Many professionals have difficulty putting a monetary value on their time.
While an additional investment may seem unnecessary when purchasing a home, most experts advocate getting a professional home inspection to better understand the property’s condition and potential hazards.
A home is such a huge investment, maybe the largest one a person will ever make; a modest amount of money invested in research could save the homeowner a lot of money afterward.
4 Methods to price your home inspection services
1. Set your price
If you’re a new home inspector, you probably don’t have much experience.
However, if you have worked as a building contractor for 20 years, this is also a helpful experience.
The cost of a home inspection varies significantly on the region, size, and age of the house & depending on the economic conditions in the area where you work.
Once you’ve decided on a price or pricing, make them public by posting them on your website and in your marketing materials.
However, let folks know what they’ll get if they hire you. Ascertain that they are aware of the value of your services.
2. Billable hours
This exercise aims to determine your billable hours or hourly rate. Then divide it by the hours it takes you to do one home inspection.
The idea is to figure out your flat fee or how much you charge on average for a home inspection.
If you have a property or want further inspections, the price might rapidly rise to $500 or $600-plus.
Because there are no national guidelines for home inspections, the industry might appear shady at times.
If you have construction experience and a house inspection certificate, you may provide your company with a level of validity that others lack.
3. Market-based
Because you aren’t employing any arithmetic, this method is imprecise.
You’re simply applying your knowledge of the local market, including what other firms providing similar services are doing and charging.
Some inspectors set a high fee for their services and wait to see whether they are hired.
If they don’t convert at a specific price, they’ll drop it till their market reacts. Some inspectors go to their competitor’s websites to discover how they charge for their services.
Then they decide how much to charge for their services based on what their competitors charge.
4. Outsourcing inspection
If you employ another inspector to undertake some inspection services that your company provides but that you don’t perform yourself, you should notify your client.
When Inspector Mary hires her mold inspector friend Manny, it’s usual to practice for Mary to charge a bit more than Manny would charge.
An inspector may need to engage another inspector to complete all of the inspection services requested by the customer.
Suppose you employ another inspector to conduct services that your company provides but that you don’t perform directly.
In that case, your pricing strategy must contain your flat rate, the subcontractor’s fee, and a service charge to generate your desired profit.
Also Read: 16 Creative Ways To Market Home Inspection Business
Common Problems Found in a Home Inspection & Their Cost
Here’s is a list of the most common problems that home owners may find after the home inspection is done and the avergae cost for whcich they can get it fixed:
| Type of Problem | Repair Cost |
|---|---|
| Plumbing | $275 – $3,000 |
| Window | $170 – $700 |
| Mold | $500 – $4,000 |
| Foundation | $2,000 – $10,000 |
| Flooring | $100 – $10,000 |
| Basement | $10,000 – $50,000 |
| HVAC | $100 – $13,000 |
| Electrical system | $700 – $15,000 |
What is Included in a Home Inspection Report?
A home inspector examines the systems and structure of a house and includes a report on home systems such as plumbing, electrical, heating system and other important components. Here’s what a home inspection report may include:
Condition of the roof
The home inspector examines the roof of the property to make sure it is free of any leaks or damage. In case they find any problem with the roof, then they will include it in their report.
Water damage
Having leakages and water accumulation in houses is one of the biggest concerns. Water damage can lead to molds, wood rots, and whatnot.
A roof leak that is slow might take years for the homeowner to notice, but a storm or any other calamity may instantly cause blunders for you.
Electrical systems
Addressing any electrical issues may be easy to fix and even inexpensive at the initial stage.
However, ignoring electrical issues in a home when it’s too late can cause a dent in your pocket. Therefore, according to ASHI, a home inspection report must include the following examination:
- Heating system
- Plumbing
- Air conditioning system
- Electrical system
- Attic
- Roof
- Visible insulation
- Ceilings
- Foundation
- Walls
- Floors
- Doors
- Windows
- Basement and structural components
How Much Does a Home Inspector Make?
Wrapping Up
The home inspection is a flourishing business and a great opportunity for those who want to start an in-demand business with minimum investment.
In this article on how to price a home inspection service, we shared different ways in which you can choose to price your service. We hope this was useful to you.
FAQ
Is starting a home inspection business worth it?
Yes, a lot of homeowners have started opting for a home inspection before buying a house, and so the demand for this business is high.
Also, the cost and space required to start this business are not that much, so it is definitely worth it.
Home inspection takes how long?
The time taken for a home inspection may depend on the size of the house and its condition. However, on average, a home inspection lasts for 2-4 hours.
How much can a home inspector make in the U.S.?
The amount of money you can make as a home inspector depends on how many clients you are willing to cater to in a day.
So, for example: if you do only four inspections a week then and charge $425 per inspection, then you can make $1,700 per week.
Amit Gupta is the founder of National Planning Cycles, a company that helps startups, individuals, and small businesses with their financial planning. He has a vast amount of experience in the finance sector, having managed Google Play accounts for some of the world’s most successful unicorns. Amit is an expert in his field, and he uses his knowledge to help others achieve their individual goals.
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