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It's a great day at Michael Leavitt & Co Home Inspections!!! Last week was an interesting one as I tried to pick up the pieces of my business after the time off spent shooting pool and eating seafood with all of you in Reno the week before. Today's issue will be my once-every-6-months "A Day In The Life of Inspector Michael Leavitt." It's a fun one, so come along and sit in the front seat with me for a day.
A DAY
IN THE LIFE (11-13-98)
INTRODUCTION
- FEE QUOTESThe Home Inspection business can be such a fickle thing. It can be an emotional roller coaster with a constant personal battle waging inside either keeping or killing your self esteem. One week you will feel as though you are "Super Inspector". It doesn't matter who calls, you know that the phone WILL ring, you know that they WILL book the inspection, and you know that they WILL pay any fee. The opposite of this occurs when your confidence is low and you are unsure of the fee that you quote. In fact, you may even tend to lower your fees on bigger homes because you would rather book the inspection than let them be scared off by a high fee. Shelly and I used to have a standing joke during those weeks where the phone didn't ring. I would say, "Well, I'm unemployed again. I think McDonald's is hiring. I KNOW I can flip burgers!" I never had to resort to this but there were days when you wondered if your business had dryed up and you were finished as a Home Inspector.
Now, admittedly, this lack of self-confidence shifts from day to day with Inspectors with less than two years in the business. This is normal, and hits especially hard in the slower, winter season. My first two years were incredibly difficult. I did not yet have enough experience to know the proper fee for the square footage. I practically gave away some inspections because I couldn't visualize the home that the caller was describing. This came in part because I wasn't asking the right questions. Mostly though, it was because I didn't yet know how long it was going to take to perform a 4,500-9,000 square foot home. All I can say is that you need to be patient. You can't buy experience....... I can't tell you how many times I called Brent Foster, who also had about the same time in the business as I did. I'd call and say...... "Brent, How much would you set your fee at for the following property?"
Friday I had the privilege of being called back to inspect a 5,000 square foot home that I originally inspected in December 1997. At that time, I had been computerized for 1 year, I had 2 1/2 years in the industry and my confidence level was extremely high. I reviewed my records, and my fee was $415 one year ago. In my area, that is quite a chunk of change and that was one of my highest straight home inspection fees in 1997.
The current transaction came as an agent referral. The new home buyer was relocating from Albuquerque, New Mexico. The agent referring me was one of my favorite "How High Agents". Linda called for the buyers and scheduled the inspection for the next day. My current fee for a home 5,000 square feet is $435. Later the same afternoon I received a call from Bill Telford. Bill is the Broker of our large "The Prudential Realty Associates" office here in Orem, Utah. Bill said that the McMillans who live across the street from him were buying his house. Since I was going to be inspecting their home for the New Mexico clients, couldn't I please do his house right before I did the other?
With Bill Telford's request I took a big gulp. I already had an inspection to perform in the morning at 9 am that couldn't be switched. The 5,200 square foot home was to start at 2 pm and Bill wanted me to squeeze his humble abode in between the two. I told him that positioning his home in between would work out just fine, but that it would delay the neighbor's inspection starting time a bit. Then came his request to lower my fees just a bit since I was doing them both together. I laughed and said that it didn't make any difference if I did them the same day or not--it was still 2 big inspections. The request was idle because Bill wasn't paying for either of the inspections. He is still in the process of building an even bigger mansion, which I'm sure I will be asked to inspect.
I share this intro with you to help you understand how the scheduling for the day came about. I am not a masochist. This time of year I would prefer to keep my inspections to just two a day. The work load is easier to spread throughout the week and the demand is not as great. It is tougher, though, when Friday's come around and people prefer not to wait until Monday. I have always tried to be flexible and therefore I don't usually say "no".
FRIDAY
THE 13th OF NOVEMBER, 1998Friday the 13th is a bad omen for others, but it has always been a big day for me. Friday's are generally designed around an inspection or two with the key focus being on the weekly noon appointment with Realtors and Lenders for a friendly game of sweaty basketball. In my dream world, I make it to this game each week religiously, but the harsh reality allows me to make it about once a month. The basketball participants can't figure out why I can't come each week, and in the big scheme of things I would rather be performing a fee-paying inspection. In the same vein, I have a franchisee in our area who is constantly in the Agent's offices trying to get work. I don't have the time to spend dilly-dallying around the offices much anymore.
FIRST
STOP"I woke up, got out of bed, dragged a comb across my head"...... wait a minute, that's a Beatles tune. I was ready to brave the frosty elements at 7:30 a.m. First stop was to drop off the reports from the previous day's work. With that done it was now 7:55 a.m. Next I was off to Salem, Utah, which is about 20 minutes south to pick up my CRM radon monitor. I left it two days earlier at a vacant home with "Solar Envelope Heating" (more details on "Solar Envelope Heating" in a future MMM). This ate up 55 more minutes and got me back to north Provo at 8:50 a.m..
SIDE NOTE: It takes both time and effort to drop off reports personally the next day (and that is why I am focusing so hard on E-mailing pristine computerized reports.... I'll keep you informed of my success and failures). The same is true with performing Radon Testing. It requires a return trip 48 hours later. When I book it with an inspection, the Radon Screening is half price at $110, instead of the stand alone $220. That is a nice addition, but sometimes it doesn't seem worth it for the time that it takes to return to the property and fill out the report. The bright side is that it is $110 that I wouldn't have had........ Wait a minute.... Averaging two Radon Screenings a week times 52 weeks, that is $11,440 in fees that I wouldn't have otherwise....... Okay, I'll stop whining.
The First
InspectionA 2,000 square foot 1984 occupied home. This was a split entry home that was originally constructed without a garage. (Split Entry - notice the way the front doors split the home's levels) Note the frost covering all of the main home roof and half of the garage roof. This typical box shaped low dollar home was quite typical through the 70's and 80's. Architecturally they are blaw, but they are quite functional. This style home usually came unfinished on the lower daylight basement and allowed the owners the chance to move into the dwelling, have a couple of kids and finish off the basement while watching Bob Vila and Hometime reruns. This also provides an unlimited amount of electrical miswiring type comments. Sometimes I wish they had no basement at all, but instead, a nice crawl space (just kidding).
I
allowed 2 hours for the inspection and 45 minutes for the walkthrough,
knowing that the inspection would only take about 1 hour and 40
minutes. The only real surprise was the added garage. It was constructed
without the benefit of footings. Instead, they built it straight
up from the parking slab. In the photo you will notice that the
aluminum siding goes all the way to the earth on the garage.
Other areas of interest were the plumbing vent pipes that had deteriorated rubber roof jack seals. I feel sorry for those inspectors that review roofs from the ground only. Those types of inspectors would have foregone this 3:12 pitch attic space too. As it has been said before, "Confidence comes from knowledge, and knowledge is only gained from actually doing all of the inspection." I urge all of you to keep crawling those crawl spaces, attics, and walking on the safe roofs. That is what makes you special.
Due to booking an inspection via a cell phone call and a little extra jabbering with the client, seller and one of my favorite agents, I made it away from the property at 11:55 a.m.. This was to be a very short lunch stop in my attempt to make it to Bill Telford's by the promised 12:15. Luckily, Wendy's drive-thru line was short. A spicy chicken combo, hold the mayo with an extra large lemonade quickly hits the spot. Add to that a side of BBQ sauce and you get the proper taste to compliment the flavorings from the spicy chicken breast. Contrary to popular belief, it is possible to munch the sandwich, eat the fries and drink the drink while navigating the mini-van to the next inspection destination.
TELFORD'S
7,200 SQ FT MANSIONI arrived on time at the Telford's humble abode. Did I say humble....... I meant 7,200 square foot (5,200 finished) with a built-in swimming pool and spa (rare here in snow country) to boot. I had inspected it just two years earlier and it was in immaculate condition. Since then, the Telford's had dumped thousands into interior decorating and exterior maintenance. The home was built in 1987 and any improvements that they invested in would be deemed unneeded by the majority of the human race.
I
looked up the Telford's report that I had completed in October
of 1996. This occurred just two months before I originally computerized
my enterprise in December 1996. This home has 5 bathrooms and
6 bedrooms. My 1996 handwritten AII™ report had a lot of
added pages on which I documented all of the rooms. I wrote neatly
and there were numerous handwritten comments. I even gave it an
overall rating of 8.5, which I am sure disappointed the original
sellers. This caliber of client wants to have a perfect "10"
home. This is a major reason why I removed the rating system from
my computerized report. The last client's that I want to perturb
are the wealthy ones.
Two factors were evil forces working against me on this inspection..... 1) 7,200 square feet 2) I had inspected the home before. The tendency was to want to overlook things and skip standard inspection protocols. I knew better and went through the home as if it was the first time. I opened every window, tested every door and accessible outlet, etc. By 3:15 pm I was all done. It took the better part of 5 1/2 to 6 hours two years earlier. The added time was partly due to my lack of mansion experience and a lot because of handwritten report. Homes of this size can be very overwhelming when starting out in this business. The trick is to break the home down into small pieces, one room and one system at a time. Thoroughness takes precedence over timeliness.
The fee for the Telford home is $515 this time around. It would have been $635 if the basement would have been completed. I have no qualms about this fee, yet I think back to just two years earlier........
TRUE CONFESSIONS
- OCTOBER 1996I have reviewed my records to see what kind of business I was doing in October 1996. I performed 15 inspections for $3,570. I was elated. That works out to just $238 per inspection. My least expensive inspection was a $100 mechanical only, and my most expensive was $265. I still did not advertise my fees publicly, and $265 was a lot of money. I had not yet incorporated added services into my business, and I was just feeling good about educating agents and buyers to use my services.
Bill Telford scheduled his 1996
inspection by saying that he wanted to pair it up with his wife's
client's inspection. I was thrilled because I would be doing two
more inspections..... Hooray!!!! I set my fee at $500 for the
pair. Wow, the thought of making $500 in a day........ Loud roaring
applause, please. Who would of thought just a little under a year
and a half earlier that I could have ever made $500 in a day in
Utah of all places. There was only one other day that I had two
inspections in October of 1996.
I did my first radio interview on "The Talk of the Town" (The first of what turned into a regular monthly 1/2 hour radio show). I also took 3 days to install a roof (I needed the money). I also performed 3 office presentations and took 5 days out for the AII™ Annual Meeting in Lake Tahoe where I received my Mobile Home certification. There were also 7 other week days that I did absolutely nothing.
I share this information, not to be ripped upon or mocked, but to better demonstrate the way that confidence comes slowly upon Home Inspectors. I know that a large portion of the membership is beyond all of this, but a great deal of the members still struggle with finding their self-worth. I can't tell you when it was that I crossed the line, but it has been crossed. It may stem back to my $3,200 golf course inspection in Park City, Utah, with 3 feet of snow on the ground.
Never will I forget cross country skiing out to the different buildings and booking inspections on my cell phone. It wasn't a dream either....... The sun is shining down upon me, my heart was pounding as the snow passed beneath my skis. Then the distinctive ring was heard and I confidently answered... "It's a GREAT day at Michael Leavitt & Co Home Inspections." Then I quickly worked into the conversation.... "I'm currently cross country skiing to the Park Meadows Country Club main pump house right now..... I would be happy to schedule your inspection next Tuesday."
So why is it that I did two inspections for Bill Telford in 1996 for $500, yet I did just one of the same houses Friday for $515? When you can answer that question for yourself, you have overcome one of the greatest obstacles in your business career.
The Third
InspectionOh, the joy of wrapping up an inspection on a mansion at 3:15 and then carrying your ladders, computer and bags directly across the street. This was a 1987 rambler home with 5,200 square feet and a walkout basement (Walkout Basement - notice the exposed portion of the lower right basement. On the rear it has a full 2 story exposure). This home features a basement in-law apartment that occupies half of the lower level. It has 6 bedrooms, 5 bathrooms 3 family rooms, 3 living rooms, 1 office and a two car garage.
In
the past year I have inspected this home for the owners along
with a resort mountain cabin at Sundance. they were familiar with
my inspecting and knew that their fee was $415 for this
home a year previous. The home is still immaculate, so the $64,000
question is why would you want to pick up your belongings and
carry them across the street. The answer is simple........ 10
children. Their newest baby was just 8 weeks old and they have
literally outgrown the home. Their plans are to move into the
Telford's and immediately finish off the unfinished basement.
Afterall, they do need the extra bedrooms and baths.
It was fun going back through their 5,000 square foot home. They, too, had recently updated all of the kitchen appliances, as well as having completely redone their home's interior. It was as nice as the Telford's, but they were on the phone during the inspection trying to line up their painter to return to the Telford's and re-do the neighbor's recently redone interior. This is a mind set that I can't relate with, but it sure is fun to inspect.
The biggest issue in their home was one loosely mounted toilet base and a few loose door hinges. You can bet that before the next week is over they will have had the repairs professionally performed. They may even try to do some of them themselves, but I doubt it. The inspection process was completed as though it were my first time in the home. I started at 3:15 PM and was ready to drive away by 5:30 PM.
INSPECTING
SUMMARYThe fees for the day are as follows:
That is quite impressive for one day. Of course I spent another two hours finishing, preparing, and printing reports. It was not an 8-hour day, and it was not reflective of the entire week. In fact, totals for the week were $2,350. As you can see it was rather slow except for Fridays efforts. This is not shared for bragging reasons. Instead, I bring it back to the topic of "Is your business set up to handle this kind of day?"
Let's total things up further........
I think that the NO CRAWL SPACES combined with only one client walkthrough was the key. If only all days could be structured this way.
I referred earlier to my $238 average per inspection fee two years ago. My average for this past week was $392 per inspection. This dramatic increase has come about because of a much bolder inspection fee schedule, but more importantly as a result of the added services. For example, the first inspection of this Friday the 13th was just a typical $255 inspection. By adding on a Wood Destroying Insect inspection, it increased the inspection fee to $335. It is not uncommon to add two or three extra services, which sometimes as much as doubles the original Home Inspection fee. Sometimes it isn't how many inspections you do during the week, but how profitable was each inspection address.
Added services has allowed me to easily break that mid-$200 barrier and easily enter the $300-$400 zone..... And this is in Utah, home of the thrifty Harvey Homeowner. More on added services in future MMM's.
QUOTABLE
QUOTE: "Major
on the majors and minor on the minors. Discover what is truly
important in this life, and pursue that with all your heart, soul
and mind." -- Jim
Rawls[Return to the Current Issue of the Monday Morning Marketer]
copyright 1998 Michael Leavitt & Co