Has anyone been approached by a developer to do all the final walk-throughs when the contractors claim they are all done and the job superintendent says everything is fine?
I have inspected quite a few Condo conversions lately which one particular developer is converting all over town and generally find 10-15 things wrong in each unit, everything from open grounds, and burnt wiring to windows falling apart.
Well anyway, after the last inspection on Monday which I found quite a few items needing repair the developer called me this afternoon after looking at all the report summaries I have forwarded him in the last month.
His question was what would you charge to inspect everyone before the buyers have the final walk-through with representatives of his company.
He said he is converting 3,000 units now and is in the process of buying two more buildings, another 400 units.
They are about 900-1200 sq. ft. and take me about an hour to inspect everything.
What would you guys charge if you had a contract for a few thousand units?
Id figure them out if you were doing one at a time with a normal client, so he can see what you would actually make and then offer him a percentage, say 10% - 20% off the per unit price or lot. Get a contract signed too. Good luck sounds like a good deal.
During draw inspections, I sometimes get to talking with the contractor (which, around here, is also, usually, the developer. 3-4 McMansions a year, the build.
I have offered to do pre-drywall inspections and a final inspection, with report, so that they can offer a copy of the report to prospective buyers.
In this “Buyer Market” many builders see it as a good marketing tool.
I think you’re right Will, when I told him I could save all the heartache and grief he jumped all over the idea.
I was watching the superintendent today while doing an inspection, his phone ringing every 5 minutes, subs asking questions while we’re doing the inspection because he had the electrician following me around jerking receptacles out of the walls making repairs. The lady I was doing the inspection for was to close on it this afternoon and she put it off, well the super said we have to come up with a better game plan. He knows as well as me, regardless of the subs, you expect problem, generally quite a few in these conversions. Since there just refurbished, everyone thinks the other person repaired something and generally nobody did anything.
While the super was with me he was talking to the owner on the phone and ran the idea past him, he told the owner I think we might be able to save time and money by letting me go through these apartment conversions after all the subs are supposedly done. Inspect it like I was working for a buyer, before the condo is sold.
I talked to the owner and told him I’d have a price faxed to him by tomorrow morning.
I just don’t want to cut my throat, doing them to cheap, but even at $100.00 each, that’s $300,000.00…about the price of one unit.
The way I see it you are saving him money. Him having to call back tradesmen regardless of who is at fault costs time and money. By raising your prices slightly you stand to make a lot more money because of the volumn and at the same time do not come off as desparate. Sounds like you have already sold him on the idea successfully, now don’t short change yourself. Your time, experience, training and knowledge is about to pay off in a big way. This could be just the beginning of a very lucrative (and easy) enterprise. I doubt he is the only guy in town redoing condos. New market for the guy first in line. Go for it.
Hows biz over there? Have you been really slow lately? The price your charging for those inspections would indicate you’re dead in the water.
What do you normally charge for a 900-1200’sf condo inspection? Isn’t that at least a 55-60% discount off your normal rate? Can you can get through a condo inspection of that size, thoroughly, in one hour? I’m also assuming you must have some travel time to the job site and some time needed to generate and process the report, photos, etc…
Dale - I have a contract here for exactly the same thing (charged $100 per unit, $200 or the penthouses, and $50 per common area (hallway, etc) for 50 floors of condos.
It has blossomed into 3 inspections per unit (an initial, a follow up, and final) at $25 each for the 2nd and 3rd to check off my earlier punchlists, and two additional inspectors (paid hourly) on-site full-time to check on new construction of additional towers in progress as each floor passes a new stage (rough electric, drywall, dimensions, etc).
Good pricing, and great work. I have 4 people working for me now. 3 more towers coming next year.
In reference to the pricing - these aren’t individual buyers inspections. It is a different animal, a different report format and style, and different level of expectation.
Incidentally, the developer indicated that 4 inspection firms bid the job and were interviewed for pricing. All (including me) were within $25 of each other.
Dale - it may be different for you, but the biggest problem I encountered here is the sales team pushing closings too fast (before the units are ready) and not giving enough notice to get all the inspections and work perfromed before buyer walkthrough.
We have accomodated by having the on-site guys able to jump to do emergency inspections at the drop of a hat and generate on-site punchlists with Pocket PCs.
I use a Word checklist template for the punchlists customized with my logo (there are now thousands of pieces of paper in these towers with my logo on them).
HomeGauge took too long to convert to the format I needed evrytime there was a new item we wanted to add, and it didn’t translate as easily when the lists went to the contractor and subs (who do not have email and think of computers as large paperweights capabale only of displaying porn on demand).
It all depends on what your client (builder) will want, and how useful that list is for them and their subs. We had to modify ours to that the subs could look at the 50 item punchlist and find the part theywere responsible for (lightning bolt for the electrician, etc).
Joe, they seem to think their done, the 10 or so I inspected before contracting with the developer. Just things the grunts wouldn’t notice wrong.
These are apartment condo conversions mind you, so their trying to make do with a lot of items which don’t cut the mustard with buyers who think their completely rehabbed.
Cracked tiles, open grounds, loose receptacle, loose toilets, …pretty simple items really…kind of fun doing something simple once in a while…
…I have been charging 175-200…just interiors.
