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.
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.
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.