Thread: Studying the home inspection process

Hello and good day,
I live in the detroit metropolitan area and have been studying home inspection for aprox. 3 1/2 years now in my spare time.Now that i am layed off, i can keep up on the studies. Actually i recieved my diploma already, but since i haven't been able to apply what i have learned, you tend to forget! The realestate business in michigan is in a very bad slump, as it is the highest in the nation for foreclosures.

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Originally Posted by mike cook1

Hello and good day,
I live in the detroit metropolitan area and have been studying home inspection for aprox. 3 1/2 years now in my spare time.Now that i am layed off, i can keep up on the studies. Actually i recieved my diploma already, but since i haven't been able to apply what i have learned, you tend to forget! The realestate business in michigan is in a very bad slump, as it is the highest in the nation for foreclosures.

And??

Now is a really bad time to consider going into the HI profession when some, if not many, of our old timers are starving and it's going to get a lot worse. Think USPO.

USPO? United States Post Office?

And?? Well people still need there homes inspected,of course, anually, even if they're not selling. Correct? Also, Investment buyers, relocation companies, renovators ect.

Jerry Mc. is being honest I think in telling you that now is not a great time to jump in. Maybe a couple of years from now when the mortgage industry and the foreclosure market clean themselves up.

Going to be a tough winter for many I'm sure.

Even though the Fed cut rates a bit, its going to be awhile for a turn around in the housing industry I believe.

Rick

Mike Cook1,

First, real names are preferred, and used, here, is your name Mike Cook1, Mike Cook, or ??? It would help to go back and change your profile so it shows your real name and where you are from (city and state) so your questions can be answered better. (I know, this time you stated Detroit, but other posts may not have that in there, in which case it would be best to add it to your profile.)

Second, welcome here.

Third, what I think the other Jerry was referring to was not that the old timers should have preference and first picks, but that, as a newcomer to a business going through an economic shake out period, survival of the most adept and strongest will likely happen, with those less adept and in a weaker position most likely falling to the wayside first. While not 'always' a correct statement or assumption, it is basically true all the time, and usually 'more true' during economic times like these.

All of that said, though, you will want to have at least enough cash or liquidity to keep you going for 2-3 years, maybe even 4. During good times, the recommendation was at least enough to keep you going for 1-2 years, maybe even 3, but, being as these times are as they are, I've added another year onto your 'need to be able to live for' needs for a secure start.

If you have the interest, and being as you've been laid off (a sign of the economic times I am referring to), and you feel you can afford to work without making any real money - I say go for it, but be aware that it will not be an easy row to hoe (as they say).

I think you said a mouthful when you said "The realestate business in michigan is in a very bad slump, as it is the highest in the nation for foreclosures.", but, if you are ready for it ... go for it.

Welcome to the HI business and to this board.

Yeah, it figures. I was a tool and die maker for 18 1/2 years. So when i saw all the other die shops around start to shut down because of NAFTA I wanted to try something else. And now my shop has started to lay off. Something they have never done since 1962. Yep, i got layed off, along with 40 others, and counting.i Had 4 years of architechture in highschool, why i did't follow that career is beyond me. I've worked in shops since i was 18. I don't like being at the same place, every day, anymore. I've always been in a skilled trade. Hey, they need a lot of truck drivers here in michigan! Won't be at the same place everyday!

I logged in as Mike Cook and i was told that name was already taken. I'll try again.

Jerry Mc.,

You Got The Hook UP for the Post Office?

Please send INFO. We'll Work Something Out.

Originally Posted by mike cook1

I logged in as Mike Cook and i was told that name was already taken. I'll try again.

Contact Brian H. at the 'Contact Us' link at the bottom.

Maybe he has a solution or can change it to MikeCook? I'm sure Brian has a way to do it.

I would think (but am not sure) that you could use your 'login name' to login, but have your real name show as a 'user name' (but maybe not). I find it hard to imagine that Brian has it set to only allow one real name for like named people.

Mike,

Since I live in a state that requires licensing (Indianapolis, Indiana) I can get on the licensing website and get home inspector #'s by county, city, etc. My one county has 15% of all home inspectors in Indiana living in it and if you add the counties that touch my county it goes up to 35%. There are 92 counties in Indiana and that 35% is only 8 of those 92. My city alone has 115 licensed inspectors. Since you live in a large metro area (Detroit) your position will be similar to mine, if not worse. There are many seasoned inspectors who already have their market share and it is hard for a new inspector to get a foot hold. Everyone's Indiana license expires Oct. 1 and the state expects to lose ~30% due to continuing ed requirements, insurance requirements, new inspectors who couldn't make it, etc.

I don't want to scare anyone from entering the business, but don't expect to perform the hundreds or thousands per year that the schools teach until you are well established. If you are married and your spouse can carry you until the light starts shining, that would be great. Otherwise you may need to work nights at FedEx and deliver pizzas if you are going to rely on this as your primary income.

On a side note, this business has an unfair disadvantage. We are highly dependant on home sales and therefore realtors. If you perform a thorough inspection and are knowledgeable enough to make the appropriate comments about the true conditions of the home, realtors will not like you. There are a fair number of realtors who appreciate and expect the thorough inspection as it is a true service to their clients, but there are also many that would prefer a stamp of approval on every home that you inspect. Cost a realtor their commision from one sell due to you discovering true defects in the home and the buyer/seller not able to reach an agreement regarding repairs, etc. and you will be labeled as a "DEAL KILLER" andmost likely will not get referrals from that realtor again. You just need to ask yourself who you will be providing the service to. If your answer to that question is any other than the person who hires you to inspect the home ("the client"), which is usually the buyer of the prospective home, you do not need to go into this business. You will be providing a useless service to those who pay you and open youself up to lawsuits as well as giving the reputable inspectors a bad name.

Whike they may be a necessary evil for the new inspector, the quicker that we can move away from relying on realtors for referrals, the better we will all be.

Thanks for the info Jon. I went into the members list and saw the other Mike Cook that was in there but he wasn't a member. I may have to unsubsribe and then re- enter again. Well, we will see later. I need to hit the rack.

Originally Posted by mike cook1

...people still need there homes inspected,of course, anually, even if they're not selling. Correct?

We wish.

Not to bust anyone's bubble about entering the home inspection profession, but it does have around a 90% failure rate for folks in their first year. And this is when the market is good!

With the downturn of the real estate market in many parts of the country, except for several of the Southern states it is tough to get the phone to ring. My market is doing great, the greater Nashville MLS reported that over 3,470 home were sold in the month of August. Last year they reported sold 3,538.

Scott,
Hey, maybe i should move to tennessee! I have kin there, and my grandparents living around the knoxville area! They are always telling me that i should move there.Hmmmmm.

Mike, have you ever had a home inspected annually?

Well people still need there homes inspected,of course, annually, even if they're not selling. Correct?

This is not something the average home owner would even consider, much less purchase.
Home inspectors pretty much survive based on sales. Like it or not, a slow market means slow business for the inspection industry. Well established inspectors won't suffer as much, but the new guys have a tough time. Most inspectors straight out of school won't make it during good times. Believe it or not, there is overhead to consider and if you are doing a small number of inspections, you will be paying for the privilege of being in business. I think home inspecting is a rewarding Career, but it is not as easy as someone who has not tried it would think.

I've read a few other books on home inspections, beside the course i took, and most authors say it is a good idea to have a home inspected at some other interval, i will have to look back at the material to find this exact time frame. (Authors such as Rex cauldwell, Norman Becker, P.E. and Guy Cozzi.) No, this is not a common practice for most people, but would'nt it make sense to have your home inspected , let's say every three years? Most people don't know what has taken place over the years in their crawl, and attic, Right? Roof starting to leak, ( inferior installation or extreme weather conditions), insulation in crawl space failing because they didn't listen to the inspector about putting some 6 mil plastic down or a slab floor after they had it inspected and purchased the home, wood members are now starting to rot, mold developing, pillars sinking, beams splitting, Bla bla bla. No? Wadda ya think? But, yeah, with the economic climate in michigan, i most likely would have home inspection as part of another service i could provide, along with home remodeling and repairs. (yes, i know i can't work on homes i have inspected, code of ethics, Right? Even though i don't belong to any associations, it still makes sense. I haven't recieved any funding for a home inspection yet, but i have inspected freinds and family to get my inspection and reporting methods honed in.You also do not have to be licenced in michigan either, but you should take an exam through ASHI, or NASHI , and pass, to be able to use their logo and it would most likely attract more clientel.

Originally Posted by mike cook1

I've read a few other books on home inspections, beside the course i took, and most authors say it is a good idea to have a home inspected at some other interval, i will have to look back at the material to find this exact time frame. (Authors such as Rex cauldwell, Norman Becker, P.E. and Guy Cozzi.) No, this is not a common practice for most people, but would'nt it make sense to have your home inspected , let's say every three years?

No? Wadda ya think?

Mike,

Would it make sense Sure. Will it happen No!!!

Authors sell books. The Guy's giving you advice run businesses and are telling you straight up.

If you have the resources,people skills,marketing and the inclination go for it.No matter
what type of business it is start up is difficult.

Originally Posted by mike cook1

Well people still need there homes inspected,of course, anually, even if they're not selling. Correct?

Many people don't even change their furnace filter annually.

No, this is not a common practice for most people, but wouldn't it make sense to have your home inspected , let's say every three years?

Yes, it is a great idea and might be incremental income you could pursue in the slow season. Can you make a living off of it during real estate down turn? Very doubtful.

Bottom line is to plan for the worst (i. e. no business) hope for the best, and work your butt off marketing. Having a primary source of income is best during the first 3-5 years would be realistic planing.

ok,thanks for the advice.

Originally Posted by mike cook1

Scott,
Hey, maybe i should move to tennessee! I have kin there, and my grandparents living around the knoxville area! They are always telling me that i should move there.Hmmmmm.

Nah, it is a terrible place to live. All of the women have toothless grins and smell like a sack of onions.

Maybe in Spring Hill they do.

Mike,
I do live in Knoxville, and I can tell you since licensing started we have had at least 40 or so NEW guys trying to get into the business. I just got an e-mail the other day from a guy that wants me to mentor him. I have not responded to him yet.

To be blunt, there are just too many home inspectors in this area. A lot of newbies think they only want to do it part time, you know, make a few hundred dollars a month extra. "A couple jobs a month, and I'm not in your area anyway" - yeah right!

Of course, with the cost of getting into this business, and keeping it going, those few hundred dollars a month will only take a little longer to make them broke.

You need to take a hard look at your plan, take Brian's Cost of Business, and see where you think it's going to go for you. Tis is just the wrong time to do a start up in my humble opinion.

JF

Jack,
Thanks for the info.- More or less, i'll probably end up sticking it out here in michigan, even though it sucks (refering to the economy.) I'll Probably have to re - enter my trade as a Die maker at a lower pay scale and do my side jobs as a Handy Man on the weekends, and go back to school to get my certification in HVAC. Gonna be a lot on my plate!, but i am no stranger to hard times. Thanks again, Mike