Results 1 to 8 of 8
  1. #1
    Join Date
    Mar 2007
    Location
    Chicago IL
    Posts
    117

    Default Draw Inspection Fees Limited to $100.00?

    I was told by a lender the other day that I can no longer charge my customary $200.00 fee for 203k draw inspections and that the new FHA guidelines have limited the draw fees to $100.00 I looked it up and sure enough it's true. Are any of you 203k consultants finding a way around that Walmart model of compensation?

    Similar Threads:
    Inspection Referral SOC
    Dan Cullen
    www.domicileconsulting.com
    Chicago IL

  2. #2
    Join Date
    Mar 2007
    Location
    Spring Hill (Nashville), TN
    Posts
    5,844

    Default Re: Draw Inspection Fees Limited to $100.00?

    Quote Originally Posted by Dan Cullen View Post
    I was told by a lender the other day that I can no longer charge my customary $200.00 fee for 203k draw inspections and that the new FHA guidelines have limited the draw fees to $100.00 I looked it up and sure enough it's true. Are any of you 203k consultants finding a way around that Walmart model of compensation?
    Yep, the rules changed around September 15th 2015.. The new guidelines put more responsibility on the consultant and reduce the fees. I stopped taking on new 203k work around the first of September and just completed my last one that I had going. From what I have heard it is very difficult to find a consultant in my area, add in the difficulty of finding a licensed contractor to do the work and the program is no longer viable in many areas of the country. Maybe HUD will see the handwriting on the wall, but I kind of doubt it!

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

  3. #3
    Join Date
    Mar 2012
    Location
    Lansdale, PA
    Posts
    876

    Default Re: Draw Inspection Fees Limited to $100.00?

    Another good example of how the government can manage to screw up anything they are involved in.


  4. #4
    Join Date
    Mar 2007
    Location
    Ormond Beach, Florida
    Posts
    26,138

    Default Re: Draw Inspection Fees Limited to $100.00?

    Quote Originally Posted by Mark Reinmiller View Post
    Another good example of how the government can manage to screw up anything they are involved in.
    Ummm ... without the GOVERNMENT ... there wouldn't be any HUD, FHA, or 203k inspections to even worry about ... just sayin' ...

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

  5. #5
    Join Date
    Mar 2007
    Location
    Circle, MT
    Posts
    87

    Default Re: Draw Inspection Fees Limited to $100.00?

    They have always tried to get me to do them for $100. I say yes plus $100 mileage! Since there is nobody else in a 100 mile radius, I get it.


  6. #6
    Join Date
    Mar 2007
    Location
    Chicago IL
    Posts
    117

    Default Re: Draw Inspection Fees Limited to $100.00?

    Quote Originally Posted by Jerry Peck View Post
    Ummm ... without the GOVERNMENT ... there wouldn't be any HUD, FHA, or 203k inspections to even worry about ... just sayin' ...
    Good point JP.

    I'm done with 203k work now too. It was more or less a waste of time to begin with but it was kind of fun to work with clients on a much longer timeline, start to finish really, as opposed to the 'quick hit' of a pre-purchase residential inspection.

    One of the consultants in our areas was shot and killed on the west side of the city a few weeks ago and I told his clients that I'd pick up the torch as a favor. In order to get everyone involved (buyer, contractor, lender, and consultant) on the same page we had a meeting at the buyer's home and I just got back from it. It did not go well.

    At the meeting I pointed out to the contractor that the asbestos pipe insulation has to be properly removed since the old hydronic boiler is coming out and he said that we can only tell if it's asbestos by testing and that they weren't planning on testing. Strike One.

    Then, I pointed out that the $4950.00 line item in his bid for copper water supplies wasn't needed since the current owner had that done a few years ago and he said, I quote, "it'll even out when we figure in the places where I underbid line items"!

    To top the whole thing off the clients sided with the contractor and are now upset with me! That my friends is the 203k racket in a nutshell; at least the way it happens often here in Chicago. It's too bad because it's potentially a great program that fills a real need. Too bad.....

    Dan Cullen
    www.domicileconsulting.com
    Chicago IL

  7. #7
    Join Date
    Mar 2007
    Location
    Ormond Beach, Florida
    Posts
    26,138

    Default Re: Draw Inspection Fees Limited to $100.00?

    Quote Originally Posted by Dan Cullen View Post
    To top the whole thing off the clients sided with the contractor and are now upset with me! That my friends is the 203k racket in a nutshell; at least the way it happens often here in Chicago. It's too bad because it's potentially a great program that fills a real need. Too bad.....
    Agreed.

    I did some many years ago in South Florida and after the first few I said no more - it was nuts the way it was being done, so I stopped doing them way back then.

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

  8. #8
    Join Date
    Mar 2007
    Location
    Chicago IL
    Posts
    117

    Default Re: Draw Inspection Fees Limited to $100.00?

    The FHA just announced today that effective immediately FHA 203k Consultants can set their draw fees as high as $350 each. This is a big win for 203k consultants across the country. Sweet!

    Dan Cullen
    www.domicileconsulting.com
    Chicago IL

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •