Home Inspection Business 101

by Bill Sutton September 1, 2008

Part 1 of 2

I started taking home inspection 101 on the snowy afternoon of March 7, 1979. This was the day I performed my first fee-paid home inspection. This “maiden” home inspection took me approximately 5-1/2 hours to complete. It was only a six-room house, but it was 150 years old. Maybe I went a little overboard on time? My first client was my business form printer. He decided not to purchase the property as the result of the inspection. There I was, “a deal killer” on my very first inspection, a term I had not yet encountered.
Nonetheless, the present owner/seller of the property told me that he was so impressed with my thoroughness that he wanted to hire me for the inspection of his new home! This owner accompanied me and my client for the entire inspection; and, in spite of losing his sale, he said he learned more about his house during this inspection than in the 27 years he’d lived in it.

I was flattered, to say the least. And, so it has gone. In the 27 years, 11 months and seven days since, there have been times when I’ve received average marks (fortunately, very few) and most times, I’ve received all “As,” but one thing remains constant … the education never ends.

Although I worked in the architectural profession for a dozen years and eventually held a minor equity position in a small design/build firm, Bay Colony Home Inspection was my first solo, wholly-owned business venture. I was excited! The American Dream … owning and operating my own business. I loved it! I couldn’t wait to get up and get going each day. I really looked forward to Mondays, not Fridays. Actually, business was quite easy in those days (this was B.C. … before children).There was relatively little competition —  only 20 home inspectors were listed in the Boston Yellow Pages™ in 1979 (including several part-timers ); now, there are more than 100. After one week of marketing, I had all the home inspections I could handle. I was doing three inspections a day, six days a week. In less than one year in business, I was employing my second full-time inspector and expanding my market from just eastern Massachusetts to include central Massachusetts as well.

Yes, times have changed; those “good old days” are gone. The “boom times” have come, gone and come again, several times. During the real doldrum years of the late 80s and early 90s, I didn’t have all the work I needed to sustain my other inspectors. Once again, I’m a sole practitioner, but life goes on.

LIFE LESSONS

Well, what have I learned during this time period, over three decades of experiencing both the ups and the downs?

During the first year, I learned the two basic rules of economics: 

First, the law of supply and demand.

Second, that there is no such thing as something for nothing.

By the way, if you think you’ve gotten something for nothing, you just haven’t received the bill yet.

During the second year, I learned to maintain a sense of humor. Humor lightens us up, reduces tension and helps us cope with adversity, which comes with the territory in our business.

During the third year, I learned while attending an ASHI Board meeting that great minds discuss ideas, average minds discuss events, and small minds discuss people.
During the fourth year, I learned that pros are people who do jobs well, even when they don’t feel like it.

After five years, I learned that when searching for someone to blame, you’ll always be successful. In our business, we are constantly being put on the spot, questioned and scrutinized by buyers, sellers, attorneys and agents, contractors, colleagues and others. No one, no matter how wise, can be perfect. To err is no disgrace, it is a fact of life, but it’s important to acknowledge and learn from mistakes. John Burroughs said, “A man can fail many times, but he isn’t a failure until he begins to blame somebody else.” 

After 10 years, I’ve learned that business and life, above all, is people. And one of the deepest principles of life and the human psyche is the craving to be appreciated. Praise encourages people to give their greatest effort and makes them want to work for you time and again.
 Acknowledging your appreciation for a job well done is one of the strongest motivating forces in the world and it’s one of the few things you can give away and still have more than ever. It’s important to look for and acknowledge the good in people.

And finally, after three decades, I’ve learned you can always tell luck from ability by its duration. No success is final. It cannot last forever; it must be continuously nurtured. The cyclical nature of the economy and of our business is neverending and should always be taken into consideration in our business planning. I’ve learned that it’s necessary to be flexible and change. I’ve found it’s hard to get people to change … the familiar is comfortable, change requires more work, at least initially, and people are often fearful of change and the unknown (fear is at the root of all avoidance); however, change broadens our horizons and can be an improvement on older ways of doing things. Change is an essential part of business.

The above are some of the principles, insights and life lessons that have served me well, not only in business but also in all areas of my life. The following are a few specific philosophies and dictums that have helped me achieve positive results from my home inspection business.

BONDING WITH THE CLIENT

I think this is the most important facet of the home inspection business. With the exception of RELO company work, or other third-party inspections, I want my client with me during the inspection.  I always get my client involved.  Then the inspection becomes a ‘partnership’ (i.e., We seem to have a problem here. Would you hold the flashlight while I take a closer look and probe the damaged beam? Will you run the plumbing fixtures upstairs and observe pressure flow and drainage while I am in the basement looking for possible leaks?).

I feel that when your client sees the extraordinary efforts you’ve taken on his behalf, throughout the inspection process, and experiences some of the wealth of general knowledge that you, an ASHI inspector, have, he cannot help but be appreciative and impressed.

When your client has been involved, has directly participated in the inspection process and has observed firsthand that you’ve done all that’s humanly possible by all reasonable standards, he’s much more likely to understand that you don’t have a crystal ball to forecast the exact life of all the components and systems, there are no x-ray eyes that can see what’s not visible and not accessible, and that it is impossible during a several-hour inspection to find everything that may be wrong with a house and property. 

Now, he is much more cognizant of the many limitations with which we all have to deal. Furthermore, he will be more reasonable, forgiving and far less likely to be dissatisfied should future problems arise. Realistic expectations are vital for a good home inspection and a satisfied client.

IT’S NICE TO BE NICE

My father-in-law, Howie, a terrific salesman and an even better person, used to say, “It’s nice to be nice.” Actually, this was one of Howie’s favorite sayings. What he meant by this was, product or service aside, niceness does get results. People like to do business with people they like. In our profession, not only do people like to do business with nice home inspectors, I also believe nice home inspectors are less likely to be sued. An article in the Journal of the American Medical Association gives credence to this belief. Researchers were interested in determining why more than 85 percent of all malpractice payments were incurred by only 6 percent of physicians. What was it about the ‘bad apples’? Do physicians – or home inspectors — who are frequently sued attract high-risk patients or clients? Do they practice bad medicine or do they perform bad home inspections?

The study revealed that physicians who were never sued were perceived by their patients as being “… concerned, accessible and willing to communicate.” In contrast, the physicians who had been sued were viewed as “… harried, uninterested and unwilling to listen and answer questions.” I believe this is analogous not only to home inspectors, but also to all our human relations, whether they be business or personal. 

I further believe that the level of client satisfaction is just as important — or even more important — than the quality of the inspection and report. Obviously, you’ll get into trouble if you perform marginal or poor inspections, even if you are the nicest guy in the world. However, rapport with your clients is vital, not only to client satisfaction but in reducing the risk of litigation. The study was conclusive in the fact that many doctors are sued because of their interpersonal skills, not necessarily their medical skills (or lack thereof).

Therefore, addressing your client’s concerns may not only decrease the threat of litigation, but is a desirable trait in and of itself.

Remember Howie and the wisdom of his belief “it’s nice to be nice.”

Next month, I’ll share more of the philosophies that have helped me achieve positive results from my home inspection business through the years.


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