Jerry,
I base my prices on square footage. I feel that in this area, if there is a 900 sq ft house, it take a certain number of hours to inspect and write up the report. Now I figure that I need to charge $50.00 per hour because that is what it takes to operate my business and support my family properly. Now, when I add the amount of time with the amount per hour, that is how I come up with the amount I will charge per square foot. Now, if I feel that there is a market for my services at a higher price, then I will increase the hourly charge and recalculate the amount I will charge per square footage. It's simple and (I feel) fair to my clients.
Just out of curiosity, if you go to the City of Gary that has a 900 sq ft house for $30,000. The same day you go to a town down the road and the same house going for $160,000. how much would you charge both clients?
For me, I'll charge the same since it is likely that the inspection will take the same amount of time. Around here, the quality of construction isn't the factor, it is location, location, location (as it is probably the same in many other places in the U.S).
Jerry, go get your wife so I can tell her to give you a kiss for me. You make this board interesting.
Now I have to go because I still have one more report to write up.