lazerbrain Posted November 9, 2006 Report Share Posted November 9, 2006 Hello all. New to the buisness and looking forward to the combined expertise of those on the board. Had a realtor call up and wants a group fee for anywhere from 5-12 house inspected, possibly within a two week period. The company buys homes and auctions 'em off, all with inspections and appraisals complete. They were looking for a bulk price,(haven't gotten into the details yet as far as sizes, out-buildings, etc...) Got any advise or ideas? Greatly appreciate some feedback. Thanks, Gregg Quote Link to comment Share on other sites More sharing options...
Jim Katen Posted November 9, 2006 Report Share Posted November 9, 2006 Originally posted by lazerbrain Hello all. New to the buisness and looking forward to the combined expertise of those on the board. Had a realtor call up and wants a group fee for anywhere from 5-12 house inspected, possibly within a two week period. The company buys homes and auctions 'em off, all with inspections and appraisals complete. They were looking for a bulk price,(haven't gotten into the details yet as far as sizes, out-buildings, etc...) Got any advise or ideas? Greatly appreciate some feedback. Thanks, Gregg They want a volume discount but they might not give you volume business. If your business is rolling along, I wouldn't give up a full-paying job for a discount job. If you've got holes in your schedule, go ahead and offer a discount. But not on the first house. Tell him that you'll give him a 20% discount as follows: the first four houses at full price, the fifth free. - Jim in Oregon Quote Link to comment Share on other sites More sharing options...
kurt Posted November 9, 2006 Report Share Posted November 9, 2006 Yeah. What Jim said. Every promise I've ever gotten for lots of work if I gave them a discount on price was a promise broken. "Advertising jobs" only advertise that you're willing to work cheap; they immediately eliminate respect & bring on abuse. I tell folks I'll give a discount, or money back, after 10 jobs. Maybe. The houses have to be close together so I can get some logistical advantage to make up for the lost income on each job. And, you're going to be fielding calls from the buyer's even if you have a "no third party use" clause in your contract. Quote Link to comment Share on other sites More sharing options...
lazerbrain Posted November 10, 2006 Author Report Share Posted November 10, 2006 I appreciate the feedback guys, thanks! Quote Link to comment Share on other sites More sharing options...
Bill Kibbel Posted November 10, 2006 Report Share Posted November 10, 2006 Being "new to the business", giving a quantity discount might be something you would consider more readily than the well established guys that have responded. Giving them the benefits of the arrangement on the far end is good advice. There's a possibility that they may not appreciate your efforts, after the first few, if your reports are suspected of keeping the bids low. Quote Link to comment Share on other sites More sharing options...
charlieb Posted November 10, 2006 Report Share Posted November 10, 2006 I told a like call today from a mortage company. They used another inspector on the last 16 house block. His report had too many inconsistencies, according to them. They were also unhappy with a three week turn around. They asked for a discount only if a single buyer purchased multiple properties. The report would be released to them and payment for the work would be made after the auction. I quoted book rates. My first block of 20 comes up the week of the 20th. Quote Link to comment Share on other sites More sharing options...
paul burrell Posted November 10, 2006 Report Share Posted November 10, 2006 Originally posted by charlieb The report would be released to them and payment for the work would be made after the auction. I quoted book rates. My first block of 20 comes up the week of the 20th. If you trust the mortgage Company and don't mind financing their operation for them with your capitol with the promise of a payment then you can stay busy for awhile. I personally am leery of Companies that have less money than I do and can't finance their own operation. From my past experience dealing with Mortgage Companies as a Real estate Appraiser (inactive) and a home inspector (active) is that some of them but not all have more curves than a highway through the Blue Ridge Mountains of Appalachia. This is just my opinion from past experiences. Good luck and please let us know how this venture works out. Good I hope. Regards, Paul Burrell Quote Link to comment Share on other sites More sharing options...
charlieb Posted November 10, 2006 Report Share Posted November 10, 2006 Dunn and Bradstreet on ANY company you do biz with. It is an accepted part of business to have receivables from another company. I have a comm. service company, for 10 years, and have 30, 60 and 90 day customers. The slower they pay the more we charge them. You'll pass on a lot of additional income if you keep your hand out for a check in the corporate world. Quote Link to comment Share on other sites More sharing options...
malban Posted November 11, 2006 Report Share Posted November 11, 2006 Get paid up front. I've had several of these requests. Usually the inspections aren't ready when they say it will be, or there is no one to let you in. The 12 inspections usually turns out to be about 2 or 3 after they decide to drop several properties and don't bother to tell you. Unless you are paid up front, you may end up doing 5 or 6 and only collecting for 2 or 3. In short, you may run your tail off trying to please them and get nothing for you efforts. Professionals respect your skills and time. They don't hustle you for discounts. Anyone who needs to save $100 to make a deal work, has high flake potential in my book. I'm always very slow to get involved in work of this type. I noticed in Jim's post the suggestion of giving every 5th inspecion free. I think that's a great solution, as long as you collect for the first 4 up front. I wish I had thought of it. Originally posted by Jim Katen Originally posted by lazerbrain Hello all. New to the buisness and looking forward to the combined expertise of those on the board. Had a realtor call up and wants a group fee for anywhere from 5-12 house inspected, possibly within a two week period. The company buys homes and auctions 'em off, all with inspections and appraisals complete. They were looking for a bulk price,(haven't gotten into the details yet as far as sizes, out-buildings, etc...) Got any advise or ideas? Greatly appreciate some feedback. Thanks, Gregg They want a volume discount but they might not give you volume business. If your business is rolling along, I wouldn't give up a full-paying job for a discount job. If you've got holes in your schedule, go ahead and offer a discount. But not on the first house. Tell him that you'll give him a 20% discount as follows: the first four houses at full price, the fifth free. - Jim in Oregon Quote Link to comment Share on other sites More sharing options...
sbrooten Posted November 21, 2006 Report Share Posted November 21, 2006 I'm new to this forum, but a lot of the names I see are familiar. My .02 worth: Don't be in a big hurry to discount to anyone. I like the idea of giving the fifth free if paid in advance for the first four. Second tip: Get everything in writing. I'm still trying to collect from a couple of deadbeat companies that made all sorts of promises. At least a written contract is a little help if they still you. Quote Link to comment Share on other sites More sharing options...
paul burrell Posted November 22, 2006 Report Share Posted November 22, 2006 Work paid at closing is done by RE sales persons not home inspectors. This could be considered a conflict of interest as the inspector has a vested interest in closing the property in order to get paid. Also if a problem arises with the home structurally or mechanically that is holding up sale, that can be fixed by the inspector they have you by the %@!!$ simply because the property has to sell/close before you get paid. I can envision free trips to jobs, inspection report alterations etc. in order to get paid. Once the work is done they have all the power the inspector has none. Personally I do not care to be in that position. When inspectors start working subject to closing or sale it can open up a can of worms that may not be pleasant to swallow. Paul B. Quote Link to comment Share on other sites More sharing options...
blunsford Posted January 7, 2007 Report Share Posted January 7, 2007 I see a potentially big problem no one has mentioned yet. You are allowing your report to be given to someone that you have never met, and with whom you do not have a pre inspection contract with. See where I'm heading? This person is using your report to buy this home, again - with your permission - with no scope of the inspection, limits of liability, etc. You "may" be entering into a situation with unlimited liability for a reduced inspection fee. That doesn't sound very appealing to me. Quote Link to comment Share on other sites More sharing options...
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