home inspection pricing

[benmin]

Does anyone have a price per device when giving an estimate for a home inspectors punch list? For example: I just got a list of problems from a realtor looking for an estimate that includes 3 damaged receptacles, 2 receptacles with hot/nuetral reversed, 3 receptacles missing ground, 4 receptacles need to be upgraded to GFCI, determine function of 2 switches.

I'm thinking $25 per non GFI items and $35 per GFI item

 

[bphgravity]

Consider your overhead, expenses, time, ect. Add in the amount of profit you wish to secure for a job of this nature and submit a proposal.

 

[360Youth]

Time and material with a price limit. Let them know that it will be T&M but will not go abve $x. It takes the fear out of an unknown price, and you are a hero if you come in under. Just make sure you leave yourself a cushion, speaking of which...

3 receptacles missing ground,

Better find out why it is missing a ground. Is it 2 prong that needs a third, has the ground come loose, or is there no ground that will have to be installed?

4 receptacles need to be upgraded to GFCI,

One gfci device, or 4?

determine function of 2 switches.

Sounds like a lot of walking and potential troubleshooting. Switched recept.?, floods?, attic light?, attic fan?, etc.

I would want to feel comfortable about these things before gave any sort of price.

 

[marcerrin]

T&M with a cap?? Sounds like a formula for losing money to me. Your taking a little bit of a risk, and capping your reward.
If I'm doing T&M and a customer wants a "ballpark", thats fine. But I also let them know that I could run into certain things while working on the project that may need to be addressed, which sends the "ballpark" figure out the window.
All due respect, but in my opinion, T&M with a cap is bad business.

Also be cautious when dealing with Realtors. They like to use your free estimate as a bargaining chip, with no actual intention of using you to complete the project.
With realtors, I charge $80 for an estimate, which is reimbursed if we complete the project for them.

 

[mdshunk]

The real estate agent might want a bid for this work, but this is textbook T&M stuff. My bid would simply be $XX per hour, plus material.

 

[brantmacga]

I've yet to see a home inspector that actually knew what they were doing. My dad owns a real estate company, so i usually end up fixing all of the 'problems' the inspector finds. i got a fax once w/ a list of electrical items to be repaired; the first was that he identified 3 receptacles that were "missing a bonding ground." I went to the home and found that the house was wired w/ old 2-wire #12 and all of the receps had been changed to 3 prong grounding type receptacles. none of the receps had a ground!!!! he just pinpointed three. while checking some things in the attic that were listed on the inspection report, i found several things that he missed. he just stuck his head in the attic door and noted a couple of things he could see w/o even going into the attic. in another instance, a home inspector reported that the air handler in the attic was missing a drip pan. there was no air handler in the attic! anyway; just ranting. in the end; the owner is going to have to pay whatever it takes to make the property sellable, so you can almost get whatever you want.

 

[360Youth]

All due respect, but in my opinion, T&M with a cap is bad business.

Depends on how well you think you can bid it. We have had some success with it, but you need to be high to cover yourself. Sometimes the customer feels more comfortable that it won't go over a certain price, but if you are unsure it can be done within that amount, than raise the cap. It all depends on the job. A cap price is going to be fairly high, but it helps, at times, to take the wild imagination out of the customer's head. Just one alternative.

 

[marcerrin]

So, if you go over the cap your working for free. Your taking all the risk.
If a customer feels better with a certain price, you give a bid.......take all the risk and reap all the reward. If they want to share a bit of the risk and go T&M, they may share the reward.
I think it all depends on how customers perceive their electrician. Do they trust you or not.

 

[petersonra]

I suggest T+M. You do not know what you will find when you get there. Just because the HI says something is wrong, you do not know what is really the situation un til you do your own detective work.

 

[hillbilly]

Also be cautious when dealing with Realtors. They like to use your free estimate as a bargaining chip, with no actual intention of using you to complete the project.

Good advice.
I got "took" on a similiar situation not long ago, only it was the homeowner (seller) who got me to bid the work.
They had a punch list from a "home inspector", and I thought that they we're going to have the work done before closing the deal......wrong....they just used my bid as a bargining tool to close the deal.
I sent them a bill for my time, but I haven't recieved any money yet.
Next time I will handle it differently.
steve

 

[satcom]

You may want to try what the roofers do, I needed a written estimate for my roof repairs, I called 4 area companies 3 said right on the phone $250 for the estimate and one said free no charge, I had the guy with no charge come over he got out of his rusty old truck, looked up at the roof, and said I can do the repairs for $3,000, I told him I needed a written estimate, so he got a piece of scrap paper from the truck and wrote, Repair rouf $3000, I called the $250 guy, he came out put a ladder up on the roof went up and spent about 10 minutes looking, came down and went to the truck for another five minutes, and handed me a very professional looking estimate, for $1400, and said if we do the work I will credit back $200

He did the job and a very nice one at that, and the final bill was $1200, I was more then happy, so you may try charging an upfront estimate price, remember he was only here a total of 20 minutes.

 

[jimmyglen]

I estimate small jobs full time - our shop offers free estimates

90 percent of all realtor "free estimates" get negotiated out of the sale price. Most realtors dont know anything about the product they sell. They want one thing and one thing only - CLOSE THE SALE

oh yes- they also want the estimate RIGHT NOW

 

[Dnkldorf]

You may want to try what the roofers do, I needed a written estimate for my roof repairs, I called 4 area companies 3 said right on the phone $250 for the estimate and one said free no charge, I had the guy with no charge come over he got out of his rusty old truck, looked up at the roof, and said I can do the repairs for $3,000, I told him I needed a written estimate, so he got a piece of scrap paper from the truck and wrote, Repair rouf $3000, I called the $250 guy, he came out put a ladder up on the roof went up and spent about 10 minutes looking, came down and went to the truck for another five minutes, and handed me a very professional looking estimate, for $1400, and said if we do the work I will credit back $200

He did the job and a very nice one at that, and the final bill was $1200, I was more then happy, so you may try charging an upfront estimate price, remember he was only here a total of 20 minutes.

Les, are you saying that charging an upfront estimate fee is hurting the industry?

The way I read this, the roofer you chose, is low-balling the other guys.
He must not of been licensed, according to "some" here, who believe there is no way a legit guy, could be over half as much cheaper as someone else.

From reading this, I am staying away from anyone who charges an upfront fee, he surely can't be licensed, and surely used less than quality materials, and surely don't know his costs of doing business and must be headed for bankruptcy, if he is that cheap.

Or is this just how business goes, and somehow everyones business model COULD be different?

 

[aline]

The way I read this, the roofer you chose, is low-balling the other guys.
He must not of been licensed, according to "some" here, who believe there is no way a legit guy, could be over half as much cheaper as someone else.

From reading this, I am staying away from anyone who charges an upfront fee, he surely can't be licensed, and surely used less than quality materials, and surely don't know his costs of doing business and must be headed for bankruptcy, if he is that cheap.

Maybe since he charges $250 for estimates he keeps his overhead costs down and can afford to offer lower prices to the customers who do buy from him.

Maybe the guy giving free estimates has to charge $3,000 for the same job to make up for the expense of giving all those free estimates.

Maybe the guy charging $3,000 for this job is a crook and is trying to take advantage of the homeowner.

Who knows?

In any case it sounds like the guy that got a ladder out climbed up on the roof and took a close look would have a better idea of what the job should cost. Therefore he would be able to quote a more accurate price.

It's hard to say if he was that cheap without knowing what the other two contractors who charge the $250 estimate fee would've charged. If they're around the same price maybe charging for estimates is a good thing that allows you to keep your prices down for customer's that buy from you.

I've always felt there is no such thing as a free estimate unless you never buy anything.
Someone has to pay for it. Giving free estimates increases your overhead expenses which needs to be passed on to the customer increasing the price you need to charge the people who buy from you. Sounds like the $3,000 guy might be trying to pay for his free estimates with this one job.

The $3,000 guy may just have a lot of overhead expenses and needs to charge this much or maybe he's just a crook. The point is giving free estimates doesn't automatically mean someone is an honest contractor.
Same thing holds true for a contractor who charges for estimates.

When hiring a contractor you should consider a lot of things other than just the price.

 

[satcom]

"The way I read this, the roofer you chose, is low-balling the other guys.
He must not of been licensed, according to "some" here, who believe there is no way a legit guy, could be over half as much cheaper as someone else."


No, the way this guy looked, and the condition of his truck I would say they both needed a make over, and to give a price without looking, that was a sure sign, my wife even commented don't let him in the house.

I was supprised how much they wanted for a an estimate, I asked why they charge, he said, if you were replacing your roof there is no charge for an estimate, but for repairs we need to charge, we spend time looking, and writing up an estimate, for a job that produces little profit, and usually costs us more to do then a larger more profitable job.
He said your in business, you don't do free estimates for repair jobs do you.

It was a very intresting chat.

 

[RUWIREDRITE]

Home Inspection Repairs

Home Inspection Repairs

I agree with 360 on this, The HO and the realtors want an amount to base there home inspection repairs on, if for a barginning tool at closing or for whatever means. I use T&M with a number not to exceed without consent of the client I been contracted to.I know we can open a pandoras box or a can of worms during these repairs, but being in business I have seen from the worst to the best of violations.My price reflects average market prices to fix these violations within reason. I also charge for these estimates being burned on the closing deal situations. I apply this charge to the work if they give me the job, if not, they pay my estimate at closing or before. Most times we come under our price, but I have had to do more work than originally expected, but my estimate covered that.

 

[360Youth]

So, if you go over the cap your working for free. Your taking all the risk.

No more so than giving a bid on any job. If you try and bid on a job like this, you are going to lose most of the time trying to be competetive, but you can also lose a job by not being able to give a fixed price because the customer fears the unknown price. A cap just gives them an understanding of what they are looking at. We have let them known at times that there may be unexpected costs for unexpected fixes. Call it a bid if you feel like it.

I agree with 360 on this,

Thanks, man. :wink:

 

[emahler]

If you try and bid on a job like this, you are going to lose most of the time trying to be competetive,

let's think about this line....if in order to be competetive, you need to quote it at a loss, why bother?

and if you give them a cap that is above a competetive quote, why won't they go with a lower guaranteed price?

and if your cap is in the field of "competitive quotes", the same quotes that you would lose money on, why do you want to make less money by working T&M? And in cases of T&M with a cap, take all the risks and give the customer all the rewards?

Please, help me understand. Am I just missing something?

 

[RUWIREDRITE]

Quotes

Quotes

Are really overated!
For example I give you an estimate on a certain repair and find a cost cutting fashion to complete this work, do you feel you should pay the full quoted price even though i found an easier way and perhaps helped you out? , I think not. Sometimes we quote to protect ourselves against the dreaded outcome, but most times (if lucky) we come out ahead anyways. I quote big jobs, but for day to day installations and repairs I do T&M. If the consumer is sceptical I give them a not to exceed price unless I contact them first with some unforetold findings. This way we all remain happy and I usually do alright with this method.

 

[emahler]

RU,

Me personally, if you tell me it's going to be $500, and I am comfortable with $500, and you get done in 2 hrs instead of 3, good for you. Here's your money. I have an extra hour to do what I need.

I just don't understand taking all the risk and giving away all the reward. If you are going to do T&M, then it is what it is. But to say $70/hr, max at $350. But you get done in 3 hrs, you only make $210, but if it takes you 6 hrs, you only make $350 (or $58/hr)

It's like sitting at a blackjack table with $1000 and betting $5/hand. You will play for a while, but eventually the house will take all your money.

Operate T&M with a cap enough times, and eventually the house will take all your money.

At least with a fixed price, you should win enough hands to make up for the losses. If you understand the rules well enough.