Repair Cost Estimate by Home Inspectors

[Nalliah Thayabharan]

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

[Linas I. Dapkus]

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

[Joseph Hagarty]

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.

[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 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.

[Joseph Hagarty]

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.

[poliner]

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.

[Greg Veal]

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

[Joseph T. Burkeson, CMI]

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?

[Dale Duffy]

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!

[Joseph Hagarty]

Originally Posted by dduffy

Exactly Joe!

Thank You...

[Greg Veal]

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.

[Joseph Hagarty]

Greg,

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

[Dale Duffy]

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.

[Joseph T. Burkeson, CMI]

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.

[poliner]

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.