Wow......what a pain.  How many times do people come to you and ask you to cut your commission on a sale ?

When it happens, you think.....I have put hundreds of hours into becoming the professional that I am, and spent thousands of dollars to be able to offer top quality service ( not to mention the nice ride to show I'm sucessfull !).....don't ask me to give my services away for any less than what they are worth !

Hey, I hear your pain.  That's how quality inspectors feel when they are told their prices are too high, just because an agent seeks out the cheapest inspector for their client's sake.....(as if they are doing their client a favor to find the cheapo).

I was a contractor for many years and I would take a bit of wisdom from that experience. When you hire the cheapest bidder, you don't always get the best work.  Take a simple example like painting.  A professional will spend from 60-70% of his time doing prep. so the final product will be superb, and will use the best paint he can find.  A jack-leg will skip all but the most obvious prep and use cheap paint that won't cover or last. A splash and dash artist.

But here's the irony.  The average homeowner can't tell the difference because he/she doesn't know what to look for. All they know is that it was a purple wall yesterday and its a yellow wall today.

Until they have had some time to live with it.  Until they see it in a different light.  Until someone with a sharper eye comes and begins to point out the obvious flaws.

Eventually the shortcuts reveal themselves but it is too late.

Now when inspectors take shortcuts, when they try to do volume, (3 inspections a day for say $175-$250), they are going to miss things. In the end, who is it going to cost ?  The poor client, that sad case the agent was trying to help save $50- $100 dollars.

Now that poor client who was trying to save a few bucks has an undersized HVAC that won't cool his house in the summer because the inspector skipped checking the capacity, or has a rotting roof because he did not catch the fact that the flashing was loose around the chimney. 

Now they are facing hundreds of $$$ of replacement costs because the inspector had to rush through the job to make up for his cheap price.

Frankly, I think inspectors should charge on average at least twice what they do now, considering the extraordinary liability they face.

So the next time someone asks me to cut my price because someone else is $50 - $75 cheaper, I think my reply will be: 

'Sure......what would you like for me to leave out of the report ?'

( Or perhaps, would you rather give your clients a free inspection ?  See my blog entry on our Lowes Affiliation and the 10% coupon we can offer)

Philip LaMachio,  Advantage Inspection Clear View

 

5 Comments on Cutting Your Comission and Cheap Inspections

I agree with what you are saying.  I align myself with the people I consider to be the best - not the cheapest - I don't feel that cheap is in my clients best interest.  I recommend, usually, 2 service providers for pest, home inspection and lender.  Each of these people are people I would trust with my family and I know to do a good job.  I agree, discount prices should not be the way to go, quality is always the best route.

02/14/2008 10:10 PM by June Piper-Brandon, CRIS, ePro, Broker (Advance Realty Anne Arundel Inc.)


In our area there is a price war going on between inspectors. The least expensive one is actually doing well...

02/14/2008 10:14 PM by Exit Realty-Creative Group


I love your "comeback", but ultimately we need to decide if we're willing to let a client walk...or are we taking the gamble that we won't lose them.  That's the tough question.  I like this post.

02/14/2008 10:34 PM by Larry Bettag - Cherry Creek Mortgage


For Donna Trevino:

Remind me not to move to your neck of the woods.  

Simply too much liability and years of experience involved to play that low-ball game. 

Its a bit of a sad commentary really, that people only care about cost.  I mean, if the same price war thing was happening with heart surgeons, would you go to the cheapest ?

Of course the cheapest one is doing well.  If your collegues were offering 3% comissions I guess they would get a lot of buisness.  Then to be competitive you could offer 2%.  And so on......at what point does it no longer pay to get out of bed ?

For June Piper-Brandon :  I like the way you think. Our expertise has been too hard fought to give it away for nothing.....

02/14/2008 11:03 PM by Philip Lamachio (Advantage Inspection Clear View)


Kudos to you. My clients (when acting as a buyer's agent) deserve an inspection from an informed professional who is unafraid to say the property is a money pit. Some agents may want a cheap inspector that will understate or "overlook" serious problems that may kill the deal and cost the agent a quicker commission. Whatever is in the client's (buyer's) best interests is in the real estate agent's best interest. More than once the inspection revealed problems where both the inspector and I simply informed the buyer not to buy the property. In every case we found a better value and purchased another home.

If I am representing the seller, the strategy is different. I must disclose "material facts" or known problems and be honest, but, it is usually the buyer's responsibility to handle the inspection. It is amazing how many times cheap inspectors are hired and complete the inspection which is completed in less than an hour. You do get what you pay for. 

04/06/2008 08:21 AM by Harold Noell, President, Exit Realty Carolina


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Inspector: Philip  Lamachio (Advantage Inspection Clear View)
Philip Lamachio
Greensboro, NC
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Advantage Inspection Clear View

Office Phone: (336) 327-5523
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