I have been involved in the real estate business since 1991, first as a broker and then in 1995 I opened my home inspection business. Pricing was very simple when I owned my real estate firm, 6% was the common fee for listing with 3% going to the selling and the listing company. It's not so simple with home inspections!
Our pricing is all over the board. I just can't for the life of me understand why some folks want to give their service away (I know it is the same in real estate). In my area you can get an inspection on the same price, style and size home anywhere from $195 to $325. With an average in the $300 area. Very few inspectors know their cost of doing business and this is also one of the reasons that we have such a high failure rate in our profession. Sad but true!
What can one do!
I have been tossing the idea of changing my fee structure. Right now it is based on the square footage of the home, and how much time I think it will take me to complete the job. Real estate agents charge a percent of the sale for their commission, so they automatically receive a pay fee increase when the housing prices rise. While the inspectors who have a set fee are kind of stuck.
What do Y'all think about a % pricing for home inspections, based on the sale price of the home. Say something like 1/10th of 1% for homes over $400,000. So with this type pricing this house would cost $400 for a home inspection. On homes under that pricing I guess you could have a base price with a % or just go by square footage.
Comments, thoughts, etc!!!
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