Go Back   InterNACHI Inspection Forum > General Inspection Topics > General Inspection Discussion

Notices

General Inspection Discussion This is a place for general discussion about the home inspection industry. Try to keep the posts topical, but they need not be as specific as the other areas of this board.

Reply
 
LinkBack Thread Tools
  #1  
Old 4/7/07, 5:20 PM
Nalliah Thayabharan Nalliah Thayabharan is offline
New User
 
Join Date: Mar 2007
Location: Markham Ontario
Posts: 29
Please Note: Nalliah Thayabharan is a non-member guest and is in no way affiliated with InterNACHI or its members.
Default Repair Cost Estimate by Home Inspectors

Most of the Realtors like these estimates which they can use for quicker renegotiation to close the deal right away, rather than waiting for cost estimates from three different contractors..
But there are concerns about these estimates. including the following.
If a home inspector thinks he/she can provide a cost estimate based on only a VISUAL inspection, that covers hundreds of items in a couple hours, then that estimate is flawed from it's origin. It takes an exhaustive inspection by a competent professional in the field of those repairs, to make a proper cost estimate. Because Home Inspections are non-invasive it would most likely be an inaccurate estimate anyway that is why we call in experts. A home inspector does not look behind the wall, a professional competent contractor (Mike Holmes ?) may rip the wall apart to find the problem. MANY times the competent professional will indeed find more than the visual inspection done by the Inspector. The competent professional is supposed to do a more exhaustive inspection and when he finds more problems, then the process has served everyone very well, and the Home Inspector is just the beginning of this process The licensed and competent professional should be called in to do whatever invasive inspections are needed (more than just a visual inspection), discover ALL the items and related items that have been affected by the problem, and make repairs as needed. That Professional should give full warranty, and a detailed receipt of all findings and repairs so the Client has someone who is accountable for anything that may go wrong in the future.
Forum members opinions about providing written cost estimates in their inspection report is greatly appreciated
Nalliah Thayabharan
Markham ON
Reply With Quote
  #2  
Old 4/7/07, 5:49 PM
Linas Dapkus, CMI's Avatar
Linas Dapkus, CMI Linas Dapkus, CMI is offline
InterNACHI Member
 
Join Date: Mar 2006
Location: Lockport, IL.
Posts: 6,698
Default Re: Repair Cost Estimate by Home Inspectors

Leave the estimating to the contractors. We're Home Inspectors.



Linas Dapkus, CMI
Infraspection Institute Certified Infrared Thermographer Level III # 8510
Dapkus Home Inspections
Dapkus Home Inspections Inc. - No Gimmicks, No Kickbacks, Your personal contact information will not be sold to third parties. For 8 years & counting, quality home inspections is all we sell.
Reply With Quote
  #3  
Old 4/7/07, 5:56 PM
Joseph Hagarty,  CMI's Avatar
Joseph Hagarty, CMI Joseph Hagarty,  CMI is offline
InterNACHI Member
 
Join Date: Jan 2003
Location: West Chester, PA
Posts: 6,937
Default Re: Repair Cost Estimate by Home Inspectors

Estimations (from our Office) can be provided on a specific need basis but they are provided on an R&R and T&M basis.

Estimations are also provided on an Estimate basis and not in the form of a Proposal.




Joseph P. Hagarty
joseph.hagarty@comcast.net
Main Line Inspections, Inc.
Phone: 610-399-3675
Email: MainLineHI@comcast.net

http://pa.nachi.org/mainlinepa/about.html
http://www.householdinspector.com

National President / NACHI (2003-2004)
NACHI Education Committee Member
PA NACHI Certified Inspector # 01102902
Delaware Licensed Home Inspector # H4-071

Last edited by jhagarty; 4/7/07 at 6:00 PM..
Reply With Quote
  #4  
Old 4/7/07, 7:54 PM
poliner's Avatar
poliner poliner is offline
New User
 
Join Date: May 2006
Location: Vancouver, BC
Posts: 54
Please Note: poliner is a non-member guest and is in no way affiliated with InterNACHI or its members.
Default Re: Repair Cost Estimate by Home Inspectors

Personally I think our liability is high enough without adding an extra dimension of client conflict. I tend to add a link to my report with a download of estimated costs, http://www.cmhomeinspection.ca/downloads/Costs2007.pdf
Kind of gives them the answer in a objective way.
As a former contractor I can guarantee that many contractors like to score merit with clients by dismissing the last professionals input.
This is why even contractors give estimates and provisional costings.

Last edited by poliner; 4/8/07 at 12:37 AM..
Reply With Quote
  #5  
Old 4/7/07, 8:05 PM
Joseph Hagarty,  CMI's Avatar
Joseph Hagarty, CMI Joseph Hagarty,  CMI is offline
InterNACHI Member
 
Join Date: Jan 2003
Location: West Chester, PA
Posts: 6,937
Default Re: Repair Cost Estimate by Home Inspectors

Quote:
Originally Posted by poliner
Personally I think our liability is high enough without adding an extra dimension of client conflict. I tend to add a link to my report with a download of estimated costs, http://www.cmhomeinspection.ca/downloads/Costs2007.pdf
Kind of gives them the answer in a subjective way.
As a former contractor I can guarantee that many contractors like to score merit with clients by dismissing the last professionals input.
This is why even contractors give estimates and provisional costings.
Paul,

Where do you see incurred liability in a R&R and T&M scenario with regard to estimations?

In the performance of Commercial Inspections, Cost to Cure is many times required/requested in the delivery of a report.



Joseph P. Hagarty
joseph.hagarty@comcast.net
Main Line Inspections, Inc.
Phone: 610-399-3675
Email: MainLineHI@comcast.net

http://pa.nachi.org/mainlinepa/about.html
http://www.householdinspector.com

National President / NACHI (2003-2004)
NACHI Education Committee Member
PA NACHI Certified Inspector # 01102902
Delaware Licensed Home Inspector # H4-071
Reply With Quote
  #6  
Old 4/7/07, 9:15 PM
poliner's Avatar
poliner poliner is offline
New User
 
Join Date: May 2006
Location: Vancouver, BC
Posts: 54
Please Note: poliner is a non-member guest and is in no way affiliated with InterNACHI or its members.
Default Re: Repair Cost Estimate by Home Inspectors

Quote:
Originally Posted by jhagarty
Paul,

Where do you see incurred liability in a R&R and T&M scenario with regard to estimations?

In the performance of Commercial Inspections, Cost to Cure is many times required/requested in the delivery of a report.
Personally I do not think we are qualified to make the the costing call. There are too many numerous scenarios to mention that could lead to client disatisfaction in my eyes. The bottom line is it may give clients unrealistic budget requirements for a property.
Good luck to Inspectors who feel confident enough to quote numbers, but a few underestimates on a home could leave a client feeling badly advised.
My 2 cents worth.
Reply With Quote
  #7  
Old 4/7/07, 9:40 PM
Greg Veal Greg Veal is offline
InterNACHI Member
 
Join Date: Feb 2006
Location: Woodstock, GA
Posts: 513
Default Re: Repair Cost Estimate by Home Inspectors

I never give estimates to repair.
I have the ability to estimate cost (especially in areas of my so called expertise) as well as anyone, but I was taught not to wear that hat, while performing as H/I for my Client. Conflict of interest, SOP, etc.??
Why would we want to estimate cost of repairs. That's like telling the customer, "come and get it" when we under - guesstimate. I'll help by advising what type of service or contractor they should get with, but I stay away from numbers.
IMO
Reply With Quote
  #8  
Old 4/7/07, 10:09 PM
Joseph Burkeson, CMI's Avatar
Joseph Burkeson, CMI Joseph Burkeson, CMI is offline
InterNACHI Member
 
Join Date: May 2003
Location: Greater Tampa Bay
Posts: 21,301
Default Re: Repair Cost Estimate by Home Inspectors

Quote:
Originally Posted by gveal
I never give estimates to repair.
I have the ability to estimate cost (especially in areas of my so called expertise) as well as anyone, but I was taught not to wear that hat, while performing as H/I for my Client. Conflict of interest, SOP, etc.??
Why would we want to estimate cost of repairs. That's like telling the customer, "come and get it" when we under - guesstimate. I'll help by advising what type of service or contractor they should get with, but I stay away from numbers.
IMO
Don't you think your customer deserves to know the difference between major defects (items that will cost over $500 to repair) and the nickle & dime things used to fill up a report?



Yes, I'd personally choose a CMI every time over every other inspector. ~ Nick Gromicko, InterNACHI Founder


Certified Master Inspector - 2010
Florida Licensed Home Inspector - HI176
Florida Licensed Mold Assessor - MRSA208

Square-One Inspection "Assurance begins here"


Reply With Quote
  #9  
Old 4/7/07, 10:13 PM
Dale Duffy's Avatar
Dale Duffy Dale Duffy is offline
InterNACHI Member
 
Join Date: Oct 2005
Location: Scottsdale, Arizona, Cuenca, Ecuador
Posts: 9,118
Default Re: Repair Cost Estimate by Home Inspectors

Quote:
Originally Posted by jhagarty
Estimations (from our Office) can be provided on a specific need basis but they are provided on an R&R and T&M basis.

Estimations are also provided on an Estimate basis and not in the form of a Proposal.
Exactly Joe!
Reply With Quote
  #10  
Old 4/7/07, 10:24 PM
Joseph Hagarty,  CMI's Avatar
Joseph Hagarty, CMI Joseph Hagarty,  CMI is offline
InterNACHI Member
 
Join Date: Jan 2003
Location: West Chester, PA
Posts: 6,937
Default Re: Repair Cost Estimate by Home Inspectors

Quote:
Originally Posted by dduffy
Exactly Joe!
Thank You...



Joseph P. Hagarty
joseph.hagarty@comcast.net
Main Line Inspections, Inc.
Phone: 610-399-3675
Email: MainLineHI@comcast.net

http://pa.nachi.org/mainlinepa/about.html
http://www.householdinspector.com

National President / NACHI (2003-2004)
NACHI Education Committee Member
PA NACHI Certified Inspector # 01102902
Delaware Licensed Home Inspector # H4-071
Reply With Quote
  #11  
Old 4/7/07, 11:09 PM
Greg Veal Greg Veal is offline
InterNACHI Member
 
Join Date: Feb 2006
Location: Woodstock, GA
Posts: 513
Default Re: Repair Cost Estimate by Home Inspectors

Joe

If my Client (Buyer) ask "Do you think that will be expensive to fix or replace", I'll say that you need to contact a specialist in the field, but "probably no" or "probably yes".

I don't get into $$ because as we all know, it buyer beware. A repair on a W/H could vary from $65 to $300 on a given small repair and the cost to replace could go from $650 to $1500 to $3000, with the right salesman.

Besides, I thought SOP, NACHI and pretty much all of the major associations prohibit wearing different hats with the same Client.
Reply With Quote
  #12  
Old 4/7/07, 11:13 PM
Joseph Hagarty,  CMI's Avatar
Joseph Hagarty, CMI Joseph Hagarty,  CMI is offline
InterNACHI Member
 
Join Date: Jan 2003
Location: West Chester, PA
Posts: 6,937
Default Re: Repair Cost Estimate by Home Inspectors

Greg,

The service provided to a Client is dependent upon the contracted service to the Client.



Joseph P. Hagarty
joseph.hagarty@comcast.net
Main Line Inspections, Inc.
Phone: 610-399-3675
Email: MainLineHI@comcast.net

http://pa.nachi.org/mainlinepa/about.html
http://www.householdinspector.com

National President / NACHI (2003-2004)
NACHI Education Committee Member
PA NACHI Certified Inspector # 01102902
Delaware Licensed Home Inspector # H4-071
Reply With Quote
  #13  
Old 4/7/07, 11:22 PM
Dale Duffy's Avatar
Dale Duffy Dale Duffy is offline
InterNACHI Member
 
Join Date: Oct 2005
Location: Scottsdale, Arizona, Cuenca, Ecuador
Posts: 9,118
Default Re: Repair Cost Estimate by Home Inspectors

Greg,

I was a builder most of my life, and still flip properties, knowing current building costs is necessary...many inspectors are not builders, and those who are not, or do not have any idea what costs are, or don't know how to get them, should probably steer away from the practice.

With this experience, and knowing many many contractors in different fields of expertise I feel very confident giving "rough" estimates.

Repair estimates are needed doing commercial inspections especially, as Joe H stated.

I have never had a problem with anyone after giving a "rough" estimate...not a quote.
Reply With Quote
  #14  
Old 4/7/07, 11:34 PM
Joseph Burkeson, CMI's Avatar
Joseph Burkeson, CMI Joseph Burkeson, CMI is offline
InterNACHI Member
 
Join Date: May 2003
Location: Greater Tampa Bay
Posts: 21,301
Default Re: Repair Cost Estimate by Home Inspectors

Quote:
Originally Posted by gveal
Besides, I thought SOP, NACHI and pretty much all of the major associations prohibit wearing different hats with the same Client.
It is not an SoP issue, on the east coast of Florida from say Jacksonville to Miami attached estimates are expected and those who don't provide them are soon out of business.

I started providing them here in an attempt to differentiate myself from my competition but it didn't seem to matter then, maybe now that the market is depressed it will. I have over twenty years experience estimating projects and my software is designed to include prices for defects. In any case I always segregate major defects (those costing more then $500 to repair) from minor defects.



Yes, I'd personally choose a CMI every time over every other inspector. ~ Nick Gromicko, InterNACHI Founder


Certified Master Inspector - 2010
Florida Licensed Home Inspector - HI176
Florida Licensed Mold Assessor - MRSA208

Square-One Inspection "Assurance begins here"


Reply With Quote
  #15  
Old 4/8/07, 12:36 AM
poliner's Avatar
poliner poliner is offline
New User
 
Join Date: May 2006
Location: Vancouver, BC
Posts: 54
Please Note: poliner is a non-member guest and is in no way affiliated with InterNACHI or its members.
Default Re: Repair Cost Estimate by Home Inspectors

Interesting replies, but answers go to prove costing/estimating is a skill in itself. I still think its an area which opens up a great deal of customer dissatisfaction if HI's get it wrong. By definition costing entails diagnosing the nature of the problem, I would have thought the nickel and dime stuff in isolation would not necessarily create problems for Inspectors.
However it is the thin end of the wedge once you start, I would have though client are generally more concerned about expensive defects such as foundations/ roof structure etc. which is where giving costings based on a 3-4 hour non-invasive Inspection could be high liability.
Reply With Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
USA case law on Home Inspection rwand1 Canadian Inspectors 10 5/23/09 11:30 PM
Bungalows to Mansions Professional Home Inspection, LLC bgraham Miscellaneous Discussion for Inspectors 7 1/11/09 3:03 PM
Coeur d'Alene, ID Home Inspectors rspriggs Miscellaneous Discussion for Inspectors 12 1/8/09 5:16 PM
Home Inspector Listings Part Two jbowman Miscellaneous Discussion for Inspectors 8 8/29/06 8:52 PM

All times are GMT -4. The time now is 5:16 AM.
no new posts