That is funny. I don't understand why they would ask you to discount your services but will not discount heir commissions. That is too funny. I have had close deals that I have helped out with the finacing. It is ok unless you are reaching in their pockets.

Hey Mike,

Great post and excellent questions. I would agree, if they can't afford the inspection..how do they expect to be able to afford the home. I don't negotiate in these matters also.

Sean Allen

Michael.. I love your response to this particular realtor.  Why doesn't she pick up some of the cost as a housewarming gift.  If the buyers can't *TRULY* afford the house.. they shouldn't be buying it.  Afterall that is what has gotten us (as a country.. in a whole) in this mess of foreclosures... people buying over their heads.  If I were this realtor I would be discussing with the mortgage consultant "why are they buying a home in $$$$$ bracket... they don't feel comfortable.  From what is sounds like, the realtor is JUST IN IT FOR THE MONEY... not her clients best interest.

I don't work for NOTHING, and neither should you.  Hold your ground. 

From her attitude (She hung up on me), I can't help wondering if it was the agent or the buyers that were so determined to get the discount.

Michael, I find it really amazing when someone wants us to discount the inspection----when it is already such a small amount of money. 

Come on Michael, that "poor real estate agent" was just trying to scam you to "help herself and her clients"   Your family doesn't need gas money or food money

All I can say is 'wow'.  She is making thousands of dollars and asking you to take $25 or $50 off of the price of your valuable service which is worth more than your fee.  You were right in saying 'no'.  I doubt the money would make any difference to the buyers.  If it does, then they have no right buying that home and she should know that.

I wish you'd had the courage to hang up on her.  Some agents are unbelievably rude and she was one of them.

Good on ya', Michael !  As a Realtor, I take the same tack when a client wants to talk commission or wants me to eat the transaction fee.  It's a matter of being strong and doing a good job.  i really am ashamed of a real estate agent who would try to extort part of your fee!
JimG

Michael, you are not the only inspector who has had that experience. I have had several over the past 22 years try the same thing on me. I have discounted my fee for cetratin buyers ... if THEY asked and the circumstance were deserving, but never if the agent asked.

If she really wanted you to do the job, yes she should have paid for inspection as a gift. By the same token if this Realtor gave you a large amount of business, why wouldn't you give her clients a small discount.  Don't get me wrong, I am not saying to do anything unethical, just a discount.  I do give my clients a break on my commision when they buy and sell multiple homes with me and I still do the same job regardless of the price.    

That she hung up on speaks volumes if you ask me. The comment about needing help with the cost of the inspection was just bullshit, plain and simple.  I understand the concept of paying less for something... it's just human nature.  To have never used your services before and ask for a discount right off the bat is a little presumptuous.  Your time and experience is worth every penny you charge.   Let 'em find a fly by night outfit to give them a discount.

I am really surprised she did not ask you to skip over a portion or two of the home... Wonder if her lawyer, her doctor, her accountant, her dentist offer a discount when she asks.

Amazing.  I have way to much respect for the home inspectors that I work with to ever suggest they cut their price.  The deal on the home inspection is between the buyer and the home inspector.  It doesn't sound as if she has her buyer's best interests at heart in any way.  Sad!

Michael - I do discount my services for repeat customers, and sometimes I pay for their home inspections also, especially if they don't want to have one. 

If one of my clients needs to save the money, or questions the value of a home inspection,  I let them know that there is no requirement to have one done. They then either find the money, or decide to go without. I will pay for a home warranty, but not an inspection for my buyer. I guess that shows where I see value.

I love that.....that's what I should use, when people ask me for a discount.....

Sounds like her Spanx were too tight for way too long.

This is one reason why I have the client call and set up the appointment and give them 3 or 4 brochures of inspectors that I feel do an outstanding job for the client.   First, I want them to choose the inspector, and secondly, "discount" always comes up lately.  I want the client to hear it from the inspectors mouth what their fee is, what their service entails, etc. 

I've been thinking back, and I don't believe I have ever set up the home inspection.

I have to tell you that this is really funny! I have never asked an inspector to lower a price. In fact I give my clients 3 inspectors and if they want to try to make a deal, I am not involved.

As an agent, we have to be the source of information and services but not do the selecting...

Oh, BTW I love your response "What part of the home do you NOT want me to inspect" That is priceless!!!

Great point and I love the way you handled the conversation, you gave me some great lines to use.

A sad story. I bet that the agent couldn't afford to pay for the home inspection either. She is working with clients trying to get them to buy ANYTHING so that she can get paid. I wish there wasn't room in this business for people like her. She won't last, but you and I will. Stick to your guns.

Great one, Michael. I don't appreciate it when I am asked to discount my commission and I would never expect anyone to do likewise. Way to stick to your guns. It sounds like the agent was doing her homework a little to late for her clients. I always prepare my clients for the upfront cost that they should expect. Thanks and have a great week, Jim

Michael,  I love what people think they have on paper.  Do they realize that the same kind of paper is what they write their checks with?  Either you have it or you don't. What on paper really means is that we worked the numbers to make it look like we're qualified when we actually aren't in real life.  Thanks for the post my friend.

Nice post! Unfortunately,this happens to me almost every time.I charge half the price of other inspectors in the area and they still want me to lower the price.These are usually on run down old forclosure properties toboot.It actually costs me money to do this job.and I have to other jobs to cover the expense of continuing education and certification.Pretty sad. 20 years ago a realtor sold me a property I had no business getting into and I lost tens of thousands $.I hope I can save buyers from the same misfortune. It would be nice to break even or make a living though.

Michael,

Good For You for Holding Your Own!  I can feel for the buyers and for you, but not for her.  Dont you hate it when someone asks you a favor, you say no and then instead of saying Thank you for at least considering it,  they Hang Up?  I might call her broker and let them know that she is Extremely UnProfessional.  Someone that acts that way is just Not Professional!  Some Brokerages do not want their good name associated with someone like that.  However, that may not do you any good either depending on the brokerage.  However, you do have a prior relationship with other agents in that office, so that should give you some credibility.  

Take Care & Have a Great '08!

I have had cases where the Buyer has done a home inspection, and we've walked away from the house. By the time they are into the 2nd or 3rd home inspection, it's costing them so much money, that I sometimes pay the home inspection myself (because I want to help my clients, and not because they've asked me to).  As a realtor, I would be very concerned, if they want to buy a 400K home, and tell me they can't afford the home inspection fee.  I give my clients a list of all the costs up front; sometimes even before we ever start looking at homes.  We don't proceed, if they say they can't afford the home inspection fees, or the legal fees, or the land transfer tax, etc.  I have also lowered my commission to ensure the client gets the home they want.  I don't like doing it, but if I'm acting on the best interests of the buyer (as opposed to mine), then I am willing to negotiate the commission, to ensure the Buyer doesn't lose the house.  No one likes to work for free, but I always try to put my clients first. 

If that agent asked for a break on the home inspection, does that mean the lawyer will also be asked to lower his fees?  It concerns me that those clients are already in over their heads, even before the house is purchased.

Sylvie

Michael - congrats on your feature!  You have an excellent point - why so much concern over the cost of the home inspection, and why not AT LEAST offer the split the "discount" with you? 

LOL - I liked the "what the heck does that mean"...as I thought the same thing. If you can't afford the house, then wait a year, save up money, then buy. The agent was wrong to not help out and was very rude to not only ask you for a discount, but also hang up on you.

I suspect the agent was foolishly trying to look like a hero to her clients by busting you down a few dollars just so she could go back and say "see, I saved you money! I'm such a stong negotiator!".

Sounds foolish to me!

Good, honest home inspectors and also good, honest appraisers (for example) work hard, they're experts in their professions and they're underpaid as far as I'm concerned!

Mike, I agree with you...if I won't cut my commission, why should I be asking anyone else to do that?

Grat response back to the agent. Trying to save a few bucks on the home inspection is not the smartest thing to do. Sometimes you get what you pay for. I am sure you are worth your full fee!

I just noticed the little gold star... congratulations bud.

It has never occurred to me to ask an inspector to cut his fee.  I guess I need to be more hard nosed about it!

I am a firm believer that if they can't afford a home inspection they should not be buying a home.  It costs money to maintain a home.  Maybe a few more months of saving money would be more appropriate,

In defense of agents,  how do you suppose they got like this.  I can tell you after 30 yrs in the biz.  We learned it from our affilaites who were all too willing to prostitute themselves to get our business and the existing culture.  It might be a stupid cup, print our flyers, take us to lunch or give us a FREE seminar.  What other industry works like this?  We expect FREE seminars and are they offended when the speaker tries to sell us his products to make us more productive.  We pick our lender or title company based on what they give us.  Why are we surprised by the results??

I never make an appointment for the inspection. I give a list to the customer and then it is their job to make the appointment. One could be legally liable if the inspector misses something.

Guy

Great post.

Love your response to this "agent." I set up home inspections for my clients when they request it. Before I set it up I remind them payment is due at the time of the inspection and the approximate cost. I never thought about asking for a discount and certainly don't promote this type of thinking.

The home inspection is an insurance policy on their investment, if they can't see the value then they need to be educated. I have had only one instance where I offered to pay for the inspection and it was because they wanted to use a fly-by-night inspector for the septic to save $50. If they can't afford an inspection they have no business purchasing a home.

BWAHAHAHAH

You nailed that agent..... You basically asked her to cut hers instead of you cutting yours. LOL

Her response made my day....

Cuddos to you. I have never asked an inspector to give a discount. I always leave it to the buyer to schedule the appts. They choose from a list and they decide if one fee over the other is better.

I never ask anyone in any kind of business to discount their fees. Everyone needs to make a living.

Hi Mike,

I hate to tell you this, but she was just trying to do her job, get the best deal for her client.

She went about it the wrong way and you felt insulted.

She might have already reduced her commission (I doubt it)

If she had phrased it differently:

Hi Mike, I have a young first time buyer couple, and was wondering if you could cut your fee for them and I will make it up to you by referring you more future business, it might have sounded better.

We all get a little righteous sometimes and say the wrong thing.  If you had said:

I'm sorry Ms. Realtor, things are a little tough right now, I won't be able to cut my fee.  Or

It really wouldn't be fair to cut my fee, I charge everyone the same thing, even the Realtors who send me a lot of business.

You might have kept the inspection and gotten future inspections from her.

When I teach new agents I tell them to keep the goal in mind.  For you that might be doing this inspection and getting referrals from her.

I hope you don't find this offensive. (My goal is for you to see another point of view, not to insult or offend you.)

All the best!

I find it amusing that Kevin thinks the agent was doing their job and trying to get the best deal for their client.  That's a joke.  The best deal does not alway equate to lowest cost, nor does it mean negotiating with trusted service providers! 

How about some other great advice to save some money, hire your step-brother-in-law who is familiar with construction to give it the once over.  I'm sure they would get a great deal then!

Michael,  Great Post.  I loved your response really good. 

I can understand how you would be upset about the agent asking you to reduce your commission (no one wants to take a pay cut) but really, was there any real harm in her trying? It sounds like she was just trying to go above and beyond for her clients (plus, imagine how good she would have looked to them if she was able to pull it off). She has every right to at least ask, and you have every right to politely decline. That's business!! However, the way in which she handled your response (i.e. hanging up on you) was rude, unprofessional and quite unnecessary.

I agree 100% - NEVER should we cut our fees and we should not ask our inspectors and vendors to do it either.

Michael, looks like you hit a strong point, good job on standing strong on your fees.  The amount we sometimes make doesn't make up for the risk sometimes.  I have to agree with you and your points. 

I was taught to recommend three of each professional required (before, during and after the escrow process) - inspectors, loan officers, contractors, whatever it may be. Then they need to call and arrange it themselves. Yes, there could be a liability issue if I "told" clients who to use, and made the appointments myself. It's a sue-happy society out there, so an ounce of CYA goes a long way!

Michael-- Great post...

Paula / Kevin--let's face it the agent was just plain rude... if she really was looking out for her clients she could have easily kicked in $25-$50 bucks to reduce the inspection. Her attitude was "it's fine if it comes out of your pocket, but don't dip in mine". She probably would have spent this much on a house warming gift anyway... 

However, I do agree Kevin with one thing, though. There is always a way to phrase a request in a more apealling way so that everyone can win. But it does not sound like she did that...

That sounds like a really rude agent. Sounds like you did the right thing. She could have kicked in the $50 bucks or whatever it was if these over extended clients were unwiling or unable to afford that. But seriously you are right. If this small amount made different in what the client could afford, then they were way over extended.

Morning Michael,

Another great post! But, really, man, I can't understand why you wouldn't help those kids out! LOL

I know your feeling, when I owned the Home Improvement business many an agent would want me to cut my price because their client was on a limited budget. I would reply, "so am I, my suppliers wond cut their prices, my hired help won't take a pay cut nor will my insurance company of the gasoline company reduce their rates and prices.

Sometimes I got the job other times I did not. Our prices were in line, fair and reasonable for the quality of workmanship. I slept well every night, as I am sure you do!

Have a great day.

Micheal, you said : I have to ask the real estate community a question. If you are not willing to cut your commission, then why ask a home inspector or any other service provider to cut the price of their service?

A good compromise would have been you and I both split the extra $50 or so for the clients. Besides, if I am cutting mine I would expect you to cut yours as well....

HOWEVER, I STRONGLY believe if the client wishes to have a home inspection they need to have the money to pay for it...period !!!!!!!!! You cannot go and buy a house and expect everyone to pay for you...if they can't come up with $300 for a home inspection how on earth does anyone expect them to pay that $500 ( or more ) mortgage ! And everyone wonders why we are in the market we are in ! Duh !!!!!!!!

FYI - I don't cut my commission unless there is no other option and I have never asked a Home Inspector etc to cut his fee's...just bad practice I believe ~!