I was just sitting here pondering how to be creative in marketing to realtors and sellers and buyers and a thought came to me. Tell me if anyone has done this.
Can you offer home inspections based on a percentage of the listing price of the home?
In times like these, the lower priced smaller homes would be a more affordable inspection cost, which would benefit the people that are buying those lower priced homes because they are probably hurting alittle financially as well. Where the higher priced homes would be a higher cost and wouldn’t necessarily affect the buyers of those homes because they are probably alittle better off financially. Of course there are exceptions to my rule!
Example #1: a home less than 1000sq.ft. listed for $60,000 at a inspection rate of 1/4 of a percent, would bring me $150. I know that is cheap! Remember this is just a thought!!
Example #2 : a home more than 2000sq.ft listed for $250,000 would bring me $625.
Some people price their inspections based on price.
I don’t, because there is a large variance in pricing the same basic house depending upon location. I don’t think it’s right to charge someone more, just because they can afford a more expensive house. (Sounds too much like an unfair income tax system I’m familiar with.)
I charge based primarily on the size of the home. That seems more fair to me, because regardless of what the buyers are paying for it, it’s going to cost me the same amount of time to deliver it.
But that’s my approach. To each his own. I don’t really think there is a right or wrong answer here.
Hope that helps.
BTW, you’d quickly price yourself out of a job. A $500,000 house would be a $1250 inspection. Around here, that’s probably about 4000sq/ft in a nice neighborhood. (About a $500-$600 inspection.)
One way you can do that is to know the market in your area. When I get a call my first question is, where is it located? Then what is the sq. ft. That gives me a good idea of what it’s worth. Usually someone paying more for a home will pay more for an inspection. The downfall is, the cheaper, older homes are the ones with more problems.
It does help. I definately don’t want you thinking that I am thinking about gouging people based on the more money they make or what they can afford. I put very little thought into this before I threw it on here just to get some good responses before I put alot of time into it.
I would love to charge by the listing price because there are so very many 1,400-sf homes here that have an ocean view, so they sell for more than a million dollars. A mere 1% of the listing price on that home would be $1,000. Cool.
As I understand it, one of the very first inspectors in Florida many decades ago started his business by charging 1% of the listing price. Unfortunately, when they hit a downturn in the market, the listing price was $500,000 higher than the purchase offer price, so Clients started getting a little upset. Consequently, he changed his pricing to square-footage and the rest is history, as they say.
Most of the time the cheaper homes are the longest inspection. that’s why they are cheaper. for ex. foreclosures… 80’s t.home selling for 60k or 04 t.home selling for 100k. i’ll spend 35% less time on the 04 because everything is newer thus probably in better shape.
You can almost do the same thing by listing your fees based on location. On one side of my town a 1400 sf home can sell for $250,000 but on the other side of town that same home can sell for $85,000.
The first question I ask is, where is the home? Then I ask my other questions and quote a fee.
If you know your area well you do not have to depend on a sf fee system like many of us do.
You are on the right track, you should make more money based on listing price. I have been for a 1/2 decade:margarit:
I make more money on higher-priced homes not because they are higher priced but because their neighborhoods are more difficult to get into or located out in the boondocks. I charge for my time, and I know that doing an inspection out in Julian on any weekend between ca. May 1 and ca. December 1 (depends on the calendar) is going to require six hours travel time, so I tack on $600 in order to go out there to do an inspection at those times of year. If my Clients out there can wait until December 1, they’ll get a $600 discount.
There are only three ways to get into Rancho Santa Fe, all of them two-lane roads full of tourists and South-of-the-Border workers taking care of all those McMansions.
There are three ways to get into La Jolla, all of them bumper to bumper with tourists or South-of-the-Border workers taking care of the rich.
I don’t ask the city, though. Rather, I ask the zip code. I have a zip code price list database, and I know the most direct route to that zip code from my house, and I know travel patterns and construction throughout San Diego County. Travel to and from has always been my biggest concern because at one time I had nine inspectors working for me. Trying to coordinate all of them getting from their houses to my house and/or to the houses to be inspected can be interesting, especially duing tourist season.
Gather all the information about the house,
Ask questions about the Clients’ needs, wants, and goals,
Listen to Clients’ answers,
Help Client decide with service level is right for his needs, wants, and goals,
Provide a firm quote good for 30 days,
Do inspection,
Email report link within 12 hours and put Client and Realtors in email database,
Follow up 3 days after report delivered,
Follow up 10-14 days after inspection,
Follow up 30 days after inspection,
Follow up when I know escrow has closed,
Follow up 30 days after escrow closed,
Follow up 180 days after escrow closed,
Follow up 365 days after escrow closed.
Follow up annually.
Like I said always ask where the home is first. I have learned most out of town clients don’t know the zip code right off but do know the town so I do the opposite.
I personally would not drive 6 hours for 600 hundred more but would rather save the time for my family and just do two local inspections instead, but hey that is just me. Also I would refer the 6 hour away inspection off to a fellow inspector who does the same for me. That’s why it is best to build a network around you instead of over charging a person because you need the work but are to greedy to be fair to a consumer.
Follow up is good and you should make sure they received the report and understand everything and get feed back. After that I personally wait and send them the time cards you put me onto some time back (great ideal by the way) just to keep my name in front of them. I personally believe that is enough for me.
That’s funny. ROTFLMAO. During tourist season I’m the only inspector who’ll go to Julian. I just take The Beatles CD collection with me and enjoy the music and scenery.
I also cover all of Southern California, an area probably larger than your whole state. I’ve done inspections in Santa Barbara, Palm Springs, El Centro, and everything in between. I even had a Client fly me on his private airline to Catalina Island to do an inspection out there. I charged them more to go to those places; ohhhhhh, wah-wah-wah, I’m so unfair and greedy. ROTFLMAO.
So I overcharge due to supply and demand, and that’s greedy and unfair, but you overcharge simply because a house is selling for a higher price and that’s not greedy or unfair? Hmmmmmm. That’s a good one, Frank, even for you. Some of you Southern boys and ESOP Committee members with your holier-than-thou attitudes are something else.
As I said, ROTFLMAO.
Nonetheless, best wishes for health, happiness, peace, and prosperity. :mrgreen:
Thats just smart local business and not being greedy and willing to help people who do not have the means or ability to have what others have. South Memphis home buyers can’t afford a quality service but a East Memphis professional can so I provide my service to the consumer who depends on government aid at a lower price.
I charge top fees like you where necessary so I can reach my goals, but I am willing to reduce my rates to provide a service to home buyers who have come from years of depression who are just now able to get the education and benefits I was born with.
You will not get your fees in all parts of Memphis and that most likely goes across the map. But you can make a good living by knowing your coverage areas.
Laugh at me, I have leaned to make money on both sides of the track without hurting anyone. Charging some one $600 more for a drive and not farming it out to a fellow inspector is greedy and cheating a man.
I have a network around me filled with trusted friend and contacts. You are just one of these people that if this guy just did an inspection you will chime in and say “well my client just flew me to mine” Na Na Na
Not all Southerners are haters, but we cant stand jerks who always have to have something to say.:mrgreen:
What part of me saying that I’m the only one who goes out there during tourist season did you not understand. There is no fellow inspector to farm it out to. Is your reading comprehension lacking this morning?
Huh?
Ditto from this South Texas native. As my wise old grandmother said, “If you don’t have anything positive to say…” :mrgreen: :mrgreen: :mrgreen:
Notwistanding what my wise old grandmother said, Best wishes for health, happiness, peace, and prosperity.
