Thread: Pre listing inspections

Looking to market pre listing inspectons, and would like some guideance as to how some of you might be structuring the inspection fees. What type of discount do you provide the buyer if they choose me to do the inspection for them. a And do you offer the sellers a lower fee as well.

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I've done a few, but I don't really understand the question about discounts. Could you elaborate?

By the way, I lived in several places in Vermont years ago, one summer near you in Winooski. Boy do I miss Vermont.

I do a fair amount of them. I charge the same price, and do the inspection the same way.

Originally Posted by Bruce Raymond

Looking to market pre listing inspectons, and would like some guideance as to how some of you might be structuring the inspection fees. What type of discount do you provide the buyer if they choose me to do the inspection for them. a And do you offer the sellers a lower fee as well.

Why in the heck would want to offer a discount? Discounts do nothing for you in the long run, other than hurting your bottom line and in some ways the entire profession.

No matter who you are doing the inspection for you will still be spending your time doing it. Even if you did one for a seller, you will still need to reinspect everything again for the buyer. Things can happen and change even if it has only be a couple of weeks.

Raymond, unless you are doing anything different or significantly less on a pre-listing inspection as opposed to an inspection for a buyer, I can't see a reason to discount just pre-listing inspections. From my experience, I can typically get through a pre-listing inspection a little faster because most sellers I have done these for just want the nuts-and-bolts of what is wrong with the house and don't want the "here's what this is and how it works and what it does" shpiel. But all in all, the work is the same and the report is the same. I just have to spent a little less time at the house.

Discounts do nothing for you in the long run, other than hurting your bottom line and in some ways the entire profession.

Without getting into thread drift or another topic entirely, I'll disagree with you on this one Scott. After things hit rigor-mortis status in our area early this year, I offered some discounts January through March and they did help. Advertising them on my site got people to call me which is 90% of the battle. I wasn't taking less per inspection than I could live with and the discount offer helped me to get work when I may not have had some of those jobs otherwise. While I agree lowballers hurt the profession, giving reasonable discounts do not. The current climate of credit problems and mortgage industry upheaval is what has hurt our profession.

I don't really like discounts but given the choice of giving out $350 quotes or performing $300 inspections, I'll opt for the latter.

Bruce:

I am not familiar with the real estate laws in Vermont and can only speak to how it is in Texas. Pre-sale inspections here are a complete waste of money for the homeowner and worse. They are paying to do the job of the prospective buyer's inspector. Additionally, they are putting themselves in a position to disclose issues which they would otherwise be unaware of and not need to disclose to a prospective buyer.

And, did I mention, what should happen if you do perform the pre-sale inspection and then someone more discerning is hired by the buyer who finds a laundry list of things you (inadvertently) missed?

Unless you laws are significantly different you might consider opting out of pre-sale inspections. As for the discounts, lose them.

Aaron

I do the pre-listing inspection for the same price as if I were doing it for the buyer. You need to make sure that you are on top of your game and give the seller a thorough inspection. I know that no 2 inspectors are alike and one will always find something that the other missed, overlooked or dismisssed as a minor issue but you don't want the buyer to find anything significant that you missed.

I always give a small discount ($50.00) when I have performed inspections for a client in the recent past. Should the seller use me for the home that they are buying (and they almost always do) I give them a discount on that inspection.

I guess I can understand discounts if you are fighting for business and everyone else is doing it, but this is why I said it hurts the profession.

I can't recall the last time any professional gave me a discount for providing a service for me.

I know that some parts of the country are hurting, and you do what you need to do to keep the bread on the table, it's just that it is hard to break the cycle of discounting once it is started.

Sorry for the tread drift.

I can't recall the last time any professional gave me a discount for providing a service for me.

Scott:

Agreed.

Even if I found a coupon in the mail or newspaper for $100 off on brain surgery, legal advice, a root canal, or any other professional service, I would never use that "professional". The issuance of the discount immediately put them in the "discount service" category. Right down there with the sewer cleaners, yard men, and pet sitting services. Gotta wonder what they are leaving out in order to justify the drop in price.

Just because there are a lot of unprofessional practitioners in this business does not obviated you of the responsibility to attempt to maintain decorum as far as you are concerned.

If all you have to differentiate yourself from your competitors is a lower price, you are already in deep stuff. Educate yourself and rise above the others in your market.

Or, you could always pack up and head for the next Mike Crow Millionaire M.F. seminar.

Aaron

I find it hard to have a good time with NO money.

Like to get paid for what i do.

No discounts on my fun please.

Every customer i have ever had that ask for a discounts.
In the end turn out to be a bad person to work for. after one discounts they want another and another.

Dont go there sister.

Best

Ron

Every customer i have ever had that ask for a discounts . . . after one discounts they want another and another.

Ron:

Amen.

And, once given, those discounts have a way of growing exponentially. Client A begs and you give him a $25 discount. He refers you to a friend, and in order to appear to be superior, claims that you gave him a $50 discount. Friend calls and, in order to court oneupmanship, says you did client A's house for $75 less than you are quoting.

Get the drift? Slippery slope mean anything to you?

I offer to give folks who ask for one a discount based on the number of items I inspect. Want a discount? Which portions of the home shall I leave uninspected?

Aaron

Aaron, just because something isn't done your way doesn't make it the wrong way. And no, there is no slipperly slope. Just because somebody calls you and claims you offered a discount of $xx.xx to somebody they know doesn't mean you did it or you have to do the same thing for them. You make it sound like discounts are some out of control monster that will drain the life out of your business.

"The issuance of the discount immediately put them in the "discount service" category. Right down there with the sewer cleaners, yard men, and pet sitting services."............Sounds like elitism to me Aaron.

It's easy to break the cycle of offering discounts. You just stop offering them. I have no intention of making this a full time offer but yes, it helps pay the bills. Pride and principles don't help you pay bills.

Ron said - "I find it hard to have a good time with NO money."...........And one will have even less money if they don't work at all. I'd rather work.

Getting back to pre-listing inspections, Aaron said:

"And, did I mention, what should happen if you do perform the pre-sale inspection and then someone more discerning is hired by the buyer who finds a laundry list of things you (inadvertently) missed?"

If an inspector doesn't want to do a pre-listing inspection primarily because he is afraid another inspector is going to come through after him and find something he missed, then maybe the first inspector needs to get more training or find another line of work.

just because something isn't done your way doesn't make it the wrong way.

And just because you don't agree with my opinion on this does not make you wrong, just lighter in the wallet than you might otherwise be.

"The issuance of the discount immediately put them in the "discount service" category. Right down there with the sewer cleaners, yard men, and pet sitting services."............Sounds like elitism to me Aaron.

Sounds like knowing what I'm worth to me.

If an inspector doesn't want to do a pre-listing inspection primarily because he is afraid another inspector is going to come through after him and find something he missed, then maybe the first inspector needs to get more training or find another line of work.

No one suggested that the primary reason was fear of being outdone. In fact, that is exactly why this was listed as the last reason for not committing financial suicide.

You cannot justify discounts to me. If you can live with it, go for it. It is (or could be) your money, after all . . .

Aaron

This is an important topic to me and I just cannot resist.

Inevitably, at some point in your inspection career (like on your very first call) you will encounter a prospective client who objects to your fee. In fact, this will probably happen more often than you’d ever care to believe. Because of the frequency with which this will occur, you must be prepared for overcoming the fee objection.

Be aware that at some point, if you really ever wish to make a profit, overcoming the fee objection in the home inspection business must be done so you have to insure you’re prepared for it. The best way to do this is to be ready to justify the reason why your fee is higher than others. However, justifying your fee is not the same as becoming defensive about it. If you become defensive you’ll seem desperate. Desperate folks will do anything, like give discounts.

You should be able to justify your fee by calmly explaining the features that make your inspection service worth more. Tell the prospective client why the fee may be a little more but illustrate to them that it’s still money well spent.

Never waiver on your fee. This is not an effective way of overcoming the fee objection in this or any other business. Always hold firm with the original fee and take the time to convince the customer that it’s a bargain already so there’s no reason to discount it.

Let me reiterate. Some customers may object to your fee. This will happen sooner than later, and on a regular basis. It’s the rare customer that calls and does not ask the amount of the fee which you are charging. For overcoming the fee objection you should be thoroughly prepared to justify your fee and never even for one moment consider discussing lower prices with the customer.

Having said all of that, if you are operating in my area, please, by all means give discounts. You will nauturally attract those very clients that I had rather not deal with.

Aaron

OR.........you can run your business as you see fit and not let yourself get pressured into setting your price structure according to somebody else's ideals.

Originally Posted by Bruce Raymond

Looking to market pre listing inspectons, and would like some guideance as to how some of you might be structuring the inspection fees. What type of discount do you provide the buyer if they choose me to do the inspection for them. a And do you offer the sellers a lower fee as well.

Bruce, with as many inspectors as we have locally, the odds of a buyer also choosing me to do the inspection are very long. But...if that did happen, I'd simply decline. The seller was my client first and it wouldn't feel right to me to pit their inspection against them. Even with a complete, new inspection, I couldn't stop myself using knowledge gained from the first, that the seller paid for. It's never happened, and probably never will, but it just wouldn't sit right with me.

As for fees: I initially quote a pre-listing at the same price but do offer the client a discount if they can make do with just a quick defect punchlist instead of a full report. Most take that option, which is fine with me as it ensures my report is not going to get passed on to the buyer (something I stress in any event). To me, the time saved doing a full blown report is more than worth the money lost...but that's me and my particular circumstances. Your mileage may vary.

Originally Posted by Nick Ostrowski

OR.........you can run your business as you see fit and not let yourself get pressured into setting your price structure according to somebody else's ideals.

I totally agree with that. Do whatever makes sense to you.

By the way, there are plenty of professional services out there that offer freebies or discounts. Pick up your local Yellow Pages and look in the section for Lawyers. Practically every one of them offers FREE initial consultation. Next, take a look at the listings for Dentists and see how many of them have a coupon in the book for $100.00 off braces or 1/2 price on teeth whitening services or something.

Discounts abound in nearly every line of work in one form or another.

Discounts abound in nearly every line of work in one form or another

True enough, just not for real professionals. There are bottom feeders in every business. I'm not one of them, you?

Aaron

Aaron, a more accurate sign of professionalism is not in the way one prices their work but in the way that person interacts with members of their work peers. Backhanded insults and passive aggressive innuendos for individuals who do not agree with your business model or personal beliefs?

Embarrassing.

Nick:

I'm sorry if you thought I was being backhanded. I was very upfront with you. I think that discounts are for amateurs. Let me say that again, so that there is no mistake about my motive and method here.

I THINK THAT DISCOUNTS ARE FOR AMATEURS!

You can think whatever you want, but that's my belief. And, if the shoe fits, wear it. If not, what's your beef?

Aaron

What's my beef? You obviously are having trouble reading your own words from up on that lofty perch Aaron. The only thing you are are enforcing with your insults and name calling is your own insecurity with yourself and the need you must feel to elevate yourself by putting others down.

Embarrassing.

Gentlemen;
Can we not agree to dis-agree and leave it at that?
I've been over to an International Home Inspector's organization bulletin board and saw some discussions degenerate into a full blown circus. I'd hate to see it happen here.
Just today I googled something totally unrelated to Home inspections, and this forum showed up in the results.
Remember.... Our clients are watching us............

No worries here Victor. I've said nothing I wish to take back.

I'm done with this thread.

Originally Posted by Victor DaGraca

Gentlemen;
Can we not agree to dis-agree and leave it at that?
I've been over to an International Home Inspector's organization bulletin board and saw some discussions degenerate into a full blown circus. I'd hate to see it happen here.
Just today I googled something totally unrelated to Home inspections, and this forum showed up in the results.
Remember.... Our clients are watching us............

I would not worry about that on this board. The board you speak of is like an adult Romper Room for the mentally challenged. I think most on this board know the limits they can push, and if they don't the moderator will Zap them as needed.

Curious as to what you Googled?

Curious as to what you Googled?

Me 2. Please help us with that.

I need a good belly gigller.

Best

Ron

Wow, long thread.... I've skimmed most of it but not read every word so sorry if I'm missing something...

This is the grand old USA.... the greatest democracy ever. If somebody wants to discount fees and it brings them work.... good for them. This is almost starting to sound like some crusty old labor union. Last time I checked we're all free to set our prices and do as we like.

And others here are free to debate it and disagree with it.... as they like. This is what's great about our country.... that and the $4/gallon gas anyway

Aside from the topic at hand something caught my eye that I want to comment on.

The almighty 'Google' search is more far reaching than ever.

A few weeks ago I came on here to ask a question for an agent that called me. As usual, I got great info from the group and passed it along. I talked to her about a week later and she got a good chuckle out of finding the exact thread where I tossed around the topic here when she did an internet search.

It really confirmed for me just how non-private this board, and more to the point the internet, is.

Carful what you say

Embarrassing

I will certainly lose sleep knowing that I don't have your approval.

Aaron

On another thread, entitled Determining Styles, etc . . .I was asked if I had heard of a woman named Rosa Motta. The name was slightly familiar, but, I was stumped. I googled the name and, I think 3 pages into the search, the very same thread that the question was on, came up.
Mind you, it took google 24 hours to catalogue the page.

If you have a new web site and want google to pick it up just post on other sites like this. And google will post you in there search log.

Need to get you site some action? Thats one way.

Best

Ron

Originally Posted by Scott Patterson

I would not worry about that on this board. The board you speak of is like an adult Romper Room for the mentally challenged. I think most on this board know the limits they can push, and if they don't the moderator will Zap them as needed.

Curious as to what you Goggled?

Scott. I believe he goggled my reference on another thread to Rosa Motta a marathoner from his home country Portugal. He said he goggled Rosa Mott and the third listing was Inspection news.

I used to to pre-sale eval's on the same basis/report as a regular HI insp. I found after a few that the reporting was way overkill. The current owner doesn't need or really want all the info that a buyer wants/needs. They know (essentially) what the components, how many bed/bath etc. their house has. All that info that is important to a buyer to familiarize themselves with their new home just muddies the water for the current owner.
The seller wants to know what the problems/issues are. Usually so that he/she can avoid delays and cost reductions prior to close.
I've since gone to a defect/concern/issue/consider list style report. Sellers like it a lot better. It gives them what they want and can easily deal with. Often times the report really just ends up a punchlist for them and their contractors to work from prior to list. People like it better.
Also, even though I'm already very detailed, not writing down all the extra info allows me to concentrate on the real issues more.
I do the pre-sales for $50 less than the regular HI.
As far as discounts, I think overall it's not a good business move. I'll give a disc to a repeat customer or some sort of special circumstance. Generally I think Aaron is right though, it's is bad for business in the long run.
It isn't accurate to equate discounts at stores, papers with real money discounts to our one time service either. Let's face it most advertised discounts are really teasers to get people in the door. The obstacles to the customer are many, the downside to the retailer are minimal.

Originally Posted by Markus Keller

I used to to pre-sale eval's on the same basis/report as a regular HI insp. I found after a few that the reporting was way overkill. The current owner doesn't need or really want all the info that a buyer wants/needs, ... snip,
The seller wants to know what the problems/issues are. Usually so that he/she can avoid delays and cost reductions prior to close,... snip,

I agree and that's why I offer a discount on pre-listing, maintenance, and end-of-builder-warranty inspections. No need to record all the details of the house; No need to operate built-in appliances; No need for a detailed report in hard cover binder; No copies of SOP, Homeowner Manual, etc. I send the owner/client a PDF report via email and if they want, a paper copy in the mail. I explain the difference between a buyer inspection and the pre-listing inspection and what will be in the report. Other than not operating appliances, the inspection is made with the same depth & care as that provided for the buyer. It's the recording and reporting cost saved. Maybe I'm stupid, but I'm just passing on the savings to the client not trying to undercut the competition. Heck, I don't know of anyone pursuing this market in this area.

I agree with you Stuart. The concern for other HI's seems to be that they might look bad later on when another HI comes in for the buyer and finds items they didn't.
I think the issue is to provide proper info to the client so that their expectations aren't in the stratosphere.

Your a Pro! Don't discount anything!!


Rolland Pruner Livermore, Calif

In North Carolina, anytime you inspect 4 or more systems, it is considered a home inspection and must meet all the criteria for reporting. While a pre-listing or warranty client may not want or need some of the information, we must include it in the report.

No discounts because I am not doing discounted work. I have a pricing structure for multiple inspections. For instance I usually sell a pre-drywall and final for less than the cost of 2 seperate inspections.

Originally Posted by Bruce Ramsey

In North Carolina, anytime you inspect 4 or more systems, it is considered a home inspection and must meet all the criteria for reporting. While a pre-listing or warranty client may not want or need some of the information, we must include it in the report.

That's strange, typically the client is given the ability to opt out of some things, your state licensing law does not allow the client to opt out of any systems?

That's strange, typically the client is given the ability to opt out of some things, your state licensing law does not allow the client to opt out of any systems?

As long as you clearly state what is inspected and what is not and your client understands and agrees you can inspect away on as little as agreed apon.

.1102 STANDARDS OF PRACTICE

This Section sets forth the minimum standards of practice required of licensed home inspectors and licensed associate home inspectors. In this Section, the term "home inspectors" means both licensed home inspectors and licensed associate home inspectors.

.1103 PURPOSE AND SCOPE

(a) Home inspections performed according to this Section shall provide the client with a better understanding of the property conditions, as inspected at the time of the home inspection.
(b) Home inspectors shall:
(1) Provide a written contract, signed by the client, before the home inspection is performed that shall:
(A) State that the home inspection is in accordance with the Standards of Practice of the North Carolina Home Inspector Licensure Board;
(B) Describe what services shall be provided and their cost; and
(C) State, when an inspection is for only one or a limited number of systems or components, that the inspection is limited to only those systems or components.

(2) Inspect readily visible and readily accessible installed systems and components listed in this Section; and

(3) Submit a written report to the client that shall:
(A) Describe those systems and components required to be described in Rules .1106 through .1115 of this Section;

(B) State which systems and components designated for inspection in this Section have been inspected, and state any systems or components designated for inspection that were not inspected, and the reason for not inspecting;

(C) State any systems or components so inspected that do not function as intended, allowing for normal wear and tear, or adversely affect the habitability of the dwelling;
(D) State whether the condition reported requires repair or subsequent observation, or warrants further investigation by a specialist; and
(E) State the name, license number, and signature of the person supervising the inspection and the name, license number, and signature of the person conducting the inspection.
(c) This Section does not limit home inspectors from:
(1) Reporting observations and conditions or rendering opinions of items in addition to those required in Paragraph (b) of this Rule; or

(2) Excluding systems and components from the inspection if requested by the client, and so stated in the written contract.

Bruce,
It's two or more not four. FYI

(4) Home inspection. -- A written evaluation of two or more of the following components of a residential
building: heating system, cooling system, plumbing system, electrical system, structural components, foundation,

roof, masonry structure, exterior and interior components, or any other related residential housing component.

Thanks,

This is the part I figured would be in there, and it is:

"
.1103 PURPOSE AND SCOPE

(a)
(b)
(c) This Section does not limit home inspectors from:
- (1) Reporting observations and conditions or rendering opinions of items in addition to those required in Paragraph (b) of this Rule; or

- (2) Excluding systems and components from the inspection if requested by the client, and so stated in the written contract.
"

Based on the comments of the last few posts, is why I have separate contracts for HI, pre-list, specified insp, etc.
The different contracts help protect me but more importantly, from a 'doing business' viewpoint, it gives the customer a contract that more clearly and understandably defines what that insp is about.
The normal HI contract may imply insp scope and raise client expectations far beyond what you are actually looking to do in a pre-list or specified item type insp.

I think people should operate their business how they see fit, including whether or not they want to give discounts, for whatever reason they feel is necessary.

That being said, I have quit offering discounts to first time customers for the most part for two main reasons (and a few minor ones).

First reason: I have found that people will hire me whether I offer a discount or not, so I prefer to not lose potential income when I don't have to. My clients are happy with my work and they realize when they recieve the report that they have gotten their money's worth.

Second reason: is just what Aaron posted above and I have experienced this with numerous customers when I have given discounts. The people they refer (and they do refer) will also ask for the discount just like their friend did and some are very adamant about this. This is particularly true in my area where I do a lot of new construction inspections and the neighbors talk and refer various trades etc. The discount reputation can get perpetual in no time.

Now when people ask for a discount I say that our prices are firm unless it is a repeat customer. Even then the discount is not much.

If the market is bad in whatever areas you are in, I understand pricing to stay afloat but I believe marketing and selling our services properly can go a long way towards people paying us a fair non-discounted price. I sell people on why I am not the cheapest. I am certainly not the most expensive either.

We take a lot of risk as HIs every day, both in liability and personal injury or even death. IMO we should be raising our prices not discounting them.

Aarons comment:

"Client A begs and you give him a $25 discount. He refers you to a friend, and in order to appear to be superior, claims that you gave him a $50 discount. Friend calls and, in order to court oneupmanship, says you did client A's house for $75 less than you are quoting."

is right on the money, I had expeirenced this quite few times in the past.

I also once had a lady referred to me that demanded I inspect her 3500 sq.ft. house for $100.00. She said this because her friend had boasted to her that is what he had paid me, which was not true and not even close to my fee!

The lady got angry and at me instead of her friend, go figure.


I don't do many pre-listing inspections but I don't turn them down. That money spends just as well as inspection money from buyers. I do not recommend discounting a pre-listing inspection if you are doing a full inspection, I don't see the need.

Eric