Hello Virginia Licensed Home Inspectors! Are you including repair cost estimate ranges on your reports? If so does your inspection software include that information or what would you use for that information? Just want to make sure I get repair cost estimate ranges from a reliable source. Thank you!
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Welcome Sara!
There are mixed reactions regarding doing cost estimates for clients. Here is an older thread discussion on the topic. Hope it helps…
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I’ve been contracting since 1973 and I never included estimates in my home inspection reports because every contractor is different.
I also never got pushback because I didn’t. Which was good because there can be liability there and I wasn’t getting paid to accept any liability for estimating costs.
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It was the norm for southern Florida for a few decades but most of those guys retired along with the Realtors who used to promote them. Anyway, it is easy to make mistakes and the added risk is difficult to monetize. I did them for a while when first starting out as a way to distinguish myself from the crowd, but it never really caught on in Tampa the way it did in southern Florida.
tldr; No, especially if unskilled as an construction estimator.
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I completely agree! I am in the process now of really getting my name out there/ networking and I got push back from a realtor today saying she would not use me unless repair estimate ranges were included on the report. They take that information and add it to their addendum on the purchase contract. She said it’s way too much work to go to separate contractors and get estimates. I get her point but I also am concerned with the liability for me.
It is probably easier to discover new Realtors to market to, but for the brave who might attempt this, you might want to start here Craftsman Estimating CostBooks. They offer a good low cost way to basic cost estimating.
The two on my bookshelf were:
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She is testing you as you are new.
You will decide how to run YOUR company or she will dictate how you will rum it.
Compete within your sop on quality and professionalism.
I had some mentees ask me over the years about the same pressure from agents. I recommended they ask their insurance provider if they were covered by offering price correction estimates. They said their agents told them no and to stick to the Standards of Practice for a home inspection.
You may consider just saying “my insurance won’t cover me for going beyond my SOP”. There are other professionals out there to network with.
Just a thought…
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And there is all you need to know!
The agent is lazy, and doesn’t want to do her job… especially with all that is going on with Commissions in her world.
Providing this Service is a normal “Ancillary Service” with Commercial/Industrial Inspections, and we all charge a hefty fee to provide the service!
If you wish to address the agents comment, inform her that you charge a “Fee Range” of 50% to 100% of the Inspection Fee to provide the service, payable in advance by the Agent, not the Client!
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- General Exclusions.
(a) Home inspectors are not required to report on:
- Life expectancy of any component or system;
- The cause(s) of the need for a repair;
- The methods, materials, and costs of corrections
I believe this is in your SOP there as well.
Consider this; If you had five contractors come to your house and bid on a roof job, would any two bids be the same?
You gave a bid as an Inspector, the client bought the property. When they called contractors for bids, unknowing to you, the price of diesel went up 40%, as did roofing materials to be shipped, what would the client’s phone call sound like on your end?
Is your wild azz guess worth it?
That is up to you.
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That realtor is being lazy, and sounds exactly the type to throw you under the bus at the drop of a hat. In some ways these questions have gotten easier to dodge in the last few years as the price ranges for estimates have become very wide (seen $1800 to $7000 for the same water heater replacement…). Pointing out wide variety like that makes it harder to push you on a number.
There are a few companies trying to generate repair quotes from home inspection reports with limited success. Usually costs some money and takes a couple days. I sometimes tell realtors to look into that if they are hard up (let them order and pay for the quote).
At the end of the day the sales negotiation is their job
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I would find out if that is the norm in your area. If it is just this one agent, don’t worry about it and move along. However, if many of the agents expect repair estimates, and other inspectors in your area are obliging, you may not have much choice but to do it as well.
If that is the case, I would recommend signing up for Repair Pricer or a similar program and make sure to pass all of the liability on to them.
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Check with your insurance before committing to anything!
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Same, active inspector now with residential contracting experience since 1981. I don’t know current costs any more. No estimates in my reports.
If you are not an active building contractor, you have no knowledge to give reasonable estimates. Estimating software is useless garbage and was 50% low from actual costs when I was contracting.
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Good idea. And make it clear in the agreement and all documents that this is a 3rd party service not provided by the inspector. I would also have a separate agreement just for providing the “Repair Pricer” report.
Even better, just supply the link to the Repair Pricer (or similar) website and tell them if they wish to get prices, here is a company that offers that service.
Luckily, I have not heard of inspectors in my area offering estimates, so I haven’t had to worry about it. But it only takes one for the agents to say this is the new normal now.
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I never put a quote in the report. And if it is discussed I emphases that it is a very rough number.
Anybody doing inspections for relo companies probably already does these
BALLPARK numbers $1,000 - $2,000. Want it close sir, call a contractor
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Good idea!
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Let’s use this as an example.
The home you inspect currently has a fuse panel. What is the price to upgrade it??
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Yes that price would have been ballpark good UNTIL you told me that the fuse panel was in the crawlspace AND that the wires had been scorched.
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It does not include repair costs for ethical reasons. I am a licensed electrician and if I am going to report a defect and then estimate the cost, it would seem that the reported defect was with another intention.
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