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Use Direct-to-Consumer Marketing to Supplant Lost Broker Referrals

by Kendra Budd, Editor

When it comes to generating business, home inspection is unusual compared to most business models because it traditionally relies heavily on referrals and as-they-happen real estate transactions. This generally works well for most inspectors when property-transaction volume is high, but can be problematic when house inventory is low and home sales slow to a crawl, as many markets have experienced for several months.

As markets tighten and there are fewer opportunities to conduct inspections, rising above the competition to earn business increases in significance. One way to get above the fray and gain traction is to actively engage prospective clients via direct-to-consumer (DTC) marketing. Though this approach incorporates a lot of traditional marketing methods used by most consumer brands and service businesses, it’s not a strategy commonly embraced by many home inspectors, which one could argue leaves opportunities for savvy marketers to exploit.

Ian Robertson, owner of three inspection companies and cofounder of Inspector Toolbelt Home Inspection software, is a proponent of home inspectors leveraging DTC marketing to increase business opportunities and has discussed the topic on his Inspector Toolbelt Talk podcast. Working RE Home Inspector recently sat down with Robertson, to get his insight on how home inspectors can best use the strategy to their advantage.

What Is DTC Marketing?
Essentially, DTC marketing is a strategy businesses use to reach out directly to their target audience. For home inspectors, it means promoting and selling services directly to homeowners, buyers and sellers, rather than waiting for an incoming referral that generates a work order.

This, of course, runs contrary to how most home inspectors have conducted business and marketing for decades. In most cases, home inspectors spend the bulk of their marketing outreach connecting with real estate agents who then refer clients who want an inspection conducted. “Up until now, when people have gone to buy a home, they’ve gone through a real estate agent, and the agent is the gatekeeper for every other vendor,” says Robertson. Homeowners tend to rely on their agent for everything connected to the transaction, including who to hire for a home inspection.

DTC marketing removes the reliance on a third party to find leads, gain visibility and build a brand presence. Some examples of marketing channels and activities home inspectors can use when deploying this strategy include:

• Social media
• Google Local Services ads
• Targeted social ads
• Email newsletters
• Fliers/door hangers/yard signs
• Direct mail
• Pop-ups/vendor exhibits

Although working directly with real estate agents has its advantages and still should be cultivated by home inspectors, DTC marketing can be used as a supplemental and complementary component to create brand identity and become top of mind for prospective customers when they require inspection services, including any ancillary offerings that may not be tied to the sale of a home.

Considerations
One reason many home inspectors haven’t used DTC marketing much is it requires quite a bit of committed action, planning and execution compared to receiving work on referral. This includes figuring out who target customers are and how to reach and communicate with them effectively.

“You have to think about what different groups of buyers want and not just an agent. What does this age group of buyers want? What about a different age group in a different area? What will they be looking for at this period of time?” notes Robertson. “Whereas with an agent, all you need to know is one avenue of marketing—what does this agent want? And that is just easier.”

In addition to conducting market research and planning promotional activities, home inspectors may also have to push themselves out of their comfort zone to meet prospective customers. “You’ll have to plan more, understand where your actual clients are and not just agents,” says Robertson. “Direct-to-consumer marketing requires more thought and planning.”

Besides trying to drum up business when home sales are slow, one motivation for home inspectors to kickstart DTC marketing efforts could potentially be fallout from the landmark National Association of Realtors’ (NAR) class-action lawsuit settlement (See NAR Settlement: Where Do Inspectors Go From Here?).

The slow real estate market has already caused attrition among the agent ranks, and there is speculation that the NAR settlement could further reduce the number of agents as well as change how buyers and sellers interact and rely on brokers. A significant reduction in agents could result in a steep fallout in referral business, while new options for buyers (think alternative buyer services and new technology solutions) could mean consumers stop relying on a home inspector referral from their broker and choose to hire one themselves.

“If you’re relying on 20 agents to give you most of your work throughout the year, what happens when one or two go out of business, one of them retires, and another finds a different home inspector?” asks Robertson. “All of sudden, 10 of your agents are gone, which means half of your work is gone.”

“This is a shift away from the inspector’s traditional agent referral marketing model,” Robertson told Working RE Home Inspector in the Summer 2024 issue. “We don’t quite know how big of a shift it will be, but it will be something. Even if it’s only 5 or 10 percent, that’s still substantial in most markets.”

In fact, Robertson says he’s already seen a shift in consumer behavior. “People are going around the agents at a higher rate than I’ve seen in my career, and it’s a lost opportunity if home inspectors aren’t in position to capitalize on potential business,” he notes. Committing now to DTC marketing is mining for leads in channels going unused by competitors.

Ultimately, though DTC marketing can be daunting to launch, requires investment and takes time to ramp up, Robertson believes its benefits outweigh its downsides. The methods used are often more effective and less expensive than other marketing vehicles, and “in the long run, [DTC] is actually easier because once you have those groups of people figured out, then you can market to them directly,” he notes.

A key advantage to that change is better control over your branding and client relationships. “You can make your brand the way you envision it without worrying so much what a real estate agent will think,” says Robertson. Thus, DTC can help home inspectors gain more control over how they want their business to be represented to potential clients, rather than solely allowing messaging to be communicated by real estate agents and other third parties.

Adding an effective way to directly reach potential customers helps diversify your business and expand your reach, says Robertson. Using DTC tactics allows you to leverage multiple marketing approaches with different customers while establishing multidimensional connections. Instead of a real estate agent deciding what kind of relationship you’ll have with a client, you’re in control of creating your ideal customer relationship.

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Implementation
Because it requires planning and forethought, a comprehensive and effective DTC marketing strategy can take a while to implement, but evidence of a shifting market means now is an optimal time for home inspectors to get started.

“Most of our competition is still stuck in the ‘market to the agent’ mode,” notes Robertson. “Very few times do we get market openings like this, where everybody else is stuck in one mode, while there’s a brand new one waiting [to be capitalized on].” Home inspectors who begin implementing strategies now can get a head start and establish local brand positioning before competitors saturate the local market.

Robertson suggests beginning with social media marketing, but really committing to a posting schedule and engaging with audience members online rather than a lip-service approach. “We all like to say, ‘I do social media marketing,’ but that’s kind of like saying, ‘I work out,'” scoffs Robertson, “But are we giving 100 percent in the gym? Two people can work out and get different results. It comes down to who planned better and the effort they put into it. It’s the same with our social media marketing.” To be effective, home inspectors must not only plan but regularly execute posts and engagement.

Your messaging should align with a segment of your target audience and what it wants to hear. For example, you could start off by trying to reach a particular age demographic that you would like to appeal to. “Am I going to target an older group from 40s to 60s, or is it a retiree between 60 and 75? Or am I going after the 20 to 30 crowd?” asks Robertson. Your marketing strategy, messaging and channel may need to change depending on which audience you are trying to reach.

“You can post two to three times a day across multiple platforms such as TikTok, Facebook and YouTube,” says Robertson. The key is to meet your audience members where they are. While TikTok is most appropriate for potential customers in their 20s and early 30s, as a general rule, Robertson recommends Instagram to reach those in their mid-30s and 40s, and Facebook for those in their late 40s and older.

Once people begin to engage with your social media content, they will be inclined to look up your business. Thus, it’s critical for home inspectors who commit to DTC marketing to have a modern, functioning website that outlines your full scope of services—including ancillary inspections like septic, chimney and other offerings—and provides an easy way for visitors to submit questions and their contact information to help with lead capture. You should also make sure that you’ve claimed your Google Business Profile and keep it updated.

“They’ll find your website,” says Robertson, “and it will make an even better impression if it’s professional looking, even if they’re not looking for an inspector yet.”

In addition to online outreach, Robertson recommends home inspectors be physically visible in their local community and meet potential customers in person by attending local events, such as home shows. Though people may attend a home show to look for design inspiration and other ideas for their current house or a future purchase, seeing a home inspector exhibit their services helps plant the seed for when the eventual need for a home inspection or specialty service arises. It also gives you the opportunity to dispense your knowledge and inform potential customers through direct conversations about any number of home-safety issues like mold, radon, allergens, sewage contamination and other environmental factors. Be sure to have appropriate fliers and handouts that attendees can take with them.

Remember, the idea is to become top of mind for future customers. In-person interactions should support and reinforce all of your DTC marketing efforts, including door hangers and yard signs. Canvassing neighborhoods from which you’d like to draw business with your branding can be an effective tool to keep your name and logo in front of prospects. When you perform an inspection, ask the homeowner if you can place a yard sign that indicates you provided a home inspection. This is great for branding and acts like a neighbor’s referral. Be sure to include a phone number, website or QR code, so potential customers can learn more or quickly contact you.

The more effective and comprehensive your DTC marketing efforts, the more likely future customers will remember you, says Robertson. “When they do find a home, guess who they’re going to call?” he notes. “Direct-to-consumer marketing is about chipping away at customers.” People naturally gravitate toward what is familiar to them, and DTC marketing is a great tool you can wield to your advantage.

Final Thoughts
Although DTC marketing can seem intimidating and foreign to home inspectors, it can help fill the business void caused by drop-offs in real estate agent referrals. As Robertson notes, it’s a way to broaden your net. When effective, you’ll be able to capture business by targeting consumers directly and then earn increased referrals from actual clients in addition to your broker network.

Though it takes legwork, investment and commitment, researching a client base, creating engaging content that pertains to them, and making yourself and your business visible within your community can yield positive results for your business.

About the Author
Kendra Budd is the Editor of Working RE Magazine and Marketing Coordinator for OREP Insurance. She graduated with a BA in Theatre and English from Western Washington University, and with an MFA in Creative Writing from Full Sail University. She is currently based in Seattle, WA.

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