Commercial pricing question 37400 sq ft building

General Inspection Topics General Inspection Discussion
#1

I have been asked to inspect a commercial building and could use some help on pricing this.

The building was built it 1975, has 6000ft office space, 5000ft showroom space, and 26400ft warehouse space, total 37400ft. I plan to have a plumber, electrician, and roofer inspect and report on their respective areas. If other mechanical issues are there I will bring in other specialists (i.e. overhead doors, fire suppression, etc.). We will be visiting the building tomorrow to nail down client expectations and specifics of the building and layout.

I have been doing commercial inspections but this is by far the largest unit I have gotten to date. I know what my pricing structure comes up with but would like some verification and thought provoking feedback. Any forms or processes you may be willing to offer is also appreciated.

Thanks and I look forward to hearing your feedback.
Mike

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#2

Why are you bringing a plumber and roofer with you? I could understand an electrician if you are not comfortable doing that. Those extra specialist will definitely raise your price.

Around me the local fire departments usually perform yearly inspections on the fire suppression systems.

My fee on that would be $2750 I would spend a couple of hours at the site a few hours on the report.

#4

Interesting, I think I need to expand into more commercial inspections.

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#5

Remember… other than getting the education and experience on systems that are rarely similar to a house…

Your biggest hurdle will be competing with all the home inspectors thinking commercial is the proverbial get-rich-quick scheme! Until you get into the Industrial and specialized stuff, you will likely lose 50-80% of your bids to lowballer, inexperienced HI’s.

You’ve been warned, so you can be prepared.

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#6

Thanks Dave. The client specifically asked for specialists on those areas. I agree with your line of thought there. Do you have a breakout for how you arrived at your price?

Mike McPherson, MBA, CPI
McPherson Home Inspections, LLC
POBox 6183
Maryville TN 37802
865-384-0042

Inspectedbymike@gmail.com

#7

Hey Michael,

Same as when I started doing home inspections. Get a Trac phone, go to Loopnet and pick out a building that is for sale, call ALL of the companies within a 100 miles of you and have them email (not your personal one, make one up) and see what kind of replies you get. I still do this 2-3 times a year using different size and usage type buildings, I have a folder filled with different properties and responses from commercial inspectors.

I have also asked brokers why they went with a different company if I don’t get the job. They are usually likely to respond. Once you start working with brokers on a regular basis, they will often tell you if their clients hired someone else, what the other company charged.

Like Jeffrey said, there are a lot of new home inspectors doing these assessments dirt cheap. There is a guy in my area that would do the property you described for $600.

Good luck.

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#10

Thanks for the insight William.

#11

Jeffrey, I read your post earlier today but did not have an opportunity to reply. It was one of the best and most helpful responses I have seen on any of the message boards and spot on for what I am looking for. Would you mind reposting it or sending it in a private message if you prefer. In any event it was a terrific help and I hope you will share it with the group again.

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#12

Thanks. I am always hesitant to post detailed information such as it was, for many reasons, and when I do, I usually pull it off when I believe the intended party viewed it, which you just confirmed.

I will send it to you in a PM in a few minutes. (I just happened to save it for this reason). :wink:

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#13

I understand completely and truly appreciate the help. Thank you.

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#14

I think you mean .01%, right? 1% on 2 mil is $20,000

#16

They can, but they won’t.

Last week inspected a 7,000 sq. foot strip center which sold for $1.5 million.

Needles to say, I did not receive $15,000 for this inspection. The market would not bear it. I would not be competitive with that pricing structure.

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#17

I never said you had to charge 1% . It’s just the standard.

#18

Who’s standard is that? A $200,000 home would cost $2,000 at that rate. I don’t think so.

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#19

We can only dream Marcel

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