International Association of Certified Home Inspectors

**Mario A. Kyriacou, CHI** · #16 6/18/09, 1:24 PM

Quote:

Originally Posted by gluck

Bold, bald statements that "you should be charging $600. or $500. or $400." are being made in a vacuum. Each area has a different 'norm' as far as pricing goes. The reality is that you should never be in the bottom 2/3 of the pricing range. Persons from the larger urban areas of Ontario telling an inspector who lives in 'Buckpoo' Ontario that he is selling himself short and destroying the industry by charging less are at best hyperbole and at worst very bad advice. You can only charge what the market will bear and 'Buckpoo' will have a very different market than downtown 'Bigsmoke'.

That being said, I raised my prices on the 01 June and have been as busy this year as last. I guess it pays to be a 'well known old fart' in your market too !

If that's true, "what the market will bear" how do you explain the "Buckpoo" inspector making the trek to the "Bigsmoke" and charging "Buckpoo" fees?
Geographical location has been argued many times George, personally, I think it's hogwash. Does an inspector living in "Buckpoo" work less than a "Bigsmoke" inspector? Do the employees at The Home Depot or Wal-Mart work for less at "Buckpoo"?
Your argument is baseless and ridiculous.

Rudolf Reusse · #17 6/18/09, 1:37 PM

I fully agree with George Luck’s posted view that home inspectors who are operating in rural areas are facing different obstacles in the marketplace than their counterparts in larger cities. However - there still is a limit how little practitioners can charge before the "professional" service offered becomes subject to ridicule. As long as desperate people in this business are offering their services for as low as $199.00 - one should not be surprised why certain agents are trying to bargain about inspection fees.

I suggest considering that the entire exercise is actually not about to save 50 bucks for purchasers buying $350,000.00 homes - but only to create the illusion how real estate agents are care about the interest of their customers. RE agents who are selecting and propose the services of home inspectors by price or availability - and not by competence - are in my view no good for nothing in the first place.

Regardless - home inspectors should learn from the well organized real estate profession which remains successful in collecting and splitting 5% sales commission from almost each transaction in Ontario regardless whether the property was sold in "Buckpoo" or the "Bigsmoke."

RUDOLF REUSSE - Home Inspector since 1976 - TORONTO

jbettencourt · #18 6/18/09, 1:41 PM

Adam I feel your pain, I know that this year I have lost out on a number of inspections because I am not budging on my pricing. To the point where financially it is hurting but I am doing what I can to stay the course and that is pretty hard for a fairly new inspector that doesn't have that large a referral base yet. I wanted to take it fulltime this year but had to go back to the regular job until things improve. But once you get known as the "Dollar Store" Inspector you will forever be known as that, the upside is that I get to deal with a different type of client with the inspections that I do book( more informed and do not haggle just want the job done right). Funny thing to is I have done a number of inspections for realtors this year on homes they were buying themselves and their personal homes with my thermal imaging but yet they rarely call me for their clients. Does it hurt to loose some of those inspections right now? You bet it does but I believe that if I stand my ground it will eventually pay up in the end. Hang in there and keep plugging.

George A. H. Luck · #19 6/18/09, 10:32 PM

If that's true, "what the market will bear" how do you explain the "Buckpoo" inspector making the trek to the "Bigsmoke" and charging "Buckpoo" fees?
I don't and if you actually read my post instead of reacting to it by shooting from the hip you will see that I did not make that argument. Your earlier posts implied that ALL inspectors should be charging what they do in 'Big Smoke" regardless of their location. Clearly you don't know what you are talking about when it comes to life outside the 905 !

Geographical location has been argued many times George, personally, I think it's hogwash. Does an inspector living in "Buckpoo" work less than a "Bigsmoke" inspector?
You cannot really be oblivious to conditions outside metro can you? Are you really claiming that there is no difference between salaries in 'Big Smoke' and 'BuckPoo'? Do you not realize that there is a big difference between median home income in 'BigSmoke' and 'BuckPoo'? and what effect that difference has on the whole rural economy? Sorry Mario. It just doesn't hold water.

Do the employees at The Home Depot or Wal-Mart work for less at "Buckpoo"?
As a matter of fact 'Yes'. You need to get out more!

Your argument is baseless and ridiculous.
Your claims are without merit.

George A. H. Luck · #20 6/18/09, 10:40 PM

"I suggest considering that the entire exercise is actually not about to save 50 bucks for purchasers buying $350,000.00 homes - but only to create the illusion how real estate agents are care about the interest of their customers."

Exactly!
If saving $50 on the purchase of a $350,000 home is a make or break deal then let the agent kick it in. They are making a lot more on the sale than the inspector. Let the agent buy the good will with their own dollars, not ours. You can only discount so far to get the job and what happens then? Do we offer to clean their windows, take out the garbage or do the dishes? I, and I suspect all of us, know what our minimum bottom line is and what we need to make in order to stay in the business. I won't and can't cross that line. The low-ballers are not making any money at the business and neither will we if we continue to make deals.

**Mario A. Kyriacou, CHI** · #21 6/19/09, 10:56 PM

Quote:

Originally Posted by gluck

If that's true, "what the market will bear" how do you explain the "Buckpoo" inspector making the trek to the "Bigsmoke" and charging "Buckpoo" fees?
I don't and if you actually read my post instead of reacting to it by shooting from the hip you will see that I did not make that argument. Your earlier posts implied that ALL inspectors should be charging what they do in 'Big Smoke" regardless of their location. Clearly you don't know what you are talking about when it comes to life outside the 905 !

Geographical location has been argued many times George, personally, I think it's hogwash. Does an inspector living in "Buckpoo" work less than a "Bigsmoke" inspector?
You cannot really be oblivious to conditions outside metro can you? Are you really claiming that there is no difference between salaries in 'Big Smoke' and 'BuckPoo'? Do you not realize that there is a big difference between median home income in 'BigSmoke' and 'BuckPoo'? and what effect that difference has on the whole rural economy? Sorry Mario. It just doesn't hold water.

Do the employees at The Home Depot or Wal-Mart work for less at "Buckpoo"?
As a matter of fact 'Yes'. You need to get out more!

Your argument is baseless and ridiculous.
Your claims are without merit.

Maybe you are right; I need to get out more, I didn't know!
It does not surprise me that The Home Depot and Wall-Mart have different pay scales for different regions. Both of these giants are union free and therefore have the ability to screw over their employees. One thing you can't argue with George is that all products sold at these stores are priced the same.
Bottom line, if HI's want to give their services away who am I to argue! By all means do it. Just remember, my average fee is $500, and if the lowballers are giving their services away for $250.....well do the arithmetic.

Vern Mitchinson · #22 6/20/09, 2:36 PM

When I started in this business 10 years ago after 30 years of construction inspection I charged 175.00. I got lots of inspections of old pre WW 1 beaters and scrapers. I raised my fee to 300.00 and starting getting 1200 sq ft houses built between WWI and WWII. I raised my fees again and started getting more inspections of houses built after WWII up to the new ones (I hate new houses, they are a mess). My fee is now 450.00 and most of my jobs are of newer homes 1970's and newer and bigger. The newer bigger ones have less defects, are cleaner and most times a pleasure to inspect. The clients are also more knowledgeable and appreciate quality work and are more them willing to pay for it. I love the million plus houses and the fat fees that come with them. I wish the low baller well because he gets the crap and likely will not be in business next year.
My rant for the week.

Yuri Olhovsky · #23 6/20/09, 3:50 PM

Quote:

Originally Posted by vmitchinson

I love the million plus houses and the fat fees that come with them.

This is just for the inspectors in Toronto area, who are familiar with the Bayview/Lawrence area. Got a request for the inspection of 5000sq.ft home. After I quoted my price, the caller told me that I'm approximately twice more expensive than other inspectors he called before. Can you guess what price range did he get from other inspectors?

Claude Lawrenson · #24 6/20/09, 6:16 PM

$200 range!

**Mario A. Kyriacou, CHI** · #25 6/20/09, 7:46 PM

Quote:

Originally Posted by yolhovsky

This is just for the inspectors in Toronto area, who are familiar with the Bayview/Lawrence area. Got a request for the inspection of 5000sq.ft home. After I quoted my price, the caller told me that I'm approximately twice more expensive than other inspectors he called before. Can you guess what price range did he get from other inspectors?

Yuri,

My inspection fee would be $2500.00 for this house. I know the area well because I live not 5 minutes from there. If an IR scan of the entire house was required my fee would certainly double.

Here is my guess for the other inspectors fee for this house $199?

**Mario A. Kyriacou, CHI** · #26 6/20/09, 7:47 PM

Quote:

Originally Posted by vmitchinson

When I started in this business 10 years ago after 30 years of construction inspection I charged 175.00. I got lots of inspections of old pre WW 1 beaters and scrapers. I raised my fee to 300.00 and starting getting 1200 sq ft houses built between WWI and WWII. I raised my fees again and started getting more inspections of houses built after WWII up to the new ones (I hate new houses, they are a mess). My fee is now 450.00 and most of my jobs are of newer homes 1970's and newer and bigger. The newer bigger ones have less defects, are cleaner and most times a pleasure to inspect. The clients are also more knowledgeable and appreciate quality work and are more them willing to pay for it. I love the million plus houses and the fat fees that come with them. I wish the low baller well because he gets the crap and likely will not be in business next year.
My rant for the week.

Good for you Vern! A true professional.

Yuri Olhovsky · #27 6/20/09, 11:42 PM

Quote:

Originally Posted by mkyriacou

Yuri,

Here is my guess for the other inspectors fee for this house $199?

Mario, do you seriously think that I would do this inspection for $399? No, actually I quoted him $650 + GST. He said that the highest quote he got from other inspectors was $350. Boy, if someone wants to do 5000 sq.ft custom home for the price of condo townhouse, be my guest.

Claude Lawrenson · #28 6/21/09, 6:28 AM

The unfortunate reality is some in a depressed market area will do it for that price.

George A. H. Luck · #29 6/21/09, 11:06 AM

Hey Mario! The next time you get one of those big beauties to inspect and include the I.R. scan let me know, as I can provide a big value added service that will allow you to get your prices up even further. I am offering to do a cat scan, at an additional charge of course, as I can get really badly scratched just getting her into the pet carrier.