Figuring Price By Price Of Home

Originally Posted By: mbailey
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Another thread on the board got my curiosity going about figuring inspection pricing by using sale price of the home.


Am curious ? of those that use this pricing method? why? What made you use this particular way of pricing? What do you see as positives and negatives?


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Mark Bailey
Stonegate Property Inspections LLC
Ponca, NE

Originally Posted By: cradan
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from the listing agent to the prospective buyer knew what the subject home’s square footage was. Here in the Chicago area, no-one knows what the square footage of the subject property is. The Realtor’s cut-sheet “blurbs” only occasionally state a square footage, and it’s often wrong. That’s how we ended-up pricing inspections by “asking price.” We’d much prefer to price by “size/complexity,” but every time I ask a prospect what the square footage of their prospective purchase is, the response is fairly uniform…“uh, well, I don’t really know.” We’re pretty talented, but not nearly talented enough to price “I don’t know.”


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Regards,


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Chris
http://www.inspect4me.com
Chicago Illinois Home Inspections

Originally Posted By: nlewis
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Chris,


In North Jersey, square footage is not advertised and is not used by realtors. It seems that there are different methods used to calculate the sq. ft., so the realtors shy away to cover their butts.


Why would you price by “asking price”. What if the house was originally way overpriced to begin with? I would think you would price by the selling price. That seems to be a more accurate depiction of the value.


Originally Posted By: cradan
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price would be more accurate with respect to “value.” Unfortunately, as home inspectors (at least in this neck of the woods), the “value” of the home is strictly the province of the seller/seller’s agent and buyer/buyer’s agent cabal. We are not legally allowed, nor in any way encouraged, to consider or opine on the “value” of a home. Additionally, facts disclosed in the home inspection report can (and sometimes do) clearly figure into the ultimate “value” (read, actual selling price) of the home, regardless of what the original sales contract called for. For practical purposes, it would be nearly impossible to calculate inspection cost on the final, actual selling price, unless we were willing to “bill to close”, which we are not. (COD…like the fish, LOVE the billing/accounting method.)


Regards,


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Chris
http://www.inspect4me.com
Chicago Illinois Home Inspections

Originally Posted By: mbailey
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Chris and Neal - thanks for your replies.



Mark Bailey


Stonegate Property Inspections LLC


Ponca, NE