Seeing the "NACHI Effect" here now

Competition is working…Prices are falling!!!

In a smaller market like ours, it’s fairly easy to see what’s happening. Was in a local hardware store the other day and saw some brochures from an agent of one the largest franchisors. His posted prices in large print on the front page of the brochure…$299 for any house up to 2000 sq ft!!! He’s now selling on price. (he’s been in business 5-6 years)

Of the 2 associations represented here, CAHPI has added 3 members net over the last 18 months while NACHI has added 13-14 out of its 15!!

Good job, Nick!!! These poor 90%er’s (those out of business in 3 years) will wonder where they went wrong when they don’t see big income from an already saturated market!!

The market is saturated in many areas. Fact is this is not a new trend - its only gotten worse. Many come and go and rise up from the ashes. On the flip side like Brian notes - yes, prices and bargains are abound.

In my area alone there approximately 24 home inspectors in Essex County - its a good thing that I do not have to compete with them. Out of that 3 are RHI’s. A large majority have caught on to NACHI. Quite a few are still operating with no affiliation.

Based on the 24 inspectors and assuming 2 inspections each per day for 5 days of the week - that equates to 240 home sales per week in the Windsor-Essex County marketplace, or over 12,000 homes sold per year.

Now some claim to be doing more than their 2 a day! I wish them luck…perhaps that is why some are looking at offering other related services.

If all the non-InterNACHI members would just go out of business, we’d all be fine. I’m doing everything I can, every day, to make that happen… for the most part, in 2 ways: Making InterNACHI members better technically through advanced, inexpensive, convenient education and by making InterNACHI member’s inspection businesses (through mostly marketing) more successful

Anyway, these two core advantages are making InterNACHI members the best trained, most successful inspectors in the world… and all for just $289.

Like I’ve said many times, if you can’t recognize the value of InterNACHI membership, how can you possibly recognize obvious defects on an inspection? From a pure businessman’s point of view, anyone too dumb to join InterNACHI is probably too dumb to inspect for consumers.



The economic law of deminishing returns will soon put many of the low ballers out of business, this will shrink the amount of inspectors, then prices will spike and return to a liveable income.

Shouldn’t take all that long!!


well Said Nick.

It is happening here, many are folding, it had to happen sooner or later.

I know Brian Kelly raised his prices, and so did I to offset the ever increasing cost of doing business.

Should of raised my prices a while ago, even with higher prices I have more work than I can do.

Raise them again and let Bri’ have the low hanging fruit :mrgreen: :twisted: :mrgreen:



Here is another one (nachi member) who is next in line to lock the doors—)))))

  • Condo/Town House to 1600 sq. feet $175
  • Single Family Home to 1800 sq. feet $195
  • Single Family Home to 2400 sq. feet $235
  • Single Family Home to 3000 sq. feet $275
  • Single Family Home to 3600 sq. feet $315
    *]Commercial or over 3600 sq. feet Call for Quote.

Thanks Steven, although I will partly agree - I would also caution that as long as there are 100’s looking at entering this field, far too many enter it by low balling to get a start into the market.

Therefore I would say it may be a short-lived spike!

Don’t just let them die… help kill them quickly. Go after more sellers and catch these inspections before the rest of the industry can even smell them.

Once you are a low baller, new or old, that’s what you will be know as, and it will be very difficult to raise prices and distance yourself from your old reputation.

New inspectors should start out at current market price, not the “I’ll inspect for food” gig. If you are known as a low baller, then that’s going to be all the business you will get, and ultimately people will wonder just “why” you are so low. If you are good at what you do, it will show in your price that you are worth it.

Having been in the construction industry for years, I was many times the higher price, but got the job anyway. It’s called marketing and having the customer trust you.

Low cost does not equal quality, you get what you pay for, and most consumers understasnd that. Those who don’t, would not be a customer you would want, they will expect a Cadillac for the price of a Chevy!

New inspectors (and a few old timers) rely heavily upon referrals from salesmen. Salesmen often shop for the lowest fee for their client.

I’ll never forget the ASHI inspector in our chapter who told of the salesman who called him and asked him if he could “beat” $125.

Think about that for just a second. The agent had a home inspector for $125, and was still shopping.

I must wonder if the agent worked that hard to get the best, lowest price on the house for the buyer???

Anyone want to place bets?

of course he did, would you ever doubt it??? (nope… no sarcasm there)
AS you said ealier, if you start as a lowballer that is a reputation you will not be able to leave behind.
THe conversation goes as… how good is Joe? I don’t know… he is cheap. What is his background? I don’t know… he is cheap! How long does he take for an inspection? I don’t know… he is cheap! What kind of report does he have? I don’t know… he is cheap! How honest is he? I don’t know… he is cheap!
I don’t know… he is cheap! is all they will ever remember. But some people figure that is the way to go. They never realize they downgrade themselves as well as the industry they work in by promoting themselves on I don’t know… he is cheap!

We will always have lowballers? Why? Because there is a part of our market that will always go with the lowest price inspector and there will always be inspectors competing in price for them.

In establishing your fee, I believe that you must first establish your market. If you plan to hit the real estate salespeople for leads…you scare them away over $275 in St. Louis. If you want to compete for the “shopper”, you are going to have to grovel for $150-$195.

My niche is the folks who prefer not to accept their salesman as a source of referrals for a home inspector. It’s a small niche and would probably not support very many additional inspectors, but the price is at or over $300 for anything up to 2000 sq ft, then up from there. Then I add the ancilliary services ($75 for termite and $125 for radon). No one balks at the prices knowing that the cheaper inspectors “all work for the agent”. They are willing to pay extra for the inspector who works for them. That’s how I market to this group and it works very well.

That “niche” is growing too. % of sales by FSBOs continues to grow. I think REALTORs will soon be the small “niche.”

SHEESH!!! Did a 1200 sq ft semi-detached this afternoon for $325. Sure won’t be moving to your area soon!!!

Brian said:

Originally Posted by dduffy


Here is another one (nachi member) who is next in line to lock the doors—)))))

  • Condo/Town House to 1600 sq. feet $175
  • Single Family Home to 1800 sq. feet $195
  • Single Family Home to 2400 sq. feet $235
  • Single Family Home to 3000 sq. feet $275
  • Single Family Home to 3600 sq. feet $315
  • Commercial or over 3600 sq. feet Call for Quote.

This nachi inspector is on the high side, many are much lower, this was just the first website I clicked while looking for something else today–))

Many , many, many will be closing shop soon…!!!..shame…

Today I had a used house saleswomen try to get me down 40 bucks because she said the guy is buying another house next week, I said if I was her I would be paying for both inspections myself, out of the 6% she would be making from the two sales, she couldn’t figure that out for the life of her why I would think she should be paying for the inspections, much less me not discounting each by 40 bucks for her poor client.

I told her to call someone who needed the work, I gave her this guys phone number with the above prices–)))