketing book, How to Successfully Market Your Inspection Business (my favorite such publication). Call The Society of Professional Real Estate Inspectors®, 617-334-4500 (www.sprei.org).
David Rushton’s business grew extremely fast when he arrived in Virginia from New Jersey. He relies heavily on marketing to past customers. He mails birthday cards, etc., reminding them that he depends upon their help, asking them to give his name and phone number to their family and friends. He can be pretty sure they’ll be able to find his business information, for he puts it on the cover of the binder that holds Homexam’s User-Friendly Home.
Here are some more of his marketing efforts, lightly edited, but in his own words:
• Use business cards, they are inexpensive, pass out lots of them. I present the report and the Homexam book and tuck 3-6 cards in the top of the front cover of the view binder. I mention the cards and ask for referrals to relatives, friends and co-workers. Mention the area you serve. Leave a card on the kitchen counter or dining table in the home for the seller.
• I offer unlimited, lifetime telephone consultation at no charge. It takes up very little time, costs nothing except maybe a return phone call if you have to call back and a few minutes of time. It keeps you and your business in the client’s mind, generating referrals.
• “Brochure thoughts: be specific. List your credentials (if one person firm) and list pricing system. This is what people want to know. They will still call and ask, so you will still be able to give a sales pitch. But your first impression to the person reading the brochure is that you are immediately providing useful information to them.
• I use black print brochures which can be copied onto lightly colored stationery. The brochures cost about 8 cents each so you can give lots away to everyone (the object of having a brochure). A letter folder costs about $150 and will fold hundreds very quickly.
• Plastic, fold up brochure stands cost less than $1 each (Deflect-o 51601). Molded plastic stands cost $2-3 and someone else will take it for their brochures. [Editor’s note: We’d include phone numbers here, but phone numbers change frequently; if you want to get these products, go to www.google.com and search for them.]
• Yellow Pages– 3/4 or 1" box size, black only, in most markets the cost of one or two inspections will cover the year’s ad. Everything else is yours. Established clients can find you readily. Keep copy in ad to 3-5 lines, copy must be easily readable without squinting.
• Seminars to real estate agents– two types: 1. Inform them about your business, what distinguishes you from everyone else, use note cards to make sure you cover all the points you want to mention (agents don’t need a sermon about the value of a home inspection). 2. Some offices prefer a short educational seminar for their agents. Develop one in an area of your greatest expertise. Give handouts with your name, phone number. A few visual devices for the seminar will help to keep them awake.
• ASHI membership is a strong credential, it generates business for me every week. The ASHI Web site has started consistently generating leads for me, and it costs nothing extra. [Editor’s note: ASHI is the largest organization and therefore may get you the most work; but membership in any organization probably would help your business.]
• General inspection tips from Dave-
Don’t discount your prices to anyone, word spreads and you are cutting your own throat.
Always use a drop cloth (an old sheet) under the attic hatch, keeps dirt and insulation from being dragged through the house. Always cover clothing under the hatch in a closet. (Your care and thoroughness will impress the client and agents. Shake the cloth out before putting it away in your truck (instead of on the floor of your next inspection).
I wear a sport jacket, shirt, tie and pants (no jeans). This distinguishes me from every other inspector. Your clients and the agents will remember you (free marketing). You are selling information, not a product. Doctors, lawyers, other professionals wear ties. It lends credibility in many situations (a doctor, lawyer or other professional can see you as a professional, not a tradesperson). [Editor’s note: I did this too when I was wanting to build business; it works.]
Use coveralls (Tyvek ones are great, long lasting and cheap) for dirty crawl spaces and attics. Wear flat soled shoes, no treads to carry dirt into the house, crepe or rubber soles for traction on roofs. Wipe your feet going inside! People notice this: care, thoroughness and professionalism.
Take off your shoes or wear slippers in new homes, always with any white carpet. Avoid tracking basement dust on clean floors.
Leave everything as you find it. Move little or nothing if at all possible (though you must get into access hatches and may have to move stored items).
This is a service business. BE ON TIME or early. Accommodate clients’ and agents’ schedules if possible.
With client permission, I will fax copies to anyone, print extra copies on site for agents. Service, service, service. Some agents want assistance phrasing requested repairs when writing an addendum with your client. If you spend a little time and help them, they will remember you again and again.
Here are a few more marketing ideas: Do background marketing by distributing flyers (Homexam offers flyers in the form of files on our Goodies CD.) They won’t get much business directly, but they keep your name alive. If you put your picture on the covers, you’ll look familiar to them when they see your face. If you give info that’s useful in the flyers, you’ll perhaps even get a warm welcome when they recognize you. Most inspectors market to real estate agents by dropping flyers in their “in box,” but you may get their attention better by mail, by giving seminars (feel free to copy pages from our books for hand-outs), by casually dropping in to chat while the agents sit for open house (watch for “Open” signs on Sunday afternoon– they may announce the presence of a bored agent; just don’t interfere with their sales), etc. If you do make open-house visits and plan to give Homexam’s book to customers, show the agents the lists of “Advantages” in 1A, 2A, etc.
The most successful companies combine all of these, but some highly successful inspectors merely visit during open house, or merely give seminars. Whether giving a speech or just “dropping in,” be sure to write and practice a script for yourself before you venture out.
One successful company markets solely to attorneys. They have about 1500 on their active list, and yearly send a response card. If the attorney is still interested, s/he sends back the card, which then gets a follow-up phone call, office visit, or additional mailing, as appropriate. This father-and-son inspector team does about 1000 inspections per year, getting about one job per interested attorney per year. In order to avoid conflict of interest, they do not market to real estate agents; and because the agents in their area generally avoid inspectors who spend “too much time” looking at a house.
I once attended a marketing session at a sales meeting of real estate agents given by Mike Lennon, owner of HomePro ® . He distributed a book to each agent and based his pitch mainly on his book.
Many inspectors who use Homexam’s books also base their presentations on our book, and some give free or at-cost copies of the book to agents. Once we did that with one agency of about a dozen agents and it at least tripled our business with them for several years– from perhaps a dozen per year to perhaps three-dozen per year. If at least one agent in an agency knows you well, you might be able to get a big increase in your business from that agency if you give each agent (or at least each full-time agent) a book (perhaps at cost). Before giving freebies, check with the chairman of the ethics committee of any inspectors’ society to which you belong. Most allow the practice provided that the book is part of your usual inspection report.
Most inspectors find that paid advertising, including yellow-page ads, does not pay. However, one inspector advertises widely (including cable TV) that he does not solicit referrals from real estate agents. His inspections are meticulous (spelled “l-o-n-g”), expensive, and he is able to get enough business to stay alive. You may be able to do that if you live in a major metropolitan area.
Finally, buy and read some good marketing books. And get some marketing or motivational tapes to listen to as you drive. Practice what they preach! Incidentally, if you merely want an inexpensive source of inspection information of all types, you might subscribe to Inspector’s Field Notes (call 800-347-2455).
Q Who else sells inspection customer’s homeowner books?
A Many booklets and pamphlets are available. However, there are three fine books oriented primarily toward inspectors’ customers: HomePro (703-761-1400) had the first complete book ( Homebook ) that worked well. Carson-Dunlop’s (800-268-7070) Home Reference Book apparently was modeled on the Homebook and its print quality is superb. Our Homexam book began in the 1970s before the Homebook existed, but was not completed until later. A recent addition is the Homeowner’s Manual (call Reginald Niles, at 408-729-0790); it is a very nice book. Dozens– probably hundreds– of inspectors have told us they consider Homexam books to be the best. Most who have examined all three seem to consider the Home Reference Book to be their second choice, and some consider it to be superior to Homexam’s books. As of this writing, it has at least half as many words, and almost half as many drawings. Wise inspectors probably should buy all three and at least use them as reference books.
Q Do real estate agents like Homexam books?
A No inspection system will please all agents. However, inspectors have told us that agents prefer our books over those published by our competitors now that Homexam’s books identify the advantages of components and systems (see 1A, 2A, etc.). The favorable responses include those from agents who initially responded negatively to the bulk of information. Give them a copy to read so they can see for themselves how the book presents a balance to the “C” articles (1C, 2C, etc.). Please note that an increasing number of agents truly want their clients to receive in-depth information. Some want fully-informed clients because, for example, their clients may be drawn from their club or church. Others want their clients to remember the good service they got when they bought the house– a policy that they consider to be good for future word-of-mouth referrals. Others simply want to avoid lawsuits, and conscientious agents just want to do the right thing when dealing with their clients (conscientious agents often say, “I want my client to leave the inspection with something they can carry in their arms”). Probably because of these reasons, book-based reporting systems are used by some of the most successful inspection companies in the U.S. and Canada.
Q Are customers really able to use the references to find material in the book?
A For about one year I assigned a test reference for customers to look up while I was busy with printing out the first copy of the report. I never encountered a customer who needed help in finding the reference.
Q Do customers really read the book?
A Most customers read every word written about items that worry them, and some read all referenced material. But even customers who read nothing will feel that we have done our best to inform them fully when we give them a book. And please note that they’ll have a harder time claiming “You didn’t tell me that might happen” when they get in-depth information such as that found in the book (our complaints from customers have nearly ceased during the years since we began handing out books). In fact, customers probably are even less inclined to complain if they don’t read the book, for they can’t be sure we didn’t warn them in the book that the problem might be in the house.
Q Do customers understand the book?
A Not as well as home inspectors. But homeowners generally are above average in ability, and most can understand the material if they read the references in the order presented on the report (EZguide now instructs customers to read PART 2, DESCRIPTION, references first; and Homexam’s paper-and-pen forms present descriptive references first); or if customers first read the “A” articles, as instructed in the Preface. The alternative is to write for the masses– tailored to the “lowest common denominator.” The problem with that policy is that many of the “lowest” won’t bother to read anyway, and such baby-talk writing cheats the diligent homebuyers who really want an in-depth understanding of their house. Therefore, we believe it’s best to provide complete answers to all questions, even those that require thoughtful reading.
Q Do customers understand the technical terms in the book?
A Terms generally are defined for customers, often with helpful graphics, if customers read references in right order.
Q Has anyone compared customer responses to Homexam’s books with responses to other books?
A One inspector (Tom Moore) asked his customers and they reportedly preferred Homexam’s books over others (the ASHI ® / Consumer Reports ® book, etc.).
Q Do you have errors-and-omissions insurance?
A E&O insurance perhaps is an invitation to a lawsuit– they can smell the money available. It can be a good marketing tool, but we get more inspections than we want; so why bother? We have never been sued (or even threatened) and have received very few complaints. We prevent complaints before, during and after the inspection this way:
• Before– we send out a fax to establish realistic expectations (see “Information About Homexam Inspections,” herein);
• During– we do our best within the time period (a few hours) that the customer has agreed to pay for (hourly charges); and
• After– we give the book to customers to read after the inspection. It is likely to answer all the questions your customer might otherwise call you to ask. Giving the book also conveys the message that we’ve gone the extra mile to inform them (they’re less likely to sue if they like and trust you). However, you should get insurance if you’re a new inspector. Currently, the only insurance company appears to be Rigdon– 800-692-5752.
Q Have any inspectors actually received $50 rewards for finding errors in the book?
A Yes, many– mostly for grammar errors in early editions. We still encourage inspectors to search for errors, for we believe the book’s reputation for accuracy dependes upon constant vigilance
Q Can I get individual chapters for partial inspections?
A No. But feel free to copy pages for single-system inspections if you normally give our books. Also, book articles in our Ezguide Plus reporting software of course can be printed individually on site, as needed.
Q Can articles be copied for seminars, etc?
A Yes, if you attribute the source to Homexam. Also, Homexam sells “Flyers”-on-disk files ($20) that you can print on your printer to create custom flyers for referral sources, seminar participants, etc. Note: The Flyers may be included with Homexam’s Bargain Bundle for no additional cost (see www.homexam.com for latest details).
Q May I create my own paper-and-pen form?
A Sure. The form need not be approved by us.
Are the paper-and-pen forms available on disk? Yes – see link at the inspectors’ homepage . You may want to print on carbonless paper with an impact printer (call Global at 1-800-845-6225).
Q Must reports include book references if I use your book?
A No. It seems that the most successful inspectors do, but some merely let the customers use the index, and others use a cross-reference sheet for finding the material in the book that corresponds to items on their own report forms.
Q Could you create a cross-reference sheet that could be used with my report form?
A Possibly– time permitting. There may be a fee (probably less than a thousand dollars) for this service.
Q Who sells report forms, book dividers, etc. that can be used with Homexam books?
A Joe Toomey (301-654-9249, 301-951-0010), Gerry Aubrey (888-336-2355, www.homeinspect1.com– he also has software), and John Riddel (800-498-1569).
Q Are multiple report copies necessary?
A One inspector discussed this issue with his attorney and they decided that one original with no copies should be adequate. However, that inspector now produces multiple copies so that agents, etc., can get an immediate copy with customer’s permission. If you use a computer that can save the report on disk, you’ll save a few dollars on each inspection by eliminating the copies.
Q Must I use Homexam’s disclaimer if I give out your book?
A No. It probably does not provide rigorous legal protection, but it is an excellent tool for setting perspective. Consult your attorney and use it at your own risk.
Q Do you identify the location of problems?
A If I identify the location, my customer might reasonably infer that particular location to be the only one needing such attention. For example, if I find a rotten spot on the fascia or other trim, I worry that other rot may have been “repaired” with caulk and paint and may fail soon. Similarly, if I find reversed polarity in a receptacle, I recommend that an electrician re-examine all receptacles rather than identify the location of the bad receptacle unless I’m certain the other receptacles are free from problems (reversed polarity is the work of an amateur; identify its location and you may invite a “repair” by the same amateur; a competent electrician can find reversed-polarity receptacles in minutes). However, I carry a cassette recorder in my shirt pocket if I don’t videotape the inspection, and I often identify the location verbally (customers get the tape). Plumbing problems and other problems that can be identified by location without incurring liability risks usually get a few words tacked on to the end of the computer item, such as “master BR bath,” “in the kitchen” etc. That’s why I designed our EZguide to jump the cursor to the end of the line when an item is retained. Incidentally, the largest inspection company in the D.C. area generally does not identify problem locations.
Q Where do I buy 3-ring binders? Cost? Stick-on plastic envelopes?
A We pay about $1 for plain 1" binders (not see-through “view” covers) from Quill. Call 708-634-4800 for the East; West of the Rockies call 714-988-3200. If you want 1 1/2" see-through binders ($2.19; often on sale for less), call Quill (800-789-0605 x 4227). Also: Wholesale Supply (800-962-9162). You also might try Reliable at 800-859-7066 x1252. We pay much less than $1 for logos (used with vinyl binders, not see-throughs). Our Virginia printer said he’d be willing to accept shipments of binders directly from the office supply companies, apply inspector’s logos, and then mail the binders to inspectors. . . call Wisecarver’s Print Shop, 540-662-6311. Some inspectors use a plain 1" binder with no imprint. You can get plastic stick-on envelopes from Uline (800-295-5510; www.uline.com)
Q How much do the plastic handle bags cost?
A $197 per 1000 for the size used with 1" binders (phone Chiswick, 800-225-8708).
Q Will the price of The User-Friendly Home books increase?
A Because our costs decline as we order larger print runs, we have lowered our prices by about a third since 1989 when 100 sets of Standard-Edition pages sold for $18 each. Unfortunately, we may have to introduce increases occasionally that approximate our cost increases (paper prices are especially a problem– once we endured a 49% increase in paper prices just in the span of one 12 months period).
Q Can I suggest changes for the User-Friendly Home book?
A Please do! No book is perfect, and our books are frequently revised. If you suggest significant improvements, we’ll probably include your name on the Acknowledgement/Editors page– and maybe pay you $50 or more!
Q May I add material to the User-Friendly Home book?
A Yes. Article 9Z is an article for you to write.
Q May I mention the Homexam book in my ads?
A No. “Homexam” is a registered trademark and may not be transmitted in any form to the general public. If we do not consistently defend the Homexam trademark, then a good lawyer could successfully argue that the name should revert to public domain status. Nor do we license the name Homexam, for franchise laws are very strict, and improper licensing of the name Homexam could expose us to litigation regarding possible violation of franchise law. Therefore, inspectors are expressly forbidden to use the name Homexam in any material of any nature given to home inspection customers/clients. Nor, according to trademark law, may similar names, such as Home Exam, etc., be used. Exception: We encourage you to mention Homexam to other home inspectors or prospective inspectors.
Q Which inspectors’ organizations are available?
A Oldest: The American Society of Home Inspectors ® (ASHI ® ). You can find them at www.ashi.com or call 800-743-ASHI. Its educational programs are very impressive. You also can join the National Association of Home Inspectors ® (800-448-3942; www.nahi.org); Society of Professional Real Estate Inspectors ® (SPREI ® , for short– 617-334-4500; www.sprei.com); the American Institute of Inspectors ® (AII ® ; 800-877-4770; www.inspection.org); or the California Real Estate Inspectors Association ® (CREIA ® , 800-848-7342; www.creia.com). Frankly, I have not had enough comparable experience with most of these to know whether they do a better job of responding to members’ needs than does ASHI ® . However, I have had extensive dealings with CREIA ® and SPREI ® , and never found them to be mindless or slovenly. My experiences with AII ® also have been positive. NAHI ® also has matured into an impressive organization. SPREI ® has been given generous praise by inspectors I’ve talked with.
I wish these smaller groups would form a coalition, pool their resources, and publish a truly great newsletter with first-rate technical information. Someone also should be publishing an abstracting service that would extract the info of interest to home inspectors from the dozens of publications that include that type of material. If you just want certification, you might write to Building Officials and Code Administrators of America and ask for information regarding their certification test (4051 W. Flossmoor Rd., Country Club Hills, IL 60478-9903).
Q Are you a member of any of these?
A Several have asked me to consider serving on their board, as a permanent consultant, etc. However, I see such intensive involvement as inappropriate for my primary role as journalist and I avoid close alignment with any organization. On the other hand, I joined ASHI ® back when it was the only game in town, and I was made an honorary member of NAHI ® after providing them, at their request, with 300 questions from my book that they used as the basis for their certification exam.
Q Who offers training for home inspectors?
A By the time you read this we hope to have an inexpensive video-rental inspector training system that will be very extensive. This decades-long project is nearing completion. Stay tuned for more details (see www.homexam.com). Check the links posted on the websites of the above-listed inspectors’ organizations for other training opportunities.
Most societies give Membership Renewal Credits to inspectors who have others observe their work. So call your local inspectors and see if they are interested. Some may resent the threat of competition, but many need the MRCs. Ride with them if you can.
Q Can I get flyers and brochures from Homexam?
A No. You probably should print your own. However, we do have flyers on our CD ROM that you can print
Q Can you guarantee that Homexam will ship books immediately upon receiving our order?
A No. We usually ship the next business day, but our shipper’s location sometimes is snowed in, the bridges wash out in floods, shippers’ and/or truckers’ strikes gum up the works, help may be ill, quit, etc. etc. We urge you to allow 6 weeks for delivery (if you forgot to reorder and your supply is depleted, tell your customer a book will be mailed within a few days). If pressed, please feel free to take one of our books to your local copy shop and duplicate a few copies (tell them to get on the web and find this permission if they give you a hard time for copying Homexam’s copyrighted material). Also, keep a little supply of our CDs so that you can give them out to computer owners instead of the paper version when your supply of books is getting low.
Computer Questions
Q Has ASHI ® approved any EZguide reports?
A Yes.
Q How do I learn Homexam’s EZguide?
A Watch the movie on our web site or the long movie on our Ezguide CD, then follow the on-screen instructions that will appear when you install the software.
Q How much time is needed to produce an EZguide report?
A About the same as required by the paper-and-pen checklists that I have used, and less time than writing longhand notes. But plan to spend several hours the first time you create a report.
An inspector called me after he created his first report and asked how long it would take him to get it down to 30 minutes. I told him to use the keyboard shortcuts and he’d need to do maybe no more than 5 or 6 more reports. Soon he called back and exclaimed “I got it down to 30 minutes the second time through”! Those keyboard shortcuts really make a difference. Experienced inspectors tell us they create on-site reports in 15 minutes. Obviously, if you mention every loose screw in the kitchen cabinets or inspect a junky house, you’ll need more than 15 minutes.
Q Can photos be incorporated in EZguide reports?
A It’s easy after you have completed Step 3 in EZguide. Get Play’s Snappy for the parallel port for capture from a videocam. A digital videocam will give much better images, and you can pause on any frame for a quality grab by Snappy. Or get a digital camera with a USB port that you can quickly connect to your laptop.
Q Can EZguide be used with voice recognition?
A Yes, we’ve done that. The new laptops are faster than when we first experimented, and we’re taking another stab at it. We still recommend collecting data on a tapeless voice recorder, then listen to your notes as you create the report on a laptop at the end of the inspection.
CD-ROM Questions
Q How do I use the CD in my business?
A Here are a few ideas:
• Offer it to your customers instead of the paper edition.
• Give the paper edition and in addition sell the CD ROM at reduced price (you set the price—recommended list price is $29).
• Offer to sell it to your customers if you don’t give the paper version.
Flyers on Disk Questions
Q How do I get into the Flyers files?
A These files are in Adobe Acrobat format. You’ll need Acrobat Version 4 or later. Be sure to install Acrobat from our Goodies CD unless your are certain that you already have a newer version on your computer. Don’t worry, attempting to install an older version from our CD will result in a prompt asking if you really want to continue. In such cases, simply select “no.”
If you have installed EZguide from a Homexam Bargain Bundle disk, you’ll find the Flyers in the C:\HOMEXAM directory.
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