Over the years, I have been involved with competitor analysis. Sometimes you think this would be fairly obvious, so why would companies need to do competitor analysis. For example, why would one movie theater need to know the ticket price of another when most prices are so similar, and other factors, like location, may determine where you go? However, even movie theaters conduct competitor analysis on an ongoing basis. I keep track of my competitors, and once a year, I perform a more in depth analysis to create my plans. One aspect of this analysis is “what is a Houston home inspection cost?”

    What are Houston home inspectors charging? My methodology was to look at the average square footage of homes that I inspected last year first. Home inspectors base their quotes on the square footage most often. I rounded this number to the closest one hundred. This gave me 2100 square feet. Since home inspectors will have different base prices, I looked at what would an inspector charge for a 2100 sq ft home. Prices were quite varied. I found the highest price at $500. The lowest price that I found this year was $250.I had someone report a $600 cost, but I have not verified that amount. If you were to randomly call a Houston home inspector, the price you are most likely to obtain is somewhere around $310 for my average home.
    In previous years, I had found prices as low as $200. I did not find a home inspector offering that low price. I believe that they are still out there, but they may be harder to find. My services cost $250, and I have decided not to raise my price. Each inspector has to look at their own operating expenses and desired profit along with revenue trend to determine what they charge. Another factor for me is to examine my quote to conversion ratio along with comments made by potential clients. Although, as the year progresses, I may revisit this cost, I am finding this is the best price point for me.
    Does a lower cost mean a cheap service? You may hear “do not use a cheap home inspector because you will be getting poor service”. I am not sure about that fact. In my next post based on my competitor research, I want to go into what that service entails. I was surprised  by some facts. What you may find is that some lower price services are not poor in quality. There are too many factors as to why an inspector will set a price, but it may be true to state that an inspector who has been in the industry longer can command the higher price. Does an older company history mean better service? Although I know some who will make that argument, I cannot support it. Customer expectations evolve, and not all companies evolve with them. Remember Google was not the first search engine, but for most users, Google has become the main search engine to use. In the future, another search engine meeting consumer desires may be the prominent firm.
    I hope that there are other reasons to decide upon which home inspector to use besides cost. The purpose of this post is to give you an idea of what to expect when doing your own research.

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Maybe the tales of a Houston home inspector are not the standard for examining real estate trends, yet I feel that the year has shown positive signs. A few neighbors have asked me about my business outlook. Perhaps this is a way to judge if they should go into the market with their own home. That could be the first trend which I noticed: the hesitant seller. There are people who want to move, but they are waiting until the market appears better for sellers. The interesting aspect of this trend for home inspectors has been sellers wanting their homes inspected to deal with issues before a buyer comes into the picture.  When looking back at this year, I can say that it has been a good year for me, but not all real estate professionals. This leads me to consider other trends.
    Is that home inspector still in business? That real estate agent? The real estate industry might consist of more part time employees than other industries. You could have a job, and you could perform home inspections on your days off. I have seen appraisers do the same. I see people begin their careers as a real estate agents while still working another job. This is what makes the real estate industry a great industry for many. You can earn extra income. You can build your business while still having security. However, when the real estate market is bad, you do loose people. I have encountered home inspectors, as well as agents, who were full time going out of business. Mainly, I find people starting new business ventures to supplement their real estate business. I found my business increasing, so I did not have the time for a new business. I found other real estate professionals in my situation. We focused our business, and we found an increase when others complained how bad the market is. Basically, the firms left standing are doing business better.
    The buyer wants to spend their money wisely, and the real estate industry is responding. Sometimes I feel that professionals in my industry are paying lip service to the idea of providing value, but we are see changes that do help the consumer. Even before 2008, the consumer was gaining more information through the internet. Smarter consumers force businesses to be smarter.  Builders are constructing more efficient homes, which consumers see as a better value. Some real estate firms are letting consumers pick and choose what they want in the way of service, instead of simply charging them for everything. The consumer may be looking for the lowest price, but they do want to ensure that they are not cutting the corners too much. The recession added the information wise consumer more budget conscious, which means even more pressure on real estate professionals to do the job right.
    Green is better. This is not a surprise: consumers are considering value, and they are considering the cost of living in the home. The vague concept of a green home is linked to the concept of value. Vague? Yes, vague. There are different standards for defining a green home. Terms like “EnergyStar” and “LEED” carry a good deal of weight. The consumer is well aware of the EnergyStar brand, but honestly, the consumer does not understand many issues that people are using to define  an energy efficient home, since all of this is new. I thought everyone understood R-value in relation to the insulation in their homes, till I began lecturing homeowners on energy efficiency. At this time the consumer wants an energy efficient home, but as the information becomes more available to them, we will see more focus of clarifying what green means.
    Do I need a home inspector or energy rater? Home inspectors have become a fairly standard part of the home buying process. I had a good percentage of clients who did not use real estate agents this past year. (There were other clients who had agents, but the agents hardly seemed involved from my perspective). The home inspection became important, because the inspection was a way to ensure value. As the consumer begins to include the cost of living in a home into their purchase calculations, they are looking for ways to discover that data prior to the purchase. Energy raters may fill this need. I noticed more home inspectors are going after this certification. I am not sure that this will become the consistent choice of the consumer any time soon. Cost is still a driving factor for the consumer, and even though having inspections of your purchase helps ensure value, there comes a point where the cost of these inspections is too great for the average consumer. There is also a question of return on investment. Having good professionals conduct these investigations will uncover problems to save you money; however, the consumer might not have the funds to go after all of these inspections, and they may not realize the value. Energy raters will be the wave of the future, but home inspectors could begin to include this knowledge in their reports  to create value.
    With builder confidence rising, and my review of my own business, I have good feelings for the coming year. More home inspectors will leave the profession. This was a good year for me and others, but this is still not the best business climate for the real estate industry. I am feeling positive; however, lenders are making mortgages difficult to obtain (unless you have worked to meet the requirements), and foreclosures will continue to bring home prices down (this is good for the consumer if they can find the right home). We have to remember that the recovery in the real estate industry will take time.

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Several years ago a home inspector told me that he took two weeks to write a report. His reports were long, filled with quotes and diagrams. Another home inspector told me that his report was a checklist, which he gave to the client at the end of the inspection. His reports were obviously short. Here we have two extremes, so which one do you prefer? That is a bad question.  How long it takes to produce the report should not be our concern, but rather the quality of the content. Yet speed of report writing is still a bar by which we judge home inspectors. The irritation of some consumers did lead the state of Texas to make a requirement that reports should be produced within three days. This is fine with me, since I have always tried to produce a report quickly.

   When I first became a home inspector, I thought that producing a report at the end of the inspection would be a selling point. I had set up my report in a form format, and I would write them in a half hour. The problem with these reports were that they presented cold facts at their most basic. I came to realize that these reports did not help my clients. I did present a great deal of information to each client, but this was generalized, which had nothing to do with the specific home. I was still concerned with the idea of producing the report quickly; however, my desire to create better content was a more important driving factor. I found that writing my reports was taking two hours when an inspection lasted three. I added content that would help my clients, being common to every home inspection. The reports were still taking two hours. Oddly, I had a real estate agent criticize me for this two hours of writing. We live in an age of immediate gratification.
    The newest trend in home inspection reports is the use of software programs that produce the reports. The home inspector has to perform his investigation. He goes through a list of pre-written statements to fit his findings. There are often some spaces for personalization. I have known a few real estate agents to prefer these reports, because the automated format produces an easy to read list. I even had agents who claimed that this was a required aspect to a report. My question was if this way of producing reports was the best for my clients. I like the idea of the software, but I wanted better content, and I felt that writing my own reports was best for me.
    Having better content is the key to a good home inspection report. I began adding more items to my reports. I had reasons for not including photographs, but I found that certain photographs enhanced the report for the client. I expanded the informational sections of the reports. I created space to make it easier to read the report. This idea came from studying web design. I could write the report like my college papers, but a well designed appearance makes the information in the report easier to read. After a broker mentioned to me that clients did not always see my invoice at the end of the report, I added a table of contents. This is a breakthrough, since this could allow me to expand the information in a readable format that can allow the user to go to the appropriate section quickly. I am still tweaking these aspects of the report. The goal is to produce better content with better content delivery.
    These steps have increased the amount of time that I was taking to write the reports. Increasing work time does not seem logical from my standpoint as a business owner. More time on the job means lower profit. I decided upon a different approach to report writing. I began by writing the report backwards. I started filling in the information on the last pages. Afterwards, I would go back through the report in the standard order to check what I had written. This method forced me to edit. I had edited before, but this editing was done too quickly I discovered. Starting with the end of the report did not increase the report writing time, but I produced a better report. Still attempting to write faster, I added the idea of the information dump to my writing process. Instead of looking at my notes, I wrote everything from memory. When going back over the report in my editing process, I used my notes to fill out areas that I missed in my first draft. My report writing takes as long as my home inspection, and I am fine with this development.
     A home inspector’s goal should be the delivery of a report in a timely manner. If you are looking for an inspector, asking them how long it would take to produce the report is a valid question; however, asking questions that relate to the quality of the content would be better.

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Real estate agents know that a solid reputation is worth its weight in gold. While a good local reputation gained through word of mouth is sufficient for some agents, the best way to extend your reach, and your earnings, is to increase your online reputation. Furthermore, by moving some of your operations online you will notice a whole host of other benefits, including increased flexibility, more buyers of investment property and lower costs.

Here are some reasons why a good online reputation is very important for real estate agents:

• It’s Permanent

One of the benefits of having a good online reputation is that it hangs around for a very long time. Unlike print advertisements or billboards, advertisements posted online are floating out there on the internet for many years to come, some might say indefinitely.

If you write something negative about another agent or a client posts a negative review of you, those words will be right there for the entire world to see. A disagreement between you and a client that appears online can mark you for years. Be mindful of this when you conduct business, especially if you have a strong online presence.

• Reach

Utilising online resources enables you to greatly extend your reach. While your own personal website is an effective online marketing tool, there are many other ways of promoting your services like having a profile on Rate that agent (www.ratethatagent.com.au). Other avenues can involve social media, mobile apps and paid advertising space on popular websites. All of these strategies help you reach out to a greater target market and demonstrate a sound knowledge of property investment.

• Reviews

Allowing clients to rate and review your performance online with a website can sound risky. What’s stopping them from bashing the services you provided? However, more often than not, reviews written online are generally fair and reflect the service received.

Not only is this an incentive for you to go above and beyond for current clients, but having a portfolio of fantastic 3rd party ratings and reviews is extremely important for bringing in new clients. If a potential client is on the fence, highlighting your impressive work history could be the tipping point that brings them into your camp.

• Feedback

Receiving feedback online enables you to make improvements to the quality of your services in real time. This in turn will improve your online reputation. Sharing data online is also lot more efficient than physically meeting or having to mail documents to a client.

• Lower Costs

Having and maintaining a good online reputation is generally more affordable than spending money on print and physical media marketing campaigns. Creating profiles on various sites or forums will give you some instant exposure.  A good real estate agent puts every dollar to good use.

• Digital Office

Operating online also enables you to have a more flexible work schedule. Why rent out an office when you can run your business from home? So many real estate agents are saving thousands of dollars by doing just that.

A good online reputation is such a valuable tool in a real estate agents toolbox. So follow our six tips and start building your online reputation today!

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I walk into the bedroom, and I see a mark on an outlet. Others have walked passed this mark not realizing that this is a sign that another home inspector has been in the house. However, I am puzzled. First the mark indicates that the outlet has a problem. I cannot find a specific issue with this outlet, but I do find problems with outlets. Next, I notice that a panel that a home inspector should have opened has never been removed. Yet there is another sign of an inspector having been in the home when I am up in the attic. Was there another inspection? I see other signs that items were not inspected or discovered. I have the situation that the other inspector spotted something, but I am not sure what he found (the mark on the outlet). In other homes, I have conducted an inspection after the home has undergone repairs, since another inspector found issues. When I mentioned to my clients that another inspection report exists, they ask for a copy, then they wonder why my report does not match the original report. Maybe because of the repairs?
    When in conversation with fellow home inspectors, I was told that I really did not know how to do my job, because I use aids. This gentleman argued that if you knew everything about your job, you would simply go into a home to conduct your examination, and you would find everything that you would need to find. I knew that statement to be false. I think back to when I worked in a retail environment. A customer came to me saying that the business always ran better when I was the manager on duty. A stuff member made a similar remark. That made me consider why does the store function well when I am there, and not as well when I am not there. I have come to the conclusion that there are certain steps that need to be taken to perform a job well. I said the other inspectors statement was false, because other managers who used his methodology failed to have a smooth day at work. Here are my steps for a home inspection:

Preparation

There are three parts to preparing for the job: having the equipment for the job, gathering general information on the topic, and more specific information concerning the job at hand. In gathering general information, you want to keep up on the latest trends or basic information on how to do your job. As a home inspector, this means that I need to know what techniques builders are using, what techniques are the best for our environment, and what techniques are being developed that might help my clients. For example, a builder may use one long piece of flashing running along a joint of the wall to a roof. With the heavy rain possible during hurricane season, I should know that using step flashing would be a better choice to move water away from the roof sheathing. I should also realize that there is a technique of using step flashing along the wall to the roof, but then having a decorative one piece of flashing covering over this area (the step flashing is the real flashing, while the other piece is set up only to be decoration). I also need to understand the product that is on the market (what might be the difference between a foreclosure and the home being offered by a seller). I am also served by learning the latest building techniques, which is currently centering more around sustainable or green building. I should also know something about the products going into the home (is that an energy efficient window?). If I do not know how a product works, how can I examine it?
    In the more specific preparation, I need to find out about the home. Was the home built when a asbestos was used? Lead paint? Where is the home? That may sound silly, but if you are supposed to be at a home at a certain time, then you should know where it is. Knowing other facts about the home can help you sound knowledgeable with the client. There may be other things to discover, but you need to do your research on the home before showing up at the door.
    I mention having the equipment. Do you have the basic tools to perform the job? Do the tools work? Do you know how to use them? There are different was to test the equipment in a house. A home inspector should understand different ways to test the air conditioning system, and he should know what tool he needs to perform the test. I could purchase expensive equipment to check the exact level of the foundation in a home. This can be great information for my client, but this will increase the price of my inspection (factoring in buying the equipment, the time it takes to use the equipment, maintenance of the equipment, and the time learning to use the equipment). Using other pieces of equipment, I can accomplish a similar outcome. However, my client may not need something so detailed, since they would call in a foundation company if I find an issue.

The Checklist

People hate checklists. Bad or even average employees see them as a way for the boss to be looking over their shoulder, so they check them off. Some people see them as a nuisance. They are trying to get their job done, and they go through their routine, but then they need to stop to make a quick series of check marks to show their boss that they did the job. For a checklist to be effective, the list has to be well thought out, and it has to work to help people do the job right. I saw one inspection report where the inspector had a series of check boxes in each section of the standard report from the state. He probably understood each item, but the clients did not. He did not cover every possibility. In the end, his report failed to deliver usable information to the clients. Maybe some people who have problems with checklists are thinking of this list. I do have a series of questions in my checklist that I need to answer. These are rarely yes/no questions. What the questions do is to make me stop, think, and record. Before I leave a home, I look through my sheet to see if I answered each question. If I did, then I know that I have examined the home completely. When the client is with me during the inspection, I often explain issues to them, but then I have not written down the issue, because I am explaining the next item. They have the information, but I might forget to put it into my report if I did not write it down.  When I see signs of an inspection, but I also see signs that an item was not inspected, I am convinced that a checklist would help prevent that mistake.

The Walk Through

If I left my head in the checklist, I might not understand the big picture. Before I start the inspection proper, I orient myself by walking through the home. I can understand other things that I am seeing after this walk through. After I complete the home inspection, I also want to walk through one more time. The first walk through helped me to understand that the vent in the side of the house was for the clothes dryer. The final walk through lets me see if anything has changed after I performed my tests. For example, I was checking the drains for the plumbing system in a bathroom. Everything inside the house seemed fine. When doing my final walk through, I went to a side of the house that had nothing there, and I found water stains on the wall, where the drains would be located for the bathroom. I know knew that the drains had an issue.

Taking Time to Complete the Job Right

The end product of a home inspection is the report. With the notes in my checklist organized in the format of the final report, I do not have to organize too much before writing the report. I used to want to write the report quickly for the client at the job site. I realized that this was not helping the client. I bring my material home. I download my photographs, and I go over my papers. I begin to write the report. Writing a report now takes two to three hours (almost as long as examine the home). After writing the report, I read what I have written. Did I jumble issues? Did I write the findings in a way that the client can understand? Did I forget something?  Proofreading is vital to a good report, but many people do not proof their work before submission.

    I have had people argue with me that faster is inherently better. I do feel that we need to produce work in a timely manner, but this does not equate to overly fast. My favorite example is the Realtor who told me that her inspector were better than me, because they did the job in two hours. I had mentioned that my average time for an inspection was seven hours at that time. This seven hours figure was based upon all of the time needed for the job. In the case of her inspectors, I knew that they spent more than the two hours. I also knew that two people were inspecting the same home, which means there was four hours of work performed in the examination. They used a home inspection software to produce the report. I am fine with the idea, but I prefer writing the report for the client. I feel that a handwritten report helps a client better than a computer generated phrases. These inspectors may have produced a valid report, but did they fully offer their clients the best job? From my experience, they did not.

Rather general advice is it not? I do think this can be applied to other tasks, but this is my defense for using a checklist and my method in general for performing a home inspection. I have examined homes in around two hours, although it usually takes me longer. I know that an inspector can walk into a house. He can go through the rooms with a tape recorder, and he could have checked most things. To really be sure, you need the checklist and you need the time.

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I have been noticing mixed signals when it comes to the real estate market. On the one hand, we do not recover from a housing crisis in a few short years. I expect that fact, and I try to make my business model stronger to meet this leaner period. Yet what I am seeing is an industry that does not comprehend its predicament. That may not be an entirely accurate statement, so let me explain. We have real estate professionals arguing that stimulus packages are a bad idea, while pushing the idea that we need stimulus packages to help the industry (the mortgage interest tax credit being an example). We were told to vote for people who want to see Fannie Mae and Freddie Mac to immediate end, yet these entities are what is keeping the real estate industry going at the moment. The truly interesting shift is that we may see more individuals forgo the goal of homeownership to become renters. What will they be renting?
    As we had testimony before the US Congress recently pushing for policies that would benefit the trend towards homeownership, we also had economists pushing the idea that this recovery will be achieved without housing. The housing industry has been a major economic player. Thinking about all of the materials that go into a home, all of the services that are connected with the home, and the financial industry connected to the home, we can see how important a driver this industry has become, but this may no longer be the case. Obviously, the aspects of buying and selling homes is not going away, so home inspectors do not have to entirely give up their business model, but we are not going to see the same frenzy that we had seen in years past. What does this future hold for us?
    Through this blog, I receive calls asking for bids on repair work or remodels. I refer people to others. However, this may be an opportunity that I should not pass by. There are home inspectors who use their business to promote their pest control firm or the remodeling contractors. This has been a questionable practice for me. In Texas, we cannot work on the home that we inspect for at least a year until after the inspection. Furthermore, is there much opportunity in this home repair industry? Where I do see a chance is that the home inspector skill set is perfect for checking on the quality of work by a contractor. Quality of work inspections may be an area where we home inspectors can begin to push our services. Basically, we change our focus from the buyer or the seller to the homeowner.
   Another way for us to begin looking at the homeowner is the home evaluation. Do you realize that there is more competition now for home energy audits? This has not become a standard yet for the average homeowner, but more professionals are moving into this field. How about changing the ground rules? Do not offer the energy audit alone, but look at the home as a complete system. As home inspectors, we should know that different systems work together to make the home function properly. We could use this skill set to offer a home check-up, where we report on more than the state of energy usage, we need to report on the state of the home in its entirety (energy, water, structure, and systems). Or service could be quite comprehensive.
    Taking advantage of the rental market seems easy enough, go after real estate investors. Well, that is not so easy. Investors are looking to reduce their costs as well, so the home inspector may be loosing out in that market. Not that you should not try; there will always be investors who need are expertise. However, I began to think of the renters. Many renters are acting like they are buying a home, so maybe they should begin looking at ways to acquire the same information that a home buyer does: the home inspection report. If more people are going to stay in the renter category, they may need a home inspector to help them make a wise decision on a home. Landlords may need us to evaluate a home after a renter leaves. This could be a growing market.
    I am leaning towards the idea of home inspector as building consultant, like a LEED AP. We do have the knowledge. In this case, I am suggesting that instead of checking on the quality of work after it has been performed that we advise the client on how the work should be done before the job is even undertaken. If more homeowners are staying put in their homes, they are more likely to undertake remodels. The house of the future is not a new house of some science fiction design, but the current home with its interior changed. The new technology battleground is happening inside the home, and our homes will be changed to meet it. This is a chance for home inspectors to learn about the “intelligent” home, so we can be the advisers on this trend.
    Our clients may see us as the guys that they call when they are buying or selling a home. Maybe we need to be the professionals that people call when the need the best information about a building. This means that the industry needs to go through an education growth, but the future always requires that from us.

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There are home inspectors revealing secrets; there are those who hate the profession revealing secrets. I noticed this marketing tool was being used by many to put forward their agenda, so why not deliver my own take on the topic. My reasons for writing are also partly inspired by a tirade by some Realtors against home inspectors and contractors. My advice to them is if a Realtor does not wish to meet with contractors on behalf of a client, then tell your client about your desire. Let them consider if they wish to continue using your services. If you do not like the home inspector, tough. We are hired by the client, so be professional to work with us. As for those of you considering a home inspector, maybe it would be to your advantage to understand home inspector marketing to make an informed decision. Here are some keywords to check.

Secrets revealed- let us start with this one. Obviously, how many secrets could I have that I am not revealing on this blog? One statement that is made is that we hide how we do things to keep it secret. Think about this. How many people know all of the details of your job? It is not so much a secret, as a matter of learning. If someone is telling you that they are revealing secrets, they probably are not revealing anything another home inspector will not say.

Independent- the perception that home inspector are in a union with Realtors continues, because it does happen. I experienced Realtors and sellers who tried to force me to change my report. Good luck with that. Fueling the perception is the fact of referrals. Successful home inspectors receive referrals from Realtors. A home inspection cannot thrive without them. For some the term “independent” becomes tied with the idea that the inspector does not rely on Realtors, yet I know that all home inspectors have connections with Realtors. Can a butcher do his job without a connection from a rancher? It is the nature of the business. What you should understand that an inspector using the term independent is that the inspector is not going to allow others to sway the findings in the report, and most inspectors will fall into this category.

A contractor is better, because it is in their interest to reveal everything to you, so they get the work- this is a statement from the anti-home inspector camp which I wanted to address. I have nothing against contractors. They may discover more, yet they could also fudge an item to increase their income. Home inspectors in Texas are not allowed to work on the homes that they inspect, so the inspector has no financial motive to lie about more problems; the contractor does. You can hire a contractor, and that may be a good option for you, but an inspector may have more knowledge about different systems. One advantage in a state like Texas is that only a licensed home inspector can produce a report for the selling or purchase of a home. That report may carry more weight in negotiations than the statement ” my contractor said…”.

A home inspector is misleading you to get his money and have the sale go through- I am paid whether the sale happens or not (I know some clients feel that they do not need to pay me though). The perception tied with this statement is that home inspectors set up the situation that we cannot be blamed for anything we miss. Think about the business you are in. If you are misleading customers, how long will you stay in business? Again, there have been cases of home inspectors intentionally or not misleading clients, so these occurrences lend themselves to this belief. Most inspectors have a vested interest in revealing everything they find. As for the contracts, they do not prevent having a state agency investigate the home inspector or filing a lawsuit. There are home inspectors specialize in outing other inspectors and being witnesses in trials. No contract covers a home inspector from performing a bad job.

The inspector needs to know building codes- yes and no. Having an ICC certification to be a code inspector can help, but this is not a requirement to be a home inspector. All home inspectors that I know learn the code and keep a copy of the code handy. I have been told that with the amount that we are required to learn to pass the exam to become a home inspector could allow us to pass the code certification.  Being certified does open up business opportunities outside of home inspection. The real benefit in a home inspection is that the inspector who is code certified can refer to code in his report which may give it more weight. I have found that this is not always needed to give the report weight.

The longer the report the more detailed it is- again yes and no. I do have clients ask me how long is your report. They are equating length to thoroughness. I saw one inspector who filled his reports with quotes from books and individuals, sections of the building code, and architectural drawings detailing how the code applies in this section. The reports are detailed, and they are forty or more pages long. These reports are wonderful to read, but you have to wade through a great deal before getting to the gist that you need to know for the sale. I have seen other reports that are twenty pages which are simply that long because the inspector has a checklist of every possible problem that he could find under each section. There were few check marks, and the seller could not understand his report. They hired me to explain it to them. I also like inspection reports that file the data in the proper form, then the items are repeated exactly as written in the report but as an itemized list called the summary. That adds pages, particularly when they use a larger font. Judging an inspector by looking at the report is not a bad idea. You can see how well you can find the details that you need to know and the clarity of the writing.I would not trust an inspector who does not show you his report, but goes over another inspector’s report to criticize it. You need to know how they present their data, not how they complain about someone else.

Everybody is out to get you, so hire this home inspector because he will fight all of those horrible people for you- I know quite a few home inspectors who use scare tactics. I know builders who were rude. I know Realtors who are rude. I am sure that you know co-workers who are less than desirable too. This idea connects with the independent home inspector. The housing bubble which burst in 2008 did leave a feeling among the consumer that they should not trust every real estate professional. That is probably a good thing if the consumer educates themselves. This lack of trust is bad if you never respect the opinion of the professionals you are hiring or using. Unfortunately, those who have a bad experience are more likely to voice their opinions than those whose experience went well. The internet gives a discontented consumer a voice which helps home inspectors market based upon the scare tactic. You do need the home inspector to be on your side, but if he is more concerned with scaring you, is he really helping you?

Do not trust the cheap home inspector; if you want good service you have to pay for it; cheap equals lack of experience- maybe. Price is based on more items than experience. Inspectors have to factor in their costs for maintaining their business. They have to determine the profit needed to live (their salary). They have to look at their competitors. If an inspector does not want his price to be competitive with other home inspectors, that is his choice. A better service does justify a higher price, but you may find an equal service for a lower price. I choose to be competitive. I have found that on certain issues that I am better informed than older  inspectors, and I do not discount that I can learn from them. Price can be a factor, but you should understand that a home inspector focusing on cheap home inspectors is justifying his high price. You as the consumer should judge is that price fair.

Those are the main points. Did I reveal any secrets? I guess not. Marketing targets the clients we want, so if the statements appeal to you, then that may be the home inspector for you. I would rather have an informed consumer. Happy hunting for your inspector.

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I received another fishing for information email a few days ago. Intelligence gathering on your competitors is part of any business environment, and emails make this easy. The person poses as a potential client asking a list of questions. For home inspectors, this list is a variation of a set of questions posed by a Realtor organization. I think that these can be great for the consumer, but the have to understand the factors behind the list. What I do see is other inspectors sending out this list to my email to find out how I respond. It almost seems that they are using a form letter, since they begin with the same sentence stating why they are emailing you. I began to think about these questions when I saw another fishing for information email arrived. I thought it might be time for potential clients to ask the inspector about what he does to improve his service. Does he use a checklist?
    Most home inspectors work in a pattern that you can call the “information dump”. You walk around the room, possibly taking notes or recording notes. You walk back to your central spot, where you dump the information down on a form. The idea here is that the inspector is so knowledgeable that he or she does not need anything other to aid them in the inspection. The information dump can take different formats. Some inspectors walk around with a notepad taking notes as they go. Some have assistants who transcribe their notes from one area, while they go onto the next. Most inspectors who subscribe to the information dump concept see the idea of a checklist as the lazy man’s route to a home inspection. They may have cause for this idea.
    I have seen more than one inspection report that took the checklist formula in a direction that I did not like. At its best, the home inspector has a easy to read sheet where boxes are checked to indicate the problems found. Inspector spots a problem; he checks a box. At its worst, the number of boxes and their arrangement become difficult to read, and the client is not sure what was signified by the check mark. Sometimes you feel the inspector is walking through the home quickly checking the boxes to indicate an issue with no context added to the document. This is where the checklist can fail.
    I am currently reworking my checklist. There is an example on this site of one list that I have used. I do have yes/no questions on the list, but you will notice that much of this list is writing down information, and not a simple checking of boxes. I remember a study conducted at a hospital system which showed surgeons using a checklist improved their performance during operations. I had to create many checklists at different firms where I worked. I found that when an employee took the list seriously, the job performance improved, but you always had those who did not care about the job, so no checklist could correct that behavior. My current thinking that what may be the best for home inspectors is a list that asks a series of questions where the answer is a description. Not a box to be checked. Not a yes or no answer. I know that sellers become bothered by four hour long inspections; however, four hours is not enough to discover every detail, but that is not the point of the inspection. With so much going on, a checklist ensures that we have covered all the areas. By writing a description of what we see, we maintain a better record of our inspection. The idea is combining the best aspect of the information dump in the context of a checklist.
    Maybe our potential clients should ask us how do we ensure the best gathering of data. If you are a home inspector, knowledge is not enough. Each inspection is different, so we need to be prepared for those variables, check to see that we covered all of our bases, and apply our knowledge. Improving our knowledge is a factor as well. There have been a few times when I have run into experienced inspectors who did not know something that I had learned. There is always something new to learn. A checklist can be updated to help us remember these new facts. A checklist forces us to complete the job well. 

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I am having an internal argument with myself over the state of foreclosures. If you sit down to analyze the theories as to allowing massive amount of foreclosures to happen quickly or slowly, you will find sound reasoning that is meant to help the housing market move forward. You see the real estate market plays a larger factor in our economy than many people may consider, because it is such a common part of our lives. We think of manufacturing or financial investments as economic drivers, but buying a home involves more than the home. Services, appliances, and other goods come into play, so having housing market progress helps the general economy.  Although you may not be facing foreclosure, you may have the idea that foreclosures will bring your home’s value down, you might be paying attention to some degree. I do not think that we are fully understanding the implications of these foreclosures, and the election season is not helping matters.
    My own desire is to see foreclosures removed from the market, but I admit that my ideas of how this should be handled are a bit fuzzy. I would love to see microparks developed in neighborhoods as centers were community can develop. I would love to see small, local community centers in neighborhoods. I would also love to see neighborhoods that are more sustainable. I would love to see people in homes. You may like these ideas; however, this does mean an expense for the local government to implement them, which is not too popular of a suggestion in our current climate. Have you asked yourself what you would like to see happen with foreclosures? That is a rather specific question. Could we change that to what would you like to see happen with your community? How do we accomplish that change?
    There are facts about the housing market that we need to keep in mind. First, recoveries in the housing market take time. Ten years is a standard. I mention this fact, because there is no magic formula that will resolve the problems by next year. Second, real estate is local, except for when it is not. Confused? If we let the foreclosures happen en masse in one state, the housing prices in another state will not automatically drop as a result. Or let me go even more local: if a home in southern part of Houston dropped in value from $200,000 to $150,000, because of the number of foreclosures in that neighborhood, we would not automatically reduce the price of all the homes in Houston by 25%. However, there is a catch. I and other buyers might decide to move into one of these cheaper homes, so the prices in other neighborhoods will come down to be competitive. They will want us to buy there. Nevada may be a place where a company could set up cheaply, because of the amountof foreclosures, which then may effect Texas. Also, large foreclosure numbers can cause financial institutions to react in ways that effect borrowers in other areas. Lastly, people need places to live, and the housing market will find ways to adapt. The American dream has been frequently tied to the idea of a house with a yard. This does not need to be the case though. We may see more people concentrate on condominiums or town homes. We have seen an increase of town homes closer to the city center in Houston, but we may see more town homes in neighborhoods further away. Most current town home designs do not include a yard and they are two stories. There will be developers who see the opportunity to make town homes which fit a family lifestyle.
    How should we proceed with these foreclosures? I am not sure that we are possession of all the facts, and I think that we may need to answer legal questions first. Probably foreclosure is the course of action required for many homes, yet there are stories about homeowners that have attempted to pay or have paid, and they still end up in foreclosure. There are agencies which are trying to help homeowners that are do not seem to be getting anywhere with the lenders. We do really need to understand who is being foreclosed upon. We need to understand who really owns the foreclosure, and does the lender have the right to foreclose? If a lender sells a foreclosed property to a new homeowner, does that homeowner really own the property if the lender did not have the right to foreclose? Are the lenders following the letter of the law when going through the foreclosure process? Can we understand the economic ramifications of our actions with any degree of certainty? Meaning, will a drop in home prices in California effect the Midwest in an unacceptable way, or could the Midwest weather such a storm?
    I want us to consider a bigger picture. We have the opportunity to evaluate the kind of communities that we want. If local governments become involved, they could use the land recovered by foreclosures for a greater good. If this greater good is the desire of the community, they may find ways for this not to be an expense, or to make the expense acceptable.  We could have our communities find ways to make our lives better. Can there be a business located in the middle of a neighborhood rather than along the main streets encompassing the neighborhood? Will this improve our lives? If a neighborhood is suffering from a high rate of foreclosures, would it be acceptable to allow a developer to construct town homes where houses once stood. Would these smaller footprint structures be more desirable? We need to accept that these foreclosures will happen. They will effect the market. We also need to be aware that they can be an opportunity to develop a more stable community, but we need to have the facts clearly spelled out to make an informed decision.

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Over the years of writing posts and articles for blogs and other periodicals, I receive an email or phone call thanking me. Often people send me questions or ask for advice. Besides being an ego boost, I obtain ideas for new posts, or seeing new ways to explain details to make comprehension easier. This has helped me grow as a home inspector. A message left by a reader of this site touched me, and it caused me to think about those of you who come to this blog. I realize that I need to thank all of my readers for making me a better home inspector, but the message caused concern in another direction. I need to ensure that I am not paying lip service to the idea of service, and I think the real estate community in general should remember the mistakes which led to the housing crash in 2008.

   The purchase of a home will be the largest financial transaction in the lives of most people. By the time a homeowner finishes paying off the mortgage on $100,000, they may have spent $300,000. (A good reason to pay down the principal on your loan).  Buying a home effects other parts of our economy. We work on our gardens; buy furniture; and fix the structure. I am sure that most real estate professionals are well aware of this fact, but the idea of how big this is to our clients should remain foremost in our thoughts. Our culture had been mobile. A few of my clients still speak of moving to find the best location for their family. With the current economy, the mobile lifestyle seems to be coming to an end. The home that we have now may be our last. We pushed people to become homeowners since it would help the economy, but this was done at their expense, and we should not let that happen again.
   I was happy to hear that the posts on this blog helped a person going through a difficult time. I attempt to live by a code of taking responsibility for my actions. No body is perfect, but I hope that I remember that responsibility. The real estate community shares part of the blame for the housing crash of 2008, yet the new homeowners have their part in this unfortunate situation as well. What is really needed is education. Buyers should be able to understand the paperwork in front of them. This involves education on their part, yet the paperwork should be clearly written. We real estate professionals must remember that we are the guides for our buyers through the process.
   Now that homeowners are facing the consequences of action in which we played our part, we should find ways to help them through these hard times. Our industry has benefited from the stimulus of the tax incentive. I know that this led to homes being purchased earlier. (Buy this year, instead of next year). The effects of this stimulus are being debated, and I think it is too soon to determine. Since we have benefited, maybe we should return the favor, and find ways to help those homeowners in need.

    This is meant to be a thank you to the readers, so I will held back in that direction. As I have written, the readers of this blog made me a better home inspector. Please continue to send your questions. Emails are better for me. Good luck in your own homes.

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