Originally Posted By: Rey Williams
This post was automatically imported from our archived forum.
How much does everyone here charge for an inspection?
How much does everyone here charge for an inspection?
Originally Posted By: Blaine Wiley
This post was automatically imported from our archived forum.
It differs greatly for many factors, such as location, pricing method, etc.
Originally Posted By: gbeaumont
This post was automatically imported from our archived forum.
Hi Rey
Welcome to the message board.
we actually ran a bit of a poll on this topic earlier this year, here's a link to that string:
http://www.nachi.org/bbsystem/viewtopic.php?t=285
As you will see from the poll nearly 70% of the respondents said their base charge for a "typical" single family was in the $2-300 range, I think you will find by reading the comments that most were at the higher end of that scale.
Regards
Gerry
--
Gerry Beaumont
NACHI Education Committee
e-mail : education@nachi.org
NACHI phone 484-429-5466
Inspection Depot Education
gbeaumont@inspectiondepot.com
"Education is a journey, not a destination"
Originally Posted By: Robert Alexander
This post was automatically imported from our archived forum.
Gerry is right. HI’s either charge based on square footage or price of home. In my area, typical pricing is by square footage. Starting at $295 for 1500 sq. ft. and typically $25 increments going from $325 to $600 then extra for pools, spas, radon, water, mold, septic, etc.
I hope that helps!
-R
Originally Posted By: Blaine Wiley
This post was automatically imported from our archived forum.
You guys who can get $295 for a 1500 sq. ft. home just make me depressed
Originally Posted By: Rey Williams
This post was automatically imported from our archived forum.
How many clients do you average a month though?
Originally Posted By: pberman
This post was automatically imported from our archived forum.
How about $400 for 1500 sq ft? WHen the client says “wow, I spoke to another guy and he can do it for $250” you say “Oh that is a different type of service, we charge more because…”
We charge about $25-$50 more than the most expensive guy around. People in our society/culture have been trained to pay more. You just have to give them a reason. I am telling you when we set our prices I was scared, but it has worked. I routinely have people tell me “well I am waiting on a few other people to call with prices” I tell them “It was nice talking with you but if you are price shopping then you can find people much cheaper, we offer a different type of service …” You would not believe how many people then say “Can you do Wed…?”
I promise it works, the only catch is that you have to be able to back up your sales pitch. If you promise great service, be there early during a hurricane, return their call rapidly, be as knowledgable as possible, explain things well.
Try it, Let me know how it works,
Pete
Originally Posted By: Rusty Rothrock
This post was automatically imported from our archived forum.
Rey -
Pricing of home inspections is obviously going to differ in various parts of the country, just like the cost of living differs, housing costs differ, real estate taxes differ, etc., etc. Here in Richmond, VA if I were to charge $350-400 for a 1500 sq. ft. house, I'd be out of business and sitting at home all day wondering why no one calls. They might be able to charge that up North but not down here.
When I first started my HI business some 7 years ago, I checked all the HI prices that were being used in my area and came up with an average (per size of house). I then set my prices approx. $25 dollars cheaper than the going price. My marketing philosophy was to try and build up my Realtor base by performing top-shelf, professional, quality home inspections for reasonable pricing.
My approach worked and I now run a very successful HI business. I work for myself and have no employees, I now do inspections on a regular basis for over 200 Realtors, I average over 600 inspections a year (3 years in a row), I take a major two week vacation each year (just got back from China recently), and I am very active in my church community.
The bottom line is...would you rather be out working, getting business, staying busy on a regular basis due to your fair inspection pricing or would you rather be sitting at home with no work due to charging excessive fees for home inspections.
Over the years I have moved my pricing upwards to be about average with my competition. Pricing doesn't matter as much now because now I have an excellent reputation in the business and have an established Realtor network (plus adding new Realtors each month). For your information, I have different pricing categories: below 1600 sq. ft., 1600-2400 sq. ft., above 2400 sq. ft.
In closing...like in any business, if you do the best job you can possibly do, if you treat people like you would like to be treated, if you charge for your services in a reasonable and competitive fashion, and if you "go the extra mile" without any hesitation and for whatever reason... eventually, you will become successful and prosperity will follow.
"There is no scarcity of opportunity to make a living at what you love; there's only a scarcity of resolve to make it happen." Wayne Dyer
Wishing you the best for the New Year,
Rusty Rothrock
Richmond, VA
Originally Posted By: pberman
This post was automatically imported from our archived forum.
Rusty’s post illustrates an excellent point, we each choose what niche to fill. I am in awe of people who do 600 inspections a year. I also give inspectors who work closely with Real Estate AGents a lot of credit. The demeanor of people and level of professionalism may vary by market but working with the realtors here is very difficult.
When I read Rusty’s post I am thinking “what is the market tolerance”, how high can he raise his price until the profit rise is offset by the work slowdown. Hypothetically-if Rusty raised his prices 10% and lost 10% (60 jobs a year) of his volume he would pick up 120 hours (assuming an average of 2 hours per inspection) a year of fishing, sleeping, whatever he likes to do. This workes out to 10 hours a month, that is an extra day off, with no loss of money. Or if Rusty has no hobbies, he can spend that time marketing and bringing in more work and making himself even more money.
Obviously we all agree that the higher the price the better. The biggest downward pressure on our prices is the “Low entrance barriers” to our chosen profession. IN other words here in NY, anyone can buy a flashlight and be a Home Inspector. I would like to hear from the people in licensed states, have prices risen. Economic theory says that they should have, but I am curious about the real world application.
I had a call yesterday, I quoted $400 and the guy said “Can I ask you a blunt question?”
me: “Sure”
him: Why should I pay you $400 when the next highest price was $350?
me: I know that $50 is a big difference but we are providing a very techncial service that requires years of training, large amounts of knowledge. It is our belief that our clients are willing to pay more for a higher level of service… etc, etc
him: DO you have any availability next week???
ANyone who feels that they are not charging enough should spend some time reading about active listening and meeting the customers needs. The more you learn about marketing, the more you can satisfy the client, the more they will be willing to pay you.
Pete
ps-no disrespect to Rusty, sounds like he is doing exaclty what he wants.
Originally Posted By: Blaine Wiley
This post was automatically imported from our archived forum.
Well, let me take the other end of the spectrum. In a small town which is 60 miles north and 40 miles south of towns which are in excess of 125,000 people, I can quote a story of a phone call I had the other day.
Buyer: How much do you charge for an inspection?
Me: What size is the house?
B: 1424 sq. ft, and its in Venice
M: $189
B: OOOHHHH, that's HIGH!
M: Well, do you want the cheapest or the best?
B: Yes
M: What were you expecting to pay?
B: XXXX (my #1 competitor who carries every credential I do) quoted me $175.
M: I see...
Now, I had to make a choice here in this market. I could match his price, be lower, or stay at my price. What would you do?
I felt the guy out some more, explained what I do versus what my competitor does, answered all of his questions, and agreed on my price. This doesn't happen often. I have lost several inspections over $5!!!!! My attitude for now is this. I would rather have all of $175, than none of $189.
Pete, this is coming from a guy who was the highest priced inspector in Northern VA, and was doing around 625 inspections per year for 4 straight years. I like quantity and high price. In fact, because of my pricing and quantity it allowed me to put enough money away to move to FL and start all over again! What F&*&*&* fun.