What comes next

[Rudolf Reusse]

What comes next?

Waiting for my business phone to ring - it did not even ring once in the last 7 days - I visited several websites to find out whether my competitors have started already to lower their inspection fees to stay afloat. It seems that the majority of home inspectors in the greater Toronto area are still asking for at least $300.00 to $325.00 to inspect a home of up to 3.000 sq.ft.

However - I accidentally found one practitioner with a brand new marketing gimmick. He promotes that his inspection fees become due only at the closing date of the inspected property. He must be a misguided newcomer to the business.

RUDOLF REUSSE - Home Inspector since 1976 - TORONTO

[Jeffrey S. Campbell]

right good luck with collecting those fees on all the properties that do not close for various reasons. yikes.

we've seen a reduction in inspections as well but holding firm on our pricing... I did speak to one inspector at a training class who claims to be busy at 250.00 for any size home... i don't think I will be doing those...

[bjones5]

Rudolph....With your years of experience, you've probably been in a few down cycles. As long as you hold firm and it seems you will, your phone will ring. eventually.
Up where I live, sales are down 40% according to a local realtor so I guess there's a few phones not ringing.

[cboyd]

Rudolph, I am still holding mine at $325 here in the Ottawa valley and get no complaints about the price except from a few agents. I have done some new townhomes in the area for $300,(quoted 325 but charged them 300 after) just because they are quicker and new, but used of the same size would be 325 I have a few agents in Ottawa tell me I was on the low side. Go figure. I don't think it's price keeping the phone quiet, we just will have to weather this out.

[hlowe]

Hey Rudolph !

I work the Durham area, mostly, with the occasional Toronto inspection, and even though inspections are down, significantly, I never drop my prices. My base rate is $375.00, for up to 2000 sq. ft. Beyond that, I charge .06 cents a sq. ft., & & &, and I'm always looking for ways to add ancillary sevices. If you use these slow times to educate yourself in mould, radon, infrared thermography, W.D.O., W.E.T.T.; you'll
find it easier to ride out the rough seasons ahead. Never give up! Never lower your prices! It will ultimately ruin both you, and the industry!

[George A. H. Luck]

I am still busy ( busier than last year !) and I have not dropped my price. I am in the upper third of the price range in this area. Sure hope it keeps up !

[dcook1]

Originally Posted by hlowe

Never lower your prices! It will ultimately ruin both you, and the industry!

Mr Harold,
A better quote will be hard to find. I am seeing several lowballers already. Some advertise $200 - $225 for an inspection! Obviously a newcomer trying to get some experience by being the cheap guy. What they do not realize is no one will remember how good they are, just that they are cheep.
In the end the joy of a cheap inspection will be gone long before the sour taste of a bad inspection leaves.
But some people would kill their own mother to try to get ahead.

[ADAM HANNAN]

Originally Posted by cboyd

Rudolph, I am still holding mine at $325 here in the Ottawa valley and get no complaints about the price except from a few agents. I have done some new townhomes in the area for $300,(quoted 325 but charged them 300 after) just because they are quicker and new, but used of the same size would be 325 I have a few agents in Ottawa tell me I was on the low side. Go figure. I don't think it's price keeping the phone quiet, we just will have to weather this out.

I find it fascinating when Realtors attempt to negotiate a lower inspection fee on their clients behalf. Because of this pressure some of the inspectors in my area end up charging less than their advertised price...so the agents claim. Any questions about price should be discussed exclusively with the client.
Here is a crazy idea: In areas where house prices start at 300k, inspectors could begin charging 0.1% of the purchase price ! A house sells at $500,000; the realtor earns 2.5%=$12,500; the inspector earns .1% = $500 and gets to carry the burden of all the liability. Seems fair no?

[bjones5]

got this little gem yesterday:

What comes next 11/26/08 10:52 PMLet's be honest here, you really don't inspect homes
FYI: I have made no secret of the fact that I stopped inspecting 2 years ago, so what is your point? My last inspection was a commercial inspection last December, done as a favor. At this time, I am too busy to do inspections, but am returning to them in spring /09.
Got a problem? pm me.

[Nick Gromicko]

www.nachi.org/agentduty.htm

[cboyd]

Originally Posted by ahannan

I find it fascinating when Realtors attempt to negotiate a lower inspection fee on their clients behalf. Because of this pressure some of the inspectors in my area end up charging less than their advertised price...so the agents claim. Any questions about price should be discussed exclusively with the client.
Here is a crazy idea: In areas where house prices start at 300k, inspectors could begin charging 0.1% of the purchase price ! A house sells at $500,000; the realtor earns 2.5%=$12,500; the inspector earns .1% = $500 and gets to carry the burden of all the liability. Seems fair no?

Actually Adam, I have had 2 Ottawa agents tell me that, one told me over 450k, another over 500k average inspection fee was .1% These were downtown Ottawa. Sounds like a good idea to me, more fair to the cient as well

[ADAM HANNAN]

Originally Posted by cboyd

Actually Adam, I have had 2 Ottawa agents tell me that, one told me over 450k, another over 500k average inspection fee was .1% These were downtown Ottawa. Sounds like a good idea to me, more fair to the cient as well

Thanks Charles...it's something to consider.

[ADAM HANNAN]

Originally Posted by gromicko

www.nachi.org/agentduty.htm

Nick, I read this article a while back. Thanks for posting it here. May I add your article to my website?
Adam

[Erich Kelter]

Originally Posted by dcook1

Mr Harold,
A better quote will be hard to find. I am seeing several lowballers already. Some advertise $200 - $225 for an inspection! Obviously a newcomer trying to get some experience by being the cheap guy. What they do not realize is no one will remember how good they are, just that they are cheep.
In the end the joy of a cheap inspection will be gone long before the sour taste of a bad inspection leaves.
But some people would kill their own mother to try to get ahead.

I've noticed these lowballers creeping up during the slowdown as well offering fall specials and whatnot. I know my prices are staying put simply because I'm worth it(not trying to sound cocky). All we can hope for Dave is a pickup in the market come spring and hopefully a price increase can be justified...

[cboyd]

This is not typically a great time of year anyway. Am I concerned about making it through the winter? Yep, but I don't see as much doom and gloom as some do, some people see problems in their particular industry and move to smaller houses before they get into trouble and there are people out there that are still making good money and moving on, some will always do well and buy houses, cottages rentals no matter what. Are there less houses selling? No dought, I guess what I am saying is that while our business is going to be tough, we don't have huge overhead to stay open like rents on offices and such, most of use vehicles we would have had anyway and I know there are some guys making payments on cameras and equipent but it's not much comared to $10,000 monthly building to rent and no employees to worry about keeping busy or laying off. We can be slow without closing down. We just need to be creative.
PS. can I borrow $5