Q4 Home Inspection market Outlook - 2024 - podcast episode cover

Q4 Home Inspection market Outlook - 2024

Sep 23, 202435 minSeason 4Ep. 32
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Episode description

Welcome back for the Q4 Market outlook for 2024! We’ll explore what is coming up this 4th quarter of 2024, and what 2025 may look like. We will share our predictions for the upcoming months, leveraging our track record of accurate forecasts and understanding of market cycles in the inspection industry.

Curious about the real estate market’s latest twists and turns? This episode dives into the recent drop in interest rates to 6.09%, yet highlights the ongoing financial struggles for homebuyers due to low inventory and high prices. We dissect the broader economic implications providing you with a comprehensive analysis of what to expect in the housing market. Despite challenges, there’s a silver lining: more real estate transactions now include inspections, which translates to growing trust and necessity for these services.

How will our younger generations reshape the housing market? We take a deep look at the generational shift in attitudes toward homeownership among millennials and Gen Z. Their inclination towards renting, tiny houses, and alternative lifestyles might just increase housing inventory and lower home values in the long run. Discover the importance of direct-to-consumer marketing, especially through social media, to engage these next-gen buyers. We also discuss the challenges and strategies to adapt to modern marketing techniques, ensuring you stay ahead in this ever-evolving market landscape. Don’t miss out on this episode brimming with valuable insights for anyone involved in home inspections and real estate!

Check out our home inspection app at www.inspectortoolbelt.com
Need a home inspection website? See samples of our website at www.inspectortoolbelt.com/home-inspection-websites

*The views and opinions expressed in this podcast, and the guests on it, do not necessarily reflect the views and opinions of Inspector Toolbelt and its associates.

Transcript

Ian Robertson

This is Inspector Toolbelt Talk .

Beon DeNood

Welcome back to Inspector Toolbelt Talk for our much-anticipated Q4 Market Outlook with Bion Denote . How are you , Bion ?

Ian Robertson

Doing good man . How are you , ian ?

Beon DeNood

Not bad . Do you know how long we've been friends , bion , or at least known each other ?

Ian Robertson

Ah , this is funny . I was thinking about that the other day actually . Um , do you remember the first place we actually met ? Do you remember where it was ?

Beon DeNood

I thought it was on the side of a big commercial warehouse and you were wiring lights , was that it ?

Ian Robertson

yeah , that's right . That's right . It was somewhere in the middle of winter we were doing like some electrical work in a commercial warehouse in Albany , new York .

Beon DeNood

Yeah yeah . You know what I was using as a reference for how long we've known each other was we didn't text back then Like if you wanted to get a hold of somebody , you're like do they have a cell phone ? Oh , I don't know , do you have one ? No , and you have to find somebody with a cell phone and be like , do you have a cell phone ?

like wired phones were still a thing we're old man yeah , because I remember another friend of ours , uh tom , who's been on the show and I and I texted him . He's like what is this ? I'm like it's called text messaging .

Ian Robertson

He's like this is cool , you can just send me messages there were words on my phone like where did that come from ?

Beon DeNood

it's like an old analog flip phone .

Ian Robertson

That's awesome . That is great . Yeah , yeah , so that's , that's a while back . Let's see . That's um . Sorry , lost you for a second there . What was that ?

Beon DeNood

no , no , no . I was just thinking that in relation to our podcast here and how , how quickly times change , just was that 20 some odd years ago , 20 plus years ago , and now times have changed and even since we started this podcast , how much the market has changed , even just in the past four or five years .

You know it's been pretty drastic in the past four or five years .

Ian Robertson

Yeah , dynamics have changed a lot , and I think a lot of folks you know , surrounding the whole pandemic era , there was a lot of focus on that . But I mean , really we dealing with dynamics that have been progressing regardless of situations like that , and we're just we've landed in a very different place than where we've ever been , at least I think before .

Looking from the tech perspective , yeah , things have changed a lot . Looking at the home inspection market itself , when you put those two together , yeah , it's just a completely different place .

Beon DeNood

Yeah , I remember when we used to just inspect . I tell that to guys all the time . I'm like remember when we used to just inspect and now it's a whole thing . There's all these industries out there trying to push into home inspections . There's a home inspection . We're going to call it what it is a downturn that happened 2022-ish into early 2023 .

And we're kind of pulling out of that and it's just wild man . Things have changed so much .

Ian Robertson

Yeah , and the market seems overall to be tighter . So home inspectors , I think , now more than ever , are looking at ways to economize , to do better , to offer other services . So even from that point of view , like you said , you know you remember when you just went out and you inspected and you , you know , got paid and that was , that was the end of it .

It's , it's just a lot more complex doing business now and and staying afloat .

Beon DeNood

Yeah , and we're going to . We're going to drill down specifically into Q4 . So October , november and December of this year 2024 , and what we think we're looking at and again , we're not experts , we're just a couple of guys giving our opinion on it , although I got to say we've been pretty spot on . I'm pretty proud of ourselves .

Maybe we've been vague enough to be accurate enough .

Ian Robertson

You say a little bit of this and a little bit of that , and maybe it's this or that then , oh yeah , we were spot on .

Beon DeNood

Yeah , exactly no , but I am kind of proud of where we've kind of judged where things are going to go , because it's all cyclical , it constantly happens and this is definitely a weird cycle , but if you go off of previous cycles we kind of pick up what's going on Before we talk about that .

I mean , you mentioned some changes and one of the changes that I noticed more and more is the home inspection market consolidating . And when I say consolidating , I'm not talking about business buying us up , I'm talking about less and less independent inspectors compared to large inspection companies .

Again , 20 years ago you'd have a few kicking around here or there , and now there's quite a few and a lot of new guys starting out and within a year or two they're going into being multi-inspector , hiring guys growing . We're becoming a lot like I related to the HVAC field . I remember being younger and helping my uncle .

He was an HVAC contractor and it was just a bunch of single guys running around . And now there's lots of big companies and way less single guys kicking around , but now it's a nice even mix and that's what's happening with the home inspection industry . I'm not saying that as a bad thing , because it's a nice even mix .

You still have the independent guy and big companies too yeah .

Ian Robertson

So in years past , like if you started as a home inspector , you were always just a single operator , like you know , self-employed kind of thing . And now most of the guys entering will most likely be an employee or like a 1099 worker with somebody who's who's got a larger outfit .

Beon DeNood

I wouldn't say most , I would say more than previously . Okay , I would say more than previously . Start off as an employee or work as a 1099 . I would still say the vast majority still start off as a single inspector .

And then they kind of figure out oh okay , well , this big outfit , they'll hire me , they'll pay me X amount of dollars and I'll just have steady income . Or they'll figure things out one way .

Ian Robertson

Or x amount of dollars and I'll just have steady income , or you know they'll , they'll figure things out one way or the other right and I think it also regionally will differ quite a bit , like I mean some parts of the country like I I know here northern florida , um out in texas , depending where you are um up northern michigan , there's some places where

obviously you have some some larger outfits concentrated and there it's a lot harder to start as a single operator . So if you're going to start as a home inspector , you most likely are going to start under the umbrella of one of the larger firms , most likely .

Beon DeNood

Yeah , I would agree with that , california , one of those big markets there . But enough , I guess enough . What is it Not digressing , reminiscing about the good old days ? Let's talk about the upcoming good new days . What are we looking at , in your opinion , here for our fourth quarter of 2024, ?

Bian , because me and you were talking I think it was just yesterday some of the numbers kicking around and , depending on when this podcast gets released , maybe some of these numbers will change . But what's going on in the market that makes you either optimistic or pessimistic about the home inspection industry ?

Ian Robertson

Yeah . So I guess the big point of optimism everybody's making a big deal of the half basis point slash of the Fed of the rate . So that has a huge effect on interest rates and seeing as the home , the real estate market and mortgages is a big part of that , it's also led the mortgage rate to slide , I think . What are we at now ? 6.09 ?

Yep , exactly , yeah , so that's the best it's been in a long time . If we back off , even just a year ago , think we were at 7.19 , 7.29 , something like that . Um , now we we may think , wow , that's not much of a big difference . But , um , I did a little bit of math .

I figured , if you are buying a house around about like four hundred thousand dollars , which I think is roughly about the average price of a house , right now , which is crazy to think of , but that is the case .

So if you look at that and if you are putting down , let's say , the customary 20% , so your loan is looking at about like 320 , 330 or whatever that ends up being . That difference in interest rate amounts to a difference in your payment of 200 and something dollars per month in your payment .

So it is enough to make a difference to a lot of people where maybe they would have been out at the higher interest rate and back in at the lower . So I think we will see a bit of momentum , even anecdotally . Just looking at the general response from people , they seem excited about this drop , like okay , you know this .

This may loosen things up a little bit , but I think we were talking about it the other day . I think the big problem still is inventory , um , and and that's going to block us . So I think it's a bittersweet . Here we may see an uptick , but I think ultimately it's going to fizzle out pretty soon here .

Beon DeNood

Yeah , I'm not saying I'm not optimistic . I'm going to say cautiously optimistic , because here's my take on the whole thing . The half a percentage point is a big drop from what I understand is the biggest drop that they've done in the past three years two years , something like that . It's a pretty big slide 6.09 , I think it was , was it ?

Ian Robertson

6.09, . Yep On 30-year fixed .

Beon DeNood

Yeah , on a 30-year fixed . That's pretty good . But here's the problem . So let's use your math . That you gave us $400,000 house , the average person is not going to put down $80,000 as a 20% down payment . So it's just the average person doesn't have $80,000 floating around . The average home is $400,000 .

The average person has less than $10,000 in their bank account . I was just reading as on bank rate , the numbers of the amount of money the average person has on hand is astonishing , which is why they say the next recession is probably going to be a credit recession , because it's just building and building .

But now , so you take that $80,000 and you roll that into the mortgage and if you pay any less than 20% , you're going to have to pay PMI , which is primary mortgage insurance . So that's 6.09% , that half a percent slide . I'll be honest with you , the average person , I don't think it's going to matter that much .

I mean , yeah , is it going to make a difference ? Sure , but I mean , if you're paying a stupid amount of money for a house and primary mortgage insurance , that half a percentage point is not going to make or break your decision to buy a home or not .

And the problem is and we're talking about real estate because this affects us and our industry how many houses are being sold and how many are being bought and the demand for it . The other problem is what you mentioned inventory and the lack of inventory .

The lack of houses for sale is still artificially keeping the price of a house too high for the average person to buy . Average household income it's like two people earners is a little under $80,000 . The average person needs to make like $120,000 to buy the average home . So it comes down to inventory .

There's not enough inventory and when there's not enough inventory , houses become more expensive . The less diamonds there are , the more expensive a diamond becomes . The less anything there is , the more expensive it becomes . Inventory and price I don't care if we drop it down to . So some experts say the same thing . I was looking at an article this morning .

I want to say bank rate , but that was the other one , but either way I think it was NerdWallet . They were saying the same thing . They're like you can lower it to whatever you want , but if the house is $400,000 and five years ago it was 250 , but their wages haven't gone up , that person still can't afford that home .

So I'm not overly optimistic for it , and I think it just had more to do with the overall economy and election year than anything else .

Elect know elections coming up in November , so we're going to see big swings like that , like oh look , we went down a half a point , things are getting better or things are getting worse , or whatever anybody's trying to do to get themselves or the other person elected , I don't know .

So I'm less optimistic on that front of things , but I do have optimism in other areas . Do you disagree with me beyond or agree ?

Ian Robertson

Well , no , I mean , it checks out , I think . So basically what you're saying is , overall , people are financially worse off than what they have been . You know folks are still not a lot of cash on hand , and then you know just the being priced out of the market .

So I wonder if cause consumers must be ready to not only just settle on a higher interest rate overall you know , 6% as opposed to even a 5% or a 4% . They'd have to just settle on that but they'd also have to settle on not the house that they would have liked .

They're going to have to , you know , look at something a lot smaller or , you know , in a different neighborhood than what they were looking for , so that they can bring their price point down . But ironically , that is exactly where the inventory problem is at its worst . So yeah , it seems like the logjam is not quite completely unstuck yet .

Beon DeNood

Yeah , I think that 2025 is going to be a little better , but I think 2026 and 2027 is when , as you put it , the log jam gets a little bit more unstuck , because here's what's going to happen Somebody who bought a house in 2022 , let's make up this person they bought one at $300,000 .

Very likely , that $300,000 house is now worth $380,000 , depending on where they live . House is now worth $380,000 , depending on where they live . So now , even though they just bought their home a couple of years later , they already have equity in their home , but they also have an interest rate of 3.8% . So they're going to hang on to the house .

They might have bought it during the frenzy and it may not have been their dream home or whatever . They're going to hang on to that , though , until , at the very least , we hit the high fours for interest rates on a 30-year fixed and I do have some other guys that have bank rate people and all these bankers online . That's what they're saying too .

They're saying minimum high fours . Then that will create inventory . But once you create inventory , then the prices will go down . We have to have stagnant inventory before prices go down . So stagnant inventory happens typically after a recession or after so many houses go on the market that are overpriced , market that are overpriced .

That may or may not happen towards the end of 2027 . But for Q4 specifically , I think we will see a slightly busier than normal season right up to Christmas , because there are certain people out there that have been waiting to sell their home that are at a 6% mortgage .

Maybe they bought in 2019 or wherever I forget , when it was 6% , so now they might sell their home . Or somebody had a home they bought it in , let's say , 2015 . 10 years later , they're a third of the way through their mortgage . They pay down a lot of their interest . They're starting to pay down more principal . 6% mortgage isn't as big of a deal .

That 80,000 equity is probably going to be more like $130,000 equity . So they're going to take that equity and they're going to buy a better house . 10 years is going to push somebody like I've lived here long enough , this wasn't the house that I wanted , let's go into something else . And 6% they're like , listen , that's right about where we're at now .

Anyways , not going to be as much skin off my nose , I'm going to do a 15-year mortgage and get it down to 5.5 . So that stuff's going to start to happen , in my opinion , in Q4 .

But the season always gets really slow the week around Thanksgiving , for obvious reasons , and then the market is a dead stop from like December 15th all the way through the end of the first week in January .

It's less , it's just like numbingly dead , which I don't think anybody complains about , cause that's when you're kind of like finishing up a few maybe small inspections , yada yada yada , spending time with the family . But , um , I think it's finishing up a few , maybe small inspections , yada , yada yada , spending time with the family .

But I think it's going to be a busy October , first half of November and first half of December , but not overly . In most areas I think it'll just be slightly higher . Okay , 2025 , I think , is going to be modest growth in our industry .

I think we're going to get a little bit more and we're going to feel better , like maybe we're like hey , I just started out a couple of years ago , I'm making 70 , $80,000 a year . Maybe this 2025 will make 85 , $90,000 , or maybe we'll be able to work the same but increase our prices a little bit , something like that .

It'll give us more wiggle room and especially , too , because the number of inspectors , number of active inspectors . Let's put it like that Number of active inspectors keeps going down in small increments , so they're finding other industries .

The low end of the inspection industry is just leaving , and even some of the high end of the inspection industry just from attrition and time , and we're like , yeah , it's time to move out . So we're losing some of the industry , even though the overall numbers are still big .

Ian Robertson

Okay , active numbers are getting lower it does seem like um , new guys coming in asking about education tips for getting started . It seems like that conversation is happening , happening a little more than what it has been . So I think some guys see the opportunity .

They may be looking to make a career change and they see , okay , maybe market's going to be picking up over the next while and by the time I'm certified and ready it'll probably be okay . So it looks like maybe we'll see an uptick in the number of inspectors as the market picks up .

But I know what you've always traditionally said is that we do usually see a bit of a spring boom . So , or boon boom , don't know which one to use I say boom .

Beon DeNood

Boom B-O-O-M as in Mary .

Ian Robertson

So , you know , looking forward to 2025 , spring may look good , but I think those numbers are realistic that you just put out there . So it's not like you're going to have a worse year . You're going to have a marginally better one , but we're still not , you know , having a banner year quite yet for 2025 .

But not as terribly horrible as we've seen in previous years , where the bottoms was falling out continually .

Beon DeNood

Man well , remember what was it last season or the season before . We even skipped one of our quarterly updates because I'm like these numbers are too depressing , so miserable . Yeah , yeah , I still remember that one market , one of the major cities in the Northeast , only had 200 homes for sale out of a population of just under a million .

I'm like , sheesh , that's's sad , but now it's , it's better . Yeah , and the problem is we want it when we we have this mentality I have it too of the amazon mentality . I want , I want my package and I want it now .

Put it on my doorstep , give it to me , you know it's , I'm imitating my , my father-in-law I just wanted to say like do you , do you turn into another person when you go shopping on amazon ? apparently he doesn't even use amazon give me , give me a little more . Give me that , give me that package . My and you got to meet my father-in-law .

It's funny , um . But when we see here we say're going to change , and then we're like , oh , it didn't change . We're like , no , it did . The package you ordered from Amazon is closer , but we got five-day shipping here . It's not same day on your doorstep . We got to wait a little bit . It'll be a better winner . Personally , I'm excited about that .

I was worried the interest rates were going to stay higher and these are still not high interest rates . I wish everybody would understand that these are still not high interest rates . It's just what we've become accustomed to . It's like we were accustomed to having free French fries with our burger and now we have to pay 10 cents extra and we're upset about it .

You know 10 cents extra . We were upset about it . I know they it matters and when we pay our bill , but historically these are not high interest rates . But either way it's , I think it will help us this winter .

I'm excited about that part , but I'm expecting , as you put it modestly , marginally better numbers not throwing out money out our window because we're making a billion , but definitely marginally better , right and there's there's a couple of the things going on in the market as well that may have a positive or negative effect .

Ian Robertson

Uh , we've spoken before about the whole um , uh , change in the , the , you know the um , the buyer commissions , and and how that whole setup is we . We still actually honestly don't know how that is fully going to impact the home inspection market like tangibly .

And the other one that I wanted to bring up and I'm not sure about this I want to get your opinion is we , in my opinion , we're seeing a bit more of even mortgage companies requiring inspections , um , because of the burn that happened when things got sloppy , uh , you know , when the real estate market was super high .

So I don't know if that is enough yet where . So maybe , like maybe the the number of transactions is still not super high , but maybe we'll see some more inspections because of things like that . But then on the other side we've got the whole new buyers , you know agent situation that we don't know how it's going to impact .

So it may be a wash , but I don't know . I'm just , I have no idea . I'm just bringing it up to have a conversation on it .

Beon DeNood

Yeah . So I think both of those things have already positively affected us . So I've said this before and actually , um , art working already , magazine uh had us on for an article that we collaborated with them on . They interviewed us rather , um , we've already seen a positive uptick , and even just anecdotally I love that word .

But in our own companies , um , I see the number of people not working with an agent or hiring us outside of what their agent recommended . So we're like , oh , where did this agent come from ? And then we talk to the buyer and they're like no , my agent recommended you , I found you on my own . And then just people just not working with an agent .

Those numbers are up , okay , and they started to go up with the NAR thing . So the NAR settlement . There's so many workarounds . I literally see agents hanging the commission rate on the sign out in front of the house . One agent was funnily , humorously wearing a shirt with the commission rate that they were offering the buyer side .

It's like this is awesome rate that they were offering the buyer side . I was like this is awesome , but so that's not going to change it logistically because there's lots of ways around it besides the humorous ones . But it created awareness .

So people like me , I'm still going to work with an agent , but I'm going to be more aware and I'm going to say , well , what about this , what about that ? Aware ? And I'm going to say , well , what about this , what about that ? And I'm not going to .

If anything , it hurt the trust of people in the real estate industry , which NAR knew , and I think that was ultimately one of the goals of the settlement . So that's already affecting us positively . Whether that logistically works out or not For home inspectors , that's great for us . And then you had asked what ?

was the second thing that you asked Bjorn , I'm having to talk about how old we are , and now I forget .

Ian Robertson

Even mortgage companies . There seems to be a rise of them requiring inspections as part of the transaction .

Beon DeNood

Yeah . So one of the things that we didn't realize is we complained when people were skipping inspections . I kind of view it like when you complaint when you skipped your doctor's appointment but then you realize that you had a medical condition that should have been caught and now you're worse off for it .

You and all your friends are going to learn from that and everybody's going to go to the doctor now regularly . What that did for us was refortify the home inspection industry in people's minds . So I see people still skipping inspections , but not as nearly as regularly as they used to .

And states are even pushing still to have legislation to not require a home inspection but require the option to have a home inspection to be in the contract , which is still , you know , that's a whole different discussion . So I'm still seeing positive things out of that . So we may net the same transactions . I think is what you were kind of getting at .

Say , an area has a thousand transactions , we may still have a thousand transactions , but before it might've been 500 inspections out of those thousand transactions . Now it might be 750 out of those thousand . That's kind of what I'm seeing and I agree that that's good for us . There's good stuff that came out of this for our industry as a whole ?

We came out smelling like a rose , to be frank .

Ian Robertson

Yeah , no for sure . So it's interesting . So then , there's not maybe a direct correlation between market up and down with how inspectors locally are doing ? It may seem more of a deviation . You know where inspectors locally are doing . It may seem more of a deviation . You know where inspectors are actually doing .

Okay , even though the numbers are maybe not looking as good as they they used to previously , um , which is not a bad thing .

Beon DeNood

That's pretty good no , yeah , we can't . We can't look at our . And the problem is it was such a recent memory . 2020 and 2021 were insane . It was like the real estate's version of 2005 and 2006 , before the great recession . It was people throwing money at us . We couldn't do the inspections fast enough .

You could get your license and have your schedule booked for the rest of the year , practically , and it's just not what it is . That wasn't practical . It wasn't realistic , so we can't compare our numbers to that . I don't even I scrub those numbers from my mind when I look at numbers , because that's not anything realistic .

But modest gains over a long period of time are better than the short gains in those short periods of time . It helps us to be more founded , more solid as a company . We don't rely on those big swings and we don't worry about them so much . And there's still guys out there that are you know . There's guys out there that are still struggling .

Some markets are hurting more than others , regionally speaking . There's guys that are just I hate to say it , but if there's 20 houses for sale in three counties , you could be the best inspector in the universe . There's nothing to inspect . It's not their fault necessarily . And then some guys are like I never saw a recession .

It's like they're just hammering up work left and right . So it's definitely regional .

Ian Robertson

Awesome . Yeah , I think that's a pretty solid summary , but it is interesting understanding all these factors and some of them . We just have to stay tuned and see how it works . As far as the greater economy dynamics are concerned , obviously cooling interest rates is done to fire things up a little bit and it's going to be interesting .

It's kind of like winding something up and not knowing how fast it's going to .

Beon DeNood

You know what you've just done , so we'll have to watch that as well , as we go into next year , how the general economy responds .

You know here's my opinion and maybe I'm wrong , but remember when the millennials were becoming the big buyers in the market , me and you are considered geriatric millennials , they call us , but when our generation became buyers they were worried about us , but at the same time we were a relatively well-paid generation and we were willing to sacrifice to buy a home

and all that other stuff . And nick ramico actually talked about this on our show one time . My problem with the next generation , the younger millennials and the older gen z that are buyers now , is they're not . They call it now house poor . That's what we've called it for . Like what ? Five , ten years ?

But you know what we used to call that 30 years ago , 10 years , but you know what we used to call that 30 years ago Homeownership People talk about . They're like well , I don't want to be house poor , so I'm just not going to buy a house . So our generation be like oh , all right , I can give up eating out , we just won't eat out .

And then you know , five , 10 years later you're doing a little better and you're eating out and things kind of level out . The younger generation is less willing to do that and they're less focused on homeownership . They like the idea of it , but they're less focused on it , less fixated on it .

They're like , oh well , I'm going to live in a tiny house or with my parents and travel and do this and that , and they're less willing to be quote unquote house poor as a term , has developed over the past decade and they're more wanting to do other things .

I think eventually , over the next decade , them becoming the primary buyer set is going to definitely lower the value of homes and increase inventory . They're going to be trying to get them to buy houses because they have very little motivation to compare to other generations .

Ian Robertson

Interesting yeah , that's a very interesting take . So it's almost it's like a . It's essentially a shift in values with with the next generation , like buying a home is not way up there anymore like it was with previous generations .

And one thing I'll also say is that the whole dynamic behind buying a home it's going to be a very different process with the next generation . So when you're looking at Gen Z , when Gen Z is the predominant generation in the home buyer market , the whole marketing strategy and everything is going to be very , very different .

So it'll be interesting to see that unfold .

Beon DeNood

Yeah , and I'm not saying that it's good or bad with Gen Z Right , it's just different . So back in the eighties and nineties I mean , I was little then , but homeownership was the thing , that's what you did there was a lot of family pressure and societal expectations that eventually you just buy a home , right .

Ian Robertson

Right you were . You were judged . Your own worth was judged very much by whether you had a home or not .

Beon DeNood

Yeah , and it's not so much now . They're like okay , I'll rent . And then I hear a lot of the Gen Z . Uh , they'll talk to be like listen , if I can't have my dream home , I'll just rent and not have any home . So it's they're going to need to be convinced as they get older to buy homes , whereas now you don't need to convince our generation and older .

They're like that's just what you do . But you're right , the advertising is going to be get a home . Here's why have your own yard , have this , have that ? And they're like oh , maybe I would want that . They're going to need to be convinced . I feel like that's going to definitely fix it , but that's definitely long term .

That's going to take a little while , yeah , but you know 10 years flies by . Yeah , but Q4 , slightly better . 2025 is going to be better than this year was , unless something catastrophic happens some sort of world war , or , you know , texas tries to secede from the United States again . Sorry , texas guys , but I keep hearing about that . I'm okay either way .

Ian Robertson

I think that they just keep it dangled out there just to keep everybody honest . So , but yeah , so it is interesting . One thing , though um , you've been talking about it , other people are talking about it direct to consumer marketing still super important .

And even as we're talking about gen z , I mean as over the next five years or so , if you are building up , if you're , let's say , I mean inspector aj , right , so austin jenkins we we've interacted with him a lot over the last few weeks and I mean that's the recipe right there , right , I mean that kind of direct to consumer marketing where your name is in

front of them constantly . That really will help you to insulate you and prepare you for the next generation of buying , I think , because that sort of marketing is going to be absolutely key .

Beon DeNood

Yep , exactly . Every time people call me they're like , what should I do for marketing ? And I tell them exactly what you said . The phone goes silent . You know , do I like to make TikToks all day and interact with people on social media ? Not really my favorite thing , but you know what ?

So's digging a ditch in the backyard , looking for a septic tank and then measuring the poo layer on top . Why who introduced three gallons a minute of water ? It's like sometimes we need to put on our big boy pants and say , okay , my big boy pants are going to be sparkly and shiny while I do a fancy dance on TikTok . I really digressed in that thought .

I just started talking and stuff started coming out .

Ian Robertson

Yeah , no , but I mean , it's true , like we feel uncomfortable by it . But I mean , you know , hire somebody , ask a family member , you know who's good at that stuff , you know to help you get started . But that makes me think of something else . There's a realtor I forget where he's located , somewhere here in the united states the running guy , the .

So the , no , no , no , there's another one . He , he , he's got the clips labeled as got my gen z employee to make the edits for my , my house showing video . And he keeps going yeah , and they took out . They took out all of the all of the voice content and it's just him taking a breath . It's really hilarious .

Beon DeNood

I saw that one . Everybody should look up that video because it is hysterical .

Ian Robertson

I wish I had the name of the guy , but yeah , it's like if you search , even if you search Gen Z employee video edit realtor , I'm sure you'll find it , but it is really funny so here's , here's a social media idea .

Beon DeNood

Um , steal this one . Everybody get a video of yourself doing a short little inspection and explaining some things , and then have somebody edit out all the words so that all it has left is the breath that you're taking in between words and you like flicking your hair or just kind of like looking around it'll . It'll go viral , trust me .

Ian Robertson

We should , I think I think , send us the clips of the links to the clips , and we'll make a little montage on our YouTube channel .

Beon DeNood

Yeah , we'll share it on our YouTube channel and on Tik TOK and everywhere . Just send it to us . I'd love to see that . Oh , that'll be great . It'll be awesome , cool . Be on . Thank you for being on . Yeah and um , we'll see you again , probably at the q1 market update in , uh , january sounds good , man , we'll see you then .

Ian Robertson

Thanks , thanks , bye , on behalf of myself , ian and the entire itv team . Thank you for listening to this episode . Don't forget to hit that subscribe button so you can catch our future episodes as well , and if you have any feedback , please send us an email at info at inspectortoolbeltcom .

Also , don't forget to check out our app for home inspectors scheduling and report writing all in one , easy to use app . Check it out now at inspectortoolbeltcom .

Beon DeNood

The views and opinions of this podcast and its guests do not necessarily reflect the opinions of Inspector Toolbelt and its associates .

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