It's a great day, but I am not in Orem, Utah! It's a great day here in Olympia, Washington, where Shelly and I have enjoyed a relaxing, fun weekend with fellow inspector, Brent Foster and his wonderful wife, Mary. They have been fabulous hosts and we now feel ready to take on this next week with new vigor and strength. Thank you, Fosters, for everything!
The weekends should be a time for refreshing yourself and gearing up for the next work week. I hope you were able to spend time relaxing with your family or enjoying a hobby so that you, too, feel ready to start the inspection process all over again.
Last week we asked if any of you offer a discount to your client if the first inspection does not result in a sale and they end up needing another inspection on another property. Here are your responses:
We offer a $25.00 discount. This might seem little, but the client appreciates any break possible. I give a discount just to show appreciation that they were confident enough to use my services again. The main thing, is my service was of great savings to them to begin with due to the costly findings in my first inspection. I saved them hundreds to thousands of dollars and a million tears. My service is of great value to begin with so I'm not about to give it away.-- Chris Burkhart, Sandy, UT
I, so far, have not been in the situation. If I were, I think that the effort invested in any inspection is worthy of a full fee. Discounting the fee for a second inspection is a great thing to do, however, possibly a $$ amount would be more appropriate. The client is coming back to you for a reason...you do a great job. I discount my Pest inspections when I do them with a full house inspection. It seems to be welcomed. Each area will yield different marketing strategies, I think. Some are universal strategies and others are area sensitive. Sometimes it just takes some experimentation in "little steps" to find which ones work and which ones do not. The ones that work will shed light on the areas to pursue. I have had many that just don't give one lead, so I don't use them. Good luck! --Jim Corbin, Bow, WA
I usually offer a small discount, if asked, about $25.00, not much...but everyone likes to save a buck! The second property has to be about the same size with the same amenities. Recently I inspected 4 properties for a investor. He bought all 4 and never asked for a discount, let alone how much my fees were! -- Bill Bergstedt, S. Lake Tahoe,CA
Nope. As an older Jewish friend (and pioneer home inspector) told me one day... "Never cut your price! Dress up better, get a haircut, shave, get a new car, show up 20 minutes earlier, give them a free maintenance guide, or anything along those lines, but never cut your price." I have followed that advice over my 20 years of home inspecting and have found it served me well! --Carl Fowler, Fort Myers, FL
We get a phone call about twice a year from an ad agency that puts together a "buyer's packet" for one of our locally owned real estate offices asking if we would like to advertise on there packet cover. Of course, we would be the only inspection company offered this fantastic deal. I always tell the salesperson that this would amount to paying for referrals, which is not only illegal in Oregon, but it is against my morals & ethics. The salesperson then goes on to argue with me whether or not this is paying for referrals or not. I feel that if you are an honest inspector and treat EVERY client as if they were part of your family, then you will never need to pay someone to refer work to you, the work will be there. Nathan Buckley - Klammath Falls, OR
Oh yes, every year I get a call from someone offering this great deal. I tried it the first year with a C21 office at the cost of 385.00. I didn't get one job from that office-NADA-ZIP-Nothing! So now I just say no thanks, not interested. By the way, I now get a lot of work from the same office (four years later). Referral is 99% of my business. 60% old clients-39% Realtors. I love the phrase "you come highly recommended". --Reggie Ayres, Medford, OR
Nathan: I'm confused! How is this paying for referrals? I've never been offered this package but I still don't get it. Is this any different than being in the yellow pages? Please explain. Thanks! --Chris
I placed ads in 2 Realtor Calendar Phone books last year and have obtained no known results. I received a copy of the book, but in talking to some of the agents from the offices they didn't know much about the books and obviously weren't using them. I feel there are better ways to waste advertising dollars in the future and will have no problem saying no!!! --Roger Ball, Toledo, Ohio
Each year I get approached to place an ad in these Books. I don't see a need to advertise in these publications and turn down each one. Almost all of my business is generated through realtor/personal referrals.-- Bill Bergstedt, S. Lake Tahoe, CA
Yes, Yes, Yes. Here's the scenario: A marketing man calls first, informing me that XYZ Realtors (Usually a big player in the market) has recommended my home inspection company as their exclusive home inspection company if I will pay $500 to them to fund this booklet the marketing man (and his company) are putting together for the Real Estate company. In the booklet, which will be handed out by all agents in XYZ Realty to all customers, they will have a write-up about our company and it will be the exclusive write up for inspection services in this booklet. The marketing may states that all the Realtors in XYZ will be recommending us for inspections and the XYZ Realtors is going to also have a big party when the book is printed and available and we would be expected to come to the party and introduce ourselves. Also, XYZ Realtors is going to issue a certificate that states you are their exclusive and preferred Home Inspector for the area.
As an inspector, you think this Sounds Great, and think to yourself "Wow, I didn't know I was so loved by this bunch of Realtors!" You are giddy with the prospects of all the new business, so you write the Check.
A few months pass and one day you get a copy of the new booklet, the certificate and an invitation for the party. You go to the party and the marketing man (who probably threw the party for the Realtors) gets up and talks about how wonderful this is and everybody is smiling (and drinking up) and you get up and say a few words and feel like you really got this bunch of Realtors sewed up...Then you wait for the first call.... and wait...... and wait.
A number of years ago, I wasted over $3000 "investing" in this sort of scheme. I was the exclusive inspector for Coldwell Banker, Century 21, REMAX and several other large local realtors, but nobody ever called. Of course, after a year, they are back wanting you to do another publication. The bottom line is that the Realtors who came to the party, who smiled so broadly, who welcomed me so warmly, NEVER USE THE BOOKS, NEVER HAND THEM OUT, AND NEVER CALL. I much later spoke with one of the agents for one of the real estate firms that I signed up with and found out the booklets, which were delivered by the marketing man just like he said he would deliver them, sat in the realtors back room until they got old looking, at which time the realtors threw them out. I still have my certificates, which I should pull out and take with me the next time I am in one of the Realtors offices... maybe I could trick them into believing I am the recommended inspector for their office- I doubt if any of them have been there long enough to remember this program at all.-- Carl Fowler, Fort Myers, FL
I have been approached to use the marketing method. I choose to not do the advertising and am glad I did not. I think that most of the time, the ads are not even looked at by the clients. I have personally seen clients empty the contents of the folder, pick out what they want and then round file the remainder. Nope, don't use this one. -- Jim Corbin, Bow, WA
Our experience has been very similar to what has been shared. Carl Fowler's story is almost an exact replica of our experience. The only difference is that we were foolish enough to pay up front the first time and the marketing company skipped town and we never received anything for our money. Turns out that actually having a product come out does not net you any better results!! We have never had one single person call as a result of being in a realtor's marketing folder. Not one. But, like Carl, we fell for the "when we asked the agents who they wanted in their folder, everyone said you were the only home inspector they wanted." Yeah, right. Until we say no thank you and they go to the next home inspector on the list. Then he's the only inspector they wanted.
Bottom line: After realizing that we were not actually gaining any business from this advertising venture, we used to look at this as a good will gesture to the brokerage firm. If they needed our support and it costs us $550 or so a year, we were willing to give it to them. Not because we got any actual benefit from the advertising, but we thought we were demonstrating our willingness to support them. However, in retrospect, I don't think this is necessarily a win/win situation. I don't think the brokers or the agents care at all about these folders and therefore, any "support" we are lending is actually just a waste of money. I think the scenario goes more like this: Marketing Co XYZ approaches the broker with this folder idea. Broker is too busy to bother but tells him if he wants to pursue it, go ahead. Marketing Co XYZ gets a letter from the Broker stating they are a legitimate company and Marketing Co XYZ then hits the phone book and approaches different affiliates with the same "you are the one they wanted" line. Folder gets produced and sent to brokerage firm. Marketing Co XYZ makes a profit and leaves town until next year. Agents don't use them or pass them out to anyone and they collect dust in the back room until they are replaced the next year by the new folder collecting dust.
There are so many ways to waste our precious advertising money. There are so few proven marketing ideas that actually work. Every market is different and you need to know what works in yours. Yellow pages seldom drum up business, and when they do it is seldom the business that we are looking for. They too put us in a bind because you need to be at least listed in them to show legitimacy.
Did a job yesterday and when I unlocked the 4.5 foot chain link fence gate, entered the rear yard and shut and latched the gate like a good boy all of a sudden a Doberman pincer, full grown with a mouth like an alligator, was coming at me full tilt? I knew I did not have time to re open the gate so I jumped over it like Moses Malone the Olympic hurdler. Now, at my age. I had no idea I could still jump like that. This morning I have a slightly pulled muscle in my back but that is much better than the alternative that could have happened to my rump-:). --Paul Burrell, Lawrenceville, GA.
Try this one: I walked into the back yard of a supposedly empty home. It was a long sidewalk down the side with a gate at the front. Very narrow. You know the scenario. Well, another inspector was on the roof at the time. I had clipboard and pen in tow and the gate was self-closing. Walking on to the patio, I startled a Pit Bull about 50 pounds heavier than me. Thanks to years of working at the Post Office and some training with how to handle dogs, I walked backwards with clipboard in front of me calmly yelling to the other inspector. (He could do nothing,but it made me feel better). I just kept moving backwards trying to think and NOT PANIC. As I reached the gate with my rear, the dog was in attack mode. I sized up the catch (thank gosh it worked) and jumped forward yelling at the dog, startling him backwards, waving the clipboard (neck level for protection, just in case) and then pulled catch baling. (I was really glad this gate opened-I would have been in real trouble). You never get tooooo old to jump a fence when one of these dogs are in attack mode.
I was sore for a week. I banged my hip and bruised it. Its nice to know I am still fast and can move..... NEVER TURN YOUR BACK AND IF YOU HAVE YOUR TOOL BELT ON use your awl and guard your neck. Always keep something moving back and forth slowly in front of you as a distraction and protection in case they lunge. These guys are looking for the aorta. (they like that neck stuff. )
Actually, this story isn't as funny as it is really educational. Never trust when they say it is an empty house.... One guy found a pet boa that was the last to be moved. Watch your backside... I do not know how to wrestle a boa! --Claudia, Las Vegas, NV
Thanks for the short course in how to go "postal" with the pooch. I've found that with the smaller types (terrier, etc.,) playing Alpha Male and staring them down will sometimes work. Then again, there's the fist to the snout that will also work when escape is not possible. I've given a couple of fidos a quick jab to the nose and sent them running, but do not want to try it on a large fighting dog. Yikes!!! --Rob
Try finding a skunk underneath the house when client follows you under. You ask the client, "How fast can you crawl"? Client, "Pretty fast!" Then lets get to crawling!! It was someone's defumed pet skunk.. You should have seen my client crawl! --Claudia, Las Vegas, NV
Please include your name so that proper credit can be given.
We all have them...things we like about inspecting and things we dislike. I listen to inspectors in Washington talk about how it rains 280 plus days a year and I tell myself there is no way I would be an inspector in Washington. Of course, they can't believe that I inspect in the snow. I've been able to collect a few of these, but would like to hear from all of you. It is a nice reminder what to read the likes column and it helps to know that other inspector's have parts of their business that they dislike.
I found the following article interesting. It talks about the high percentage of people who are now doing their home-buying information online. Do you think this is true in your area?
Wednesday, June 13, 2001 -- Inman News Features
More than half of today's home buyers use the Internet when looking to buy a home, according to a survey released by KB Home.
The survey found 58 percent of recent home buyers used the Internet to find information about homes, with 44 percent using the Internet at least once a week and 64 percent using it at least two or three times a month.
Most often, respondents used the Internet to search for homes in their preferred location (59%), locate homes by price (55%) and locate homes by size (33%). The survey results include responses from nearly 10,000 recent home buyers in high-growth U.S. metropolitan areas.
"It makes sense that as consumers become more Web-savvy, they are using the Internet as a resource in the home-buying process," said Jeff Mezger, executive vice president and COO of KB Home.
KB Home is one of the nation’s largest home builders, with divisions in California, Arizona, Nevada, New Mexico, Colorado and Texas. Kaufman & Broad S.A., the company's majority-owned subsidiary, is one of the largest home builders in France. In fiscal 2000, the company delivered 22,847 new homes.
If you think people are not using the internet for information in your area, ask yourself this question: How much information do you personally find on the internet? How often do you search the internet when you have a question about a subject? More and more people ARE turning to the internet for answers. I know that Shelly is very internet savvy and uses the internet to find information on everything. If we were purchasing a home, she definitely would be searching the internet for mortgage information, homes to buy, realtor information and inspection firm information.
Is your business accessible online? Can a potential client find you by searching the internet? The AII™ website is one way to be internet accessible. Recently, Nathan Buckley sent out a request for you to send him the zip codes you currently service. Once that is up and running, this will be one way that potential clients can find you. What else can you do to make sure that when a home buyer in your area is looking for information on home inspections, they find you and your company? I don't think that making sure you are found on generic search engines will necessarily help your business. You don't care if people in Indiana know about your company in Oregon.
One way to find out if buyers can find you is to search for your company and see where you are. One good search engine is Goto.com. Type in your area's name (example: utah county) and home inspector with no quotes or plus signs. See if your company comes up on the search engine. When I did this, we were the second website listed. The first one was Housing Authority of Utah, which is not a home inspection company. We were the first home inspection company someone would access if they searched for utah county home inspections. Try it and see where your company ends up. Of course, this is assuming that you have a web page. It won't find you if you don't have a web page. We have already discussed in past issues the importance of having a web page. If we haven't convinced you yet, we probably won't do so now.
Are realtors accessing the internet more? How internet savvy are the realtors in your area? This recent article shows that more and more realtors are getting into the 21st century and doing business online. Those of us who have been emailing reports for a while realize that there are still many dinosaur agents out there who are not with the times, but these agents are quickly being replaced by internet savvy agents or they are climbing aboard the technology train. Most Real Estate conferences and trainings have at least 2 or 3 classes on getting the agents to be in the 21st century. The following article is an interesting one:
The typical member of the National Association of Realtors is a 52-year-old married female with a gross personal income of $47,700, who works 43 hours a week. She is a sales agent who has been in the business for 13 years, and she has been affiliated with the same brokerage company for five years. The brokerage with which she is affiliated operates a single-office and is independently owned.
These and other findings are revealed in the 2001 National Association of Realtors Member Profile, based on a survey of 40,000 members earlier this year with a response rate of 19 percent.
The survey found nearly 9 out of 10 Realtors have completed some college courses and 45% hold a bachelor's degree. One-third of NAR's membership holds at least one professional designation and nearly a quarter hold the Graduate, Realtor Institute (GRI) designation.
Other findings: Four out of five members spend at least 50% of their time in residential brokerage. Three-fourths are compensated with a percentage commission split. 7 out of 10 have a home office. 20% have at least one personal assistant, and 19% have conducted business in a language other than English.
In 2000, the median gross income of brokers was $73,400, while agents earned $34,100.
Two out of five agents are affiliated with firms that are franchised. Two-thirds of agents represent firms with 3 or fewer offices.
Realtors are making widespread use of technology to better serve home buyers and sellers, according to the survey.
Dr. David Lereah, NAR's chief economist, said technology continues to influence the industry. "While nearly 9 out of 10 Realtor members have a computer, more than three-fourths use e-mail and the Internet for business purposes and four out of 10 have a Web page," Lereah said. "For residential brokers, 87 percent post listings on at least one Web site, and 54 percent report some of their business is generated from online services."
Lereah said 4 percent of members generate more than 20 percent of their business online.
"While this isn't a big number, it demonstrates the possibility of generating significant amounts of business online," he said.
Granted, the survey results are based on 19% of the realtors in the nation, but one can still get a basic understanding of the trends of the real estate agents by paying close attention to these results.
Of late, I think that the "old house fairy of the north" has decended upon me here in my area. It seems that most of the last homes I have had are 1900 to 1915 vintage with small crawl spaces or none at all. My day is great when I can do a crawl on my hands and knees and it is worthy of celebration when I get a full basement or a tri-level. Doing a small crawl is bad enough, but going back after they gain access is double duty, even when you get a reinspection fee. Oh well, these are the homes of the area. Join me for ventures into small places.-- Jim Corbin, Bow, WA
I hear you, Jim. Often times, I tell Shelly I think I've become the "old, piece-of-junk" Home Inspector because they seem to come in bunches! It is very tiring to have to type in sooo many comments instead of being able to check standard comments. It is refreshing to return to the "newer, not much found to report" Home Inspector!
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