So I have been just taking photos for an investor. It is quick just go in take photos and I am out. I was asked by him about giving a little more like just the big stuff in a report. First he does not want to pay more than $150 but says he will bring me lots of jobs. My question is , am I opening myself up to ,to much liability if I miss something? Investor is looking for something to just go to seller and tell them the big things that need done. Does any one have an “Investor Agreement” they could share?
Just taking photos I am charging $80. I may just want to keep things there.
Potentially, yes, that’s a lot of liability for only $150.
However, you could come up with a custom contract, ie. this inspection does not follow SOP., kitchen, bathrooms, fireplaces, appiances are NOT included.
What is included: Attic, limited roof, water heater, electric panel, whatever.
And then specify in the agreement anything beyond the agreed upon items is $x more.
That would give you an “out” if he says hey you missed… well you didn’t pay for that. Also prevents him from saying “come on, just time, look at…”
But still, that’s a lot of work for only $150.
Thank you very much for the response. I agree with you about the amount of work for the cost. I think I just needed to hear someone else say it. I tried to get him to accept $300 for any size home but he did not want to pay that. I think just the time going back and forth adjusting for a new contract could be quite the headache and time waster as well. I think I will just keep with what I have going with this client.
I have an investor that we work on an annual contract. The cost per inspection is $160 plus an additional $30 per unit if multi family. Almost always two family homes. Our agreement has a lot of the same language as my standard agreement but it very carefully defines what will be inspected and what will not for the fee. Included in this is a walk-through video of each unit. This alone has helped them win in court over property conditions at time of occupancy. They send them to me in blocks of 4 addresses and I usually go in on a Saturday since that works best with the occupants (when there are occupants, mostly vacant).
For me, making a quick 700-1000 on a Saturday and knowing that we are going to do this about 10 times per year is a good deal.
3 Likes
Thank you for that reply. It sounds like what this investor is also looking for but I am cautious about not really calling it an inspection perse’ . would you share a copy of your agreement? I really like the idea of doing video, do you do that on your phone or in your inspection software? Thank you very much. I am new and your advise is super helpful
I take it with my phone using a DJI Osmo mobile It is then uploaded to youtube and marked private. A link to the video is on the report cover page. I do the same thing for any client that will not be present at the inspection so they can get a good feel for their new home. I get a fair number of NFL players and coaches that have never actually seen the house that they are purchasing, or have only walked through once. Everyone loves the walk-through videos. My agreement will be useless to you as it is 100% based on the NY SOP which is different from Florida. Basically, keep all of the major legal content of your agreement but include the state SOP clearly marking what will and will not be inspected line by line.
3 Likes
Thank you again. Very helpful and some good ideas
What does your insurance agent say?
Good point Denis I need to make a point of checking with them on these types of areas
Hey Michael,
I like the idea of doing the video and uploading to You Tube. My question is; if you mark it “Private” how can they see it? I’m trying to include this in my reports for those that can’t make it to the inspection. I can see where I can mark it as “Unlisted” meaning anyone with the link can see it. I figure this is safe since the only person with the link will be the one with the report. Any info you can offer would be appreciated.
Tony
I just did a video today at the investors property and the way I did it was using isn and one drive . I added video to one drive, created a share link, then added that link to isn as the report url . it worked well
Why don’t you just do a 4-point inspection for them? It covers most of what you want, slight increase in your price, already formatted in most reporting software, insurance companies accept them… they cover roof, HVAC, electric and plumbing. Basics on all and gives a good snap shot. KISS principle.
2 Likes
While I understand what you’re saying, we shouldn’t be encouraging the use of a “4 point” insurance report as a substitute for an inspection.
Dom.
I can’t disagree with you. Maybe in principle that would be a good abbreviated approach to investors inspection. Just looking for a shortened version it would take less time give them a good overview. Maybe utilize the four point as a model andConstruct an
investors inspection with that as the model
I just booked a block and I was wrong on what I thought I was charging them… it is $220 at this point plus any unit adders… I don’t know why I thought $160.
To clarify, we still check the majority of components, but it is a SUMMARY ONLY inspection. They are only made aware of noted defects. there is no “the HWT is a AO Smith 2016 40 gallon” type information included.
1 Like
Ok not sure if I am in the correct section here. Is there a walk and talk type agreement to use for a one hour walk thru that I can use. thanks
There are realtors in my market that tell clients all they need is a four-point and a wind mit, I have to turn down about one a week as I won’t do them if the home is listed or under contract. Just way too much liability versus what you can sell them for and I truly don’t believe there is enough data included in these reports to make a good financial decision if you are a buyer.
In regards to the OP’s original query… Having worked for many ‘investors’, let me tell you how this thing ends. Once the ‘investor’ has completed enough $150 educational lessons you’ve been conducting he no longer sees the need for your services. But the good thing is, there are always more investors out there to educate.
Rumor - I said rumor is that anything other than a full inspection is not allowed in Ohio starting Nov 1st.
I am hoping to get an opinion from the OHIB before Nov 1st.
I wonder why the state would get involved in that? To many folks getting 4 points in place of home inspections?
They are not involved with that yet. I posed the question if partial inspections where allowed.
I’ll post if I get an answer. Our board is new. No opinions yet except the ethics and SOP.