Originally Posted By: jwatts1 This post was automatically imported from our archived forum.
Think abou it, if (all) inspection companies charged .1% or more for a home inspection…we would all be doing very well…
Its too bad that it will never happen.... but it would be nice. If all home inspectors adopted a system of basing prices on percentages instead of square feet...
Our own competition, limits our profits...if we all charged around the same price, we would all be doing better no matter how many inspections we performed a year, large firms, small firms, and one man operations would all benefit....
How could we get something like this started??!?!?!!?.... anyone have any ideas?
Its probably impossible, but worth a thought!
Justin.
Originally Posted By: jbushart This post was automatically imported from our archived forum.
What you are suggesting is illegal. It is called “price fixing”. I hope that this, like your post on “hot” looking female inspectors and kickbacks are simply your attempts at humor. It is almost as if you are soliciting comments on this board to be used for another, possibly incriminating, purpose…
Originally Posted By: cradan This post was automatically imported from our archived forum.
Well, here’s the thing, Rob. If you actually get caught by the Justice Dept. while you’re setting the whole thing-up, I believe that’s referred-to as “price fixing.” In fact, they might even be able to charge the principals under RICO statutes, forget plain anticompetitive laws.
If you manage to kind-of get your price fix in place nationwide before anyone in the public domain gets wind of it, then it's more like an accepted standard. Probably helps if you've got 1M members in your organization, and strong political influence on both State and National levels.
Justin's missing the boat, anyway. Price fixing is illegal, and 25,000+ independent H.I. business owners will never agree on a pricing scheme in any case. What we ought to be thinking-about is how to compel the real estate industry to view the true importance of real estate inspection, i.e., if an appraisal is mandatory (primarily protecting a lender), why shouldn't a proper physical inspection be mandatory (primarily protecting a purchaser)???
Originally Posted By: jwatts1 This post was automatically imported from our archived forum.
James Bushart… I am glad that you enjoyed my posts!
As for everyone else, good replies and yes I am aware of the price fixing statues... but here is the issue, as home inspections become more important in real estate transactions, and they are! So is the potential cost for liability, which is also growing... someone inspecting a 600,000 home, like out here in California for $250 can be sued for thousands of dollars over something frivoluous... well, I think we all should get paid more just for the liability, and for the high costs of E and O insurance, which I alone pay 4,000 a year for... the average realtor and appraiser only pays about a 1,000.
Call it price fixing or what you want, I think all of us a profession deserve to be paid for our work and share of liability....
Originally Posted By: jwatts1 This post was automatically imported from our archived forum.
Yes, I can now see how it would be definitely against the law and a lot of people could get in trouble… So we better not go that route…
If everyone in the industry joined to (conspire) to raise prices in uniform then that would be price fixing, but if the industry itself....raised inspection fees in general then there would be no violation of law... I am not an attorney, but I would (assume) this is safe to say.
When I charge for inspections.... if an inspection is more than 50 miles away from my home, I don't charge anything less than $300 / and I don't care if its a 700 square foot condo. Just because I don't want to make the drive, and with today's gas prices... it only pays to charge a distance premuim to recover travel costs...
But if the inspection is around the corner from my house, I will charge way low just to get the job, especially for a price shopper.... $225 for a 2000 square foot house doesn't bother me if its less than 5 miles away... I consider gas and time.... into that equation.
So yes, I will lower my prices to beat the other guy if the job site is close to my home...
Originally Posted By: dedwards This post was automatically imported from our archived forum.
Anyone can charge anything they want right now. If you think your prices are too low then raise them. Most of us already have. You go through a growth period until you figure out what is a fair price for the service you provide. We have periodiacally raised our prices over the years. If you reach the end of the month or quarter and the outlay is about the same as the income than it isn’t a profession. Its a hobby. Time to raise your prices. There are always going to be price shoppers. I just today was told I wasn’t charging enough for what I do. (by the seller!) And you will lose some jobs to the $98 inspector. It is usually a nasty little house about 900 S.F. and takes as long to write the report as it does to do the stinking inspection. Resist the urge to lower your prices. Hold firm on your prices and quit giving away service. (big discounts just to get the job) The folks you want anyway are the ones who don’t even blink when you tell them the price but rather ask, “When can you do it?”
Originally Posted By: jwatts1 This post was automatically imported from our archived forum.
Doug,
Thanks for the reply... I agree with you. I get price shoppers from time to time... I just hate it when the realtors themselves want you to be cheaper. That really irritates me.
As soon I beat my yearly overhead, I will probably increase my prices, and since I am starting to establish contacts... its just taking some time, I have one client that is a real estate investor, and I actually give him a good discount since I am inspecting a property almost once a month for him...
You are right about the calls, "when can you inspect the house" Time and the escrow process are on our side, when it comes to people that need inspections at the last minute... Avaliablity is the top priority instead of price... I can already tell when people are price shopping, with the "I'll get back to you"... they are trying to find the guy that charges $100 for a 1500 square foot home.
I will wait and see what happens, this is a part-time business for me...so its just extra cash.
Originally Posted By: jwatts1 This post was automatically imported from our archived forum.
I agree, with you Chris, but what do you think is the percentage of homeowners that will pay $500 for home under 2000 square feet??
I would love to charge for my services, and I know that I deserve more compensation, but how many clients will I lose...if that's what I am charging....
Do you know of any companies out there, charging a minimum of $500 and have at least 50 inspections or more per year????? If anyone else does, let me know...........
Originally Posted By: cradan This post was automatically imported from our archived forum.
Butler’s right…the vast majority of home inspectors are underpaid by any reasonable standard. On the other hand, so long as our country remains free and our industry does not cross any Orwellian regulation line, no-one can tell you how to run your independent business. If you’re willing to do an inspection at $225.00 that none of your competitors will do at any time of year for less than $275 or $325 (or whatever), you may well find a way to reach your financial goal while doing that. Just remember that when the inspection’s done, two indisputable facts will remain:
1.) You got the inspection, and met your revenue (and hopefully) your profit goal.
2.) You've further "commoditized" the inspection product (service) in general, and you've done your part in helping to make sure that your competitors (and you) will have a steeper uphill battle in raising average inspection revenues tomorrow, next month, and for the forseeable future.
Moral? Whatever your motivations or needs, make sure that when you make your bed, you do it the way you really want it. At the end of the day, you'll be the one sleeping in it.
It is almost as if you are soliciting comments on this board to be used for another, possibly incriminating, purpose…