Excellent article. Way to go Dan!
It is interesting to note that home inspectors will not be allowed to make recommendation how to rectify revealed defects or shortcomings - nor to provide any cost indication for repair requirements. That means that prudent purchasers have to obtain time consuming estimates from contractors before finalizing the proposed purchase. The mandatory rule is in favour of home inspectors - but will certainly delay proposed transactions, and will make real estate agents in Alberta very happy.
RUDOLF REUSSE - Home Inspector since 1976 - Retired
What will the new regulation cost per inspection?
Here’s my estimate.
$500 business licence.
$2500 to $3000 for $1,000,000 insurance.
??? for $2,000,000 aggregate per year assume another $2000.
$100 for $10,000 bonding, letter of credit, or line of credit.
Total $4500 to $5500.
$400 peer review.
$300 to rewrite agreement to meet regs.
$1000 to modify reports to meet regs (10 hours at $100 per hour).
$2000 to review everything and learn the new rules. (20 hour at $100 per hour).
Maybe I’m over estimating the cost but the grand total is almost $10,000.
If you do 100 inspections that is $100 increase in cost and that translates into $200 at the retail level.
Therefore I will not be surprised if the price for a home inspection goes to
$500 to $700 for a basic inspection of a 1200 Sq Ft home.
Will the buyer want to spend the extra money?
Some will not so business will be down.
Now…if we become truly professional at doing home inspections, we will deserve an even better fee!!
Agree with that!
Just think… the lawyer gets a % of the selling price (no liability)
Agents get 3-5% of the selling price (very limited liability and cheap E&O)
Homies get a few Hundred bucks, lots of liability costly insurance
We have the most liability and make the least amount of money on the transactions… something wrong here but I don’t think anything will change.
This could change in an instant
if the Homies just would stand together for a couple of weeks .
Never ever going to happen … Roy