Common seller tricks in home inspection
Listings often describe a brand and a book of realtor relationships as if they were assets that change hands like a truck. Many of them are personal.
- The seller as the only inspector, with no associate and no transition plan that agents will accept.
- Referral concentration from a handful of real-estate agents who may not send work to a stranger.
- E&O claims, or informal ‘make-it-right’ payments, that are not fully disclosed.
- A housing-market boom year treated as a normal run rate.
- Pre-inspection or discount work that inflates job counts and hides low margins.
Which numbers to verify
Look at inspections, average fee, and cancellations by month, set against local housing activity. Reconcile deposits. Split general, radon, septic, or other add-ons. Recast the owner’s days in the field — they are usually most of the labor. If an associate exists, look at what they actually produce and whether clients booked them or the seller.
Licensing and key-person risk
Inspector licensing or certification (state license, and sometimes professional associations) is personal. A company name does not replace it. E&O insurance is underwritten on the people and the claims history. Confirm you can legally inspect in the same state on day one, and what a policy will cost in your name.
Equipment and condition
Moisture meters, cameras, drones, and report software are inexpensive next to the relationship risk, but they should still be owned by the company and in good working order. Software licenses and report libraries should transfer. A drone program has its own rules.
Seasonality and the calendar
Inspections follow the housing calendar. Spring and summer can be the year. A rate-spike year or a slow winter should already be visible. Do not annualize a spring. Closing in late fall can mean a quiet first quarter.
Customer concentration
A few listing or buyer’s agents can be most of the work. Those people are not under contract to you. If one office or one team is 30% of inspections, plan on a joint introduction and a possible drop. Online booking helps, but in many markets the phone still rings because of an agent.
Questions to ask before you make an offer
- How many inspections, by month, for three years, and how does that compare with local sales activity?
- What licenses or certifications are required, and which of them can a new owner use on day one?
- May I review E&O applications, loss runs, and any informal complaint payouts?
- Which agents or offices produce more than 10% of jobs, and will you introduce me before close?
- Is there an associate inspector, what do they produce, and will they stay?
- How is the work booked (agents, direct, online), and who owns the phone number and reviews?
- What software and report libraries transfer, and in whose name is the license?
- How many inspections does the owner still personally perform in a typical week?
- Are there pending claims or unhappy clients from the last two years?
- After an LOI, may I speak with your accountant and one or two referring agents?