Home Inspection Franchises - $409,000.00 a Year?
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- Опубликовано: 30 июн 2024
- Home Inspection Franchises are a low investment, home based business, but is it worth paying for a franchise in this industry? And how much can you earn?
There are a few industries that we get push back from people because in their mind if you aren't getting a big brand name like McD's there is no value in the franchise model. We get that with painting, we get it with cleaning, we get it with property management and with home inspections.
But in these businesses you arent necessarily buying the branding, you are buying access to systems and processes that if they are good, will make you more effective and efficient which equals more money. Things like as client acquisition, business operations, quality standards, efficiencies and dozens of other little things that can help you actually make more money in the long run even after paying royalties. With a good franchise there is also a support structure in place if you have questions, or get stuck you can call someone and ask. And while you may know how to paint and clean,or inspect a house do you know how to scale a business? Grow a business? Most people do not and thats why we see many independent inspectors actually converting to a franchise model.
So how does home inspection work. You, or your employee receives training on how to inspect a house, get certified by one of the governing bodies, then you help people, usually home buyers, look for potential issues when they are buying a house. Typically will look at the roof, electrical, plumbing, basement and foundation, walls and windows, and you can add extra services like mold and radon testing for a fee.
The average home inspection not including extras is currently about $315. Many will charge more for value added services and being the cheapest isn't always the best strategic market positioning, that's mistake many novice business owners make. But even $315 is not bad for a couple of hours of work. You might ask how many inspections could you actually do in a day? I headed over to the Int'l Association of Certified Home Inspectors forum, and the consensus was you could theoretically do up to 5 inspections a day if you worked ridiculously hard, no one recommended it because you would have no life, and is virtually impossible to keep that up, and your quality is certain to suffer, but 5 inspections a day X $315 X 260 working days a year would be $409,500 dollars with one person, not even considering hiring other inspectors and scaling your business. Because this is a work from home gig your expenses and operational costs are very low so a decent amount of that gross revenue goes into your pocket. Now even if you took it easy and did only 2 inspections a day you are still grossing over $150k a year ($163,800)
Before we look more closely at the franchise model let's look at that forum comment again "I did 5 inspections once this year. It is too many. I regularly do 4 and that is hard as well. Performing the inspection isn’t the issue, it is **producing the reports as you quickly fall behind volume.
So here is a key distinction, if you have technology that can speed up the reports, you can do more inspections in a day. And that is the reason people buy a home inspection franchise, because among other things they have systems and processes and technologies that help you be more efficient.
When people come to us to help them find the best home inspection franchise, or any franchise we have consultants that walk you through the process looking at many factors to find the best for your specific situation. We'll cover a few of those today.
So the first as we just mentioned is the technology. There are companies that have the ability to complete up to 80% of the report right onsite, while you are doing the inspection, enabling the inspector to do more inspections per day. There are a few other technology considerations we won't go into here but you want to drill down on the inspection technology they have, and how much benefit it brings. Does it justify the royalties you will pay.
Next up is customer acquisition. Some franchise buyers gravitate to home inspection because they like that solo operation, lone wolf in the field, and they might be a bit introverted and not be very socially outgoing. Which is fine ---if the company is doing lead generation for you. Some franchises rely very heavily on local networking, so you will need to be hanging out at Realtor offices, buying donuts, regularly shmoozing to get business. If you are a people person that's fine, but always make sure the client acquisition model matches your personality and operational preferences.
For the right person a home inspection franchise can be a good fit especially. If you need help identifying and comparing home inspection franchises, our service is 100% free click below to learn more.
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Hey everyone. Before uploading I expected there might be misinterpretation regarding doing 5 inspections a day. So I stated VERY clearly it was impossible, it would destroy the quality of the inspection, and was in no way something that should be considered. I quoted industry pros confirming this and then, to be safe I added (in giant letters with a giant asterisk) the fact it was completely unrealistic.
Despite this we have already received comments stating "Obviously this guy is selling get rich quick schemes, you can't do 5 inspections a day"
I love comments, appreciate anyone taking the time to comment and wont delete them but if you are going to comment, please watch the entire video before making accusations that simply are not true nor in keeping of the nature of this channel. Thanks for visiting.
Thanks sir I'm a loyal subscriber I'd like you to do European Wax Center franchise and Brazillian one
@@PimaAZ Thanks! I'll take a look. Remember, if you are a serious buyer our personal consulting and tools are always free. Don't make a decision based on a review! www.franchise.city/our-services
sorry to be offtopic but does someone know of a tool to log back into an Instagram account..?
I was dumb forgot my account password. I love any assistance you can give me!
Home inspector here. If you’re doing more than 2 inspections a day, you’re not providing a good service. It takes a minimum of 2.5 hours to do a good inspection. You also have to followup and do reinspections.
what certification would u recommend obtaining to start off as an inspector?
I agree! Quality not quantity.
@@elcuh9506 yes.
2 homes a day for one inspector or 2?
And how do you grow and make money?
@@mannygonzalez4178u don’t 😂
Everything Robert said is naild on the head. I'm in real estate. A real estate broker and I can't even tell u how any guys I've told to get in the business. Why?? Because will always need an home inspection. It's paid knowledge!!! Secondary it's needed no matter what the market is. U don't need much. And we real esgsge agents can't have enough of home inspectors. In addition, and depending on the stage - no one can come after u for anything said and not said. However yes the issue is the reports. We need those reports to move forward sometimes. So if anyone is going into this business and listening to Robert - hire someone to help with reports to keep u growing
Kanita Jefferson been in real estate for 20 years and bought and sold many times over. You are right. Home inspectors and not libel for anything and they often miss a lot of things in their inspection. Realtors sometimes unscrupulously align themselves with the inspector in order to make the deal work. The report can be a bargaining tool for the buyer to get a cheaper purchase price OR not be critical enough to threaten the tool. One thing I advise and for the seller to have a report done before placing it on the market. If you are a buyer find a your own inspector. 313 is cheap for an inspection. They’ve been known to cost 400 bucks and are paid for before closing.
I have a client that runs a home inspection franchise I JUST asked about his experience with and mentioned your channel as one I really enjoy and follow.. Very coincidental that you made a video on it!
Lol! Psychic powers provided free of charge. :-) Is he happy with his decision?
@@FranchiseCityOnline yes.. It was Housemaster.. They are very successful with it after several years in the business
Love your videos
could you please do a video about Liquor Stores ?
Thank you.
love your videos. Can you make a video on starting up a Chinese fast food business? I see so many in the lower income areas and they're almost always busy. Thanks!
Thanks! restaurants in general are notoriously difficult to start and many fail. that said if a location is good and the business is run well, it can be a success. I'll add it to the list of future topics .
Reliable and humurous, the kind of resource I'm looking for!
Great video! Thanks!
Thanks for watching!
sounds like I may be a good fit for this. I might call these guys. I am glad I came across this channel. Very informative and value-adding over stupid vloggers sharing their daily routine on RUclips
Thanks for the kind words!
I have a Small 2 bedroom cape. It took my inspector easily 4 hours. I don't see 5 a day. The last thing I wanted to see is him rushing through it and not taking the time to answer all my questions, all of them.
agree 100%! Thanks for the comment.
5 a day....impossible.
5 is definitely impossible. I do find 4+ hours for a 2 bedroom house a bit extreme as well depending on how much you paid and the details of the inspection.
Seems like the networks and client acquisition is more important than the franchise.
After retiring from the business, 4 much less 5 a day is ridiculous. There is NO WAY some one could do that with any means of consistency, accuracy, etc. Two is reasonable, but a lot depends on the size, age, location, and complexity of the property. It is reasonable to make in the 100,000 dollar range. YOU NEED TO BE ICC COMBINATION R5 certified. That is hard.
Do NOT do this with intent on hiring people. The liability is huge and finding/keeping people will be impossible. What happens is a newer employee goes in and the selling agent says, "this has to be good or the deal will not go thru" so they overlook things. I was in pest control doing termite reports and dealt with that all the time. Many agents live by the motto "inspections kill deals." They will refer the people who do a clean report often.
Randys Donuts. The popular Donut Spot in Los Angeles is now Franchising wonder if in the same profile as Dunkin / Winchells?
Been in the business as a independent inspector for 15 yrs & I can tell you that I’ve done 2/day every day for a week & it will literally wear you out! If your doing more than that, then there’s no way you can provide a comprehensive report to protect the client (buyer) & yourself.
1 to 2 a day; somewhere between 5-10 a week is reasonable. 10/wk every week is not sustainable as an independent one person operation.
Thanks for the insider info!
I’m trying to get into home inspection is work constant?
Thanks
@@michaela1804 It really depends on if you have any contacts (realtors) in the business that can give you a “foot in the door” so to speak. Someone that will start using you & referring you to other agents. Networking is is the best tool in this business. Meet & greet & trying to get more realtor contacts is the best way in the beginning to create more business for yourself. They are the ones meeting & closing the deal with the buyers. It’s illegal for them to steer their buyers to you solely & need to provide the buyers with a list of several inspectors to choose from (or should). However; they all have their ones they prefer to work with. Get on that list and your in! Depends on how many you want to do a week or month. But figure if you have 20-25 active realtors giving you just 1 inspection a month each that’s 4-5 every week. Which on avg.will gross you $350/per inspection. You do the math. Just depends on how active & how busy you want to be. It can be a side business or a full time business depending on the agents & area.
@@tonyd.4430 So in a week you can 4,900 as an inspector if you can do 2 inspection everyday for a week, x 4 that's 19k+ in a month, wow that is crazy money, hi since your a home inspector do you make money closer to this? Just curious I'm curious by getting into this business.
Not sure what home inspections are averaging in price in your area. But $500 per inspection sounds a little high. And as far as doing 2 a day every day for a week, month, year is not going to be sustainable nor possible to do especially starting out in the business. Sure you’ll get some cold calls, but . Contacts are the most important. That’s where your business is going to come from. Even if you have 20-30 realtors that use you regularly for one transaction a month that’s 5-7 a week. But the market is very slow now compared to a year ago. I’m doing about half of the business I was used to last year. Just starting out with no contacts & no realtors giving you referrals & relying on cold colds only, you might be lucky to snag 3-5 a month! Until you start getting contacts & getting connected with realtors
I have done 5 inspections in a day, but it was because all of the "stars" aligned perfectly that one day. The houses were fairly average size without many outstanding issues and there were no pets or homeowners present at any of them, so I just got to do my thing and flow without distractions. That was a great day for me. Would I try to do it again? Never.
oh sure, I could do 5 a day every day, 8 days a week, if I did them from my truck, you know like I've literally seen city building inspectors do; what a joke!
But then I'm concerned about quality for my paying client.
There are certain business where the franchise model will get you in the door but not serve you well in the long run. Home inspection is one of those industries. A lot of large companies struggle with employee retention. Why would you want 35% to 45% (which is top pay at some firms) that is $95. after tax pay. So that is (in my area) 45 min commute one way 2 hours on site 1 hour to do the report totaling about 20 dollars an hour.
Leo, So true man! I work as an inspector for a major US franchise. And I would say $20/hr is optimistic. I usually figure 6-8 hours for the average inspection (1-2 hrs driving, 2-3 hrs on-site, 2-3 hrs writing the report). My cut for the avg inspection is probably like $120. dong the math that is about $15-20 / hr. This does not take into account equipment costs, fuel and vehicle maintenance, marketing, state licensing fees etc. So real world earnings is probably closer to $12-17 / hr. Really the only way to make money in this industry is to work for yourself (which is going to be a huge challenge for most people). The franchises/companies screw the inspectors and sit back and collect the cash for basically doing nothing (my company relies on the inspectors to do all of the marketing). This video mentions 5 inspections a day. I found that humorous. most companies will only allow up to two per day. Two inspections per day is going to be a 12-16 hr work day!!
@@randycupp5925 Obviously this guy is selling get rich quick by selling these franchises.
@@Leo-gx6je Obviously you didnt watch the video we plainly state that 5 a day is not possible and point out all the negatives to the industry. If you are going to cast aspersions at least watch the video before doing so.
@@FranchiseCityOnline I did watch the video in full. Well done video infact. But I have heard this pitch before and it lands a lot of people into trouble. Just saying, and putting real numbers to it. Thank you for your input.
@@Leo-gx6je Thanks for the reply. But there is no pitch. Our (free) service empowers buyers to do exactly what you are suggesting to do. We look at actual numbers, we compare multiple options, we speak to multiple operators. That is the premise of the entire channel and the foundation of our service, to approach any business with caution and proceed less on emotion and more on research. We are on the same side! :-)
"Buying donuts for potential clients!" Great idea!
I wanna start doing this but is the best place to start and climb up from and what Kind of home inspection tactics that make the most contract? Thank you
The contracts come from your marketing! One of the benefits of a franchise is they show you how to acquire customers and how to keep them happy. You can likely figure it out on your own as well, but it will take a bit longer. Thanks for the question.
Accountability would be off the chart
Hey Mate! Always good to see u here. In US anyway, inspector contracts usually include an "Exculpatory Clause", which limits any damages to the cost of the inspection. But there have been lawsuits that have been successful suing the inspector. Most carry insurance for that. But if anyone makes a huge, costly mistake there is always the chance of a lawsuit (but most will settle to avoid bad publicity)
Franchise City hey guys ! Thanks for the love. Ah, I just googled it. That’s precisely where I was coming from.
We need an Aussie version ASAP !
whats your opinion on becoming a loan officer?
Do you mean like being a loan broker? Brokers can do well but again, the expertise of the individual will make or break their business. Good business overall though imo. Thanks for the question.
It is sales job. If you like sales and can network go for it. Watch "Glengary GlenRoss" to see what the office life will be like.
Nobody can do five inspection and they cannot do a proper report. If they continue few months, they will get trouble from there’s insurance and their license
Can you do one on Giant Eagle as they will let you own a store Please do Giant Eagle
I'll take a look! Thanks for the request.
How much are your fees to investigate this?
We are brokers so can help you research multiple options and the seller pays us. Just like a Realtor www.franchise.city/our-services Thanks for watching!
You should take down this video and redo it. I’m in the HI business and five or even four a day is absolutely not sustainable. We have guys on our team that can do three a day but they are young, tireless and extremely fast. And they stay up quite late most of the time to finish those reports. Suggesting income figures based on four or five inspections five days a week is absurd and misleading to say the least! You would be hard-pressed and years down the road before you could generate that much sustained business anyway. Not to mention that the whole market cools off in the winter time. You’ll never get that many a day then. A realistic number is two per day five days a week. You’ll make a good living and you’ll have a life.
you need to adjust the content
To what? Hair and makeup tutorials? Cage fighting?
And don't sign up with homeadvisor aka scamadvisor. Do ur research !they will be calling to scam u as soon as u r licensed. Home inspectors loathe them!
And about 50/50 states are not regulated 🥴
This is the most ridiculous advice I have ever heard in 30+ plus years in construction inspection. 2 per day is an average maximum. 3 inspections in a crunch rver once in a while. Limiting yourself to a franchise area is going to be limiting very quickly. Franchisor is nit going to help you get your clients. Many states are going to require licensing or cerifications. Franchisor will not help youcwith this.
I guess you missed the pinned comment, the video description, and the video itself which all state you can't realistically do 5 inspections a day. Next the average revenue of independently owned inspection companies vs franchisee owned is lower. Only some inspections franchises have exclusive/restricted territory, not all. And the information that the franchise company doesn't help with licensing is incorrect. Thanks for the comment.
@@FranchiseCityOnline the person doingvthe video, and the person writing the script, have obviously never been in the inspection business. I just replied to a few of the most grievous mis statements. After purchasing several franchises in several different trades, it is obvious this is just a sales attempt to inexperienced buyers. Beware,...
@@MrBeathard Thanks for the comment. I responded to your points above. If you have evidence to the contrary on any of the information we provided we are happy to listen! Not saying a franchise is necessarily better than independent, but the facts you provided were not accurate.
@@FranchiseCityOnline inspectors cannot make more money by becoming more efficient and do many more transactions per day. The SOP requires a certain level of inspection. This requires 3 to 3.5 hours. Adding drive time to get to the next inspection, you are talking about 4 hours per inspection. Thats two per day. Efficiency is not going to shorten what is required. Technology is available to every inspector without paying a franchise fee. The people that hire inspectors are not influenced by advertising dollars that come frome franchise marketing dollars. Paying a percentage to a franchisor is the easiest way to kill a new inspection business. I've been doing it since 1986. I've seen it all. You are giving really bad advice on this one. Example: you may need to get on roofs. Really?
@@MrBeathard Not sure I agree that advising people of the negatives of the job (like getting on roofs) is bad advice. We speak to many buyers each year who are considering home inspection and admit "Oh, I had not thought of that". They have a rosy vision based on considering only the positives. In regards to your assertion the quickest way to kill an inspection biz is to pay franchise fees, how would you explain the thousands of successful and happy inspection franchise owners? We appreciate the comments but you seem to have an agenda that you wont let go, even after we provide evidence to the contrary. It's great that you have built a successful business without having to pay franchise fees. Not everyone can, or wants to! The same stands for a painting franchise, cleaning, or flipping burgers.