Originally Posted By: jfunderburk This post was automatically imported from our archived forum.
Quote:
The inspection service is not tied to a closing. One has to ask oneself, why would a client want to pay at closing?
They want to delay payment because it's money not direclty out of their pocket. Quite often, the seller pays closing costs, including the home inspection. Or, the bank rolls the inspection and all other closing costs into the amount of the loan. In both cases, the money doesn't come directly out of the client's pocket.
It is very common here in my part of the Carolinas for HIs to let it go to closing. If I refuse, many Realtors may find someone else. This is my first year, and I feel like I have to bend over backwards to gain new clients--offer service above what the other guy does. This is part of my service. I've done > 130 inspections this year and haven't been stiffed yet. In fact, I prefer to be paid at closing because it's an average of 10% more that I gain by waiting. But I think 4 months is a little excessive!
I like the idea of limiting it to 45 days. Who wouldn't wait 45 days for 10% more money?
Originally Posted By: mboyett This post was automatically imported from our archived forum.
This is about the umpteenth time this has been hashed about this year but let’s do it again anyway. I accept payment at closing but charge even more than Joe, I add 16% ($40 on a $250 inspection). I do like the idea of limiting the time frame to <45 days. I also really like Dave’s process of comfirming with the title company or wherever the closing is to take place that they have my invoice and I’m on the list to be paid. I’m going to implement that as well. I’ve done 4-5 payments at closing this year and no problems so far. I do realize there is a risk but I’m willing to take that risk to help the client if that’s what they need. One thing I’ve thought about doing that would lessen, but not eliminate, the risk is to hold a check from the client until I received the closing check then return or destroy the client’s check, whichever they wanted. That way, if closing didn’t take place, you would have a marginal better chance of collecting.
Originally Posted By: dspencer This post was automatically imported from our archived forum.
Something to think about…
For those with Insurance:
Until a Payment has been made a report is not valid for Insurance coverage. I explain this to my clients before I even go over the report I need a check.. Why they ask..it is my Insurance Co policy and when payment is made my policy goes in effect for that property and their/our protection before report is discussed....check is then in hand and/or appointment set ![icon_biggrin.gif](upload://iKNGSw3qcRIEmXySa8gItY6Gczg.gif)
Originally Posted By: rgallahorn This post was automatically imported from our archived forum.
Joe,
Must be a South Carolina thing I have changed my pricing around and it considerable reduced my “carried to closing”. I increased my prices $50 per inspection across the board and then offered a $50 discount if paid at time of inspection (cash, check, cc). People always are looking for a deal and get excited about paying at inspection. This practice has dropped my accounts receivables from 10-12k to about 2.5k. It would be a good idea to have the client sign an " obligation for payment" or take a credit card for reservation for payment.
Originally Posted By: mboyett This post was automatically imported from our archived forum.
rgallahorn wrote:
Must be a South Carolina thing ![icon_smile.gif](upload://b6iczyK1ETUUqRUc4PAkX83GF2O.gif) ......my accounts receivables from 10-12k to about 2.5k.
Based on the % of clients that want to pay at closing for me then I would have to be doing >800 inspections per year to have a number like that. I've got a ways to go.
Originally Posted By: msylvester This post was automatically imported from our archived forum.
I’m with Jae No Money no report.
I had a client tell me he left the money at home, "I'll mail it to you Mark".
My comment was "I will do the Inspection but will not release the report to anyone until I get paid". He was on his last day of the contract. Wow it's amazing how fast people will come up with the cash. He had it dropped off during the inspection by his Wife. I have never been stifed on an inspection and want to keep it that way.
Originally Posted By: bemelander This post was automatically imported from our archived forum.
Joe,
I agree it is a business decision to accept at closing.
I do accept payment for an additional charge. By doing this I get the some of the inspections that may have gone to another inspector.
I have them sign a payment agreement. In short it states they have 60 days to close or they must pay me direct. It also states the check must be in my office 3 days after or they pay a surcharge of 20%. Also they are responsible for all collection fees/attorney fees resulting in collections.
I send a copy of the invoice to the title company and their Realtor.
Originally Posted By: rmoore5 This post was automatically imported from our archived forum.
ALWAYS collect at time of inspection ???
Thats what I Do , never had a problem....Sometimes they will ask me to invoice them, I tell them I don't invoice,
" NO check , NO Inspect". A good slogan to live by in this business after you have been burned....... NEVER wait till closing.............
Originally Posted By: jjacobs This post was automatically imported from our archived forum.
I have had 2 or 3 requests in the last couple of weeks to be paid out of escrow. It had never come up before. The first 2 were residential inspections and I was able to persuade the clients to pay at time of inspection by mentioning a 20% surcharge if payment was not made at time of inspection. Now, I have a commercial insp. scheduled for Sat. and they insist on paying through escrow. It will be a fast escrow; supposed to close Dec. 30. It is a straightforward, rather simple commercial inspection–$350. I certainly will take the advice offered earlier re: the 30 day rule,and attorney/collection fee clause.
Any thought on waiting for payment on commercial inspections?
Originally Posted By: mboyett This post was automatically imported from our archived forum.
I’m sure there are arguments both ways but it’s my opinion that there is even less risk of not getting paid with a commercial inspection. As a commercial/industrial facilities manager for many years I would have quickly paid any outstanding invoices on properties even if due diligence led to me not buying/leasing the property. Add the 20% surcharge & go for it.
Originally Posted By: briddle This post was automatically imported from our archived forum.
I have a large Realty Co. in my area that pays only at closing.I know I work for the client,but the Realtors set up many of my inspections.And this is the way they prefer to do it. There has been 2 occasions when the buyer backed out on the deal and I was still paid.From the deposit(I think).So in my opinion,unless you can afford to lose the inspection,It’s usually not that big of a deal to wait a month for the money.Or maybe thats just me.