Doing Termite Inspections in California? - Is it worth entering the business?

[Justin Watts]

I am a home inspector, I was thinking about also adding on termite inspections to my business.... Is it worth it? I would not want to be involved on the "repair" end.... Just the "termite" inspection....

Any thoughts on this? I would appreciate it...
Thanks,
Justin.
www.americandreamhomeinspection.net

[Russel Ray]

Originally Posted by jwatts1

I am a home inspector, I was thinking about also adding on termite inspections to my business.... Is it worth it? I would not want to be involved on the "repair" end.... Just the "termite" inspection....

Any thoughts on this? I would appreciate it...
Thanks,
Justin.
www.americandreamhomeinspection.net

I explored it and decided against it for a couple of reasons. First, termite inspections in my neighborhood are $50 to $75 because they get to do destructive testing and then repair whatever destruction they caused. I didn't like that aspect of it. Second, termite inspections around here are done by the seller, so I found it difficult to be able to be a termite inspector (seller) and a home inspector (buyer).

In many other states, HomeTeam franchisees take a termite inspector with them to the home inspection, but in those states, who does the termite inspection is more open to negotiation than it is here.

[Justin Watts]

Ray,
Thanks for the info.
Yes, its tough to make a profit at $50 - $75 a pop, with gas prices, driving time, etc. etc. I guess it would be worth it... if you have several a week and within short driving distances.

I spoke with an inspector in New Jersey that does termite inspections on the side.... When it comes to the "repair" aspect, he gives the client (3) termite repair companies to choose from.... to avoid a conflict of interest between inspection and repair.

[Russel Ray]

Originally Posted by jwatts1

I spoke with an inspector in New Jersey that does termite inspections on the side.... When it comes to the "repair" aspect, he gives the client (3) termite repair companies to choose from.... to avoid a conflict of interest between inspection and repair.

Here in California that conflict of interest doesn't exist because it is allowed by law. That is an area where I disagree with some people. If it is allowed by law, even if disclosures are required, it's not a conflict of interest. Sopme people dwell a lot on "perceived" conflicts of interest, and while those can cause problems, one can put the appropriate business protocols in place to abate such perceptions. I think it's interesting that California-licensed pest control operators can have this perceived conflict of interest but that no one ever questions it. After all, a pest control guy gets up in the attic, "finds" evidence of active termite infestation, and states that the house must be tented, to the tune of $10,000. Does anyone ever get a second opinion? Does anyone ever crawl up in the attic to have a looksie themselves? Does anyone ever ask the pest control guy to show him the infestation? Nope. We take it on the word of one person. Hmmmmmm. Reminds me of the old auto mechanic days a few decades ago.

[Justin Watts]

Just ran into a termite guy that worked for terminix....
2 reasons.... I will not do termite inspections.

Competition is fierce compared to Home Inspections
Too much work / profit not very high