Discounts for first inspections?

Question for all.

Any one used dicounts on the first inspections done for an agent?

Trying to see the pro’s and cons?

Thanx

Steven:roll:

No I do not give disscounts to new agents. Thier clients are the ones who pay not them. Give them a disscount onces and their back looking for one the next time they call. I have had enough of low prices caused by just this sort of thing,agents looking for deals so they can look like heros to the client and we are doing all the work and taking on the liabilty. I have a set starting price and that it take it or leave it and no kick backs to any agent no matter what. Sorry about the rant but just the way I feel.

No discounts to realtors. The only discount is the discount I may give is my discount to the client. I.e. I give $25 off to clients who have a second inspection performed.

My minimum price is $400 for upto 2000 sq. ft. each additional 1k sq ft. is billed at $50.

There lucky if I don’t slap’m for good measure to keep’m in check:shock: :shock: :shock: lol

Mic

Does your Dentist give a discount on the first tooth he works on? If Home Inspectors want to be taken seriously we need to stop all the discount and bargain basement thinking. We hear constantly of the low-ball inspector that just opened up shop in our neighborhood and are getting all the action due to low prices. They soon learn they can not stay in business for long being the lower than snake crap home inspector in town. When any inspector hands out discounts, as someone said, the Realtor then thinks it is the norm and expects it every time after that. Set your prices, stick to them and let your report do your talking for you. If it is worth the money then it is worth the money. Don’t sell yourself and your family short going after that one skin flint Realtor who is always looking for the free doughnuts, free ink pens and discount inspections. Your liability is not diminished in any way by a cheaper price tag.

Charge more, work less!

BINGO!

I’m glad to see there are some who are on my side. Keep the prices up and let the low ballers will blow away in the wind. We set the price not the realtor. It’s our insurance and rep on the line not theirs, all they care about is their commission and nothing ells.

We must realize as inspectors we carry a lot of weight. Sometimes more than the realtor likes or realizes.

How will I ever get my RHI if I don’t do my 250 inspections for $199.00 each.

Just kidding! I couldn’t resist.

I guess you’re not permitted to do the inspection 250 times on the same house eh? :slight_smile: :slight_smile: :slight_smile:

Its also a good way to instill wrong inspection habits 250 ways to Sunday! :slight_smile:

Cheers,

Was an RHI felt that association did nothing for the industry and left .
Here is a post I made earlier in the Members section on Engineers ,

Gee I just did an inspection for an engineer .
He paid me $700:00 I guess he understands there is a difference .
The father and son Both Engineers asked how far would I go to do an inspection.
I told them a lady wanted me to go 150 miles and I said I do not that far to an inspection she said oh yes you do I want you and only you .
I said $500;00 on top of my regular fee she said fair enough .
She was right I went and did an inspection for her .
This has happened more then once since then .
Just make sure you charge what you are worth .

Roy Cooke A Happy NACHI member

Hay Roy R. you should move to London we got HI"s down here doing them for $180 or less (just kidding), hell we even have them giving 50 bucks to the realtor for every 3 inspection they get from them and their name goes in a draw for a free trip south. Have heard horror storys about some of them and seen some reports only 3 pages in one.I had one client this week tell me the inspector they used last time,her husband had to tell the HI what to put in the report.I gess he didn’t know how to dettermine what size the hydro service was. And we wounder why HI are getting a bad rap,it only takes a few.

Hy Rob I do give the odd pen to an Agent that’s about all.
I guess thats why my son ( who trained me ) when he lived in Burlington was paid ( I think $800:00 ) to go to London .
I guess they figured any one who only charge $180:00 was not fit to do an inspection.
Some figure they can get them selves started by charging less and then work their price up .
My Son Roy Jr says Dad you have so much more experience themost other Home Inspectors you should charge more ( who am I to argue with and expert) .
For my first inspection I was $25:00 more the any one else in my area and I have maintained that ever since .
Work less make more and Love it .
Turned down two inspections this week because I would not lower my price great feeling .

Get a better class of home usually.
We have about three + inspectors making a living and about 10 +trying to get established .

Roy Cooke …RHI…CHI…CMI…CAHPI-ON

Rob,

I am thankful that I do not rely on home inspections to earn a living. I am a full time general contractor. I have been renovating and building homes for more than 20 years. I will not low ball my inspection fees to compete with every Joe Blow who took a course and is now calling himself a home inspector. My hat goes off to the veterans in this business that have been able to carve out a market for their service. Like some of these veterans, I feel that my experience is worth something too.

Currently one P2P inspector in a certain association is sending a mailer out to realtors more or less stating P2P is insured while other inspectors in the area are not. Not only that the mailer promotes the insurance as a form of warranty!

That is wrong, and it should not be permitted. Its not only some morons waging war with price, its also about some morons using insurance to undermine the practice of other inspectors. Insurance is not a sign of competency!

Raymond:

Association membership has nothing to do with the inspecter’s decision to advertise insurance. We have an Amerispec inspector in our area doing the same thing and he’s a member of a large American group that isn’t ASHI.

It’s not the fault of the associations. It’s plain dumb marketing.

Bill Mullen

I have been able to maintain my present fee and buisnes is up slightly from last year at this time.
Ray heard about another P2P inspector near the falls husband and wife team doing inspection for I believed $185.
We have an HI here who is a member of another association giving out kick backs and a free trip south to agents and he and his partner are always busy, the agent love him.They both are apparently blind in one and can’t see out the other,aleast thats what I’ve been told.

This may change some minds about negative marketing.

I remember reading somewhere that there were letters being circulated by inspectors stating they had E&O insurance while their competition did not have coverage. I have seen similar letters circulated in my area.

Similar circumstances with an Engineering company stating they are insured and other engineers are not. Here is the Ethics ruling on the matter.

*Facts:

Engineer A sent a letter to various state and local public agencies in his area of practice as follows:

    "It has come to my attention that your agency has been using the services of engineers who do not carry professional liability (errors & omission) insurance. Such a practice, although not necessarily a violation of policy, is certainly not in the public interest. No one plans on mistakes, but if a costly error does occur, it is not likely you can recover losses from the personal or corporate resources of an uninsured consultant.

    There are only two reasons a consultant is not covered by professional liability insurance

        The individual does not care to accept the expense of such coverage.

        He is uninsurable due to past experience.

For those in the first category, the premium amounts to three to five percent of gross income. These persons are either receiving excess profits or they are billing at lower rates than those who carry the insurance.

There are several qualified consulting firms in the area who carry adequate liability insurance; it is not necessary for your agency to risk public funds on the possible errors or omissions of an uninsured engineer. My solo practice is covered by $500,000 general liability and $500,000 professional liability insurance. In over four years of operation, I have not had a failure nor a claim filed against me. This, despite the fact much of my work is in the high risk areas of excavation support and landslide stabilization. Doesn’t it make sense to go with a winner?"

Question:

Did Engineer A act ethically in using the quoted letter as a means to promote his practice?

References:

Code of Ethics-Section 1(g)-“He will avoid any act tending to promote his own interest at the expense of the dignity and integrity of the profession.”

Section 3-“The Engineer will avoid all conduct or practice likely to discredit or unfavorably reflect upon the dignity or honor of the profession.”

Section 11-“The Engineer will not compete unfairly with another engineer by attempting to obtain employment or advancement or professional engagements by competitive bidding, by taking advantage of a salaried position, by criticizing other engineers, or by other improper or questionable methods.”

Discussion:

We considered a related situation in Case 73-8, involving a promotional letter casting doubt upon the ability and competence of other engineers in an engineer’s area of practice. In concluding in that case that the engineer’s promotional letter was unethical, we noted that the mandate of §11 extends not only to individual engineers, but also to “a group of engineers or the engineering fraternity in general.” We further commented, “It is a fair reading of §11 in totality to arrive at the belief that its broad thrust is to hold competition among engineers to a plane of dignity, respect and honor. Here those virtues were breached by a self-serving statement which tended to degrade the entire profession.” And we alluded to Case 65-17, recognizing that engineers may promote their services through direct mail solicitation if the material utilized is “dignified and circumspect,” the applicable standard then prevailing.

The facts before us are even more offensive than the letters in the earlier cases. Here the engineer is not only indulging in self-serving statements, but is trying to capitalize on allegations which may or may not be true regarding other engineers carrying certain insurance. Whether or not an engineer carries professional liability insurance, or any other kind of insurance, is purely a business decision for him to make, and the failure to carry such insurance, for any reason, is not an attribute of professional standing or competence.

While it is not controlling on us, we note that NSPE Professional Policy No. 75, as quoted in full below, makes the specific point that the carrying of professional liability insurance should not be used for promotional purposes.

"Professional liability insurance, as endorsed by NSPE, is intended to protect the interests of professional engineers, who, in the course of their practice, may be subjected to claims or lawsuits alleging negligence in the performance of professional duties. This protection is not intended, and should not be used, for promotional purposes in any way. It is improper to indicate on letterheads, brochures, or otherwise that such insurance is carried by the professional engineer.

"Carrying of professional liability insurance should be a personal choice of the professional engineer. NSPE is opposed to the adoption of laws or regulations which require a professional engineer to carry such insurance."

We recognize that in some instances clients may insist that the engineering consultants carry professional liability insurance in stated amounts, contrary to the NSPE policy. That is a judgment for the client to make, and a judgment for the engineer to decide whether he wishes to comply with that condition. It is manifestly unfair to state or imply that an engineer who does not carry such insurance is incompetent or wishes to dodge his responsibilities. The failure to carry such insurance as a business decision in no way protects the engineer from legal proceedings or judgments if he performs his services in a negligent manner.

In addition to the clear restriction of §11, we think that the cited letter directly offends the principles of §1(g) in that such unsavory methods to promote self-interest do so at the expense of the dignity and integrity of the profession. And likewise, §3 clearly proscribes this type of practice as a sad reflection on the dignity or honor of the profession.

Conclusion:*

Engineer A did not act ethically in using the quoted letter as a means to promote his practice.

*Note: This opinion is based on data submitted to the Board of Ethical Review and does not necessarily represent all of the pertinent facts when applied to a specific case. This opinion is for educational purposes only and should not be construed as expressing any opinion on the ethics of specific individuals. This opinion may be reprinted without further permission, provided that this statement is included before or after the text of the case.

Board of Ethical Review

William J. Deevy, P.E.; William R. Gibbs, P.E.; Joseph N. Littlefield, P.E.; Donald C. Peters, P.E.; James F. Shivler, Jr., P.E.; L. W. Sprandel, P.E.; Robert E. Stiemke, P.E.; chairman*

Rob:

We have a couple of inspectors in our town doing inspections for $ 195. or $ 150. if you don’t want a receipt.

They aren’t members of any association. This practice has nothing to do with association membership, so I think it’s not helpful to even bring any association into this discussion. These clowns would operate this way no matter which association they were in. (or not)

Bill Mullen

I agree Bill that this type of thing will continue,wheather a member of an assoiciation or not.