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  1. #1
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    Default What are we worth?

    I want to hear what you think a qualified competent home inspectors time is worth. I'm not really interested in all the little things that can make it different.

    Just give me an educated guess of the average hourly rate a home inspector would be justified to ask. I know yours might be higher than average or maybe lower. I don't care to get into all the details.

    Just hack it through the middle and tell me what a good home inspector is worth per hour, all things averaged.

    Oh, and I forgot to say, please.

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  2. #2
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    Default Re: What are we worth?

    More than appraisers make for their time.


  3. #3
    Jeff Remas's Avatar
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    Default Re: What are we worth?

    $150. and adjust per local conditions.


  4. #4
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    Default Re: What are we worth?

    For years I always tried to cost our inspections out at around $75/hr - That's for time on-site, report writing and time for one way travel.

    I got that figure because it was pretty much what all the trades were charging. For that, you pay a guy $20 - 25 per hour and the other $50 goes to the company for things like vehicles, benefits, someone answering the phones, profit, taxes, insurance, etc, etc.

    With price of fuel and everything else going up so high over the last year the rate for most trades is closer to $85 or $90 per hour so that's where I try to price things.

    It's tough because we don't generally see the jobs before we bid them so you just have to shoot for an average. For every vacant well kept house with minimal problems there's a junk-packed dump that you're writing about all night. It all evens out in the end.


  5. #5
    Kevin Luce's Avatar
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    Default Re: What are we worth?

    I lived in different states over the years and some places cost more to live than others. So the amount per hour/year for that reason only will be different. Around here if somebody can average $75,000 a year, he (one person inspection company) is doing fine. Anything less just depends on their expectations and circumstances.

    That is averaging around $36.00 an hour if your looking at a 40 hour work week. With the tax write offs and all the other perks when owning your own business, that is not a bad place to be (depending on the market you're in).

    For the home inspectors where houses are larger and cost more per sq. ft. and have to pay more taxes and gas for the car costing more and we can't forget about the cost of food, I would think $75,000 would be on the low side if not enough.


  6. #6
    Jeff Remas's Avatar
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    Default Re: What are we worth?

    Now I have to ask under what context?

    Are you talking about an employee or sub who is a HI or what your self employed rate is worth?


  7. #7
    Ron Bibler's Avatar
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    Default Re: What are we worth?

    I think if your doing $ 75.00 per HR Your OK. In this market when thing start cracking and i think they will soon .one should be able to kick that up to $ 100 per HR.

    Best

    Ron


  8. #8
    Kevin Luce's Avatar
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    Default Re: What are we worth?

    If we are going by the job only, I make no less than $50.00 an hour (most of the time) by the time I take the call, write up everything that is related to the job, drive back and forth from the job, the job itself, writing up the report and posting it on my website, dealing with any questions, re-inspections. So I think $75.00 an hour per job would hack it through the middle for me. That would be around $125 or $150 more per inspection. Starting price for a house under 1000 square feet would be $375.00


  9. #9
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    Default Re: What are we worth?

    Let see?

    We take on more liability than anyone else in the real estate transaction including the realtor and the appraiser, yet we are at the bottom of the scale on earnings.

    Since the realtors earn 3-6% just for making the sale or bring the (2) parties to terms and the appraisers make on average 500+ plus it would only seem fair that we earn the same 3-6% the agents make.

    Will it ever happen? Not a snowballs chance in he77 because we don't demand it as a whole or have representation like NAR (National Association of Realtors).

    Shame on us!

    Rick


  10. #10
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    Thumbs up Re: What are we worth?

    Stop the guessing.

    This is a business and your fees need to be calculated to meet your needs.

    What others are charging has little to do with what you need to charge.

    Cost Of Business

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    Brian Hannigan
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  11. #11
    Ron Bibler's Avatar
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    Default Re: What are we worth?

    Its one thing to have a good plane in action. but for me each job is new and has its own condition. On one inspection i may spend 4HR and send out the report I did one the other day same fee 7 HR to send out the report.

    A plan will not over come a home with a lot of items to list. so you make some on one and the other you take a step back and draw a balance and the end of the month. then you look at how full was the inspection schedule.

    Then are you better off running at 100% or 80% capacity's

    I like 60 to % 80% capacity.

    you make more mistakes with anything more.

    Best

    Ron


  12. #12
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    Default Re: What are we worth?

    6% of the sales price divided by the number of hours spent on the inspection.

    Works for the agents, and they are *just selling* the house, the HI, on the other hand are *advising their client on its condition* ... which is far more important than marketing (sales).

    Jerry Peck, Construction / Litigation Consultant
    Construction Litigation Consultants, LLC ( www.ConstructionLitigationConsultants.com )
    www.AskCodeMan.com

  13. #13
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    Default Re: What are we worth?

    I need to charge $175 an hour and this is how my inspection fees are based. This came from using Brian's "Cost of Doing Business" and from my own experience. I also have a target dollar amount for my weekly billing that I aim for. When I say "billing" this would be my sales for he week.

    With all of the amounts spread across the board, I wonder if anyone has taken into consideration the amount of down-time home you have as a home inspector? For the most we really do have a good amount of down time throughout the year. This needs to be calculated into your rates.

    I like fees based on the sales price, and I do adjust my square foot fees to the price of the home. I inspect a great deal of million and multi-million dollar homes with many having the same square footage as homes in the $500,000 range. The million dollar + homes are priced higher than homes with similar square footage but with a lower price.

    One half of one percent would be a good price for many inspections.

    Scott Patterson, ACI
    Spring Hill, TN
    www.traceinspections.com

  14. #14
    Kevin Luce's Avatar
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    Default Re: What are we worth?

    Quote Originally Posted by Scott Patterson View Post
    I need to charge $175 an hour and this is how my inspection fees are based.
    Wow, I'm living a financially stable life by averaging around 200 to 250 full inspections a year (and that income was the only thing supporting my wife and child for around 16 months while my wife wanted to take a break from working).

    I like fees based on the sales price, and I do adjust my square foot fees to the price of the home. I inspect a great deal of million and multi-million dollar homes with many having the same square footage as homes in the $500,000 range. The million dollar + homes are priced higher than homes with similar square footage but with a lower price.
    Not saying we don't have (what I consider) big houses but very few million dollar + homes. We do have the City of Gary here which houses can go for as little as $50,000 for a 2,800 sq. ft. with a basement and one car detached garage that is normally in poor condition.

    I wonder what % of the work force feels they are getting under paid. Then I wonder what % of the adults feel things are too expensive. I have a feeling that both % would be high.


  15. #15
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    Default Re: What are we worth?

    I'm priced just above the half way average of what the inspectors in my area charge (whom I consider peers; some of the 1,2 and 3 year guys are still lower to get more work)

    All that being said, I average right at 100.00 and hour for the work performed (inspection and report writing)

    but that's without being paid to drive my 'advertisement' around...

    And I haven't raised my prices since January 2007...

    We know why you fly: because the bus is too expensive and the railroad has a dress code...
    www.atozinspector.com

  16. #16
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    Default Re: What are we worth?

    Quote Originally Posted by Kevin Luce View Post
    Not saying we don't have (what I consider) big houses but very few million dollar + homes. We do have the City of Gary here which houses can go for as little as $50,000 for a 2,800 sq. ft. with a basement and one car detached garage that is normally in poor condition.

    I wonder what % of the work force feels they are getting under paid. Then I wonder what % of the adults feel things are too expensive. I have a feeling that both % would be high.
    That is where your "minimum" price kicks in.

    Everyone has a "minimum" price, whether you price by the hour, the square foot, or the sales price.

    Those $50,000 houses would be at whatever your set your minimum inspection price to be, everything else would go up from there once the minimum threshold was crossed. As an example, let's say you charged 0.5%. For a $1 mil house, that would be $5,000, for a $100 k house, that would be $500, for a $50 k house, that would be $250, the minimum. So if the house was $30 k, the price is still $250.

    Or set your minimum higher and the rate lower, say 0.1%. The $1 mil house would be $1,000, the $100 k house would be $100 - but that is not enough of a fee, so you set the minimum fee to $250, meaning that anything less than a $250 k house is $250.

    Jerry Peck, Construction / Litigation Consultant
    Construction Litigation Consultants, LLC ( www.ConstructionLitigationConsultants.com )
    www.AskCodeMan.com

  17. #17
    Ted Menelly's Avatar
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    Default Re: What are we worth?

    Mr Scott

    Based on the number of inspection you noted once somewhere. You are making over $250,000.00 a year and that is only based on 4 hours per inspection job. You could be making 3 to 400,000.00?????????????????


    My Jerry

    I know we all have a lot of love for realtors but really, they are only selling them the home????? "The home" is only one of 50 that they showed the client. Mostly nights and weekends and the days were spent finding more to show them. They spend a serious amount of time with each client and many don't ever find what they are looking for or just decide that maybe they are jumping the gun and should hold off the new purchase for a while. Then you have the whole fact that 3% is going to the listing company and the other 3 goes to their broker and then they get 40 to 90% of that three percent then pay their office fees.

    Rick

    As far as Realtors getting 3 to 6% and it would be nice if we did? No it will and never should happen. 1/2 a day on the job for 3 to 6% We are just lowely home inspectors not brain surgens. I might think well of myself but no home inspector is worth that much. We are just doing a visual inspection of their new property. As far as the prices Jerry says he gets I have never met a home inspector that gets or should get those kind of fees no matter how certified and or experienced they are. IT IS A HOME INSPECTION. He must have one serious yarn to spin selling his clients on those kind of fees. The man with the golden tongue. Either that or a well trained flim flam man. No Offence Jerry. I gotta respect you for getting those fees but honestly. You or any other inspector is not worth it.

    Now. With all that being said.

    It would be nice if the vast amount of home inspectors in a certain area could at least agree on a minimum. I don't care if it is square footage or a tenth of one percent of the home. At least if the vast majority stated the minimum at the minimum and worked their way from their. It would kill the serious low ballers because their chances of being the one called get cut next to nothing.

    Time to cry in my soup a little here. I have had ten calls in the past several days. With all my wonderful charm and spending time with the clients on the phone. Answering their concerns of home inspection and home inspectors. All the usual wonderful sales stuff. NOTHING. Absolutely NOTHING from the past 10 calls. Yes it is Wednesday and I am still sitting here.

    Noing what is going on I have (sad to say) even dropped the price a little, not much, but a little. My prices were never high to begin with based on my area, you can't. Some of the folks on here north of Dallas can sustain some higher pricing than mine.

    I am sure I am going to hear all kinds of replies here. Trust me folks. Think what you may. I have increased my exposure in advertising to the public and past clients as well as Realtors. I am not just sitting on my duff.. The middle 400"s don't cut it around here. The middle 300's don't cut it around here. For you basic average home you are extremely lucky to get anywhere near 300. Please, don't give me the sales pitch. There are seriously hungry people out there that are holding on by the hair on their chinny chin chin.

    I know my funds are getting eaten up much faster than money is coming in. All these boastfull rates and all of you think you deserve much more, well, really??????????????????????

    What is your worth. Let me tell you a secret. Your worth is not based on how much money you make or how much you think you should make. Money is a needed item in life! Oh really!!!!!!!!!!!!!!!

    This whole thing about down time and who is going to pay for it. Well if a mechanic shop said outright that for 2 months out of the year their mechanics are in the back room playing cards and to keep them around we have to charge 30% more for your muffler job my question would be if they have five men sitting around then why not get rid of 4 of them and when it gets busy just higher on new workers. But don't tell me that I am paying for them to play cards for 2 months.

    Man, I need some of those folks to call back so I can stop rambbling on here. I am obviously serious bored.

    Just my 2 cents worth folks. Hope I did not inflame anyones morning.

    Just my opinion.


  18. #18
    Kevin Luce's Avatar
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    Default Re: What are we worth?

    Jerry,

    If I went with the square footage only, I would charge $375 for that inspection. If I would have gone by the price of that house only, my minimum would be $375?

    Now I had a 800 square foot house that is in the next town and it's selling for $130,000. I would normally charge $250 (my minimum for up to a 1000 square feet). I would have to adjust my price from the minimum $375.

    There is a few home inspectors around here that use the price factor but I just find it easier to go by the square footage. Overall, I think it just comes down to how much is the service(s) going to cost. How that home inspector got to that price, I think, is not a major factor to the client.



    Last edited by Kevin Luce; 01-14-2009 at 09:36 AM. Reason: Added Jerry's name since Ted posted since Jerry's last post.

  19. #19
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    Default Re: What are we worth?

    Quote Originally Posted by Ted Menelly View Post
    Mr Scott

    Based on the number of inspection you noted once somewhere. You are making over $250,000.00 a year and that is only based on 4 hours per inspection job. You could be making 3 to 400,000.00?????????????????


    My Jerry

    I know we all have a lot of love for realtors but really, they are only selling them the home????? "The home" is only one of 50 that they showed the client. Mostly nights and weekends and the days were spent finding more to show them. They spend a serious amount of time with each client and many don't ever find what they are looking for or just decide that maybe they are jumping the gun and should hold off the new purchase for a while. Then you have the whole fact that 3% is going to the listing company and the other 3 goes to their broker and then they get 40 to 90% of that three percent then pay their office fees.

    Rick

    As far as Realtors getting 3 to 6% and it would be nice if we did? No it will and never should happen. 1/2 a day on the job for 3 to 6% We are just lowely home inspectors not brain surgens. I might think well of myself but no home inspector is worth that much. We are just doing a visual inspection of their new property. As far as the prices Jerry says he gets I have never met a home inspector that gets or should get those kind of fees no matter how certified and or experienced they are. IT IS A HOME INSPECTION. He must have one serious yarn to spin selling his clients on those kind of fees. The man with the golden tongue. Either that or a well trained flim flam man. No Offence Jerry. I gotta respect you for getting those fees but honestly. You or any other inspector is not worth it.

    Now. With all that being said.

    It would be nice if the vast amount of home inspectors in a certain area could at least agree on a minimum. I don't care if it is square footage or a tenth of one percent of the home. At least if the vast majority stated the minimum at the minimum and worked their way from their. It would kill the serious low ballers because their chances of being the one called get cut next to nothing.

    Time to cry in my soup a little here. I have had ten calls in the past several days. With all my wonderful charm and spending time with the clients on the phone. Answering their concerns of home inspection and home inspectors. All the usual wonderful sales stuff. NOTHING. Absolutely NOTHING from the past 10 calls. Yes it is Wednesday and I am still sitting here.

    Noing what is going on I have (sad to say) even dropped the price a little, not much, but a little. My prices were never high to begin with based on my area, you can't. Some of the folks on here north of Dallas can sustain some higher pricing than mine.

    I am sure I am going to hear all kinds of replies here. Trust me folks. Think what you may. I have increased my exposure in advertising to the public and past clients as well as Realtors. I am not just sitting on my duff.. The middle 400"s don't cut it around here. The middle 300's don't cut it around here. For you basic average home you are extremely lucky to get anywhere near 300. Please, don't give me the sales pitch. There are seriously hungry people out there that are holding on by the hair on their chinny chin chin.

    I know my funds are getting eaten up much faster than money is coming in. All these boastfull rates and all of you think you deserve much more, well, really??????????????????????

    What is your worth. Let me tell you a secret. Your worth is not based on how much money you make or how much you think you should make. Money is a needed item in life! Oh really!!!!!!!!!!!!!!!

    This whole thing about down time and who is going to pay for it. Well if a mechanic shop said outright that for 2 months out of the year their mechanics are in the back room playing cards and to keep them around we have to charge 30% more for your muffler job my question would be if they have five men sitting around then why not get rid of 4 of them and when it gets busy just higher on new workers. But don't tell me that I am paying for them to play cards for 2 months.

    Man, I need some of those folks to call back so I can stop rambbling on here. I am obviously serious bored.

    Just my 2 cents worth folks. Hope I did not inflame anyones morning.

    Just my opinion.
    See highlighted section above.

    Ted,
    Do you honestly think that these realtors really earn that 3-6% that make. Grant it they have to pay the broker or their office some of the commission but still that can still amount to a big chunk of change in their pockets.

    And for what? Most do nothing but put a sign in the yard and then wait for another agent to find it on MLS or have someone drive by and call them wanting to buy it. Not rocket science.

    Dont' give them that much credit.

    rick


  20. #20
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    Default Re: What are we worth?

    Kevin,

    Remember this, though, a more expensive house raises your liability exposure.

    Let's say you do a 2,000 sf $50,000 home and a 1,500 sf $500,000 home, which has the greater liability factor? And you would charge more for the less expensive home, where you are EXPECTED to do more.

    The thing Ted did not, does not, get is that with high end properties comes higher, much higher EXPECTATIONS and liability factors.

    You are expected to DO MORE on those inspections, thus, THEY ARE WORTH MORE.

    Ted is just shooting himself in the foot by thinking he is worthless (or that his worth-is-less) just because he is a "home inspector".

    My gawd man, YOU are the one advising your client as the what the client is actually getting.

    Sure, the agent spends a bunch of time SOMETIMES, but NOT ALWAYS, yet they make the same amount REGARDLESS of that time difference.

    Sure the home inspector spends less time, but the home inspector is the one pronouncing the thing suitable to purchase, with the exception of the things listed as needing correction, which the client takes under advisement and decides to buy, not buy, or negotiate for something which is suitable to them.

    The HOME INSPECTOR's input is much longer lasting, and has much greater liability (unless the agent actively hide things which they knew were wrong).

    Jerry Peck, Construction / Litigation Consultant
    Construction Litigation Consultants, LLC ( www.ConstructionLitigationConsultants.com )
    www.AskCodeMan.com

  21. #21
    Ted Menelly's Avatar
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    Default Re: What are we worth?

    Quote Originally Posted by Rick Hurst View Post
    See highlighted section above.

    Ted,
    Do you honestly think that these realtors really earn that 3-6% that make. Grant it they have to pay the broker or their office some of the commission but still that can still amount to a big chunk of change in their pockets.

    And for what? Most do nothing but put a sign in the yard and then wait for another agent to find it on MLS or have someone drive by and call them wanting to buy it. Not rocket science.

    Dont' give them that much credit.

    rick
    Rick

    The point I was making is that they do not earn 3 to 6 percent. In most all cases they are just getting a small portion of that when all is done. Most work under a broker (almost all) The average Realtor does not sell many homes. Most work their respective buts off to get the clients and then most spend a serious amount of time with these clients.

    Rick

    You make far more than most realtors that work their respective butts off. Their time on any one sale when all is said and done is multiplied many times that of your time.

    Like I said I am not a great fan of realtors either. Do I think you are worth more than a realtors time. Yes, by far, many times, in reality you get it. That is the point I was trying to make. Thought I did even with all the stumbles.

    Jerry

    I get it and get it quite well. I am not asleep in left field somewhere. I am on first base and quite aware.

    I did say I have great respect for the money you make. I have great respect on how ever you get the money you make. Do I think that I should be getting a 1,000.00 per 2000 sf home. Absolutely not. If I only did 200 inspections per year. That is what 4 a week. Maybe a half a day for most, sometimes more, that is 2 days work. 200 times 1,000 equals, let me see, oh yeah, 200,000.00 a year for. That is 4,000 dollars for 2 days work a week. Cut that in half to 500 per. That is still a $100,000 a year. Do I think any home inspector, in the respective profession compared to other professions should be making 200,000 a year for 2 days work a week. Sorry. Not really. Do I think a loaf of bread should be 8.00. Not that either. Do I think my truck equivelant of what I bought 20 years ago should be worth another 20,000 more. Nope.


    Reality is most all home inspectors out there that work kinda steadily are what, 50, 75 a year at best.

    I am all for anyone making any amount they wish or are able to. Go for it. I wish all the best. Is anyone out there better than me or should I say worth-more???? Could be. Worth-is-less. Maybe.

    Not picking on Scott by anymeans. 175.00 an hour. Is that all hours involved. Is that what you actually spend time on inspecting or is that all total time that the inspection adds up to. Getting, doing, reporting, follow up.

    Like I said gentlemen (I use that term loosely, don't want to insult anyone) Just my opinion in a bored , frustrated state mind.

    Oh yeah


  22. #22
    Ted Menelly's Avatar
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    Default Re: What are we worth?

    Jerry

    'Remember this, though, a more expensive house raises your liability exposure.

    Let's say you do a 2,000 sf $50,000 home and a 1,500 sf $500,000 home, which has the greater liability factor? And you would charge more for the less expensive home, where you are EXPECTED to do more.

    The thing Ted did not, does not, get is that with high end properties comes higher, much higher EXPECTATIONS and liability factors.

    You are expected to DO MORE on those inspections, thus, THEY ARE WORTH MORE."

    DO MORE WHAT??????????????????

    I inspect every single home the exact same way I inspected the last. I don't care if they are spending 2,000,000 on a 2,000 sf home or a 100,000

    I am still inspecting the same items the same way. That 100,000 dollar home usually takes much more time inspecting and reporting. So that means if it takes twice as long for the 100,000 dollar home I should be charging twice as much. The 100,000 dollar home carries much more liability than the 200,000 home because there is always twice as much if not 4 times as much wrong which increases your chances of missing something. Right ?????????????????????????????????????????

    A missed bad water heater is a missed bad water heater. The same twelve year, if that, water heater cost the same dollar amount to purchase and install. Also. A missed bad water heater doing drwall damage in a home is still going to cost as much to repair in either home. The carpet might cost more if needed to be replaced.

    I am not here to argue. I go from thread to thread and see the statements folks make. It changes from thread to thread.

    We all think highly of ourselves. It is human nature. If we did not then we would more than likely all shoot ourselves.

    Get what you folks can in your respective neighborhoods. I just ain't buying the one person inspection company making 2 3 400,000 a year in most cases. Some foks do and all of them have been in an area for 15 to 20 years and have a huge base to draw on. The typical fairly busy home inspector is not going to make near that much. I know what I make and yes, I wish I made more but I have only been inspecting here for about 4 years. If I had been here for a dozen more years I would be making far more. That is not my clients concern. It is mine.

    Lets see. High folks. Yes, my fee is 500 per inspection for that 1200 square foot home because I have only been inspecting in this area for 4 years and don't have a huge base of past clients and referring realtors to work from. I have a lot of down time when things are slow so you have to pay for that as well. Is that ok with you ?????????????????

    You might want to call about 40 other home inspectors that will do the inspection for half as much, if that. Some (many) will do it for 200.00. Many are seriously hungry and in the process of failing to get enough work to servive. Many have a lot of certifications and experience with thousands of home inspections behind them in this area and have been inspecting around here for 20 years.

    That scenario is more true than I can possibly even begin to stress to you.

    Thats just the reality folks. I would love the scenario of the 1000 per. Who wouldn't ????????????? Aint going to happen. Am I worth-less? No.
    Am I going to get the 1000 or even the 500. No.

    One might be the best thing since sliced bread was invented and packaged but It aint going to happen.


  23. #23
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    Default Re: What are we worth?

    Quote Originally Posted by Ted Menelly View Post
    Rick

    Not picking on Scott by anymeans. 175.00 an hour. Is that all hours involved. Is that what you actually spend time on inspecting or is that all total time that the inspection adds up to. Getting, doing, reporting, follow up.

    Like I said gentlemen (I use that term loosely, don't want to insult anyone) Just my opinion in a bored , frustrated state mind.

    Oh yeah
    Well $175 an hour is what I do charge for an hourly rate. If I'm going to do a 2000sf home I know that it will take me about 2 hours so my fee will be $350. My lowest fee I charge for an inspection is $300. It all depends on the property. I do not publish any fees except for my lowest fee of $300 and this is for small homes and small condos, etc.

    If you looked at my profit margins, you would see that the smaller the home the lower my profit margin. With larger more expensive homes, you can charge more but as Jerry pointed out the expectations from your client are also greater.

    Scott Patterson, ACI
    Spring Hill, TN
    www.traceinspections.com

  24. #24
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    Default Re: What are we worth?

    Quote Originally Posted by Ted Menelly View Post
    Mr Scott

    Based on the number of inspection you noted once somewhere. You are making over $250,000.00 a year and that is only based on 4 hours per inspection job. You could be making 3 to 400,000.00?????????????????
    And your point is?

    You can't go by the number of inspection a person performs. Yes, when business was very good (1999-2002) and I worked 6 days a week and I don't know how many hours a day, I had sales in excess of $250,000 but that is not the profit. That would be the sales, profit was a good deal less.

    Now I'm happy with my 2-3 inspections a week (on the average) and the other related consulting work I'm doing. I'll be happy to have sales in the $100K range for 2009.

    Scott Patterson, ACI
    Spring Hill, TN
    www.traceinspections.com

  25. #25
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    Default Re: What are we worth?

    Wow, 13 posts on the thread just this morning.... is anyone working this week?


  26. #26
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    Default Re: What are we worth?

    NO!

    I like to call it vacation time.

    Actually I have one at 2:30 so I'm just watching the threads and trying to get Ted all roused up.

    I've been cooking stew all morning while watching this thread.

    rick


  27. #27
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    Mar 2007
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    Default Re: What are we worth?

    Quote Originally Posted by Matt Fellman View Post
    Wow, 13 posts on the thread just this morning.... is anyone working this week?
    Had a job this morning, it took about twenty minutes to figure out that the water was frozen in the house. Some nitwit turned the heat off and we got down to 17 last night! Tonight we will hit about 15 and tomorrow the high will be 20 and then down to 0! This is in Nashville TN!!!

    I suggested that they get the owner to thaw the home before they have issues! Collected a trip fee of $125 that I will credit toward the inspection if my client decides to go with the home, which I kind of doubt at this time.

    Have a radon CRM to set this afternoon and two draws to complete down the street. All in all about the same money I would make if I inspected a 2500sf home!

    Scott Patterson, ACI
    Spring Hill, TN
    www.traceinspections.com

  28. #28
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    Default Re: What are we worth?

    Quote Originally Posted by Ted Menelly View Post
    Maybe a half a day for most, sometimes more,
    Therein lies the problem ... you cannot open your mind to actually inspecting more and documenting more, such that the time would be 1 to 1-1/2 days for that 2,500 sf house.

    And 2,3,4,5 days for larger homes.

    Think how rushed you are to "meet your time frame" so you can then hustle off to your next inspection of the day, now think what you can think of and inspect without that pressure, knowing that you will be back the next day to look at even more stuff.

    Thus, you are still working that 4-5 day week, you are only working "on one house" instead of working "on ten houses".

    Let's see, 2 inspections per day at $350 per times 5 days equals 2 x 350 x 5 = 3500 x 50 = $175,000

    Now, let's see what you stated in your post ... "I just ain't buying the one person inspection company making 2 3 400,000 a year in most cases."

    Hmmm ... you said $200,000 per year, and the number I came up with it almost that, and I only based my calculation on $350 per inspection, many HIs get that or more, and many work 6 days (except for now in this economy), so my number for the typical HI was actually HIGHER than your number for the 'you can't expect one guy to make this much'.

    Let's do the math again, with slightly different numbers:

    2 per day x $400 x 6 days = $3500 x 50 weeks = $240,000

    Jerry Peck, Construction / Litigation Consultant
    Construction Litigation Consultants, LLC ( www.ConstructionLitigationConsultants.com )
    www.AskCodeMan.com

  29. #29
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    Default Re: What are we worth?

    Quote Originally Posted by Rick Hurst View Post
    NO!

    I like to call it vacation time.

    Actually I have one at 2:30 so I'm just watching the threads and trying to get Ted all roused up.

    I've been cooking stew all morning while watching this thread.

    rick
    Now that is funny. I am heating up beef stew I cooked yesterday.

    Don't mind me I am trying to get out of this bad mood I have been in for several days.

    Nah. Not all roused up just venting frustration from sitting on my backside.

    Life is great. I am able to still wake up every morning and take in the beutiful days.


  30. #30
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    Default Re: What are we worth?

    Quote Originally Posted by Jerry Peck View Post
    Therein lies the problem ... you cannot open your mind to actually inspecting more and documenting more, such that the time would be 1 to 1-1/2 days for that 2,500 sf house.

    And 2,3,4,5 days for larger homes.

    Think how rushed you are to "meet your time frame" so you can then hustle off to your next inspection of the day, now think what you can think of and inspect without that pressure, knowing that you will be back the next day to look at even more stuff.

    Thus, you are still working that 4-5 day week, you are only working "on one house" instead of working "on ten houses".

    Let's see, 2 inspections per day at $350 per times 5 days equals 2 x 350 x 5 = 3500 x 50 = $175,000

    Now, let's see what you stated in your post ... "I just ain't buying the one person inspection company making 2 3 400,000 a year in most cases."

    Hmmm ... you said $200,000 per year, and the number I came up with it almost that, and I only based my calculation on $350 per inspection, many HIs get that or more, and many work 6 days (except for now in this economy), so my number for the typical HI was actually HIGHER than your number for the 'you can't expect one guy to make this much'.

    Let's do the math again, with slightly different numbers:

    2 per day x $400 x 6 days = $3500 x 50 weeks = $240,000
    Jerry

    Not using hard fixed numbers here. Just picked numbers from the top of my head.

    If one were to do 200 inspections a year at 250 that is only 50,000 if they are all small minimums.

    300 at 300 is 90,000

    400 at 400 is 160,000

    Getting a little tougher to get there

    400 at 450 is 180,000

    There is no way possible even sleeping a half day that it would take me all day for a 2000 sf inspection. Have I taken all day on a 2000 sf home. Yup. Practically never. At a half mile an hour there are only so many steps to do a home inspection. Most of the homes are, broken lock on the left window in the living room. Corrosion at water heater connections, bad flue on water heater, crack in the angle joint at the left rear of the master bedroom ceiling, only an R20 insul in the attic, wind damaged shingles on the west side of the roof, reverse polarity in the center bedroom under the window, caulking needed at the exterior of all windows.

    Not brain surgery.

    Again. Not picking at anyone. Just is not brain surgery. Oh yeah. Left rear element on the electric stove non functional, leaking cold water shut off under the kitchen sink, AC condenser is working but is 76 years old, it is time for unit replacement. Down spout extensions needed to move the roof water run off away from the edge of the foundation. (all just general notes . Of course they all have more detail in the description)

    That is the general jist of most home inspections. As far as the million dollar home being more liability. How about the disasterous 2000 sf home with a crawl. Now that is liability. rot, cracks, leaks, bad electric, bad roof, rotten floor boards, termites, cracks in drywall, cracks in brick work, bad electric panel, bad wiring, trip hazards everywhere, water in the crawl. Now that is liability. The million dollar home is just about guaranteed not to have near those concerns. Just a much better maintained home (generally) Now those I will take all day everyday. My inspections (vast majority of) are 10 years or less. In most cases far less.The larger more expensive homes in general have had a serious maintenance program going on and are in fantastic shape. Now, I will take everyone of them all day all year and the liability that comes with them. Many of those homes I feel like I am stealing a thousand dollars. Do I find many items, yes. Are all the systems generally in fantastic maintenance contract shape, yes. Are the foundations moving all over the place. Almost never. Most have piers in before the foundation is poured.


  31. #31
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    Default Re: What are we worth?

    Quote Originally Posted by Ted Menelly View Post
    there are only so many steps to do a home inspection.

    Again, you are not looking beyond the box you have placed yourself in, or the box others have taught you to see.

    How many steps to do a home inspection?

    Some HIs will say 1, some will say 300, still others will say 1,000. We had this discussion not long ago.

    It all depends on what you want to inspect and include in the inspection.

    There is almost an infinitesimal number of things one can look for and inspect. All one has to do is contemplate where they want to go, ponder the ponderables, look beyond that glass box (just need some Windex, that's all).

    Jerry Peck, Construction / Litigation Consultant
    Construction Litigation Consultants, LLC ( www.ConstructionLitigationConsultants.com )
    www.AskCodeMan.com

  32. #32
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    Default Re: What are we worth?

    Quote Originally Posted by Jerry Peck View Post
    Again, you are not looking beyond the box you have placed yourself in, or the box others have taught you to see.

    How many steps to do a home inspection?

    Some HIs will say 1, some will say 300, still others will say 1,000. We had this discussion not long ago.

    It all depends on what you want to inspect and include in the inspection.

    There is almost an infinitesimal number of things one can look for and inspect. All one has to do is contemplate where they want to go, ponder the ponderables, look beyond that glass box (just need some Windex, that's all).
    Now we don't want to get into the windex thing. I have this fetish for windex


  33. #33

    Default Re: What are we worth?

    It is Not possible to set one fee for every situation and area, But my target was always $125 hr.
    I agree a "good, Qualified" inspector is worth MUCH MORE than a real estate agent, appraiser, pest inspector, or probably anyone else involved in a home/building sales transaction.
    Unfortunately, most/all inspectors will never be able to get what they are Really worth due to competitive market conditions. A lot of inspections are easily worth thousands of dollars, but nobody would pay what it is actually worth, or what the buyer saved due to the inspection, either in negotiating a lower price, or in repairs and future costs.

    Brent Lerwill, Coos Bay, Oregon

  34. #34
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    Mar 2012
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    876

    Default Re: What are we worth?

    Quote Originally Posted by John Dirks Jr View Post
    I want to hear what you think a qualified competent home inspectors time is worth. I'm not really interested in all the little things that can make it different.

    Just give me an educated guess of the average hourly rate a home inspector would be justified to ask. I know yours might be higher than average or maybe lower. I don't care to get into all the details.

    Just hack it through the middle and tell me what a good home inspector is worth per hour, all things averaged.

    Oh, and I forgot to say, please.
    A home inspector who is very good at inspecting, meaning that they find the problems, know when something is or is not a problem, usually know what caused the problem, and can accurately explain and report on conditions is worth more than a typical tradesperson. There is also typically more liability that a typical tradesperson. On the other hand, an inspector who walks through a house and misses half the problems, calls many things problems that are not, has no idea what of the conditions he or she sees mean, and cannot properly report on conditions either, is not worth much. Unfortunately there are many home inspectors that are in that group.

    Also, do not forget the hours involving in promoting your business, accounting, website maintenance, dealing with typical business needs, continuing education, etc.


  35. #35
    Join Date
    Mar 2007
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    Connecticut
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    Default Re: What are we worth?

    Quote Originally Posted by Scott Patterson View Post
    Well $175 an hour is what I do charge for an hourly rate. If I'm going to do a 2000sf home I know that it will take me about 2 hours so my fee will be $350. My lowest fee I charge for an inspection is $300. It all depends on the property. I do not publish any fees except for my lowest fee of $300 and this is for small homes and small condos, etc.

    If you looked at my profit margins, you would see that the smaller the home the lower my profit margin. With larger more expensive homes, you can charge more but as Jerry pointed out the expectations from your client are also greater.
    Scott, Your hourly is in the right range but 2 hrs for a 2000 sq ft home? Is that with the report. that would be a pretty quick inspection. I am at 2 hrs for the inspection and 2 hrs for the report. that puts me at 700. My fee would be in the 550 range for that house depending on age. radon and water testing would add to the fee. my hourly rate is 150. i don't do an inspection for less than 450 unless it's a condo with common heat and hot water


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