fee quote for big house

[John Kogel]

I thought I was the only one that guestimated P&I like that. At one of the IBS shows I toured an $11 million dollar house, and mentioned out loud that it would only be $110k a month. The builders on that tour looked at me like I had two heads. Apparently the uber rich finance things differently than the rest of us.

I'm told they do their income taxes differently somehow. But we must not stray to politics here.

[Scottpat]

That size home is pretty common in my area, I would price it the same as a normal home inspection and that would be $1,200 or .12 a square foot. If I priced it any more than that I would never do any inspections in my area. I feel it is a fair price, heck it will amount to around $200 an hour.

I would estimate that I would be in that home for about 4-5 hours. Any longer and the owners will start to get uneasy and might think you are plaining to move in for the week!

Everything is new and it has big rooms! Homes like this are not difficult and I really enjoy them. I would even set my laptop up in the kitchen and have most of the report done by the time I finished with the inspection.

Big homes are easy, they just have big rooms! Same stuff as a small 1200 sf home just on a larger scale. Most are better taken care of, clean and easy to get around.

Pricing is all dependent on what the market will tolerate. The East coast tends to have the highest pricing for just about everything, this goes along with their cost of living as well. In the South our pricing is much lower as in our cost of living, so I can not charge what the guys in other areas are getting.

Give you an idea, I just received my new property tax statement on my home the assessed value is $210,000 and my property tax is $1050 for the year.

[Marc]

That size home is pretty common in my area, I would price it the same as a normal home inspection and that would be $1,200 or .12 a square foot. If I priced it any more than that I would never do any inspections in my area. I feel it is a fair price, heck it will amount to around $200 an hour.

I would estimate that I would be in that home for about 4-5 hours. Any longer and the owners will start to get uneasy and might think you are plaining to move in for the week!

Everything is new and it has big rooms! Homes like this are not difficult and I really enjoy them. I would even set my laptop up in the kitchen and have most of the report done by the time I finished with the inspection.

Big homes are easy, they just have big rooms! Same stuff as a small 1200 sf home just on a larger scale. Most are better taken care of, clean and easy to get around.

Pricing is all dependent on what the market will tolerate. The East coast tends to have the highest pricing for just about everything, this goes along with their cost of living as well. In the South our pricing is much lower as in our cost of living, so I can not charge what the guys in other areas are getting.

Give you an idea, I just received my new property tax statement on my home the assessed value is $210,000 and my property tax is $1050 for the year.

Using your math, an inspection on that hypothetical 1200 SF home would go for $144.00. What am I missing?

Marc

[Scottpat]

That size home is pretty common in my area, I would price it the same as a normal home inspection and that would be $1,200 or .12 a square foot. If I priced it any more than that I would never do any inspections in my area. I feel it is a fair price, heck it will amount to around $200 an hour.

I would estimate that I would be in that home for about 4-5 hours. Everything is new and it has big rooms! Homes like this are not difficult and I really enjoy them. I would even set my laptop up in the kitchen and have most of the report done by the time I finished with the inspection.

Big homes are easy, they just have big rooms! Same stuff as a small 1200 sf home just on a larger scale. Most are better taken care of, clean and easy to get around.

Pricing is all dependent on what the market will tolerate.

Using your math, an inspection on that 1200 SF home would go for $144.00. What am I missing?

Marc

For a 1200sf home I would be at $275. For homes over this I add $25 for every 500sf and once I hit around 3500sf I switch over to the .12 per sf for my fee. My fee is also dependent on the area the home is in, the time of year and how busy I am.

[Terence McCann]

Wait till you find things done wrong and then you get to fight with the builder. You know your clients will give your report to him.

Hope you're current with codes.

[resqman]

Wait till you find things done wrong and then you get to fight with the builder. You know your clients will give your report to him.

Hope you're current with codes.

How is this any different from a new home inspection? Most of my clients ask that I email the report directly to the builder and provide the email address.

New homes are easier because they must meet the current code. No arguments. I keep a hardcopy of the NEC and IRC within arms reach of my report writing area. I have the State and City inspectors on speed dial. Any questions and I give them a call. Usually there is no need. Builders know when they don't meet code.

It is the subs that call and whine. Had one call yesterday on new construction. He wanted me to tell the buyer his work was OK. I calmly stated it does not meet the manufacturers installation instructions. He said I was not using common sense. I told him either follow the manf. instructions or provide a reference that states the way he did the work is acceptable. I provided a link to the manf instructions in the body of the report. The sub even told me he read the link but he did not need to do everything because that was overkill for this installation.

Not my fight. Home inspectors report what is wrong, the buyers decide if they care. If they don't care, it doesn't matter as long as I reported it.

[Scottpat]

Wait till you find things done wrong and then you get to fight with the builder. You know your clients will give your report to him.

Hope you're current with codes.

I just do not have that problem with the builders. I report what I find, take a picture and if needed provide documentation to back-up what I'm saying.

Last week I had a 10 mth old home that had cracking on some interior drywalls and a couple of doors that were binding. The problem was that they did not put any squash blocks with the TJI's and the supporting walls were crushing the joist. All I did was to supply the TJI requirements for squash blocking with the report.

I encourage my client to give the report to the builder. This puts the builder on notice of the defects in the home and in my state once a builder is aware of the problems the the 1 years warranty is extended until those items are corrected.

Warranty inspections are no different than a pre-purchase inspection.

[Terence McCann]

Wait till you find things done wrong and then you get to fight with the builder. You know your clients will give your report to him.

Hope you're current with codes.

I just do not have that problem with the builders. I report what I find, take a picture and if needed provide documentation to back-up what I'm saying.

Last week I had a 10 mth old home that had cracking on some interior drywalls and a couple of doors that were binding. The problem was that they did not put any squash blocks with the TJI's and the supporting walls were crushing the joist. All I did was to supply the TJI requirements for squash blocking with the report.

I encourage my client to give the report to the builder. This puts the builder on notice of the defects in the home and in my state once a builder is aware of the problems the the 1 years warranty is extended until those items are corrected.

Warranty inspections are no different than a pre-purchase inspection.

A pre-purchase inspection on a 1958 ranch is vastly different than a 1 year warranty inspection on a 10k sq ft 11 month old home.

You better have your game on.

[Scottpat]

Wait till you find things done wrong and then you get to fight with the builder. You know your clients will give your report to him.

Hope you're current with codes.

I just do not have that problem with the builders. I report what I find, take a picture and if needed provide documentation to back-up what I'm saying.

Last week I had a 10 mth old home that had cracking on some interior drywalls and a couple of doors that were binding. The problem was that they did not put any squash blocks with the TJI's and the supporting walls were crushing the joist. All I did was to supply the TJI requirements for squash blocking with the report.

I encourage my client to give the report to the builder. This puts the builder on notice of the defects in the home and in my state once a builder is aware of the problems the the 1 years warranty is extended until those items are corrected.

Warranty inspections are no different than a pre-purchase inspection.

A pre-purchase inspection on a 1958 ranch is vastly different than a 1 year warranty inspection on a 10k sq ft 11 month old home.

You better have your game on.

Sure they are different, that is like comparing an apple to a orange. Both are round, bot have a skin and both have seeds but that is about all they have in common. But, it is still just a home inspection.

[resqman]

A pre-purchase inspection on a 1958 ranch is vastly different than a 1 year warranty inspection on a 10k sq ft 11 month old home.

You better have your game on.

Yeah, the 1 yr warranty is way easier. What makes inspecting a new home more difficult than a 60 yr old home?

[Chad Fabry]

Yeah, the 1 yr warranty is way easier. What makes inspecting a new home more difficult than a 60 yr old home?

A one year old home should be built to a very definable and defensible standard, a standard that is easily proven or disproven. In a one year old home there is very, very little grey area and there is absolutely no punting to the trades for opinions. On a one year inspection, the inspector is presenting himself or herself as an expert, not a generalist. There's no history to prove that things work in spite of being wrong. As Terry said, "you better have your game on."

[Terence McCann]

A pre-purchase inspection on a 1958 ranch is vastly different than a 1 year warranty inspection on a 10k sq ft 11 month old home.

You better have your game on.

Yeah, the 1 yr warranty is way easier. What makes inspecting a new home more difficult than a 60 yr old home?

Sorry, not enough bandwidth and I'm kinda tired. Last two days of vacation and I'm thinking about some Walleye fishin'. Have a nice night.

[Bain]

A pre-purchase inspection on a 1958 ranch is vastly different than a 1 year warranty inspection on a 10k sq ft 11 month old home.

You better have your game on.

Yeah, the 1 yr warranty is way easier. What makes inspecting a new home more difficult than a 60 yr old home?

Inspecting a 60-year-old house is more about performance than awareness of current building codes. 2" x 4" rafters in a new house? Unacceptable. Rip off the roof and start over. 2" x 4" rafters in a 60-year-old house? If they aren't cracked or sagging, if they've performed their function for 60 years . . . hardly worth a mention.

What if a problem manifests in the new house five years from now, and it's traced back to shoddy and/or non-compliant workmanship? The owners are going to want to point a finger at someone and say that person is responsible for whatever nastiness is occurring. Limits of liability are hogwash. Lawsuits can be filed one year from the time of discovery. That means--as an example--the roof on the new house may look terrific today, but it may slowly begin to fail, and ultimately look like a train wreck in a decade. THAT'S why new house inspections are different from older-house inspections. If something in the new house was constructed to code and still became buggered up, that's defensible. But if it wasn't, the sellers will sue the builder, the inspector, and anyone else who has a pocket and/or insurance in an attempt to extract some dough.

[Bain]

Yeah, the 1 yr warranty is way easier. What makes inspecting a new home more difficult than a 60 yr old home?

A one year old home should be built to a very definable and defensible standard, a standard that is easily proven or disproven. In a one year old home there is very, very little grey area and there is absolutely no punting to the trades for opinions. On a one year inspection, the inspector is presenting himself or herself as an expert, not a generalist. There's no history to prove that things work in spite of being wrong. As Terry said, "you better have your game on."

I was eating, and watching the news while typing the above, so I didn't see your post until after I zapped mine.

I want you to know that it's quite humbling to realize Chad Fabry can say pretty much the same thing I do, but that his words are always much more clear and succint.

[Jim Morrison]

Inspecting a new home is a little like looking at a newborn baby and trying to diagnose what illnesses and injuries will affect it over the next ten years. Very difficult. Big problems haven't had much time to manifest themselves.

Once a house has been good and lived in, you don't have to be all that perceptive to spot most of the big things.

I don't do much new construction and I don't enjoy it when I do. I like old homes. The older they are, the more I like bein' in 'em.

[John Dirks Jr]

Wait till you find things done wrong and then you get to fight with the builder. You know your clients will give your report to him.

Hope you're current with codes.

Thats a good point Terry and thanks for bringing it up.

I will mention that on all the new and 1 yr homes I've done so far I find multiple stuff to write up. I've never had to get in to it with a builder. Some want to rationalize why what was done is really ok, especially since it means that the same wrong plumbing fittings are on every house in the hood.

I tell them to go ask the county why they elect to ignore the written code. After that, I never hear back from them.

For the most part, builders are concerned with public image and they do everything they can to make the home owner happy with regards to my inspection findings. That's been my experience anyway.

[Jim Morrison]

Don't argue with builders, just provide your clients with the facts.

I always explain to my new-homebuying clients: 'Builders aren't in business to make houses. Builders are in business to make money.'

The sooner folks understand that, the better off they'll be.

[Chad Fabry]

Yeah, the 1 yr warranty is way easier. What makes inspecting a new home more difficult than a 60 yr old home?

A one year old home should be built to a very definable and defensible standard, a standard that is easily proven or disproven. In a one year old home there is very, very little grey area and there is absolutely no punting to the trades for opinions. On a one year inspection, the inspector is presenting himself or herself as an expert, not a generalist. There's no history to prove that things work in spite of being wrong. As Terry said, "you better have your game on."

I was eating, and watching the news while typing the above, so I didn't see your post until after I zapped mine.

I want you to know that it's quite humbling to realize Chad Fabry can say pretty much the same thing I do, but that his words are always much more clear and succinct.

I'm concise because I'm lazy and I type with three fingers.

[John Dirks Jr]

I punted to a more experienced person in that area. He was in the 2 full day $200 per hr mind set too.

Maybe I'm chicken but to be straight forward, I have no trouble filling my available appointment slots with smaller jobs that I know I'm comfortable with.

Thanks for all the input to everyone. Your knowledge has been very helpful in making the decision.

[Terence McCann]

I punted to a more experienced person in that area. He was in the 2 full day $200 per hr mind set too.

Maybe I'm chicken but to be straight forward, I have no trouble filling my available appointment slots with smaller jobs that I know I'm comfortable with.

Thanks for all the input to everyone. Your knowledge has been very helpful in making the decision.

The person that you punted to should be very happy with the lead John. I would give him the lead with the understanding that you are going to be present as well and use the opportunity to gain further knowledge.

Brian Goodman sat through a code course sometime back to become "certified" (perhaps the wrong term). If you are going to venture into this area then code knowledge is a must. You can not assume that the builder, and his/hers sub-contractors, did it right. Also, don't assume that every city code inspector got it right. When the client contracts with you for one of these inspections they assume that you're proficient in all building, plumbing, electrical, HVAC, et. al. codes. They also expect you to uncover the grey areas in the construction - furnace flue to close to a condensing unit, under a wood deck and on and on. The reason they seek this inspection is it is their last chance to go back to the builder for any defects. You are the person that they are turning to to uncover, or give the final blessing, to their new home.

[Marc]

The person that you punted to should be very happy with the lead John. I would give him the lead with the understanding that you are going to be present as well and use the opportunity to gain further knowledge.

Brian Goodman sat through a code course sometime back to become "certified" (perhaps the wrong term). If you are going to venture into this area then code knowledge is a must. You can not assume that the builder, and his/hers sub-contractors, did it right. Also, don't assume that every city code inspector got it right. When the client contracts with you for one of these inspections they assume that you're proficient in all building, plumbing, electrical, HVAC, et. al. codes.

Not in my case. I make sure every HI client understands that I'm not a code inspector and that the inspection I give them does not necessarily root out every non code compliant item.

Marc

[Terence McCann]

The person that you punted to should be very happy with the lead John. I would give him the lead with the understanding that you are going to be present as well and use the opportunity to gain further knowledge.

Brian Goodman sat through a code course sometime back to become "certified" (perhaps the wrong term). If you are going to venture into this area then code knowledge is a must. You can not assume that the builder, and his/hers sub-contractors, did it right. Also, don't assume that every city code inspector got it right. When the client contracts with you for one of these inspections they assume that you're proficient in all building, plumbing, electrical, HVAC, et. al. codes.

Not in my case. I make sure every HI client understands that I'm not a code inspector and that the inspection I give them does not necessarily root out every non code compliant item.

Marc

That's what a 11 month inspection consist of though - the chance for the buyer to make sure that their home is compliant. If there are issues, code violations being one of them, then they still have a chance to go back to the builder.

Why not check the home for code violations? It's brand new with no grey areas.

[Bain]

The person that you punted to should be very happy with the lead John. I would give him the lead with the understanding that you are going to be present as well and use the opportunity to gain further knowledge.

Brian Goodman sat through a code course sometime back to become "certified" (perhaps the wrong term). If you are going to venture into this area then code knowledge is a must. You can not assume that the builder, and his/hers sub-contractors, did it right. Also, don't assume that every city code inspector got it right. When the client contracts with you for one of these inspections they assume that you're proficient in all building, plumbing, electrical, HVAC, et. al. codes.

Not in my case. I make sure every HI client understands that I'm not a code inspector and that the inspection I give them does not necessarily root out every non code compliant item.

Marc

That's what a 11 month inspection consist of though - the chance for the buyer to make sure that their home is compliant. If there are issues, code violations being one of them, then they still have a chance to go back to the builder.

Why not check the home for code violations? It's brand new with no grey areas.

Which is why new houses are fun. The codes don't say, "you should." They say, "You must."

Marc, we're all careful about how we phrase things, but it's reasonable for your customers to presume you'll make certain their houses are at least mostly compliant with the lowest allowable standards.

[Marc]

I cite codes on HI's frequently. I've the entire family of ICC codes on a DVD which allows copy/paste and search functions. What I'm saying is that I'm not as familiar with local codes as well as registered code inspectors, so I'm limited in what I know. I probably miss code violations often. Some day I'll be like Nolan and Chad, licensed as an HI and state registered as a code inspector.

Marc

[Terence McCann]

Some day I'll be like Nolan and Chad, licensed as an HI and state registered as a code inspector.

Marc

And that will be a good thing.

Cheers.