I see that a lot of people shop for inspections by price.  They may be spending $500,000 for a home but opt to find the cheapest inspection they can find.  What's wrong with this picture?  Making a major investment without getting the full particulars about that investment seems a bit wrong headed to me.  ALL INSPECTIONS ARE NOT CREATED EQUAL!  That may bear repeating; ALL INSPECTIONS ARE NOT CREATED EQUAL.  There is an old adage that "you get what you pay for".  In inspections this is very true.  Someone is doing cutrate inspections for a reason (usually they are trying to buy their way into the business).  It is unlikely that someone who values their service so low will do a very thorough inspection.

A better way to shop for inspections is to look at the background, experience and reputation of the inspector.  Certainly being a member of a National Organisation is a plus, but no guarantee.  Do they have E&O along with General Liability insurance?  Do they have any construction related background (again no guarantee, but I would want someone who has a good understanding of how houses are built)?  Are they formally trained? Classroom training with hands on experience doing supervised inspections is  best.  I would be wary of online training.  Do they price their inspections appropriately? (This means, do they value what they do?  If they value what they do, they are more likely to want to do a thorough job).  Lastly, do they actually spend an appropriate amount of time doing the inspection.  In Washington, with Home Inspectors also doing WDO (wood destroying organisms) it is very hard to do a single family home in under three hours (that does not include report writing time).  Larger homes, and older homes (locally up to about 120 years) will take longer, and should cost more for the inspection.

David Helm, Inspector

www.helmhomeinspections.com

 
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94 Comments on Discount Inspections

I agree that someone who does not value their service would probably not value there inspection. Thanks for the informative information on inspections. I have scheduled my first for next week.

05/08/2007 11:33 PM by Crossville Real Estate & Community Blog Christina Williams (FIRST REALTY Company Crossville )


David,

Home inspectors that charge less (the low ballers) have to make up the money they lost by short changing the customer.    Usually it is the amount of time spent to do a thorough inspection or the lack in customer service or insufficient reporting, but you can bet, if you charge less than you do less. They usually do three or four inspections a day.  And as you know, there is no way of doing a great inspection, unless you give it the time it deserves. Instead of worrying about making it to the next appointment, the best inspectors only book one maybe two a day, not to mention that a great home inspector will spend another 2 hours per 1000sf to finish the report at home.  As you said, with the price ticket of even a modest home these days a home inspection is a must.  My customers tell me, their home inspection was the best money they ever spent. 

But I guess this is true for all professions.  I am sure some realtor's can tell you stories of the low baller's out there too.  If one was to choose McDonald's over a Steak House, one expects to get less.....Right?       

05/08/2007 11:59 PM by Robert Cramer (Five Star Property Inspections)


I agree with your post. Another thing I would like to mention: Nationally, in news stories, we keep seeing figures showing an inspection should be about $200 to $300. Well, in Washington state where a full WDO inspection is required, and must be done by a licensed inspector, it takes longer to do a home. For that reason, prices tend to be a bit higher in Washington. Also, for the benefit of others on AR, home inspectors in many, to most, states do not perform wood destroying organism inspections. If that is done, it is often done by an applicator which, in this state, is often discouraged as applicators may have ulterior motives when looking for insects that eat or tunnel in wood.

05/09/2007 12:07 AM by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection)


Thanks for the comment Christina.  Good luck on your first one.

 Robert, I seldom book more than one a day. If I do two in a day, it is usually because someone was on a very short inspection contingency and/or waited too long to book it.  That three or so hours on site, and the two to three hours doing the report show the difference between real inspections and hit and run crap.

Steve, Right on.

05/09/2007 12:12 AM by David Helm, Bellingham,Wa. Home Inspector (Helm Home Inspections)


That's true, the work of the home inspectors are very valuable, becuase if we do not have a good one, we can be in trouble :) I agree David with you.

 

05/09/2007 12:17 AM by Aurora Colorado Real Estate Ray Saenz, Colorado Realtor (United Property Brokers, INC)


David, 

I keep looking your blogs when I can :)   keep the good work and blog ! :)

 

05/09/2007 07:02 PM by Aurora Colorado Real Estate Ray Saenz, Colorado Realtor (United Property Brokers, INC)


Thanks Ray.  I don't blog a whole lot because I believe that blogs should be relevant.  I have seen a number of blogs that seem to me to be blatant advertising without any real or relevant content.  I do comment on a lot of people's blogs and will continue to blog when I have something to say.

05/09/2007 07:06 PM by David Helm, Bellingham,Wa. Home Inspector (Helm Home Inspections)


David,

My friend, but blogging is good to your health :) your business, YOU ! :)   if you do not want to blog, that's ok, I understand that you want just to share relevant information, when you think that you will want to share something that is not relevant, do it on members only :) and in the proper section and you will not have a problem,  anyway, keep the good work ! :)

 

05/09/2007 07:40 PM by Aurora Colorado Real Estate Ray Saenz, Colorado Realtor (United Property Brokers, INC)


David

I agree with your post. Many time over the year my clients have commented that were glad that they had hired me to do their hime inspection and not the company that the buyers of their home. because that company was in and out of their house within an hour. 

 

05/09/2007 08:20 PM by Jim Watzlawick (Watz Home Inspections)


Ray, I really appreciate your comments.  Maybe I should revisit my thoughts on blogging.  I do know for sure that blatant advertising is not what I will do.  Maybe there are areas where I can talk about things that interest me.  I'll dig deeper into the various groups.

Jim, thanks, that is exactly what I am getting at.  The one hour specials, undercutting prices gives our profession a bad name.

05/09/2007 09:35 PM by David Helm, Bellingham,Wa. Home Inspector (Helm Home Inspections)


Dave,

Great blog! My inspections will typically take 2 to 3 hours on site, and another 2 - 3 hours to corralate the info and complete the report. I always encourage the buyer to accompany me on the inspection. My fees range from $300-$600. My clients get experience and thoroughness.

Alaska Don

05/10/2007 12:45 AM by Donald Sutherland-Inspector-Seward, Alaska (Marathon Constructors Inspection Services)


David. 

Great blog.  I see that I am in line with what you say.  I stick to my guns, when ask for price, and I am willing to  tell them which one of my competition are lower priced than me.  Consider it free added value for the telephone call.  I also mention that this is my cost to do business, which allows me to keep on top of new development, future training, and maintaining a viable business that is there to tell them they are getting a great product. I also mention the organization I belong to, and the added value they bring.

On some occasions I like to mention that as Home inspectors, we have not really gotten a fee increase for several years.  Prices of home inspections are fairly steady over the last few, maybe more, years.  Not to offed any RE Agents, but there percentage has not changed , but the price of housing has increased over time.  This means that they have gotten a raise indirectly, but HI are being asked to "Stay the Course".

I do also mention that for the price of the home, they are still getting a fairly cheap inspection even at the higher rates.  An exhaustive home inspection where I would bring in all the trades would cost between 5K to 10K.

Keep up the great blogging 

05/10/2007 08:01 AM by Bernard Loken, CAPM (Two By Twice Home Inspections)


Donald, Good to hear that your are charging appropriately.  Keep spending the time and being thorough.

Bernard, Yes, it is interesting that we don't seem to get the raises that others do.  In my area, there is no such thing as a house under $200,000 (and the 200K is a real "fixer-upper"). The majority of houses are $300K and up.  I've inspected a number of 1 to 2 million dollar houses.  And still, people shop prices for inspections.  The worst, to my way of thinking, is the RE agents who tell their clients that the inspection should only be X dollars.  I recently had a buyer, looking for a construction experienced, very thorough inspector, to inspect a rural property with two houses, a well, a shop that he wanted inspected.  I gave him what I thought was a very good price (remember, in Washington the HI also does WDO inspections) of $650.  He was apalled and told me he expected to pay $250.  Needless to say, I didn't get that job.  I personally am not willing to put my liability and reputation on the line for such a paltry sum.

05/10/2007 12:03 PM by David Helm, Bellingham,Wa. Home Inspector (Helm Home Inspections)


Since there is another blog complaining about price shoppers, I thought I'd pull this one back up.

07/25/2007 03:24 PM by David Helm, Bellingham,Wa. Home Inspector (Helm Home Inspections)


Hey David:

My time, effort and knowledge is worth the fees I charge. Infact, I am in the process of raising my fees due to increased cost of gasoline and most everything I need to buy to perform my job.

I was driving down the street the other day and here was a big sign saying, "home inspections start at $79.00";I thought I was misreading the sign so I made a turn-around and sure enough my old eyes were seeing right. My wife saw the same sign on her way home. We finally figured out it was a new inspector in town getting down and dirty. How in the world can anyone in his right mind even consider charging that kind of fee and why in the world would a buyer even utilize that person. My final comment was, you get what you pay for. I don't know what kind of inspection you will get for $79.

Carl 

07/25/2007 06:07 PM by Carl & Ceil Winters (Complete Inspection Service, New Braunfels, Texas 78133)


Hey, Carl, it might be a valid statement.  Consider this: I have an inspectio that I perform for home flippers who don't want a full inspection.  I charge $69-89 depending on the size.  It is an abreviated inspection, and doesn't check some of the things I check on my full inspection.  I can legally say, "Home Inspections starting at $69".  Will you get that if you call for a 1200sf home; not likely.  But I haven't lied or broken any laws.  Now, I don't believe in that type of practice; it violates my personal ethics, and I would be afraid of people thinking I do crappy work and not getting called.  But it is a valid marketing tool, one I've heard taught in college marketing classes.

07/25/2007 08:59 PM by Kenneth Miller (Jordan Hill Home Services, LLC)


Sorry if this comes off as a plug but this is what I have on my website and I firmly believe it.

Many people search the Internet for the lowest price possible when they are considering a purchase or a service.  You are more than likely spending between ONE HUNDRED FIFTY THOUSAND  and ONE MILLION DOLLARS or more to purchase your home.  Do you really want a " $199.00 special" inspection for your purchase?  Do you want to be one of 3 or 4 rushed inspections done in one day?  I am not the least expensive, nor the most expensive.

As a professional full time inspector, I limit myself to no more then two inspections per day in order to spend the time necessary to do a complete and professional job.  I will not rush or skimp on an inspection.  Your purchase and my reputation depend on quality, not quantity.

 

Shawn Martin

Martin Home Inspection Services

www.martininspect.com

 

07/25/2007 09:07 PM by Shawn Martin (Martin Home Inspection Services)


Exactly!  That's why I don't use my investor inspection price as a marketing tool.  Anything less than $250 gets me to thinking of the  saying,"If it sounds too good to be true, it probably is." 

07/25/2007 09:18 PM by Kenneth Miller (Jordan Hill Home Services, LLC)


When selling other items in the past I found that whenever I raised my prices I increased sales.

Every time I consider trying to out price someone I remember something a well to do friend onc`e told me.

Never sell to the low end if you want sucess.People have perseived value and it is part of psych 101.

Under price, and people will see you as poor quality,which is probably true.You might think you would care about a customer and give good service but would secretly do to inner resentment in your subconscious do less.

I proudly tell all callers I am not cheap but do more.So far all I get are compliments on being through.

07/25/2007 09:40 PM by Bob Elliott (Chicago Property Inspection) (Elliott Home Inspection)


I agree, Bob.  That's why I don't market that way.  When RR was at our chapter meeting, he discussed this very topic.  During the discussion, I came to the decision to market that way is essentially lying by ommission.  Is it wrong; every man needs to make his own decision.  I feel it is the same as a bait & switch.  Maybe this inspector feels different; maybe he is a $79 inspector.  The buyer will get what he pays for.  It's too bad he is hurting our image as professionals, regardless of what the truth is.

07/25/2007 10:02 PM by Kenneth Miller (Jordan Hill Home Services, LLC)


A couple of points.

E & O Insurance doesn't protect the consumer.  E & O insurance protects the inspector by providing funds to fight the consumers accusations.  Unless, of course, the inspector really screwed up.  Don't turn this into a E & O argument.  Start your own blog on that topic if you wish.

I'm a firm believer in charge what you're worth.  I think I'm worth a lot and prove it to happy clients everyday. 

Other people think they are worth less, and prove it to their clients everyday that they can book an inspection.

There's an inspector in my area who think's he's only worth $150.00 for any house up to 3,000 square feet.  Quite a few people (realtors) who have attended his inspections agree with him.

There's always going to be the low priced inspector.  When one goes out of business, another will come along.

There's always going to be the client who wants the lowest price verus a good inspection.

That's life.

Market your strengths and forget about the other sector.  Do what you think is best for you. 

 

07/26/2007 06:23 AM by Erby Crofutt, Central Kentucky Home Inspector (B4U Close Home Inspections & Radon Testing)


Shawn, It may be a plug, but it is right on.  If you don't mind, I would like to use it (paraphrased of course) myself.

07/26/2007 09:49 AM by David Helm, Bellingham,Wa. Home Inspector (Helm Home Inspections)


Bob and Kenneth, I couldn't agree more.  Let's all price things the way they should be priced.

07/26/2007 09:50 AM by David Helm, Bellingham,Wa. Home Inspector (Helm Home Inspections)


Erby, I'm sorry if I gave the impression that E&O protects the buyer.   When I put that in the blog  my meaning was to look at the totality of the prospective inspector.  If he/she has E&O it is just one more thing that shows the inspector is serious about the business.  I want an inspector who does everything to be professional.

07/26/2007 09:53 AM by David Helm, Bellingham,Wa. Home Inspector (Helm Home Inspections)


Going back to what ken said,he is right on.

I would never feel right using muyi-level tier pricing as a way to go after the lower level client.

Switch and bait would make me feel part of the problem rather than the solution.

My moniker sometimes uses 'owner operated consumer protection" and I certainly would not wish to become what I hunt.

There are plenty of people fooled by this type of gimick or it would not be used.

Those who see through it are the kind of people others look to,and those are the clients I want.

07/26/2007 10:45 AM by Bob Elliott (Chicago Property Inspection) (Elliott Home Inspection)


If you want a Yugo go buy one.

If you want a RR (Rolls Royce) then you will have to pay.

07/26/2007 05:09 PM by Mike Parks ESI, RBO ,RPI ,RIUI ,OMHI (Residential Building Inspectors)


Carl Here: Back to David's comment on 5 /9 indicating he only books one inspection per day or if a special need he will do two inspections.

Two per day is my limit. Sometimes only one depending on location and how far I have to driive. In our area most people have a septic, well and outbuildings. Water samples then have to be taken to drop off for testing. Therefore, we try to schedule two per day depending on the situation and location. If I am not able to accommodate the client, I then refer them to SATAREI. Usually they are willing to wait and if it is truly an emergency I have done a few on Saturday if in our area. Remember, we live in Texas and do alot of driving  and traffic is terrible. San Antonio and surrounding counties are growing in every direction. I guess we are fortunate compared to some other areas of the country, there is really no need (for me anyway) to discount. I take that back, if it is military I will try to help them as much as possible. I feel this is my way to help support the troops and military families. We are a military town and I feel the least I can do is try to let them know we appreciate their service.

07/27/2007 12:22 PM by Carl & Ceil Winters (Complete Inspection Service, New Braunfels, Texas 78133)


Sure David you can use it hope it works for you

 

Shawn Martin

Martin Home Inspection services

www.martininspect.com

 

 

 

07/27/2007 06:49 PM by Shawn Martin (Martin Home Inspection Services)


I wholeheartedly agree, you get what you pay for. If you want a $79 inspection, thats what you will get. $79 worth of nothing.

 Don Rider

EZ Rider Home Inspections

07/30/2007 07:30 PM by Don Rider Shreveport Bossier Home Inspector (EZ Rider Home Inspections LLC.)


Prices for Home Inspections are dropping because of thhe slow market.

08/02/2007 12:27 PM by Gary Porter (GLP's Home and Mold Inspections)


Gary ..you need to rephrase that to you have dropped your own prices in response to a slowdown in your business.

Most of us have begun increasing our prices.You need to let your clients know a good inspection is more important than ever and redouble your efforts.

Why lower prices that are already low ,as you may put your self and others around you right out of the market.

I spend alot of time with my clients and offer premium service with the extra time afforded by a slowdown.

Unlike the agents and brokers we do not work off a commission and should continue to charge what our time is worth,rather than cheating our own pocket book.We have more and more to look at in these places every year as codes for safety increase.

If someone is simply price shopping it is our job to educate them to the real world..

08/02/2007 12:52 PM by Bob Elliott (Chicago Property Inspection) (Elliott Home Inspection)


Don, Thanks for the comment.  I actually just received a report on a house I am selling.  Low ball price (for here) and a mediocre report.  You really do get what you pay for.

Bob, Thanks for chiming in.  I was going to respond to Gary, but you said evereything I was going to say.  So Gary, I agree with Bob.

08/02/2007 02:11 PM by David Helm, Bellingham,Wa. Home Inspector (Helm Home Inspections)


Here in Texas a WDI report is separate and regulated from the regular inspection.  The going rate here in Houston is about $300 give or take for a 2000 sq. ft. home. and the WDI is another $80 -$125.  There are "inspectors" here in town that routinely run general home AND a WDI for $225. Crazy!  Of course a lot of agents go for that since it is a one stop call and they are "saving" the client money with their "connection."  To produce a WDI report you are supposed to be a licensed PCO company by the Texas Pest Control Board. I wonder how many actually are?  These cut rate inspectors and agents hurt our entire industry, by giving the public a false impression of what real inspectors actually do.  The market should set the pricing, which is why inspection prices have not really gone up because these knuckleheads tilt the playing field to the cheap.  If we were smart as an industry we would set as SOP pricing based on a percentage of the price of the home.  That would have solved a lot of these issues.  I have to ask myself if an inspector does not have the business sense to operate on fair market forces and cheat and dilute, then what else are they doing in their business since they have obvious ethical elasticity.  

 

Jeffrey

IonHomeInspection.com 

08/07/2007 06:33 PM by Ion Home Inspection - Houston, Katy, The Woodlands, Sugar Land (IonHomeInspection.com - Houston Metro Home Inspection)


Thanks for the comment Jeffrey.  Cut rate inspections hurt us all, and give the industry a bad name.  I have already used your "ethical elasticity" phrase in conversation.  It is a very descriptive term for a number of people in and around the real estate industry.

08/11/2007 03:27 PM by David Helm, Bellingham,Wa. Home Inspector (Helm Home Inspections)


Price shoppers and "low ball" inspectors will always be a part of this business. The price shopper is primarily a result of the publics general lack of knowledge concerning our profession. As far as some are concerned a home inspection is a home inspection no matter who does it. When you receive a call from a price shopper use the opportunity to educate your prospective client by explaining to them what to look for in an inspector. 

Even if you don't book that inspection you will have given your prospective client tools to work with when calling around. An educated public would serve all of us well and if enough people knew more about what we do/should do, we might have the respect and appreciation this profession deserves. Those who choose to operate their business by undercutting all their competition have the right to do so but they are biting the hand that feeds them.

 

09/06/2007 10:08 AM by Vince Santos (StepbyStep Home Services LC)


Howdy David

I also only book 2 inspections a day. I feel if I would have to rush a inspection to get to the next one, I would not be doing the job I am being paid to do.

Have a good one

09/06/2007 05:58 PM by Dale Baker, Home Inspector- in NH & VT (Baker Home Inspections and Consulting Service)


My raw costs to perform an inspection are about $80.00 right now. Plus add the time it takes me to do the inspection, plus write up the report, upload it and print a hard copy, deliver the hard copy, explain the report and my findings, answer questions, and whatever else that might pop up. I honestly don't know how these guys that are charging between $200 and $300 are making any money off their efforts.

10/30/2007 07:10 PM by Scott Gilligan (Accuracy Assured Home Inspections, LLC)


Bob:

I upload the report in PDF format so the client can download it and print it themselves if they wish. For those that request a printed copy I will print it out for them. I try to use as little paper and ink in my business as my little contribution to trying to be eco-friendly. 

10/31/2007 12:43 AM by Scott Gilligan (Accuracy Assured Home Inspections, LLC)


What I am finding in Northern VA is that there are alot of guys who are cutting their prices right now because business is off by more than 50%.  A large number of inspectors have retired and others have found other jobs.  I've resisted cutting prices and continue to have a steady...but diminished flow of business.   I know of the price cuts by competitors because agents tell me what is happening.  

10/31/2007 06:03 AM by Bill Duncan (Home Status Inspection Company, LLC)


I had a guy call me yesterday about an inspection.  He said he had gotten a couple of quotes for $225 and one for $240, and why was i charging $309.  I explained that a lot of guys were working at subsistence levels to keep the door open, but I was busy enough not to have to do that.  I also explained that unlike a lot guys, I check all windows, doors, outlets, etc, not just a "representative" number.  His inspection is this afternoon.  Charge what you are worth, explain why you are worth that cost, and you'll probabley end up with the inspection.

11/01/2007 10:03 AM by Kenneth Miller (Jordan Hill Home Services, LLC)


Markets are different in different parts of the country.  I was having an off year up till about three weeks ago.  For the past three weeks I have been swamped.  No inspection during this time was priced under $400.  Keep those prices up and sell your strong points.  I just recently bought a house for the nightly rental market.  The price I paid for the inspection was six hours of my time.  That works out to over $500.  The money I made in renegotiation was $5000.  I call that a good investment.  In this market, where the average price of a home is $300K (not much more than a fixer upper) and most sell in the $350K to $950K range (Million and more are not uncommon), price shopping for an inspection is a fools errand.

11/01/2007 04:27 PM by David Helm, Bellingham,Wa. Home Inspector (Helm Home Inspections)


David,

I can't agree more about the foolishness of people who are price shoppers.  That's why I post my prices on my web site.  If someone uses that to get a cheaper inspection from someone else, so be it.   

11/01/2007 06:24 PM by Bill Duncan (Home Status Inspection Company, LLC)


Well, us Ms. inspectors are precluded by law from having anything at all to do with WDI, but if we did, my base rate would be in the neighborhood of $375.  No one, I repeat NO ONE, can adequately and honestly serve a client with less than 5 hours' work involved---and that is a bare minimum.  Even on a home with few defects, 2 hours per inspection (without WDI, of course), 2 hours preparing the report, 1 hour traveling to and from.  A more realistic estimate is 7 hours for most average sized homes.  Once the true cost of doing business is factored in, one is in danger of facing a negative cash flow on any inspection performed for less than $225.  Of course, if you happen to live in an unlicensed state, with no requirements for E&O or general liablility, license fees, and you kiss up to less than scrupulous realtors with a little 'r', then your costs are diminished considerably.  You who have already made the observation are absolutely correct...the lowballing inspector MUST acheive volume to make his plan work, and in acheiving volume, he MUST shortchange the consumer.  This is anathema to every ethical consideration.  One thing I've noticed....no one has piped up to defend the one-hour driveway specials, and for good reason....they are simply indefensible.

11/01/2007 10:45 PM by Jimmy Breazeale (Sherlock Home Inspections)


Bill, Thanks for the comment.  I don't post prices but maybe I should; except that there are times when I do convert price shoppers to clients.

Jimmie, How's it goin?  Haven't heard from you in a while.  You caught my base price (for single family dwellings) exactly.  I'll do condos for less, but not much less.

11/01/2007 11:52 PM by David Helm, Bellingham,Wa. Home Inspector (Helm Home Inspections)


David, Jimmy, Erby, Shawn, Bob, Mike, etal,

I told myself I would not make any more comments until I return from Baja in December. But you guys keep this stuff going, and so I have to jump in with my 85 cents worth. This has been a slow year, but I have not cut my prices and do not intend to. With regard to condos, townhouses, whatever, my rates are based on square footage and the ONLY exception I make is for active duty military personnel with a ten percent discount. I believe education is the key. My very basic pre-inspection agreement is a major key in my sales of home inspections. I also encourage the client to accompany me while doing the inspection, which gives me the opportunity to further educate and learn more about the client. After all, this is a small town and I will certainly be crossing paths with my clients in the future. Most have become personal friends and they provide excellent referrals. 

Keep the sun shining and a smile on,

Alaska Don

What is a champedek----must be from Jimmy's part of the country.....  

11/02/2007 12:39 AM by Donald Sutherland-Inspector-Seward, Alaska (Marathon Constructors Inspection Services)


I have never heard of a champedek, and have long since stopped looking up the goofy, usually useless words at the ends of these threads.  I just type 'em in like they want me to.  But, if I had to guess, I'd say it has something to do with an attached, roofless structure on the back of Mohammed Ali's house.  I guess.

David, all is well.  I went underground for a while to refocus and figure out a survival plan for this stinking market.  I will say that part of that plan does NOT include cutting prices, or in any way trying to compete on that level with the fly-by-nights.  As one of our very own Mis'sip'i fav-o-rite sons, William Faulkner, might have said, "He ain't dead, nor even dying, but rather searching as the pioneers of old, cresting one ridge, looking into the next valley below, his eyes scouring the terrain for whatever might be useful; yet not stopping, or even slowing down, casting fertive glances and cupping an ear to the next ridge, the far horizon---for however much may be found in the present valley, that, too, will be consumed, is indeed already obsolete, exploited, given over to the ever ravenous needs and desires of a voracious human appetite."  At least, I imagine Faulkner would have said something like that.

11/02/2007 02:42 AM by Jimmy Breazeale (Sherlock Home Inspections)


Jimmy,  If he didn't say it he should have.  I am somewhat impressed about the legs this blog post has shown.  Obviously, pricing and lowballing is an important issue among quality/ethical inspectors.  Thanks everyone for keeping this subject to the forefront.

11/05/2007 09:09 PM by David Helm, Bellingham,Wa. Home Inspector (Helm Home Inspections)


You are absolutely right Gene. Thanks for the comment.

12/01/2007 11:37 AM by David Helm, Bellingham,Wa. Home Inspector (Helm Home Inspections)


What are your best ways to convert a price shopper to a client..... care to share?

I'll start with letting them know I provide a color coded computer generated easy to read report and a picture album with arrows pointing to the issue with a written description.  The report will be e-mailed by the next morning to them and anyone else they direct me to deliver it to.

Please add to this.

12/09/2007 04:13 PM by Rick Harrington Specialist--Infrared Residential (Ohio Association of Home Inspectors, LLC)


Hi Rick, I start by talking about who I am and what I do (qualifications, etc.).  Why is my inspection more expensive than Joe Flybynight's who only charges (you fill in the blank).  I ask what they are paying for the house and wonder aloud if a cheap inspection adequately protects that major investment.  If they are still on the line after this, I give them my price and proceed to book the inspection.

12/17/2007 10:23 AM by David Helm, Bellingham,Wa. Home Inspector (Helm Home Inspections)


Hi David, this is my first post on active rain and thought I would give my two cents worth.  I try to put off the inevitable question of:  "what does the inspection cost" as long as possible.  I usually start out with "tell me a little about the house" to get the conversation going.  I want to know what is involved----are there four separate crawl spaces, three separate attics, a second kitchen, 200 years old, etc.  I will give them the link to my website where they can see a sample report and that gives me the opportunity to talk about the level of detail I go to and why.  I also ask them what concerns they have about the house already.  I want to connect with them on the phone and in a sense show them how they are getting their money's worth already.  I rarely get turned down based on price----and the ones that areonly interested in price I would just as soon they pick another inspector.  I want the buyer to know that they will be taken care of.  A lot of the homes I inspect cost more than $800k, and the $500-600 cost of the inspection really shouldn't be relevant in the overall cost of the transaction----if it is relevant to the buyer, they just doesn't want the service I provide---which is fine with me.

12/23/2007 12:01 PM by Charles Buell, Seattle, WA, Home Inspector (Charles Buell Inspections.com)


Hi Charley,

Good to see you finally putting in your 2cents here on AR.  I couldn't agree with you more.  I also get as many details as possible about the house, especially since my pricing is based on size and age, along with special features like two furnaces, etc.

Hope you have a safe and enjoyable holiday.  I'm working tomorrow and the 26th.  Kind of surprised by the last minute inspections for 2007.

12/24/2007 12:12 AM by


Sorry folks, looks like I wasn't logged in when I posted my remark.  The previous one was from me.

12/24/2007 12:14 AM by David Helm, Bellingham,Wa. Home Inspector (Helm Home Inspections)


David,

 

I hope as many realtors read this as inspectors. Most of the folks I work with in Skagit County seem to get the value we bring to the table and I am seeing less price shopper than I have in the past. One of my goals is to increase my prices each year and we raised our prices 15% in 2007 over 2006. I hope to do it again in 2008 especially considering the increase in fuel, electric and insurance. The trick is to demonstrate value to our clients and the realtors who direct clients toward us.

 

//Rick

 

 


Rick Bunzel 
Pacific Crest Inspections

Affiliate of the Year 2006-2007
WWW.PacCrestInspections.com
360-588-6956
Fax 360-588-6965

Toll Free 866-618-7764

 

01/03/2008 04:54 PM by Rick Bunzel (Pacific Crest Inspections)


I think this is so true. Here in PA some companies are less expensive but they do not do a thorough job.  One company who was more than others was the worst inspector and did not check everything on a $500K house!

01/03/2008 09:44 PM by Vincent Coccia (Construction Services Integration)


Hey David,

Well I agree with you to some extent on the pricing of Home Inspections lately. Unfortuneatly our profession has become so saturated with new inspectors, that other inspectors are having to lower their price just to remain competitive. That is the case here in Indianapolis. There are actually inspectors here who only charge 195.00 to do inspections. That really hurts the profession, because no matter how you look at it, the consumer will almost always go for the cheaper price. Think about it, if there are two stores offering the same kind of Milk, and one is 3.09 a gallon, and the other is 1.99, where do you think the consumer will go? I know Milk is a lot different than a home inspection, but it is the same principal. The Market and competition are driving our prices down, and until the market rebounds, we are going to have to find a way to sink or swim.

Mike Chamberlain, MICP
MC2 Home Inspections, Indianapolis
www.mc2inspections.com

 

01/04/2008 07:01 AM by Mike Chamberlain MC2 Home Inspections, Indianapolis (MC2 Home Inspections)


Mike, I have to disagree here.  While the milk analogy is all too accurate, milk is milk no matter where you buy it.  If an inspection is an inspection why shouldn't the price go to the lowest bidder?  As long as you actually offer something of greater value than the $195.00 inspector, you should be able to charge more.  While there are always going to be people that are going to go for the cheapest inspection they can get---are they really the type of client you want to inspect for?  I rarely loose an inspection due to price. (visualize me knocking on my wooden head:)

01/04/2008 10:02 AM by Charles Buell, Seattle, WA, Home Inspector (Charles Buell Inspections.com)


One problem we face as home inspectors is that many look at our work product as a commodity and not a professional service.  Another issue that I see would revolve around the buyers agents who shop for the lowest price for their client.  They think that they are doing them a service by saving them $50 when it could end up being the most expensive inspection they ever had done.

With so many inspectors getting out of the profession during this market slowdown, it won't be long before we see a shortage of inspectors.  Once the market picks back up, I have a feeling that the supply and demand will help to increase the price of an inspection.

01/04/2008 10:13 AM by Scott Patterson - Middle TN Home Inspector (Trace Home Inspections)


I see this too often. It's something that never ceases to amaze me. I'll refer inspectors who I know will do a good job only to have my client end up hiring a different inspector. Number one reason - price. Usually this ends up being a big mistake. You know the adage - you get what you pay for.

01/04/2008 09:48 PM by Jim Albano (Prudential Damiano Realty)


Touche' Charles, that does make sense, I am just not sure if the consumer really recognizes the greater value over the 195.00 guy.

I have a feeling you are right Scott. Let's hope so!

01/13/2008 05:41 AM by Mike Chamberlain MC2 Home Inspections, Indianapolis (MC2 Home Inspections)


I see a lot less price shopping going on in Northwest Mississippi these days, mostly due to the fact that there are a lot less inspectors to price shop.  Ironically, it's the lowballers who didn't put much thought into their pricing, or those who were misled into thinking volume + low price = success who have packed it in.  Once the volume was gone, their marketing plans went down with the toilet paper. I'd have been flushed, too, if I hadn't retooled into other kinds of inspection work.

As for the future, we who have survived can expect better times.  But as the market reappears, so will the cheap inspection.  The buying public, by and large, still are not saavy consumers of home inspection services.  That's why they rely on their agents so often.  Scott is correct on his point concerning the inspection viewed as a commodity, but at least most realtors now realize the difference. 

01/14/2008 12:20 PM by Jimmy Breazeale (Sherlock Home Inspections)


Well I have been reading this blog for a bit and I feel it's time for me to wade in as they say. Just abit of info about me. I have 12 years construction experience, stopped doing it because of the track builders. I watched as houses went up in 7~9 days total by some subs that I will not dsicuss. Decided then that what I was seeing was poor workmanship. How can one 25 year contractor who only has a ersidential building inspection license co ordinate 20 homes being built in one subdivision simultaneously? I decided it was time for me to become a home inspector. I offer 6 different types of inspection all priced buy sq. footage. My lowest priced H.I. is $300.00 for any house up to 1000 sq ft. and the price goes up from there. I offer different types of inspections as well from a basic no frills inspection at the low end of the price scale up to a complete HEALTHY HOME INSPECTION that includes a radon test and indoor air quality samples at $749.00 for the same 1000 sq ft. house and price goes up from their as sq. footage increases. I have had many price shoppers over the last 3.5 years and when they tell me they are pricing out a Home Inspection I ask them how much are they paying for their house. No matter what price the give me I repeat it and say " wow thats a big investment" and the say here let me help you out. ANd I give them a list of about 8 or 9 questions to ask all the insspectors they call. I then say " you are making a large investment in this house and I want you make an inforemd choice because X amount of dollars is a lot of money. Please call me if you have anymore questions. I never give them a quote over the phone and before I hang up I ask them to please let me know when they have chosen one. I thank them for their time and wish them good luck. The next day or two a lot of them call me back and say " you know we were so involved with all the questions you gave us to ask we forgot to write down you quote" I ask them if they have made a decision and if they haven't them I give them my list of qualifications and ask them if they match all the questions they have been asking, by this time they have already decided they want me to do the inspection and I ask them to wait a second so I can check my day planner to see if I can fit them in. If I can then I ask them which home inspection type do they want I give them the price and tell them I will be sending over my contract for them to sign.

 

I lose some this way but the way I see it if they want a $179.00 inspection then they can have one. I prefer to deal with customers that make an un emotional decision.

02/25/2008 08:12 PM by Mark Reusch (A Major Inspection Service & Consulting)


So Mark when doing a fifty dollar inspection, which defects do you leave out?

Just curious.

02/25/2008 10:42 PM by Bob Elliott (Chicago Property Inspection) (Elliott Home Inspection)


Where in my post does it say I do a $50.00 inspection. Did I have a typo???????

 

02/26/2008 02:21 PM by Mark Reusch (A Major Inspection Service & Consulting)


Hey David - Looks like your great blog material is being recycled one more time. It really has been good that so many inspecors have had the opportunity to express themself.

Since May of 2007 when you first published your blog much as happened in the industry. I can tell you that I don't see some of the inspectors around that was once in the business. Why they left I do not know but I do have my suspects. I have not seen as much price shopping as we did for awhile. I have not changed my price but should since the price of fuel has gone up. I still do my two inspections per day; one if it a large home and I have to drive a long way. The industry is tight but the people that are  purchasing don't seem to have a problem with the fee and welcome the opportunity to have a good thorough inspection.

So, just wanted to let you know I'm still around. By the way, am I correct, are we both now 65 and going strong?

02/26/2008 04:38 PM by Carl & Ceil Winters (Complete Inspection Service, New Braunfels, Texas 78133)


Hi Carl,  Yes you are right.  We are both 65 and still humpin!  Best thing about turning 65 is that (with Medicare and supplement) I now actually have health insurance that covers things besides catastrophes; and for considerably less money!  My year started out well, but late February seems to have dropped off!  I may never know how to plan for this business.  The more I know about it the less I know (I'm talking about marketing, not inspecting).

02/26/2008 06:41 PM by David Helm, Bellingham,Wa. Home Inspector (Helm Home Inspections)


David you are correct. We wake up in a new world each day and take whatever is thrown our way and fortunately our years of "wisdom" will get us to the finish line.

Take care