In what percentage of your inspections does what you find at least pay for the cost of the inspection? This thread will be read by the South African public, please don’t hijack!
About 99%. But there are a lot of crappy builders and inspectors in my areas, so many houses go a whole lifetime without a proper inspection. It is very common to find building defects 30-40 years old in my area. Sad but true.
God Bless them…Every One!
So far… 100%.
Thinking back to the home that was in the best overall condition, (a four year old, custom, upscale home), I believe I discovered at least triple my fee in actual defects, and quadruple my fee in recommended safety upgrades. No “deal killer” stuff by any means, and my client was very happy to find a home in such overall great condition. The sellers agent had a fit, as it was listed as “Perfect condition”! I took that as a challenge, and I/my client, won!
Very true, and in mine as well, which is why I do not subscribe to the “test of time” thoerum.
I haven’t done any in South Africa, wasn’t our president born there?
I believe when you find very little wrong with a house the home inspection has paid for itself by leaving the buyer with a strong sense of security knowing that everything has been looked at and they know what they are buying for their dollar. When you find something bad obviously the cost of the inspection was worth every dime. So yes, 100% of the time a home inspection is worth the money spent.
How could anyone not find at minimum $500 in issues unless they are running through the place with a checklist ?
No such thing as a perfect place.
Inspections are also an expense and a tax write off.
I have seen many advertising on websites money back if issues not found for a good reason.
If I am understanding you correctly … this question is being asked under the assumption that my client is able to recover all or part of his inspection fee by negotiating a reduction in the price of the house equal or greater to the cost of curing the material defect, right?
If so, it does not address the more important financial benefit that comes to my clients who — after reviewing the inspection report — determine to walk away from the deal and look for a different house.
While it is easy to compare the reduced selling price (or the seller’s contribution toward the repairs) in comparison to my fee, the client who pays me my fee and subsequently decides not to buy the house appears … at least on the surface … to be “in the hole” for the $400 they paid for their inspection.
But they are not.
Instead, they are ahead by the entire purchase price of the home that they would have otherwise paid for an inferior product that would have burdened them with excessive financial distress in addressing material defects, safety and health issues that could have adversely affected the quality of their lives and sustainability issues that could have affected their ability to recover their costs when it was their turn to sell the home. In this case, the client benefited by my fee exponentially.
Really? Home buyers in the US can write off their home inspection? No such luck up here.
Less than 30% for me. My houses are an average 7 years old. I do find defects but it’s a seller’s market so my clients typically just suck it up and fix defects themselves.
That’s news to me also in Minnesota. Maybe he’s referring to his state taxes, or the upcoming 2011 filings. It was a big “No way Jose” in 2010.
I’ve been inspecting homes a little over 8 years, and I can’t think of one where the repairs or recommendations did not excede my fee.
The best (or worst, depends how you look at it), was the second in a set of three inspections for a friend. This home (per the listing agent was in prime condition); the only problem was, the foundation was failing on the front of the home. The initial estimate for repairs (by an engineer & foundation specialist) was $55,000. That was just one issue at the home.
Like many others have stated, no home is perfect.
I find that nearly 90-100% of my inspection findings exceed my cost. To be honest most are exceeding by huge multipliers like 5x, 10x and some even more. Banks that winterize a home cause a ton of major issues when they think they are saving a tiny utility bill in reality they are helping to harm the overall market, but are to stupid to realize it.
Completely agree. Funny how that is. Even is they set the t-stats to a very low 44f, the cost would about equal what they spend for the winterizations, and wind up with a lot less problems.
In my opinion each inspection pays for itself in knowledge alone
i voted as 80% but 90% is likley a closer choice… only a couple times did I find less than my fee in necessary repairs- peace of mind is priceless however.
I’m told by clients that our average inspection uncovers between $4,500 to $12,000 of hidden or undisclosed defects. They can negotiate, walk or take "as-is’.
The past 2 years about 1 in 5 inspections flip, and we do a 2nd or 3rd inspection.
I would estimate my average hidden/ undisclosed defects at $2500 to $5000. I dont nit pick defects. I list them, but unless its a safety issue or will cause more damage… I consider it knoledge, not a MUST repair issue