Pricing for an inspection

Originally Posted By: lwillick
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I just had a prospective client phone and ask for pricing on a fifty two town house complex. Exteriors, roofs, flashings, etc., and cladding only, plus all inside attics. He said he would see to it that an afternoon would be made available for the 52 inspections. The first year is almost up and they want the deficiencies if any detailed. I was told they already had a quote of $25.00 per unit. Of course my fees are way higher. By the way the $25.00 quote is by a franchised inspection company. You can guess what this prospective strata client is going to do. The franchised inspector has apparently never done any thing like this before, and has totaly mis -led this town house strata person. Ignorance and stupidity are bliss. They are not using my company, that is for certain. How can some inspector, properly inspect, and take responsibility for a dwelling while only charging $25.00, and properly inspect 52 dwelling units in such a short time frame ?


Regards,


larry


Originally Posted By: dduffy
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Larry,


Some people like to learn the unfortunate way, or his mortgage payment could be delinquent?


--
Dale Duffy
Inspect Arizona Companies Inc.

Originally Posted By: lwillick
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Hi Dale:


This particular inspection franchise company makes a lot of mistakes. I see that a lot when I come in to do an inspection for a new purchaser. How ever they have a lot of realty market do to under handed kick backs and gifts to realtors. Some of the brokerage offices are slowly refusing their gift boxes for raffles for trips, etc.


Regards,


larry


Originally Posted By: dduffy
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Larry,


Do you specialize in new construction and warranty inspections there? There is pretty good money in condo projects here, starting the inspections at ground breaking through final.

Homeowner associations are pretty good also, especially when you get your foot in the door right after the buildings are complete. You already know how they were built. Getting the contract for future maintenance inspections, usually follows suite. Good money, easy work.

Have you ever analyzed that???


--
Dale Duffy
Inspect Arizona Companies Inc.

Originally Posted By: rcooke
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Why do you think some Franchise companies do not want people from the construction industry.


They prefer to train the Home inspector them selves the right way 10 days and you are on your way.


The last one in my area had a variety store before and he was going to show us home inspectors how to make money,


For the agents they gave away coupons free draws for TVS and a ocean cruise.


He lasted just over on year,I guess they charged what they were worth.


I still am the highest Inspector in our area and it pays.



Roy Cooke Sr.


http://Royshomeinspection.com

Originally Posted By: dduffy
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rcooke wrote:

They prefer to train the Home inspector them selves the right way 10 days and you are on your way.


One year their broke. I wonder what the statistics are Roy. I'll bet it is staggering.


--
Dale Duffy
Inspect Arizona Companies Inc.

Originally Posted By: lwillick
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Hi Dale:


No, those types of inspections have not come about, at least in my area. I have tried especially at the industrial - commercial part of the industry. But people cannot understand spending any money prior to a complete visible project. At least that's the feed back I have received.
Regards
larry


Originally Posted By: lwillick
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It’s probably the same franchise company> That’s exactly what they do. By the way they have also given away trips for two to Haiiwai. Must be nice to have so much business to afford to do all that.


Where’s the code of ethics.


Regards


larry


Originally Posted By: dduffy
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Larry,


If you try asking a major builder in your area if you could do a framing inspection after the (whoever) signs off it, you maybe surprised what builders will tell you to go ahead, show me.

Kind of like quality control after the authority having jurisdiction claims it is to code. Large corporations welcome this type of inspection, and some brag about it to the perspective buyers of their homes, condos, etc.

Approach one, ask to do the first one fairly cheap. It works.....

Better yet, with a condo project, find out who the venture capitalists are, approach them, that works even better, because they want to know exactly where their money is going....that works Very well.


--
Dale Duffy
Inspect Arizona Companies Inc.

Originally Posted By: rbennett
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This is a real simple one.


Have the SOW of what and how the inspection is to be done written down like a PO or something that you write up.

Quote $18.00 per unit to do a quick visual --- Remember they are restricting your time to an afternoon and 50 plus units -- that is $900 in an afternoon and you were told that it was just a walk through.

Now if they want a real inspection redefine the SOW and the cost. Remember that the complex is only one year old and "Should be in good shape"

You have got to get the stake holders into a conversation so they know what they are getting for their $$ and if they want nothing then that is what they will get. Remember your overhead is probably a lot lower that the franchise and so it is a know brainer to beat their price. Your walk through will probably be many times better than theirs.

The last one I did was a 27 unit "no tell motel" $650.00. Inspection found normal repair items in some of the units and some wheelchair issues. That was about it.

More time and $$ = a better inspection

Good luck

rlb


Originally Posted By: dduffy
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rbennett wrote:

Quote $18.00 per unit to do a quick visual --- Remember they are restricting your time to an afternoon and 50 plus units -- that is $900 rlb


It would be a cold day in hell before I would risk the possibility of being sued for a 900.00 inspection on 52 condos, I do know that.

Maybe 5,200.00


--
Dale Duffy
Inspect Arizona Companies Inc.

Originally Posted By: lwillick
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Thank you RB:


I would never risk my name and my company's future by doing an inspection of that nature. Because there is too much risk and liability. You have got to spend the time to do it properly.
How ever I do appreciate the input.

Best regards
larry


Originally Posted By: rbennett
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Oops


Looks like I hit a spot that is a little tight

Your client has told you what he wants -- an afternoon of your time.

Unless you bring more people you can not dig too deep -- You do not have the time. Your insurance will not go up (if you have any)

They have told you what your limits are and what you are to inspect. If what they want you can do then do it.

Yes you can try to get the SOW changed but $200 per hr is not bad pay. The problem is the number of hours and that is when your sales man ship comes in to play.

rlb


Originally Posted By: dduffy
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Richard, for one thing you cannot inspect 52 attics in an afternoon, let alone anything else. Can you?


If you did inspect 52 attics and you have insurance, make sure it is current, you'll probably need it.


--
Dale Duffy
Inspect Arizona Companies Inc.

Originally Posted By: lwillick
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I’m sure this is the problem we all face when a poor quality inspection company or individual presents this type of situation, then those of us that come after wards don’t have a chance. How do you convince an indiviual who already has a low ball price ingrained in their mind that they are not getting a proper job, especially when they no longer will listen. They are convinced we all do the exactly the same exact inspection.


this is the result of realtor kick backs as well in this case to get inspections in the first place.


larry ![eusa_wall.gif](upload://hILV5Z8gRVLwzVpRIDJEm01uB52.gif)


Originally Posted By: dduffy
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lwillick wrote:
How do you convince an individual who already has a low ball price ingrained in their mind that they are not getting a proper job, especially when they no longer will listen.(*,)


Larry, I ask them immediately if I could email them a sample report, and let them determine if they still think a low quote might be the wrong answer to determine the quality of the construction.

I have various samples for different situations. I also have the ability to see if they looked at the sample which was sent to them. You will find this works very effectively. Nine times out of ten they will look at the sample report. Call them back about a half hour later and explain this is a sample of the significant importance for a very thorough inspection, and no company could inspect a property to a degree of thoroughness in an afternoon.

Most people have some common sense, ask them if they thought it would be possible to inspect fifty two attics for wiring defects, structural concerns, heating and cooling distribution leakage or improper installation, correct amount of insulation, proper ventilation, mechanical deficiencies, moisture intrusion which could be visible on roof sheathing, etc.

Then ask them how they might think someone doing the inspection for next to nothing could possibly inspect the building to the degree you do.

Some people just don't understand you may get what you pay for.
Some people just need help understanding this. ![icon_eek.gif](upload://yuxgmvDDEGIQPAyP9sRnK0D0CCY.gif)


--
Dale Duffy
Inspect Arizona Companies Inc.

Originally Posted By: rbennett
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I agree that this is a bad deal and the client does not know what it takes to do the job right.


That said - Your client has ask you to do a job with HIS restrictions of time. Every one knows that the job can not done correctly in the time that he as restricted you to. So get him to put in writing the SOW with the time restrictions and take his $$.

Run it buy your attorney if you want ($150 maybe) - He wants a walk through not an inspection.

Your insurance will take care of you -- have faith

It is an easy $$

This is how your competition is going to make $ - he is gambling on the fact that nothing is wrong and that if its there it won't be blamed on you because of the restrictions put on the project by the client,

Your are not going to change the clients mind that $25 is too low.

You are better off doing it for free and doing it right - just to show the client what a proper inspection is thus your competition gets NO money.

At least you have the client talking to you, which means you still have a chance at a deal

Don't give you competition $25 X 52 for an afternoon of work

You should know how to write a report that says everything needs further evaluation...



rlb


Originally Posted By: dduffy
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rbennett wrote:
Your insurance will take care of you -- have faith

It is an easy $$rlb


Richard, it blows my mind to even think someone would inspect 52 attics, roof, exterior, for 25.00 a unit. ![icon_eek.gif](upload://yuxgmvDDEGIQPAyP9sRnK0D0CCY.gif) ![icon_eek.gif](upload://yuxgmvDDEGIQPAyP9sRnK0D0CCY.gif) ![icon_eek.gif](upload://yuxgmvDDEGIQPAyP9sRnK0D0CCY.gif)


--
Dale Duffy
Inspect Arizona Companies Inc.

Originally Posted By: rbennett
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Dale


Understand you are inspecting x # of units in x amount of time -- be it for 1 $ or 10,000 $'s -- the TIME says that you can't do the job

The problem is not yours but your client's. Have your attorney review the contract.

rlb


Originally Posted By: lkage
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rbennett wrote:


You should know how to write a report that says everything needs further evaluation...

rlb


I'm not sure I understand what service an inspector would be providing then.


--
"I have never met a man so ignorant that I couldn't learn something from him."
Galileo Galilei