Raising Fees

[ekartal6]

Good point Joe about appraisal apprenticeship requirements. Now you have to starve for two years first.

[ekartal6]

Originally Posted by jschulte

That's one fast appraiser. They must be very good....

On site time was always a breeze. Room dimensions, lot dimensions, note any very obvious problems that would have an impact on value then a few outside photos. The report process at that time was a nightmare. No software to search for comparable sales. Big, dirty manuals to search through - sometimes for hours. This was me circa 1989...

I'm assuming today's appraiser spends about the same time on site and perhaps an hour or two on the report. That's about 15-20 jobs per week for a good, efficient appraiser.

[sdavies]

Originally Posted by jmichalski

If I raise prices $50, it is less likely that I will maintain the same income level as I would need to produce the same amount of inspections, less 1 for every 6 inspections performed, but I would likely book them at a far lower rate since I will have now priced myself out of the price shopper market. So, I would market differently and more aggressively to higher end clients (a much smaller pool of potential clients) all the while, shrinking further the pool for future referrals.

I understand other models work. But they did not work for me, and I offer my experience as an alternative to those whose experience with a higher price strategy matches mine.

Well, its easy to see you motovation. Nick as you say "over priced method"
is not flawed, as I said if most inspectors embraced it. You want to be competative in a market and I understand your points but still disagree. We here are talking more about economics of the situation and less about marketing strategy. If you think your service has value then you need to price according to that value not according to the competition.

Let me refer back to one of my favorite people (Mike Holmes), Good contractors are busy and they charge a good buck for there services because the quailty is there. Good home inspectors are busy and should
also charge a fair value. As nick says we are underpriced in comparison to others involved in the industry. Agents, Apprasiers, Contractors. all dollar per hour get more than we do for our services that can save a consumer thousands, yet we get the bottom of the barrel when it comes to fees in comparison.

Originally Posted by jmichalski

I am not one that would subscribe to any association interfereing with my ability to position and market myself.

You stated that you would not let an association interfer with your ability to market yourself. Yet you want me to let you do that. Becuase your pricing strategy will effect my ability to market myself and set what I feel my service is worth. I will have to spend more time and money to explain why I charge more and in reality should not have to if the service is the same as yours.

I am not greedy when it comes to money and I see many companies charging big dollars for there services because the service has value. I know I will not convice people to raise there prices on there own but most will follow suit if somone else does. So if you see your comptetion raising prices you are probably going to do one of two things.

1. Leave your prices the same in hopes that you will take business away from the competetion. 2. Raise your prices so that you can retire faster.

Steven

[jmichalski]

OK - we simply have a fundamental disagreement over the issue.

To me, pricing does not occur in a vacuum. Few people in the world get paid what they are actually "worth". Entertainers and athletes make a fortune whie teachers do not. Is it just? No. It is established by what the market will bear, just as our prices are.

I don't begrudge anyone charging more - I just choose not to as it has worked brilliantly for me. You can charge $1000 per inspection or 3% of sale price, if you feel your service is worth it.

I am offering (as I often do) an alternative pricing strategy for newer inspectors since I found one that was successful, where the overcharging strategy was a failure for me.

[sdavies]

Joe, thats what make it a great forum for this. BTW, we also live in different countries which affect peoples perceptions and what drives there decisions.

Steven

[jmichalski]

Good point, there, Steven!

[ggreene]

I Think Nick's Point Is Hi Are The Only Ones Not Fleacing The Real Estate Industry. Appraisers, Insurers,title Companies,realtors And Lawyers Are All Laughing At What We Make . And Most Of The Liability Of The Home Being Sold Is On Us !! We Here Over And Over , I Don't Want You Ruining My Deal, From Realtors. If We Are So Important To The Deal ,be Paid Like You Are Important, And Do It Now!

[sdavies]

Originally Posted by ggreene

I Think Nick's Point Is Hi Are The Only Ones Not Fleacing The Real Estate Industry. Appraisers, Insurers,title Companies,realtors And Lawyers Are All Laughing At What We Make . And Most Of The Liability Of The Home Being Sold Is On Us !! We Here Over And Over , I Don't Want You Ruining My Deal, From Realtors. If We Are So Important To The Deal ,be Paid Like You Are Important, And Do It Now!

Give the man a cigar!.

Here is my last point on this issue that I want to say. After that I am going on to somthing else. I have read many of the differnet threads an opinion and respect them all. However. Lets be honest so that everyone get the real story. The lowest common denominator here is $. We all agree in priciple that we are at the bottom of the food chain in the realesate transaction (If you disagree, show me some proof). Also I think in principle we agree with the above that we take most of the liability in this deal ((If you disagree, show me some proof.)

So if the above are correct then how does anyone justify not rasing the fee to a average charged by the industry as a whole? Now I know what your going to say so please save me the whining and ******** about the competion as they should be reading these forums aswell. Point in case, I was @ an inspection with a company who advertises there rates opening. A 2000 sqr foot home was 460 + GST. The consumer happily handed over there CC for the services provided no issue. They said that they were more than happy with what they learned and how the inspection went. So if they can charge that and have happy customers then why cant we all.

Steven

[Nick Gromicko]

Ditto.

[Brian E. Kelly]

http://www.google.com/search?sourcei...mortgage+fraud

Lenders and appraisers go to prison for mortage fraud.