Throughout the entire home buying transaction there are the following service people and their respective fees:
Real estate agents - typically 2.5% to each side
Lawyers - $1,000 - $2,000 to process documents, coordinate mortgage etc.
Banks - They make oodles in Mortgages
Home Inspectors - $350-$500 (sometimes less)
So typically we are the lowest paid party in the home buying process and as we all know we carry ridiculous amounts of liability in perpetuity.
So why do we allow this to happen? Are we merely victims of circumstance, prisoners on a low wage high, risk hamster wheel?
Do you think real estate agents sat around bemoaning their low fee or do you think they consolidated and agreed THIS is what we get paid? Do banks or lawyers race each other to the bottom of the pay scale–nope–but we often do.
I would propose the following: that we as an association come up with fair and uniform fee structure that says THIS is what we are worth–So no matter where you are, when you call or who you call the price is the same and we as an industry can start making inroads on getting paid for what WE think we are worth and not what the other guy does.
In my area of Ontario .
In 2002 we charged $350;00 for an inspection I then raised it to $400;00.
Houses sold for about $100,00;00 each agent got .1 1/4 % = $1,25;00 .
Same house today sells for $200,000;00 and the agent still gets 1 1/4 % = $2,500;00 .
This has kept agents well up with Inflation .
Now 2013 have inspectors charging from $200;00~ to $400;00~
Insurance in 2002 was 950;00 and gas was about .70~ a litre .
Cars cost less then and groceries also where less.
Home Inspectors do not charge enough .
My Accountant in 2008 did a cost per inspection and it came out at about $128.00 .
I expect it would be closer to $200;00 cost now per inspection.
This I expect this is why many home Inspectors do not last in this industry.
There has been nary a response to any licencing discussion as to what is good for inspectors and their livelihood. What are your reps saying at the licencing table on your behalf?
How many of you have taken time to write the MCS with your concerns or questions?
Not one association even attempted to counter all the negative media as directed by Mike Holmes.
Yup you get what you get as a result of no back bone.
Have you guys ever thought of working to rule? How long do you think it would take for realestate transactions to grind to a halt if inspectors refused to inspect for a week and made some demands of their own for their own professional and business interests?
I’m hoping when licensing comes into effect in Ontario things will change. I know franchises are about $450 now INCLUDING thermal. But you deduct the cost of the franchise fees and your sitting in the same boat I suppose.
I think home inspection should more a by the book fee as opposed to a base fee. Sort of like how auto repair shops work. Whether it takes them half and hour to do a job that the book states will take an hour and a half they charge the book time of an hour and a half.
We should have a set guideline with the licensing on how long it should take to inspect a home and charge accordingly. If it should take 4 hours for a home under 1,500 sq. Ft. Including report writing time. We charge the hourly rate of $100 or whatever. It would be a nicer way to structure things and it would level the playing field for all inspectors as we would all be charging the same price or at least close to it.
Those lawyers rates a skewed. You do pay them between $1000 and $2000, but a good majority of that is land transfer tax, title search fee and so on and so forth. Their actual fee is around $600 to $900.
mauger
(Mike Auger, CMI - RI 43685, RMC-142, RMB-096)
14
don’t forget the appraiser, he gets near what we do for 20 minutes work.
None that I have talked too and they sure do a lot of traveling and a lot of work at the office .
I do not think they have the liability that we do and expect insurance is a lot less. .
Very true, Mike. I had a high rise condo inspection recently and appraiser was there at the same time. My fee was $350+HST and his fee was exactly the same. I spent there 2.5 hours plus report time and he was there for less than 15 minutes. Until home inspectors start respecting their own profession, we will always look as suckers.
But Yuri he is more Important because he can tell the purchaser what the House is worth. All we can do is tell the Client the house is not worth it. Get it!!!:mrgreen:
While they may not do the same number of hours as we do, it is a bit of an exaggeration to say the appraisal is only 20 minutes of work. There is reporting and research as well. Regardless, I would take their average hourly rate any day.
The biggest issue for which we are underpaid is the liability we take on compared to all other parties in the transaction.