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Reggie Russell
05-01-2009, 01:26 PM
Hey Guys,

As most of you probably know I am new to the business so I have a question about pricing. I have received a couple of calls lately from people price shopping for a Home inspection. One was a guy looking to get one done on a HUD home, it was 1500 sq ft, slab, and around 30 years old. I quoted him a price of $225, never heard from him again. Then yesterday a woman called me wanting a price quote on a 4,000 sq ft. home with a crawl space that was 15 years old. I quoted her a price of $400. I have yet to hear back from her. Am I missing the boat somewhere here guys or are there just that many people out there willing to do a Home inspection for next to nothing? I really thought those prices I quoted were very reasonable. What is typical of what you guys charge for similar sized homes? I really can't afford to keep missing the boat like this, please tell me what I am doing wrong here! :confused:

Ted Menelly
05-01-2009, 01:55 PM
Hey Guys,

As most of you probably know I am new to the business so I have a question about pricing. I have received a couple of calls lately from people price shopping for a Home inspection. One was a guy looking to get one done on a HUD home, it was 1500 sq ft, slab, and around 30 years old. I quoted him a price of $225, never heard from him again. Then yesterday a woman called me wanting a price quote on a 4,000 sq ft. home with a crawl space that was 15 years old. I quoted her a price of $400. I have yet to hear back from her. Am I missing the boat somewhere here guys or are there just that many people out there willing to do a Home inspection for next to nothing? I really thought those prices I quoted were very reasonable. What is typical of what you guys charge for similar sized homes? I really can't afford to keep missing the boat like this, please tell me what I am doing wrong here! :confused:

I guess it all depends on your market area on what the typical pricing is. That does not matter half the time. You could have increased you prices and 5 out of 10 calls may not flinch and book you and the other five will laugh and move on. Some folks may have already had a few prices 50 dollars more than you and they thought you were to low and for some reason they could not go with you. You could have got a few folks that got prices from a few inspectors that were 25 or more low than you so they went with the (what they thought) were the norm pricing.

Nick Ostrowski
05-01-2009, 02:48 PM
What other types of information are you giving callers when you get them on the phone Reggie? Do you just give them a price quote or do you talk about your service? Giving a competitive price is only one part of the equation. You have to give callers something to remember you by and make you stand out. If you aren't doing this, that would be missing the boat.

Aside from this, some people don't call back the same day or the next to set something up. Some callers do their shopping before they actually have an agreement in place. I've talked to some people and not heard back from them until a month later when they were finally ready to schedule something.

Markus Keller
05-01-2009, 03:02 PM
Your pricing sounds fine. I have to agree with Nick. I don't think you are losing the deals based on price. You may be losing the deals on your pitch.
Since you are new to the biz ...
- Have you role played your phone pitch with your wife, friends, etc
- do you have a script that you keep near the phone to work from during a call
- do you have a punch, an item, a conversation piece that you use to get them to remember you?
- do you ask how they heard about you, got your number
- do you ask for the MLS # so you can look up the property and give them a 'better price' potentially
- ask them the area of the home and then speak about that area so you sound knowledgeable
- ask them what stage of the process they are in

Jerry Peck
05-01-2009, 04:11 PM
To continue what Nick and Markus said ... then ... yes, 'then' ... as in the last thing ... then you talk price.

If you talk price any other time, you may well not get the time to explain how much you know and how good you are.

Rick Hurst
05-01-2009, 04:14 PM
Reggie,

Try to avoid talking "costs" first thing when someone calls. Explain your services and what you do. Ask them if morning or afternoon is best for them.

Ask them about what they've seen at the home that may be of a concern to them? They always will come back with something.

Tell them that your making notes to be sure and check those concerns for them.

After you've spent a few minutes on the phone, then explain your fees. You'll be surprised just how many more HI's you'll actually schedule.

Try this approach for just a week and let me know how it works.

Rick

Joe Funderburk
05-01-2009, 05:25 PM
Say something like, "you've asked the least important question...first let me tell you about my qualifications and why you should hire me...." Then tell them why you're great. Then say, "I'm not the cheapest inspector...I try to keep my prices in the middle. If you want the cheapest inspector you can possibly find, I can tell you who to call. Now, my price on that would be xxx if you pay at the time of the inspection and you get a $50 discount for paying that day. Would you like me to go ahead and schedule that for you?"

Works 80% of the time. Sometimes they hang up and continue to shop around and run it all by the spouse, but they often call back.

Nick Ostrowski
05-01-2009, 05:42 PM
I've had people tell me many times that I was the only company they called who took the time to talk to them, explain what it is I do, and ask them if they had any concerns about the house. Your goal on phone contacts should be to answer their questions before they even get a chance to ask them. Having a two way dialogue with callers goes a long way towards helping them feel comfortable enough to hire you, even if your price is not the least expensive.

Jim Luttrall
05-01-2009, 05:50 PM
Reggie, you may be talking to other home inspectors trying to scope you out, these home inspectors can be a cagey lot!;)
That is why I turn off my pay per click ads during the slow months. I figure at least half of my advertising dollars are from bored inspectors surfing the net checking out the competition.

Rick Cantrell
05-01-2009, 06:13 PM
I think Jim has a good point.
The new person gets shopped by a lot of inspectors. Nothing wrong with that. But it happens.
When I advertise a house for rent, I get tons of calls the first 2 days, many from other landlords and reality companies.
To reduce being shopped and increase quality talk time with prospects, say " I at a job now, what is your number so I can return your call?" This will spot all but a few shoppers and you now have the chance to call them back when you are better prepared.

John Dirks Jr
05-01-2009, 07:11 PM
Stay with it. You'll gain confidence gradually. The more confident get, the comfortable you'll feel.

When you have confidence and comfort in your tone, more people will hire you, regardless of the price.

I'm to the point where about 2 out of 3 who say they'll get back to me, eventually hire me.

There's a fine line between sounding eager to serve, and overly eager, which scares them off.

A good way to start is to set up a price structure based on sq footage. Write the price structure on a small chart and keep it with you at all times.

Basic questions I ask soon into the call are,

What is the purpose for the inspection?

Where is the property located?

What is the square footage?

Randy Navarro
05-01-2009, 08:23 PM
Then, maybe, there's the opposite. . .

If you price yourself too. . .er, competitive (read cheap), then the folks might be able to sniff that out and think they're not going to get the right guy.

Also, I found out that starting out cheap and then raising prices was difficult. Folks were used to my prices, then when I realized I wasn't making enough money, I had to raise.

It was hard mentally to keep going up in price.

But I got used to it!

Reggie Russell
05-01-2009, 10:27 PM
Thanks guys for all the input! You have given me a lot of very good suggestions. I will start practicing my phone answering now. :)

Ted Menelly
05-02-2009, 09:06 AM
An email to me

The Secret? It's Not About Me...It's About You



You remember the third building block, right? It's all about educating your prospects and providing them with value. As you consistently and effectively follow-up with prospects, you build powerful relationships with them that will eventually lead to a sale.

But to be successful, you've got to make your prospects feel special, appreciated, and singled out. I asked my copywriter, and she provided me with powerful writing styles and tips for connecting with your prospects and leading them to the sale. Here's the list:


Keep asking yourself, "What's in it for my customer?" They don't care how amazing you and your business are. They want to know only one thing...how does it solve their needs and wants. Show them and remind them of the benefits of your products/services.

Write to them. Stop saying I, me, we, and try using you and your. Again, your prospects care about one thing...themselves. Focusing on them caters to that instinct.
Write in an active voice. Persuading this person to take action will not be easy and if you don't speak in an active, almost assuming tone, you won't be very effective. So, instead of phrases likes, "This hairstyle will help you attract attention," try rephrasing it to say, "This hairstyle attracts attention."
Of course there are other copy techniques you should use in your follow-up marketing, but these three will help you grab their attention. For more copywriting tricks and secrets, I recommend reading Duct Tape Marketing or The Ultimate Sales Letter.

Remember, good copy is critical to moving prospects through the funnel and to the eventual sale.

Don Belmont
05-04-2009, 07:41 AM
If you have caller ID try and backtrack the number. You may be surprised how many are from other HI's (just checking prices) or RE agents.

Assuming they are real consumers. How many questions are you asking the caller? Get them talking about the house and most importantly what they are afraid of. (I just ask them what their major concerns are). Then I can sculpt my talk to what they care about most.

Under no circumstances should you answer the question for a price. You must engage the potential client and get them focused on the service. It's tough sometimes but you will get more business by pushing them to focus on the service. Once you can get agreement on the services they need (and you can provide superbly) then you can give them a price.


However you do it your goal should be to engage them for at least
20 minutes before you answer their price question. Question them and listen to their answer. Get them focused on how you are the guy that will give them the inspection they need, not just another generic home inspector with a commodity service.

JORY LANNES
05-04-2009, 01:42 PM
A lot of good ideas have been posted about telephone pricing. Remember you are selling a product which is YOU. Sell em don't tell em.

When some asks you what do you do for a living, how do you reply? Everyone should have a 30 second "elevator response " as well as a phone routine.

Emphasis should be on asking leading or open ended questions. Get the customer to talk. Almost every one likes to talk about themselves or problems....ie buying a house.

It takes time to develop a phone patter. Look over the previous responses and write a list of questions that everyone has suggested.Call a friend and practice asking these question on the phone.

The product is YOU...When you sellem the prospect should be convinced that without you the home should not be purchased regardless of the price.

One last thing. DO NOT BUY BUSINESS. DON'T BE THE CHEAPEST.
KNOW WHAT IT COSTS YOU TO DO AN INSPECTION. Do a break even analysis. If you do not know how ask your accountant(you do have an accountant). There is a cost of business spread sheet that is offered by one of the sponsors of this site. It is worth the $ to know what your costs are which helps you in your pricing. Be a shopper of your competition. You have to know your market and you costs before you set a price.

Good luck

Stuart Brooks
05-04-2009, 02:03 PM
I think that sometimes people are expecting to hear some really minuscule amount like $50 or less. Like, how much could it cost for somebody to walk around a house and tell you if anything is wrong? Any real inspection pricing blows their mind. I've had people quibble over $25, others who never ask about the cost, and still others who don't care about the price. They just want a very complete and thorough inspection.

Sometimes you may have other inspectors calling to check to see what you are charging.

Nick Ostrowski
05-04-2009, 02:34 PM
I have never priced shopped the other inspectors in my area. I'm sure some do it but I never have.

JORY LANNES
05-04-2009, 03:29 PM
How many inspectors have done an analysis of expenses..break even....markup.....pricing matrix???

Nick Ostrowski
05-04-2009, 03:43 PM
Brian H has a book on "The Cost of Doing Business" that helps you figure all of that out.

I know I am running under where I would like to be from a price standpoint right now but it's either take a little less and schedule inspections or give out higher quotes and stare at an empty work schedule.

JORY LANNES
05-04-2009, 03:58 PM
Brian H also sells a disk that does the calculations......I understand your frustration as to price point...... Reminds me of an old joke about a doctor. His friend asked him if is an interest or has a sub specialty...The doctor replied he was very specialized and does rich medicine.....His fees were so high only the rich could afford him, and since his fees were so high his clients assumed he was a better doctor than most....The point is we all make business decisions, do 2 inspections for $300 each or one inspection for $500....do we market ourselves or subcontract our services to other inspectors that have more work so we stay busy.....The bottom line.... have the information about your business and market to to make pricing decisions and marketing direction. The original thread was why no business or call backs.....the answer is all knowledge,experience,marketing and marketing and know your business and your target market.....now what about mold and radon

Ted Menelly
05-04-2009, 05:57 PM
Brian H also sells a disk that does the calculations......I understand your frustration as to price point...... Reminds me of an old joke about a doctor. His friend asked him if is an interest or has a sub specialty...The doctor replied he was very specialized and does rich medicine.....His fees were so high only the rich could afford him, and since his fees were so high his clients assumed he was a better doctor than most....The point is we all make business decisions, do 2 inspections for $300 each or one inspection for $500....do we market ourselves or subcontract our services to other inspectors that have more work so we stay busy.....The bottom line.... have the information about your business and market to to make pricing decisions and marketing direction. The original thread was why no business or call backs.....the answer is all knowledge,experience,marketing and marketing and know your business and your target market.....now what about mold and radon

Mold and Radon ???? Whats that??? Mark up??? I did some mark up on 2 Realtors that tried to anoy me and belittle me like I worked for them or something earlier today...least I thought thats what they were thinking...I marked up good... As far as pricing Matrix I priced all the episodes the other day and decided not to get them and just watch them when they come on the telly again.

Randy Navarro
05-04-2009, 06:51 PM
When asked right away what my price is, I've come up with a new idea.

Ask them, "What do you think it's worth to have your $XXX,XXX.00 investment analyzed to discover potentially $5,000.00 - $50,000 worth of problems?" Then don't say a thing and let them come up with a number.

I don't have the guts yet but I'm gettin' closer. . .

JORY LANNES
05-04-2009, 09:06 PM
RANDY...GOOD FOR YOU ....SCREW THE BREAKEVEN...YOU GOT IT NAILED!!!!!

David Nice
05-04-2009, 09:10 PM
Say something like, "you've asked the least important question...first let me tell you about my qualifications and why you should hire me...."<SNIP>

Works 80% of the time. Sometimes they hang up and continue to shop around and run it all by the spouse, but they often call back.

They think that they are asking the most important question.Telling them that it is least important right off the bat is no smooth move. There is a good chance that you will turn them off right there. No wonder they hang up. Qualifications need to be offered up but save them for after you have provided a lot more information about the importance of a home inspection and what the inspector must do. I bet that the aforementioned formula more likely fails 80% of the time.

Jerry Peck
05-05-2009, 07:39 AM
When asked right away what my price is, I've come up with a new idea.

Ask them, "What do you think it's worth to have your $XXX,XXX.00 investment analyzed to discover potentially $5,000.00 - $50,000 worth of problems?" Then don't say a thing and let them come up with a number.

I don't have the guts yet but I'm gettin' closer. . .

Close to what I would do on occasion.

I'd tell them ... Well, let's see, you are paying 6% just for the privilege of being able to BUY the house, so it is worth AT LEAST that same 6% to actually find out and know what you are buying, right?

(then some silence from you ... and them as they let that 6% soak in ... $500k x 6% = $30,000 ... )

Then you come back in and say ... And to think that I can do that for MUCH LESS THAN 6% ... (allow them time to wipe their forehead and go whew!) ... in fact, I can do that for even less than 1/10 of that ... (let that math soak in ... $30,000 / 10 = $3,000) ... (then continue) ... I will even do my inspection for less than that, instead of paying 6% or $30,000 just for the privilege to buy the house, I will inspect it for (insert price here - it will be a heck a lot less than 1/10 that 6%) ...

A.D. Miller
05-06-2009, 06:45 AM
I keep a list of the cheapest and least skilled (usually one in the same) inspectors in my Blackberry. When the first question out of the gate is price I simply tell them that if they are looking for the cheapest inspection possible I will need to refer them to these bright and shining stars. Additionally I tell them to look for licensees with license numbers over 10,000. These are the neophytes who will do nearly anything (except decent inspections) for money.:cool:

Why?:confused:

I simply do not want these people for clients, and I do not want referrals from them. They will only refer more of the same: unsophisticated and indiscriminate home buyers that are only going through the motions of hiring an inspector. They do not see the value in my work and will not benefit from the information given them. Pearls before swine.:eek:

About half of them stop in mid conversation and re-think the issue when I use this approach. These become my customers. They simply started off the conversation wrongly by asking the price first. The other half will become someone else's clients. There is an inspector for every client and a client for every inspector, but not every client is for me.:D

Rick Hurst
05-06-2009, 07:20 AM
Aaron,

You should see some of the emails my son (the realtor, I know:( I brought him up wrong) gets from these new HI's. On average he gets more than 10 of these a week.

He forwards them to me to see. Some are inspecting any home any size for 150. (for a limited time of course it says) :eek:

Rick

A.D. Miller
05-06-2009, 08:14 AM
Some are inspecting any home any size for 150. (for a limited time of course it says) :eek:


Rick: The limit is whenever they run out of houses.:D

Reggie Russell
05-06-2009, 06:46 PM
Thanks again for all the responses guys. After some more investigating I found out what happened. Turns out the HI they used was a friend of a friend. They still called me for a quote, and since it was the same price as the other guy they went with him. What's funny to me is that when he got to the house, he claimed he didn't know it had a crawl space and raised the price $50 on site!!! I was told about the crawl space over the phone. I don't know what his problem was. I hope they were happy with that shining display of unprofessionalism and higher price to boot! :p

Nick Ostrowski
05-06-2009, 07:55 PM
I can't tell you how many times I've gotten to a house and found a crawlspace (or two) after the client told me on the phone the house had no crawlspaces. It's enough to make you want to bang some heads together.........and tack on an extra fee.

If the HI didn't ask if any crawlspaces were present, that's on him. If he did and they told him there were none, then that's on them. I've never charged more when encountered with crawlspaces I wasn't advised of but if they are large enough, dirty enough, and require an extensive amount of time to inspect, I don't think tacking on an additional charge is unreasonable. Especially if you asked about them beforehand and were told by the client none were present.

Reggie Russell
05-06-2009, 08:00 PM
Now if the question was specifically asked and you were told wrong then yes I understand that. But this person freely admitted to me it had a crawspace, I didn't even have to ask that question. So I highly doubt she would have told the other guy that it didn't have one. And if he didn't ask then he should have eaten the cost and gone on and did the inspection at the original price.

Erby Crofutt
05-06-2009, 08:11 PM
Just remember that a lot of people that call really have absolutely no idea of what questions they should be asking but they do know to ask about the price & timing.

Educate em about what's important BEFORE you give them a price.


-

Nick Ostrowski
05-06-2009, 08:26 PM
Here are the things I ask before giving a price:

- house age
- style
- interior square foootage
- number of bedrooms and bathrooms
- any garages on property (attached or detached)
- basement, crawlspace, or both
- selling price

Lately, I've been getting the address of the property and pulling it up on line when possible to get a better idea of what I'm looking at.........before giving a price.

Ted Menelly
05-06-2009, 09:03 PM
Tell them 16,428.10 and then there will be silence. Wait, and it is very important, until they break the silence. After the silence is broken by them you can all chuckle a little bit and then go on with the conversation and questions and then give them a price which will be thousands less than your original quote and then ask them immediately all the basic pertinent info you need to set up the appointment.

Tim Hill
05-07-2009, 04:38 AM
Additionally I tell them to look for licensees with license numbers over 10,000. These are the neophytes who will do nearly anything (except decent inspections) for money.:cool:



Does this mean anyone with a license # over 10,000 cannot perform a decent inspection?

A.D. Miller
05-07-2009, 06:05 AM
Does this mean anyone with a license # over 10,000 cannot perform a decent inspection?

Tim: Probably. Let's do the math, OK?

The astronomical and legendary 10,000 mark was hit on or about 3/31/09 according to the TREC records. That was 37 days ago.

ASHI says that you are an inspector after 250 inspections and the passing of the NHIE.

It has been proven that competence in any given field requires 10,000 hours of assiduous attention focused in that field.

So, for the sake of argument - and to help prove your side of the argument, let us go with ASHI's miserably low number. Assuming an average total time of 4 hours per inspection one would then have 1000 hours in the profession. That is one-tenth of what is required to become competent, but let us say it is enough.

Now Mr. 10,000 has 37 days in which to accomplish this 1000 hour mark, or the requisite 250 inspections. That would require a 24-7 schedule performing 6.75 inspections per day. Simply not possible. Sorry.

OK, let us take the hypothetical example that you are probably using as a hold card in this debate. Mr. 10,000 was already a municipal building inspector for years and has additional construction experience to boot. The still does not make up for the fact that he has no experience in inspecting existing homes that may range above 100 years in age. How will that new construction experience aid him in the field? We diagnose aging systems, after-market installations, homeowner jury-rigged crap, et al. Where does one get that experience other than in this field?

So then, to answer your question: yes, in all likelihood a license number above 10,000 indicates at the very least an abysmal lack of experience which equates to little or no consumer protection.

I patiently await your retort.:D

Ted Menelly
05-07-2009, 06:34 AM
@ things

10,000 was hit some time ago well back into last year. I do not know why TREC would say otherwise. People have been advertising with numbers in the 10,000 and up range for over a year.

The second item is one that I am put into the position to debate quite frequently. The matter of so many inspectors advertising that the lower the TREC number the better they are because they have been inspecting longer.

My number is 7543 ONLY because I received my license from TREC in Nov of 2004 when I moved here. NOT because I started inspecting in Nov 2004. I moved here as an inspector and was incorporated as an inspector and have been inspecting part ime for about 20 or so years and then 10 to 12 years years full time on top of that.

You can go to almost any seasoned inspectors website in TX and they will be blowing their TREC number out their backside stating that every number higher then theirs means that the other higher numbered inspector is crap.

Now, does that say that Inspectors with the number 10,000 or better are any good, no.

Does it mean that an inspector with a number under a hundred is anygood, no.

Does any of that mean that one with all the ICC certs under their belt is any good as an inspector. Absolutely not.

Blanket statements that this guy s***s or that guy s**** because they have a low or high number is ludicrous. Blanket staements that this guy or that guy is great due to his edumication is ludicrous.

Jim Luttrall
05-07-2009, 08:25 AM
According to the TREC license search, #9999 license expired on 3/31/09 and 10,000 will expire on 3/31/2011. So it does appear that the magical 10,000 number was reached at least a year or more ago. Probably March of '08?
I figure any license number above #3779 is just a young 'un with much to learn:D
But then I will also concede that I am an old fart with much to learn!;)

A.D. Miller
05-07-2009, 08:38 AM
According to the TREC license search, #9999 license expired on 3/31/09 and 10,000 will expire on 3/31/2011. So it does appear that the magical 10,000 number was reached at least a year or more ago. Probably March of '08?
I figure any license number above #3779 is just a young 'un with much to learn:D
But then I will also concede that I am an old fart with much to learn!;)

Jim:

(1) You are not as old as some of us.;)

(2) Even if the 10K mark was hit 12 months ago, competence would not be reached for 2500 inpsections, as per the most recent scientific data. That would still equate to 6.84 inspections per day, working 365 days.:eek:

Dream on.:D

A.D. Miller
05-07-2009, 08:38 AM
Spell check holiday on the last one.:o

Jerry Peck
05-07-2009, 10:06 AM
Maybe I should get a Texas home inspectors license and brag that any number lower than 10,000 is crap? :D

While I understand what Ted is saying, by and large what Aaron is saying rings true, and, like EVERYTHING ... there are and will be exceptions.

There are probably some Texas inspectors in the low hundreds who have been inspecting "forever" and do crap inspections and produce crap reports. :eek:

I knew an inspector in South Florida who owned a long established and well established multi-inspector firm who bragged that he had done 10,000 inspections HIMSELF, and he quite possibly may have, with the 10,000th inspection being done EXACTLY as crappy as his 1st inspection, and that was what he prided himself and his inspectors on - always doing the same inspection all the time, kinda like McDonald's ... you know what you are going to get when you go there, all the food tastes like cardboard, and it is the same at every McDonald's and you are okay with that, same for his inspections, and agents where okay with that, and the agents are who referred him and his company - was VERY HEAVY into real estate agent office marketing.

Sold out to one of the large national companies about 5-7 years back or so, and became one of their management people. Last I heard (a few years back) he and they are parted ways - but he sold out to them for a large chunk of money.

A.D. Miller
05-07-2009, 10:13 AM
Maybe I should get a Texas home inspectors license and brag that any number lower than 10,000 is crap? :D

JP: Sure, why not?



While I understand what Ted is saying, by and large what Aaron is saying rings true, and, like EVERYTHING ... there are and will be exceptions.


JP: Agreed.



There are probably some Texas inspectors in the low hundreds who have been inspecting "forever" and do crap inspections and produce crap reports. :eek:


JP: Quite a few. I am practicing my equanimity today though, and will not name names.



with the 10,000th inspection being done EXACTLY as crappy as his 1st inspection, and that was what he prided himself and his inspectors on - always doing the same inspection all the time, kinda like McDonald's ... you know what you are going to get when you go there, all the food tastes like cardboard, and it is the same at every McDonald's and you are okay with that, same for his inspections, and agents where okay with that, and the agents are who referred him and his company - was VERY HEAVY into real estate agent office marketing.


JP: This guy sounds like one we had here who is now teaching Millionaire MF Inspector seminars. Again, no name shall pass my lips. Ok, just a little hint - M.C.:eek:

Joseph Melbourne
05-07-2009, 12:09 PM
Had a call today, lady asked how much would I charge to inspect her home. I asked size and she stated 5,000 sf. Fortunity I told her that I would call her back. I did get address of property from her and then I checked tax rolls and found out it was 6200 sf and had a pool.
Called her back and explained that my fee would be $ 6500. She then asked about Chinese drywall and I reply that my price included a visiual inspection and that if she needed further testing of suspicious drywall, that I would have to sent it to a lab for additional fee and testing.
I'm waiting to see if she gets back to me.
Do you guys think my answers were good along with the pricing ?

Joseph Melbourne
05-07-2009, 12:11 PM
OOPS, sorry guys, too many 0's I quoted her $650.00. Not $6,500.00. I have to start proof reading

Barry Lewis
05-07-2009, 12:43 PM
Reggie,

I think you are in the ball park with your pricing. You should try to find out what other inspectors are charging. Realtors are a good source for that.

Here's how I approach it. When asked about price I quote $10 to $15 per hundred sq. depending on the age, location, and heating system. I ask as many questons as I can to get a good feel for the property. Ask about outbuilding too. Many think an inspection includes barns, sheds, stables and machine shops. But why are the age, location and heating system important?

Well a 50 or 60 year old house, with all its additions, modifications and deficiencies will take considerably longer to inspect and report on than a house built in the last 10 years.

A house closer to your start point means less travel time and less expense.

Heating systems in our area can be anything from nat/prop gas to wood/oil combos. Try getting some of these systems up and running!

You'll need to figure out what variables increase your monetary expenditures and time output to put the "depending on" adjustment in your pricing.

During the call I ask about the time frame to get the inspection completed. Then I try to focus on what will be inspected, how it will be inspected, the amount of time that it will take to inspect. When the call is a shopper, I always recommend that they ask other inspectors what, how, and how long as well. I also imply that an inspection of less than 3 hours length is probably not a true inspection. I follow all that with my calendar opening, suggesting that I can "pencil in" a "date" for them to do the inspection telling them that I can hold that date until tomorrow at "x" AM. I also ask them for the courtesy of calling back today if they have engaged another inspector.

Courtesy, honesty, and a real concern for their thoughts and concerns will go a long way towards getting the "sale".

Good luck!

Stuart Brooks
05-08-2009, 01:32 PM
I just ran across an inspector in Northern Virginia, DC, and Southern Maryland who advertises a flat-rate of $350 for ANY house. Condos were like $200. ASHI certified, Virginia and Maryland certified (so much for certifications). Apparently does a checklist report only. Doesn't want the client to accompany or ask questions during the inspection (a review is done after he's done). I guess he can knock off 4 or 5 of those babies a day easy.

JORY LANNES
05-08-2009, 01:38 PM
AS THE OLD SAYING GOES...YOU GET WHAT YOU PAY FOR

John Goad
05-08-2009, 03:15 PM
Or DON'T pay for!

Steven Meyer
05-08-2009, 05:38 PM
Guess you could be a "Wal Mart, blue light special"!!

Charge enough to make it worth your time, and feed the family!!

A.D. Miller
05-11-2009, 03:56 AM
Mr. A.D. Miller,

I find it interesting that you identify yourself as a "southwest guy" but refer to TREC and 10,000 licenses. Ooops! Now you can admit to being Texas guy, huh? ;-)

Austin, TX guy - license number less than 10,000.

CM: I have never denied being a fifth-generation Texan. As I stated in another thread on this forum: Texas is the Southwest, with minor satellite states for garnish.:D

Stuart Brooks
05-11-2009, 07:08 AM
Tim: Probably. Let's do the math, OK?
... Snip ...
It has been proven that competence in any given field requires 10,000 hours of assiduous attention focused in that field.

...Snip

I was wondering where you found that bit of information?

Rory Hernandez
05-11-2009, 09:37 AM
Can you list three or four of your USPs?
Unique Selling Propositions
Do not list anything common to your area...i.e. digital photos...credentials, etc.
List only those things you offer that few or no others offer
Remember that only 7% of people buy on price, but 100% buy on price when given no other criteria
Good luck

A.D. Miller
05-11-2009, 11:38 AM
I was wondering where you found that bit of information?

SB: Read "Outliers" by Malcolm Gladwell. Then read his other books, Tipping Point and Blink.

David Nice
05-11-2009, 12:29 PM
SB: Read "Outliers" by Malcolm Gladwell. Then read his other books, Tipping Point and Blink.

A.D. when you say "It has been proven that competence in any given field requires 10,000 hours of assiduous attention focused in that field."and then cite the theoretical works of Gladwell as evidence of a proven fact, your credibility slips to near zero.

The "10,000 hour rule" was a proposal, not a statement of fact. Gladwell' evidence is purely subjective, not scientific.

Mike Schulz
05-11-2009, 04:44 PM
$225.00 is to low. You need to start higher and then when they ask for a discount it won't be so bad. My base price is $250.00 for 1,000 and under. Because of the age and sq, ft. you mentioned the price would of been $325.00.
Yeah sue me for putting my price out there! :cool: :)

Steven Meyer
05-11-2009, 05:46 PM
Let me see if I can get Mr. Miller's thought process right.

Those that have a license number under 10,000, are the "cream of the crop", not a bad apple among them??!! They have stood the test of time, even thou some were (and still are) crappy inspectors, but no matter, they are UNDER the 10,000 bench mark.

And what, Mr. Miller, is your license number? 01 or 02?

And those with over a 10,000 number, probably can't find the crawl space.

The older guys probably have not gotten much beyond the the building advances of a log cabin!

Steven Meyer
05-11-2009, 06:06 PM
[QUOTE=A.D. Miller;83622]Jim:

(1) You are not as old as some of us.;)

(2) Even if the 10K mark was hit 12 months ago, competence would not be reached for 2500 inpsections,



So, under your theory of 2,500 inspections needed for competence, then that amount of unsuspecting customers just got screwed, but customer 2,501, he hit the jackpot!!

That also means that the first 2,500 inspections YOU DID, were faulty??!! I hope you have made amends with those customers, and confessed to your lack of competence in their inspection. Think a refund to those poor suckers just might be in order.

Rick Hurst
05-11-2009, 06:18 PM
Not once have I ever had a client ask about licensing numbers.:confused:

Jim Luttrall
05-11-2009, 07:34 PM
All the newer inspector see things from their point of view, "I'm just as good as those older guys, no reason a newer guy can't be a fantastic inspector, even better than those old farts" and the old farts point of view, "Those new guys just don't know what they don't know, they won't be around long, they are still wet behind the ears."

Truth is, both are right and both are wrong.
I trained under an experienced inspector who was also a PE with many years of experience and I learned much from him. I honestly believe I actually had more knowledge of construction than he in many areas, but he had more knowledge of what inspecting was and was not.
Today I know much more than what I did when I started inspecting and I continue to learn daily (I hope.)

There is absolutely no way a newby inspector can know as much as he will know 10 years from now unless he is an arrogant SOB that refuses to learn or gets Alzheimer's.
Learning is part of the gig. That said, there are many arrogant SOB's that are piss poor inspectors even though they have been around since dirt.

Jack Feldmann
05-12-2009, 05:14 AM
Remember what is said about assuming.

You should not assume that just because someone has a high license number, or is new to your area, that they are a new inspector.

If I decided to move to Texas, and get my Texas license, (after I had jumped thru the hoops) I would have a very high license number. Yet I have almost 20 years under my belt inspecting. Not exactly a newbie.

Be careful what you assume.

A.D. Miller
05-12-2009, 07:45 AM
A.D. when you say "It has been proven that competence in any given field requires 10,000 hours of assiduous attention focused in that field."and then cite the theoretical works of Gladwell as evidence of a proven fact, your credibility slips to near zero.

The "10,000 hour rule" was a proposal, not a statement of fact. Gladwell' evidence is purely subjective, not scientific.

DN: My credibility slipping in your eyes is the least of my concerns, I assure you.:D

A.D. Miller
05-12-2009, 07:46 AM
Remember what is said about assuming.

You should not assume that just because someone has a high license number, or is new to your area, that they are a new inspector.

If I decided to move to Texas, and get my Texas license, (after I had jumped thru the hoops) I would have a very high license number. Yet I have almost 20 years under my belt inspecting. Not exactly a newbie.

Be careful what you assume.

Jack: Too bad. You might have learned something about real BBQ while here.:D

A.D. Miller
05-12-2009, 07:50 AM
There is absolutely no way a newby inspector can know as much as he will know 10 years from now unless he is an arrogant SOB that refuses to learn or gets Alzheimer's.
Learning is part of the gig. That said, there are many arrogant SOB's that are piss poor inspectors even though they have been around since dirt.


JL: Agreed.

Jack Feldmann
05-12-2009, 09:11 AM
I have had Texas Barbeque. What I had was very good. I have to say I am partial to pork rather than beef, but that's just me.

I also have to say that I really did not care for North Carolina Barbeque, because of the vinegar based sauces.

I guess the same can be said for assuming "your" barbeque is better than anyone elses.

A.D. Miller
05-12-2009, 09:19 AM
I have had Texas Barbeque. What I had was very good. I have to say I am partial to pork rather than beef, but that's just me.

I also have to say that I really did not care for North Carolina Barbeque, because of the vinegar based sauces.

I guess the same can be said for assuming "your" barbeque is better than anyone elses.

Jack: Just prodding you a bit. Acutally, and I do hate so much to admit this - the best pork I ever ate was just outside of Memphis.:D

Ted Menelly
05-12-2009, 11:13 AM
Jack: Just prodding you a bit. Acutally, and I do hate so much to admit this - the best pork I ever ate was just outside of Memphis.:D

I have had barbeque from, oh, 20 to 25 different states, who knows, maybe more. It all depends on where you get the barbeque. In most places you get it (or should I say all) they believe theirs is the best in the world. 75 percent of it ***** The other 25 percent is a pretty good toss up.

I also et some barbequed pork outside memphis and I will say I cannot remember the name of the place but is was about the tstiest tenderest pork I ever et. It was good enough to mention being I still remember it 20 plus years agao.

Steven Meyer
05-12-2009, 11:21 AM
[QUOTE=Jim Luttrall;

That said, there are many arrogant SOB's that are piss poor inspectors even though they have been around since dirt.[/QUOTE]

I doubt most newbees have a know it all attitude. From most of the posts, it seems to be the older the dirt inspectors that are guilty of that attitude.

Is it quite possible that a newbee will take more time, more care, double check his results, due to the fact he is new and doesn't want to make a mistake? Unlike the "I know it all" older inspector who will blast throu the inspection.


I would have more problems with the older "know it all. I've been at this for XXX number of years" than I would with an younger inspector who knows he is on a learning curve, and tries harder.

Which would you rather trust, A 70 year old doctor, or a younger one that has more recent education/knowledge?

Steven Meyer
05-12-2009, 11:35 AM
A.D. when you say "It has been proven that competence in any given field requires 10,000 hours of assiduous attention focused in that field."and then cite the theoretical works of Gladwell as evidence of a proven fact, your credibility slips to near zero.

The "10,000 hour rule" was a proposal, not a statement of fact. Gladwell' evidence is purely subjective, not scientific.

JUNK SCIENCE: No need for "evidence" of a "proven fact". It was a theory, therefore must be true, no evidence is needed!

Can you imagine, 10,000 hours to become a good burger flipper??!!

Mike Schulz
05-12-2009, 12:41 PM
This is the best pork you will ever have. People drive hundreds of miles to get it. N.C. Barbeque: Lexington Barbecue #1 (http://www.ibiblio.org/ch-scene/bbq/lexington.html)
It's an old building with big wood burning pits. You can smell the pork a mile down the rd. Lexington Style BBQ Restaurants (http://www.visitdavidsoncounty.com/bbq.html)
Dang I'm hungry now.

David Nice
05-12-2009, 08:06 PM
DN: My credibility slipping in your eyes is the least of my concerns, I assure you.:D

I'm sure it is. Your saving grace is that few will bother to look up the reading material to find that you have been fast and loose with what you call "proven".

A.D. Miller
05-13-2009, 02:32 AM
I'm sure it is. Your saving grace is that few will bother to look up the reading material to find that you have been fast and loose with what you call "proven".

DN: Tsk, tsk. Au contraire. I believe that referring others to reading materials I find of interest does many good things. It promotes authors I find talented and it introduces others to ideas they might otherwise have overlooked.

Maybe you don't like Malcolm Gladwell. Maybe you don't care for the Washington Post or the New Yorker. Perhaps you don't care for Brits living in New York via Canada. I just do not know. But, I think it may be you that you do not like.

If that's not the case, then prove it to us by acting like it.:D

David Nice
05-13-2009, 11:37 AM
DN: Tsk, tsk. Au contraire. I believe that referring others to reading materials I find of interest does many good things. It promotes authors I find talented and it introduces others to ideas they might otherwise have overlooked.


AD: You are right. It may be a good thing to refer others to works you are interested in. I only take umbrage to the use of one particular authors theory and stating "that it has been proven". No more, no less.

Just as we need to be accurate in our representation of the condition of real property, it is equally helpful to properly distinguish between fact and theory.

A.D. Miller
05-13-2009, 02:13 PM
AD: You are right. It may be a good thing to refer others to works you are interested in. I only take umbrage to the use of one particular authors theory and stating "that it has been proven". No more, no less.

Just as we need to be accurate in our representation of the condition of real property, it is equally helpful to properly distinguish between fact and theory.

DN: Now let us not wax philosophical here. When it comes right down to it, nothing is proven. Nada. Zilch.:D

"Reality is merely an illusion, albeit a very persistent one." -Albert Einstein

Read more of Heisenberg's Uncertainty Principle, Neils Bohr's works, et al.

Kansas isn't Kansas any more.:eek:

David Nice
05-13-2009, 07:51 PM
DN: Now let us not wax philosophical here. When it comes right down to it, nothing is proven. Nada. Zilch.:D

"Reality is merely an illusion, albeit a very persistent one." -Albert Einstein

Read more of Heisenberg's Uncertainty Principle, Neils Bohr's works, et al.

Kansas isn't Kansas any more.:eek:

OK, and you might like "Contingency. ironly, and solidarity" by Richard Rorty.
(Richard Rorty - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Richard_Rorty#Contingency.2C_irony.2C_and_solidari ty)

I think Kansas never was Kansas as peole knew it.

A.D. Miller
05-14-2009, 03:21 AM
OK, and you might like "Contingency. ironly, and solidarity" by Richard Rorty.
(Richard Rorty - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Richard_Rorty#Contingency.2C_irony.2C_and_solidari ty)

I think Kansas never was Kansas as peole knew it.

DN: I read his later work, "Achieving Our Country : Leftist Thought in Twentieth-Century America", which, if I remember, was rather good. I will check the other out and read it in the next few weeks.

Thanks for the referral.:D

Gary Cox
05-15-2009, 05:25 AM
Just be great at what you do...over time the price shoppers tend to go away for the most part.
If you advertise ... expect price shoppers...your just another loaf of bread.

...if the caller is bold enough to tell you your price is too high...just say "Well, I guess those other guys know what their worth," ...and get back to work.

GC.

A.D. Miller
05-15-2009, 06:07 AM
Just be great at what you do...over time the price shoppers tend to go away for the most part.
If you advertise ... expect price shoppers...your just another loaf of bread.

...if the caller is bold enough to tell you your price is too high...just say "Well, I guess those other guys know what their worth," ...and get back to work.

GC.

GC: Sound advice.

Jim Hintz
05-16-2009, 11:10 PM
Close to what I would do on occasion.

I'd tell them ... Well, let's see, you are paying 6% just for the privilege of being able to BUY the house, so it is worth AT LEAST that same 6% to actually find out and know what you are buying, right?

(then some silence from you ... and them as they let that 6% soak in ... $500k x 6% = $30,000 ... )

Then you come back in and say ... And to think that I can do that for MUCH LESS THAN 6% ... (allow them time to wipe their forehead and go whew!) ... in fact, I can do that for even less than 1/10 of that ... (let that math soak in ... $30,000 / 10 = $3,000) ... (then continue) ... I will even do my inspection for less than that, instead of paying 6% or $30,000 just for the privilege to buy the house, I will inspect it for (insert price here - it will be a heck a lot less than 1/10 that 6%) ... Actually, at least here in Washington State, the buyer does not pay the 6% commission - the listing and selling fees along with excise tax is paid for by the Seller - Buyers only pay loan origination fees and some closing costs. Good Day Gentlemen.

Jerry Peck
05-17-2009, 11:02 AM
Actually, at least here in Washington State, the buyer does not pay the 6% commission - the listing and selling fees along with excise tax is paid for by the Seller - Buyers only pay loan origination fees and some closing costs. Good Day Gentlemen.

That's what they all say, but do the math ... where does the seller get the money to pay those fees?

Yep ... from the buyer, therefore the buyer actually pays those fees, in fact, the buyer pays all fees and all costs as everything comes out of the money the buyer puts up (down payment and loan proceeds).

You've got to look at the overall picture.

:D

Steven Meyer
05-17-2009, 12:11 PM
That's what they all say, but do the math ... where does the seller get the money to pay those fees?

Yep ... from the buyer, therefore the buyer actually pays those fees, in fact, the buyer pays all fees and all costs as everything comes out of the money the buyer puts up (down payment and loan proceeds).

You've got to look at the overall picture.

:D

Very true!! The seller knows what he wants to NET out of the transaction after all costs are paid (including commissions), becomes the purchase price, thus, in reality the buyer is paying that "cost" of the sale.

Personally, I believe the RE commission structure is totally out of whack, given the prices of houses these days. A smart buyer (and seller) can, however, necogate a commission "discount" to "make the deal work".

And, who in reality pays ALL the taxes the government imposes? The consumer! This "stick it to the large corporations with corp, income taxes" you have just stuck it to yourself. It's a cost of doing business, and is thus added onto the price of the goods you purchase.

Steven Meyer
05-17-2009, 12:17 PM
Actually, at least here in Washington State, the buyer does not pay the 6% commission - the listing and selling fees along with excise tax is paid for by the Seller - Buyers only pay loan origination fees and some closing costs. Good Day Gentlemen.

The seller "writes" the check, but the actual cost is added into the selling price in one way or the other. Just a shell game!!!

Allison Grant
05-22-2009, 06:05 PM
In South Florida, inspections run about $250 for mid-sized home. I recently started a new website, www.chinesedrywallinspector (http://www.chinesedrywallinspector.com), for home inspectors that specialize in identifying Chinese drywall. Send me an email at listings@chinesedrywallinspector.com if you would like to be included in the directory.

Mark Howe
06-03-2009, 05:29 PM
Hey Guys,

As most of you probably know I am new to the business so I have a question about pricing. I have received a couple of calls lately from people price shopping for a Home inspection. One was a guy looking to get one done on a HUD home, it was 1500 sq ft, slab, and around 30 years old. I quoted him a price of $225, never heard from him again. Then yesterday a woman called me wanting a price quote on a 4,000 sq ft. home with a crawl space that was 15 years old. I quoted her a price of $400. I have yet to hear back from her. Am I missing the boat somewhere here guys or are there just that many people out there willing to do a Home inspection for next to nothing? I really thought those prices I quoted were very reasonable. What is typical of what you guys charge for similar sized homes? I really can't afford to keep missing the boat like this, please tell me what I am doing wrong here! :confused:

Hey Reggie,
I am sorta in your neighborhood (same state anyway), and your prices are on the low end. Not bargain basement low, but pretty low . Like others have said, it is probably your pitch more than your price.

Decatur/Huntsvegas is a pretty affluent area. Lots of educated people working in high tech industries, making good money. Point being, you have a demographic that will, by and large, understand that excellence comes with a price tag.

What we do with price shoppers is tell them right off the bat that we are the most expensive in the area. No question about it. No discounts. No deals. Then we tell them why. I would recommend that you consider raising your rates. You will build a better referral base while bypassing the cheapskates (who always seem to be the more troublesome clients). Whatever you do, don't be concerned with what others are charging except to make sure that you charge more than they do.


Best regards,
Tim

Mark Howe
06-03-2009, 05:42 PM
In South Florida, inspections run about $250 for mid-sized home. I recently started a new website, www.chinesedrywallinspector (http://www.chinesedrywallinspector.com), for home inspectors that specialize in identifying Chinese drywall. Send me an email at listings@chinesedrywallinspector.com if you would like to be included in the directory.

Not to put too fine a point on it Allison, but I know a good number of SoFla inspectors. None of them will leave their driveways for $250.00. This kind of spurrious information is not good for any of us. I do not believe a 250.00 inspection fee for a 'mid size' house is a fee that an established, competent inspector in a HIGH cost of living area would charge. It would be closer to double that. Setting expectations of 250.00 fees is not helpful to any of us.

Tim

John Martino
08-29-2009, 04:26 PM
Rick, I agree with you 100% on your philosophy and phone technique. I agree we should make the client feel comfortable and not rush into fees. Asking about their concerns shows that you are listening and interested. Then you can get into the fees. I ways try to build report with the customer first.
New Jersey Home Inspector performs New Jersey Home Inspections (http://www.LooksmartHomeInspections.com)

JORY LANNES
08-29-2009, 05:53 PM
Lets say you get a call for a 3000 sq ft 8 rooms 4 bedrooms 2 1/2 baths 2 a/c and 2 furnances. Selling price $600,000. What would you charge???

Do you know what your costs are? How much do you think you should earn per hour.

A house described above would take 3-4 hours to inspect. It would take me another 2-3 hours to write the report including photos. total estimated hours 5-7 hours. Is your time and expertise worth $100 hr?:)

I would bid this house out for $650......How would you price it. What criteria do you use?

Jory Lannes
Lannes Group Inspections
Chicago
Chicago

Mike Schulz
08-30-2009, 11:26 AM
Again it is all in what your area can stand. You charge $650 here for 3000 sq. home you will be out of Buisness. My area it's between $350.00 and $400.00

JORY LANNES
08-30-2009, 11:35 AM
Thanks for your imput Mike. My point is You must know your market,cost of doing business and desired gross and net profit. Pricing encompases more than what the other guy is charging. Get the facts and run your business as a business.

Ted Menelly
08-30-2009, 12:36 PM
Thanks for your imput Mike. My point is You must know your market,cost of doing business and desired gross and net profit. Pricing encompases more than what the other guy is charging. Get the facts and run your business as a business.


And as Mike said. If one were to even dream of charging 650 for a 3000 sq ft home they would never have an inspection in my area as well. Up North where there are basements and much older homes I hear of folks getting it all the time.

Yes one must know there market. I always read comments about the low baller not being in business very long. Hmm. I know a half dozen 200 dollar inspectors that have been around for years. I just lost a couple to the guy that is listed on another thread.

Yes other home inspectors to have a bearing on price no matter what your experience and back ground.

3000 su ft around here plus the garage added in may get in the low 3s and then of course you have the folks with termite licences throwing a free termite inspection with the home inspection. That is not a bad gig if you are pulling in alot of inspections. 10 inspections at 320=3200 a week. I do know a few that do that. I use an outside source for my termiote a 70 a piece. 3200x 50 weeks is 160,000 a year. Oh yeah, break it down for bad times to 6 a week..... 96,000 a year. Not bad for a one man band. I am sure they are pocketing half that in cash as well and banking 50,000 to 75,000 in cash a year. Most have a workjing wife pulling in an income. Yep...life is good for some. The give away market can be fruitfull.

Ron Bibler
08-30-2009, 02:21 PM
The one thing each one has over look in this tread.

When some one calls you.. 99&#37; of the time they are looking for something?

They may imply its about money... by asking how much is your inspection.


Rick was very close in his Post.

" Try to avoid talking "costs"

Ask them about what they've seen at the home that may be of a concern to them? They always will come back with something.

Tell them that your making notes to be sure and check those concerns for them. "

Ricks point is to find out what they want and .what they need...

If you can find out these things then the cost is not the issue anymore.

If you can get to the place they are.
LIKE... We want to know if we remove a wall to open the interior up? BINGO...

I can help you with that:D Your the first inspector with there answer..

You now under stand what IT is they want. :D YOUR IN...

And get your inspection fees up... your in this for the MONEY...

GREED IS GOOD. ...Be a Capitalist Pig...

Best

Ron

Ted Menelly
08-30-2009, 04:31 PM
Lets say you get a call for a 3000 sq ft 8 rooms 4 bedrooms 2 1/2 baths 2 a/c and 2 furnances. Selling price $600,000. What would you charge???

Do you know what your costs are? How much do you think you should earn per hour.

A house described above would take 3-4 hours to inspect. It would take me another 2-3 hours to write the report including photos. total estimated hours 5-7 hours. Is your time and expertise worth $100 hr?:)

I would bid this house out for $650......How would you price it. What criteria do you use?

Jory Lannes
Lannes Group Inspections
Chicago
Chicago

It's those old piece of garbage homes that are mixed throughout the city that will keep your price up along with the height of the roofs and basements in all. Thats a big difference. That is twice the home we usually do due to the fact of the age bracket I look into are a very large amount of slabs, no basements or crawls, vast majority 20 and younger (mine are in the norm for the majority of under 15 years) newer electric HVAC water heaters, framing etc etc etc.

Its not always charge this because of that and push the market up and charge thru the roof compared to every other inspector. I love it when the wisdom pops out of so many inspectors where their market will bare higher prices and it gives them the learned wisdom to state to all the rest that "you must find out what it costs to do business and then put your profit on there and Blah blah blah" It just don't work that way.

The reality is you say it takes up to 7 hours to do a three thousand sq ft home. In hour area the newer homes of that size takes about 4 hours to get it all done.

Ron lives in Lah Lah land in California where people were fools enough to pay 800,000 for a 150,000 dollar 1200 sq ft home. He can get 600 for a home inspection and termite inspection from the fools.

The real world is that in our area we are surrounded by fairly long lived inspectors that are charging 200 for a home inspection up to 2500 to 3000 squ ft and some are throwing the termite in with it.

Yes we have to know are market and charge accordingly. Our market is a lot of long lived and short lived inspectors charging very low prices. The clients pull a list from the internet or from their realtor and when you are at 300 and the other 2 are at 200. Well, guess what, you just lost the inspection.

I just got an inspection for tomorrow where the inspector that she used before on a home she chose not to get is out of town this week. His price for the last home for her was 200 and then 55 for the termite. I am just under mid three's for the 2. I know the guy. He has been around a few years longer than when I moved here 5 years ago. He also has brinks or someone come and "inspect the alarm system" He also has one of those crap warranties that are completely useless. He also measures the foundation as in "a foundation analysis" There might even be an IR scan thrown in. We are flooded with inspectors for our hame sale market.

The give away man.

I lose inspections all the time to him and others because I refuse to give away all the other services.

We folks are not missing anything to talk to prospective clients about instead of just price. We know what we are doing.

Terry Neyedli
08-31-2009, 09:04 AM
[QUOTE=Reggie Russell;82849]Hey Guys, etc.

To quote Ted Rodgers
Lead
Follow or
Get out of my way.
Forget the last two an lead right from the outset.
All the forgoing info helps great deal.
Just do it!
You will reap the rewards.

T.Neyedli CHI
BPCPA #47827
www.alphahomeinspections.ca

A.D. Miller
08-31-2009, 09:07 AM
[quote=Reggie Russell;82849]Hey Guys, etc.

To quote Ted Rodgers
Lead
Follow or
Get out of my way.
Forget the last two an lead right from the outset.
All the forgoing info helps great deal.
Just do it!
You will reap the rewards.

T.Neyedli CHI
BPCPA #47827
Alpha Home Inspections - Port Alberni, BC (http://www.alphahomeinspections.ca)

TN: Do not walk behind me, for I may not lead. Do not walk ahead of me, for I may not follow. Do not walk beside me either. Just pretty much leave me the hell alone.

Mike Schulz
08-31-2009, 10:33 AM
ROFL A.D you keep me laughing :)

Michael Carson
09-29-2009, 03:48 PM
Reggie,
The folks that call me with the first question being "how much do you charge for a home inspection" are usually the ones going through the phone book looking for the cheapest. I always reply with if you are looking for the least expensive, I will not be it. I do that to set the tone, tells the customer I am not a discount home inspector and then I go into why I am not the least expensive. I love it when a customer says that so and so offers a coupon, do you offer a coupon. I just laugh quote them a higher fee then say I will reduce the price. You can hear the lights come on in there head.

I go on to tell them what I cover starting with here are the things I do for you, I start on the roof, blah blah, then I inspect the siding for you, blah blah. I take a truck load of photo's and videos and burn them on a disc FOR YOU so that later you can put the disc in and literally follow me through the inspection. Then toward the end I tell them to budget a good 45 minutes (yes, I print the summary and save report to disc, with photos onsite) to go over the report, photographs/videos then walk the property. Then I tell them that I shake their hand and thank them for shopping with me.

I get the info on the property then quote the price. I tell them about me and what I do for them before I go into price or they will get off the phone rapidly. Price shoppers are the ones that become a pain later and question everything that is petty and minor and expect you to find every little defect in the home and mark it on the report even after you agree to reduce the price. Most folks know that a home inspection is going to cost and are interested in how much time you are going to spend looking at their home and how thorough you are going to be so that they are informed and that all the major things are inspected.

E mail your inspection agreement before the inspection with return receipt.

Clifford Mark
09-29-2009, 08:15 PM
It's hard to get a handle on. Sometimes I do everything by the "book" and don't get the inspection and sometimes I do everything wrong and still get it. I think it's important to publish your pricing on your web site, stick with them and then live with the consequences.

Always act professional and let them feel your worth and your friendliness irrespective of whether you get the inspection or not. If you try to "sell yourself" do it in a conversational style rather than a "desparate or competitive" manner.

Just give them the facts and most folks will appreciate the chance to work with a professional who doesn't waver over price.

Maybe it will work for you, too.

Jack Feldmann
09-30-2009, 06:31 PM
If all the potential clients had the same mindset, it would be very easy. Follow the script, book the inspection.

IN the last two weeks I had the following:
1. Someone called and scheduled the job, and never asked the price.
2. Someone called and was referred by a co-worker, and their Realtor. Gave the price and got, "Thanks" and hung up.
3. Spend 15 minutes answering questions, they hung up, and I was like 'WTF????". Then they called back in 5 minutes and scheduled.
4. Spent the same amount of time, and they said "Well, I'm just calling around for the lowest price". I hung up on them.
5. Had a call and I wasn't in the mood and didn't handle the call very well. Thought I blew it. They called back and scheduled.
6. Had a previous client call and wanted me to give him a 50% discount "because I didn't buy that house". I said, "So I saved your ass, and a pile of money, and you want me to do another one for you for half price????" I told him he obviously didn't value the job I did for him, and he might want to find someone else.

There is just no figuring out some people.

Ron Bibler
09-30-2009, 06:39 PM
If all the potential clients had the same mindset, it would be very easy. Follow the script, book the inspection.

IN the last two weeks I had the following:
1. Someone called and scheduled the job, and never asked the price.

These are good clients...

2. Someone called and was referred by a co-worker, and their Realtor. Gave the price and got, "Thanks" and hung up.
3. Spend 15 minutes answering questions, they hung up, and I was like 'WTF????". Then they called back in 5 minutes and scheduled.

At least they called back...

4. Spent the same amount of time, and they said "Well, I'm just calling around for the lowest price". I hung up on them.

Bad clients. or another HI In your area see what you are up to:eek:

There is just no figuring out some people.

Go after # 1 callers... Find out all you can about the client and how you get that call.

Best

Ron

Mike Schulz
10-01-2009, 04:47 AM
Jack you summed it up pretty well and is typical for me also. To ad one I book an Inspection week in advance or so and they call back the eve before the Inspection canceling and apologizing for not calling sooner.

Had the weirdest the other day on my answer machine. Woman was looking for the company that inspected her home in 06, she did not know the name of the company or person. She was having problems with her home and was calling all inspection companies.

Markus Keller
10-01-2009, 06:33 AM
Jack (and others) RE #6.
Often times when I do an HI and they don't buy the house, for whatever reason, the client calls again, later for another HI. Oddly, maybe because they are better educated now, they are interested in multiple houses, usually 2-3. Since I have done a full HI for them, I offer them my WTA option, walk-through assessment.
- The price is half or less of of a regular HI
- They have to schedule min 2 houses back to back on the same day
- I bring nothing but my flashlight, maybe a pad if I feel like it
- a 1-2 page summary is emailed afterwards
- the cost of the WTA is credited towards a full HI on one building if the full HI is done within 30 days.
- I don't do a WTA unless I have previously done a full HI for that client.
The idea for the service came from experience. After the 1st "perfect dream house" was a bust, clients tend to look at the next houses a little more objectively (not always). The client has 2,3,4 houses that they really like now. I do a WTA with them to see if there are any major red flags and discuss costs of things they may need to do. Essentially it gives clients info about the properties and allows them to make a better decision. The houses are usually similar in cost so the two important questions the client needs answered concern red flags and initial ownership costs after purchase.
I don't do these a lot but clients are really grateful for the option when it comes up. I do have a separate contract for these.
Hope that helps.

Marc M
10-01-2009, 08:57 PM
Aaron,

You should see some of the emails my son (the realtor, I know:( I brought him up wrong) gets from these new HI's. On average he gets more than 10 of these a week.

He forwards them to me to see. Some are inspecting any home any size for 150. (for a limited time of course it says) :eek:

Rick

I wouldnt even put my boots on for $150.

Scott Patterson
10-02-2009, 05:37 AM
I wouldnt even put my boots on for $150.

Why not?

Moday I will do six residential draws on homes that are about five to ten miles away from my home, each one will pay $65.

Should take about a two hours to knock them out and another hour or so to input the data.

Not a bad day considering I have nothing else to do but watch the grass grow.

Those little jobs add up, you just have to work smart.

Joseph Melbourne
10-02-2009, 05:59 AM
I like Markus' approch, gets you out there building good will (?).
I would schedule these WTA on a slow day. I think it's helping people.

Michael Thomas
10-02-2009, 07:18 AM
For a while I attempted to do "major systems inspections" on foreclosed properties, but found that by the time I had done the roof, attic, basement and major systems, and written a report that I felt had covered my liability, I was at least 2/3 into the the time required for a full inspection.

Plus, I always felt that my E&O coverage was iffy if my contract strayed too far from the IL SOP - even though the SOP allows narrowing the scope by written mutual agreement.

IMO a better strategy is to contract for a full inspection, and then terminate by mutual written agreement for a reduced price if the client decides to bail based on what has been found so far.

This however still does not provide what a lot of clients want, which is a "Walk and Talk", however W&T inspections are one of the practices the IL law was intended to end.

Ted Menelly
10-02-2009, 08:06 AM
We can do inspections on say an HVAC system and water heater but we still have to follow the standards and use the report format for TX. I will say that once you have gone much past a couple systems you might as well do a complete inspection. They are always going to get you with "what do you think about this or what do you think about that" while you are there.

There is no such thing in TX as a Walk and talk. Everything you find has to go into a report in the format required by TX. A client does have the right to stop the inspection where ever they want and then of course it has to be in the report that you ended the inspection at the request of the client.

Again. You scheduled the inspection. A half day of your time is gone because of scheduling. They are still paying for the price of the full inspection in that case.

David A. Keating
10-02-2009, 01:51 PM
It's hard to get a handle on. Sometimes I do everything by the "book" and don't get the inspection and sometimes I do everything wrong and still get it. I think it's important to publish your pricing on your web site, stick with them and then live with the consequences.

Always act professional and let them feel your worth and your friendliness irrespective of whether you get the inspection or not. If you try to "sell yourself" do it in a conversational style rather than a "desparate or competitive" manner.

Just give them the facts and most folks will appreciate the chance to work with a professional who doesn't waver over price.

Maybe it will work for you, too.

I used to post my pricing......No more!
When you post your pricing, you dont even get a chance to sell yourself, they look at your price, call the next guy and get a lesser quote (because your competition knows all he has to do is beat you $25 bucks) the the caller doesnt even remember seeing your website.
MAKE THEM CALL YOU!
My calls increased two or three fold when I stopped showing my prices. I can tell the price shoppers from the ones who want an inspection based on my qualification, not my price and the ones who are not as interested in the cost are smarter and better clients to deal with.
Let your competition have the shoppers!

Marc M
10-02-2009, 08:38 PM
Why not?

Moday I will do six residential draws on homes that are about five to ten miles away from my home, each one will pay $65.

Should take about a two hours to knock them out and another hour or so to input the data.

Not a bad day considering I have nothing else to do but watch the grass grow.

Those little jobs add up, you just have to work smart.

What are those?? Besides, i was talking about going out for only "one" inspection, not 6 little ones.