I didn’t know if anyone has run into this problem. I accept cash and check so sometimes I don’t get paid until arrival. The client wasn’t there, and when I arrived the homeowner denied me entrance to the home. So I wasn’t able to complete the inspection even though the client told me that I would be able to. I have not heard from her for about 2 weeks so I don’t think she plans on paying. She did sign the pre inspection agreement so I know legally she is on the back foot. However, the price of the inspection was $395, is it practical to actually go after her to try to obtain payment, or since the price is not super high to just eat the cost? Thanks for the help!
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ndegaris
(Neil DeGaris, CMI KY License # 102167)
2
It’s always best to either get paid in advance of the inspection or at least at the inspection. You should have a business account plus a method of taking credit cards, or some type of payment method for your clients to pay in advance. Most younger people now day’s pay with credit/debit cards, and also don’t even know how to write a check.
So what would you be collecting if you did not even start / finish the inspection?
Just one question Austin. Did you do an inspection or not?
You should get paid if you did but you may have a difficult row to hoe if you did not.
Just MHO
Cheers
Yeah I should start doing that. I take credit and bank transfer as well. So far I haven’t had a problem when people say they want to pay with cash or check. It’s an investment company and they said they would pay before the inspection started once they knew I was at the property. The property was an hour and a half away, so without the inspection it was still 3 hours of my time. I offered to drop the price down from the $395 to $150 since I wasn’t able to complete the inspection. Even though the inspection wasn’t completed, it took up my whole morning, and I was told I would have access to the home.
I did not complete the inspection. I was told I would have access to the home, and when I got there, I did not. The property was a 3 hour round trip drive.
ndegaris
(Neil DeGaris, CMI KY License # 102167)
6
Consider that as a learning experience to get your money up front especially from investment company or someone who is not going to attend the inspection.
No money, no signed PIA = you don’t leave your driveway
I don’t expect you’ll get any money for your drive, unfortunately.
What you could do for next time is put a clause in your agreement regarding last minute reschedules/cancellations. My agreement says the client will be responsible for paying 50% of the inspection fee for reschedules/cancellations within 24 hours of the inspection. And also make sure you receive payment before you leave your house (if it’s a job for a realtor I’ve worked with before, sometimes I don’t insist on prepayment, but all my clients get 3 automatic emails pestering them about leading up to an unpaid inspection). There are plenty of industries that require payment info and charge you for missed appointments, this is not a novel concept. Once I put someone in my calendar, I can’t put someone else in that slot. I potentially lose out on income if people do this to me. I don’t have the privilege of simply being happy about an unexpected day off like a college student. You want my calendar space, I get paid. 100% of the time.
If something like this happens again, you keep 50% and refund the other 50%. Because that’s what they agreed to.
Kinda strange that an “investment company” can only pay in cash or check, huh? they are investing in real estate as a commercial endeavor but they don’t even have a debit card?
That makes sense. My thought was since the PIA was signed, and since it’s a binding contract, that payment would be a given. However, if that were the case, this thread wouldn’t exist. Haha
Start charging a non-refundable trip charge on anything more than 45 minutes away. It must be paid in advance. I do trip charges on consults too if it’s far enough.
I’ve had a similar thing happen. If they aren’t willing to pay the entire amount up front, they will need to pay a trip charge. If they don’t want to pay that, chances are they weren’t going to pay.
Yeah, looking back it makes sense. At first I didn’t think it wasn’t that they couldn’t pay by card, but just that they preferred to pay by check. But I’m starting to think differently. Haha. It just sucks because especially older people, they would prefer to pay by check or cash, so I have been happy to give them that option, and until now, I have not run into any issues. But since this happened, I might take away that option. It just sucks because it takes away an option that some people prefer.
Yeah I think that makes sense. My agreement states that I will still charge for the inspection for cancellations or from unforeseen circumstances. Also that the client pays for court fees. But again, for not a lot of money, it sounds like it’s not gonna go anywhere even with a signed contract.
Yea I do take cash or check sometimes, and it’s almost always particularly elderly people working with realtors I have a working relationship with. (And that’s fine with me sometimes because I save ~$15 on CC fees)
yes, I use spectira with their “automatic actions” function, my clients get automated emails reminding them to click on my link and make a payment online, if the invoice isn’t paid at 3,2, and 1 days out from the inspection. I never advertise that I would accept cash or check, it’s only when they ask.
Is the deal dead or still going on?
If it’s still on, keep watching for a deed change.
If it is within 90 days since you were there, let me know & I’ll send you the
“notice of intent to file lien” document.
It will be sent regular & certified mail.
If there’s (hopefully) a mortgage, you’ll be paid quick when they get the mail also.
Again, keep an eye on public records.
You will have to chuck it up to a learning experience.
For my first eleven years of inspecting, I had the opinion that I live in an area where everyone is good natured and would never screw me over. My ignorance led to many hours of wasted time dealing with trying to get paid or being delayed on starting the inspection until the PIA was signed. I also had to deal with tracking down bounced checks. The ONLY thing the people that screw you over are concerned about is receiving the report timely so it will arrive in their contingency period. You are the jerk for wanting payment before its sent.
In 2019 I started requiring the PIA returned and payment made by CC/DC by 10:00 PM the night before the inspection. I have not had one problem since then.
I ask people to pay by credit card or cash. I don’t like checks. Checks can bounce. With credit cards you get your money before the inspection starts.
Cash in-hand is nice also.
Give them the payment options along with your inspection agreement. I let them pay after the inspection and we discuss but I do not release the report to the client or the agent until payment is accepted. Thats not smart. Since they are on a time line and the deal needs it done they pay. The agent will help with the push to get that report. But truthfully the best option is pay up front at scheduling. Your time is too valuable.
