TOPIC: A bit disapointed

Try restructuring your pricing options.

As David mentioned the number of HVAC units; I charge an extra $69 per unit.

As I stated before, when someone calls you on the telephone "they're trying to eliminate you"! The first word out of your mouth will make or break the telephone call. They are not trying to decide on the positive aspects you are offering but the negative ones. The more negative issues, the further down the list you go. Whoever ends up on the top at the end of it all, is the winner!

In most cases this is the lowball because the client cannot perceive the services they are receiving for the amount of money they are spending if they are not familiar with your product. Most people will  only buy a couple of houses in their lifetime. Most never had one before and they don't understand what it's all about. The only way you can teach them this is to get the job.

In this day and age you need to keep up with your competition. On that "other site", people have been slamming the lowballer for weeks now. Actually, there's absolutely nothing wrong with lowballing so long as you're not providing the same service. If you do three inspections a week (because things suck) for $450, you will make $67,500 in 50 weeks. If you do two home inspections a day for $150, five days a week, 50 weeks a year you'll make $75,000. The main point is that you cannot do the $450 inspection for $150. If you streamline your inspection process and can offer an inspection for $150 you'll make more money than the rest of us!

Here's the hint; when someone calls and asks if you will do a home inspection you need to start asking the questions. They're used to getting answers! For example, the first question they want to get out is how much do you charge. Charge for what? You need to know something about the house and what you will be inspecting. Have you ever had a home inspection before? you need to know if they understand what they're trying to buy. What do they want to know about the house? Most of the time they don't have a clue.

This is the biggie! They want to know how much it costs, you ask how much they want to know. They won't be able to tell you much so ask them if they have talked to other home inspectors yet and ask them what they expect. Then you can ask them how much they expect to pay those other inspectors.

"I can inspect your house for that. This is what will be covered..."

"We also offer other services, but you can decide after our initial inspection if you need more information and testing". Many buyers run from a house and don't need all that inspecting. I'd rather do two (or 3-4) inspections for them than one big one.

I know it's difficult to inspect the house and offer less service then you are capable of, but some people are on a budget or just don't know any better.

Back to the HVAC. While you're inspecting the house for $150, you mentioned to the client that you can inspect their HVAC equipment, "it is rather old". "Well, I thought you were going to inspect that"? Yes we did, can't you hear it running? We turned it on at the thermostat. Did you want us to do a more? We can do a complete evaluation for $69 which requires some dismantling of the equipment. You can do this with any ancillary service.

As for inspection reports, you can produce a homeinspectorpro inspection report in about 15 minutes which covers state and SOP requirements. Do they want more? Not a problem! That's another two hours you need to tack on to that $150 inspection.

It sounds like your nickel and diming the client, but if you do it with a little practice it won't come out that way.

I only use this procedure for people that are price shopping.
Their only interest is the price of the inspection and that's all they can focus on.

I use the same technique over the telephone on the first call if the buyer has an interest or is experienced in the homebuying process. Come right in with the low proposal price and add to it as their interests are presented (you don't list every price. You ask the services they are interested in and put together a pkg deal). As you start adding things up(in your head), you will find you'll be up in the $650 range. Come right out and tell them you'll give them a $100 ancillary service for free and your back on track.

They always have the option to go back to the $150 inspection. However after your discussion (education), they will realize that it's not worth the paper it's printed on.

David, I am agreeing with what you are saying except for one thing. Every home inspection should meet at minimum the accepted area Standards of Practice whether from the state or an association. A few months after the inspection is performed, the clients attorney may have difficulty with the fact that you only listened to the HVAC system running instead of inspecting per the "Standards". Even if the client doesn't want it, and you have disclaimed it in your report and your agreement. Unless you are ONLY doing a single system, a home inspection is a home inspection is a ...

I think you need to ride out the low ballers. They are going come and go. The same thing happens with the home improvement industry. They will get work, but when the word goes around that they suck, they guy with the best service will rise to the top.

A closing thought, just like home improvements the same group that complains about the poor quality service they receive are the same group that enables the low ballers, the Client.

Good comments Dave A.

I have a 4800 sq. ft. home tomorrow, 6 bed and 6 bath. 2 heating, cooling systems.

He was shopping around but I got him to bite. I would say I am about 50-100 low on my price.

I made up a portion of the cost as he did not care for my binder package. Costs me about $20 and takes an hour to prepare. We will see.I hope to be done in 4 hours and report time 2 hours.

We should make an inspection call sheet to have handy for a quick reference for the price shopper.

So my question to you is: How much do you charge for a home inspection?

An hour to prepare!! David, that's way too long. You have to get a way to cut that down!

A few months after the inspection is performed, the clients attorney may have difficulty with the fact that you only listened to the HVAC system running instead of inspecting per the "Standards"

Have you read "the standards" lately? That is, without adding all the other nonsense drug into the home inspection industry by those outside?

My state law which is practically identical to other standards of practice says he will operate the HVAC unit by the thermostat and that no panels that are not accessible by the user need be opened. Equipment does not need to be operated off season due to potential damage.

Next, every standard says that you may exceed the standards and you may also contract with the client not to conduct all the requirements of the standards of practice for the state law.

So actually, if you really read the standards you are not required to do anything other than prepare an appropriate contract which you and your client agree upon.

I was only using this as an example, but if you really want to get down to it my example is perfectly acceptable as written.

So my question to you is: How much do you charge for a home inspection?

and my question to you; what kind of a home inspection do you want? I am leaving in a few minutes to do a thermal home inspection for $150 an hour (my appointment is at five and I must be out of the house by seven). The inspection will encompass HVAC and moisture intrusion/condensation. I will be preparing a "limited inspection contract" negotiated with the client to only perform those tasks necessary to address HVAC and moisture conditions.

Is this the type of home inspection pricing you're looking for? :-\

If any of you get anything out of this, listen to David Andersons phone technique.  He asks questions with questions.  This is a VERY good selling technique used by many high sales industries.  (Something I should do more of myself.)

Also David Macy, I have posted a phone log on here that I use and track.  I am trying to keep track of certain marketing ideas that I am using to see what is working and who is using them.  I will post the call log here again for you to see.  I created it in Excel, so if you want to use it, let me know and I will email it to you and you can change it around as you like.