The average price for a detached home in Toronto is $1.2 Ml. Still there are plenty of agents who say that the average fee of $500 for the home inspection is very expensive. Are you kidding me? The saddest part is that there are plenty of “professional home inspectors” who are willing to work for a beer money. I would say to those “professionals” - either charge a professional fee or get out of this business.
I agree so sad .
.Low fees are one of the reason why many newbies do not last in home inspections .
2009 we charged $450.00 tax in for a normal $175,000.00 home in our area
You have $175k homes in your area? That might get a vacant lot here.
I think you did not look at the date of the inspection .
We are about 100 miles from Toronto .
What do you charge for an inspection now .
That was 7 years ago things are now different.
Below are two Toronto CMIs and what they charge now for a house that sells for over a Million Dollars
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Rates
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Detached House
$400 +hst
- up to 2,500 sq ft*
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- Complete and Comprehesive inspection
of all components of the home.
Unfortunately this is something that will never go away.
There are jobs out there were it takes a Masters degree to get in the door but they pay you Ronald McDonald hourly wages!
It is apparent even on this Certified Inspection Forum that rampid incompetency exists and is condoned. And in many cases actually “supported”.
There are inspectors out there representing clients investing in the largest purchase of their life. A purchase which could literally financially ruin them for years, who cannot identify components, never mind know what they do, asking questions about problems that are not problems and asking us to write their report narrative concerning a nonexistent or incorrect diagnosis.
And it’s not just them. Just yesterday I was informed by a selling agent who had a conversation at a real estate office that back in 1995 drafted me into becoming a home inspector and gave me all of their referrals because they needed competency that they were not getting and it was costing them.
Today, the same company feels I am too thorough and tried to discredit me and convince the agent not to use me. (All of the old agents have retired or moved on).
So there you have it in a nutshell. Your competition drives the prices down and potential referrals that are closest to your client do not want competency. Agents that feel your fees are too high are basing this upon what they would prefer you do in a home inspection (which is not much).
Funny thing is you cannot lowball a lowballer and succeed! They are willing to do things and take chances that you would not even consider. The best thing you can do is not worry about the clients that want to know “how much do you charge” and focus on clients that need a legitimate service. I would say that that would be less than 30% of the home inspection clients. So you’re going to lose a lot of jobs if you consider that losing.
If you want to play with the incompetent, the ones that give away infrared, radon, mold etc. to get a job, you must modify your overhead and make your money at the front end of the transaction (not at the end with everyone else).
You can strategically survive, but you cannot compete. And it is something that will not change without government interference (licensing) which nobody wants.
In 2006 the state of Tennessee eliminated a vast majority of the general contractors that did home inspections by making participation in the home inspection industry a primary business not something to make money in another area. It may not have been their intention but that’s what happened. They were grandfathered in like everybody else but they didn’t want to deal with the ongoing requirements of continued education, general and E&O liability insurance on the inspections and the general hassle the government instills upon us.
If you do not want incompetent people working for beer money taking food off of your family’s table, you need to be willing to raise the bar significantly.
I am not sure I see the logic behind pricing a home inspection on the value of the real estate. My 1950 800 sq. foot house in Edmonton is worth about 250 K, if it was in the right part of Vancouver the same house would be worth about million or more, if it was in Meadow Lake SK it would be worth about 90K.
The time it will take to inspect will be the same regardless of location. So I price my inspections based on how long I think it will it take. I base my hourly rates on what a consumer will pay to have qualified service person come to their house to fix whatever needs to be fixed.
The logic is simple: If someone has guts to put more than a million bucks into the most expensive investment they ever make, they should be capable and willing to put $500 to make sure the investment is sound and to obtain a quality service instead of getting a “look around the house”. And if we, as professionals, would be proud of what we deliver, we would not agree to work for beer money.
You did not answer my question. How does it affect the pricing of an inspection If a house that sold for 500k last year year is now worth 1 mil because of the real estate market? Are you saying some poor sap who is now in the position of having to pay twice as much for a house should also have twice as much for an inspection? 
BTW I don’t disagree with you that 500 bux is a reasonable price for a home inspection, but I also believe in a more or less free market economy and caveat emptor. I am not going to lose sleep worrying about the people who do home inspections for 200 bux… or their clients. Both are making their beds and will have to sleep in them.
In America… we refer to it as “The Liberal Way”… aka. “Tax 'em till they squeak, then tax 'em some more”! The more they got’s, the more they should pay!
I agree. I set up a business plan, it determines what I need to run a professional business. That includes a reliable vehicle, excellent tools, more than adequate training, a great software package to support my clients and insurance. My plan, and prices also ensure I maintain the business for the future. That future includes supporting my clients with ongoing advice, for which I’m insured to give. I could charge less, go bust and leave my clients up Schitt creek without a paddle, but I choose to be more professional than that. Realtors that refer me over the “cheapies” recognise that professionalism, and explain why I’m worth what I charge. If after that someone choose a “cut-price-snoop” then I’m with you all the way “Caveat emptor, quia ignorare non debuit quod jus alienum emit” 
I agree. I set up a business plan, it determines what I need to run a professional business. That includes a reliable vehicle, excellent tools, more than adequate training, a great software package to support my clients and insurance. My plan, and prices also ensure I maintain the business for the future. That future includes supporting my clients with ongoing advice, for which I’m insured to give. I could charge less, go bust and leave my clients up Schitt creek without a paddle, but I choose to be more professional than that. Realtors that refer me over the “cheapies” recognise that professionalism, and explain why I’m worth what I charge. If after that someone choose a “cut-price-snoop” then I’m with you all the way “Caveat emptor, quia ignorare non debuit quod jus alienum emit” 
I thought it was obvious. My post was not about gouging clients because they have to pay more for the house. My post was about bringing our fees to the professional level instead of mocking the service making it a laughing stock. When I started in this business 15 years ago I charged $300 but the houses were 3 times cheaper, the cost of gas was 3 times cheaper, I used a simple check mark report instead of state-of-the-art software, that was 3 times cheaper… you get a picture. Today the demands for the profession changed drastically. The cost of doing business is way more expensive then it was 15 years ago. That is why some uniformity in the inspectors’ fees would help everyone to succeed. Unfortunately those who cut hair, plow snow or mow grass as their main business do not mind if occasionally they can get extra $300 for a beer by doing home inspection. I on the other hand, as a seasonal home inspector, put a lot into this business to care enough about it.
To be fair to Yuri, Erik, your post (#6) doesn’t appear to have a question in it.
<-- no question :twisted:
Your follow-up where you had a pop at Yuri does.
Pricing was my biggest dilemma when I started and I must admit it is still of a problem but of a lesser magnitude. I want to be fair, so I cannot price a home based on its perceived selling price only.
I have also found that unless agents measure the house which they do not, they will not know the size. So size can be a problem too. The next criteria is age. Well, I had one agent told me a home was 10-13 years old, it was actually 42.