Home Buyers Beware

Beware of the home inspection price wars in Kansas City. This is America, and anyone can price their services at any level they want. But here’s a few thoughts to chew on as you get prices for home inspectors:

You’re about to buy a house and give your Real Estate Professional somewhere around 7% of the price of the home in commisions. (“No, I’m not giving it to them – the seller is!” Who’s name is on the mortgage?). For a 200,000 house, thats $14,000. Thats equivalent to a year of college. Its also a pretty nice car for many people. 

In our opinion, a thorough home inspection is worth that same amount of money. Home Inspectors are the only people involved in the real estate transaction that truly have no financial interest in whether or not you buy the home. Who else is truly looking out for your best interests? 

Fortunately for you, prices for home inspections only range from $95 to $600. But thats still a pretty sizeable gap: So whats the difference?

If you have a problem with your luxury car, who are you going to take it to? The service station down the street, or back to the dealer? I’m willing to bet most people will choose the dealer. Why? Because you want someone the most qualified person to take care of your problems. By the same token, you’re going to spend at least 1/3 of your life asleep in the house you’re buying, and at least 1/2 of your life in the same house, isn’t it worth the satisfaction having the most qualified inspector look over your house to know whether or not the house is safe for you and your family?

Before you decide to save $50 on the biggest investment of your life, ask yourself if its worth it. Cheaper doesn’t always mean better. Ask yourself why the other guy is cheaper.

Here’s an article that appeared recently for your review regarding home inspector pricing.

Make sure your inspector is an ASHI CERTIFIED INSPECTOR. Many advertise it – others can prove it.

Johns ASHI ID Badge      randy_id_badge.jpg

Feel free to call John or Randy. We’ll be glad to talk to you about pricing – at no charge!

By the way, for those of you following, Kansas House Bill 2315 passed through the House of Representatives this week and was sent to the Senate. Looks like regulation of home inspectors in Kansas is one step closer.

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3 responses to “Home Buyers Beware

  1. I’d like to ask about your comment: “You’re about to buy a house and give your Real Estate Professional somewhere around 7% of the price of the home in commisions. (”No, I’m not giving it to them – the seller is!” Who’s name is on the mortgage?). For a 200,000 house, thats $14,000. Thats equivalent to a year of college. Its also a pretty nice car for many people. ”

    Are you telling buyers that the REALTOR’s commission is paid by them? Because it certainly isn’t. The real estate commission comes out of the seller’s proceeds.

    Could you please clarify.
    Thanks.

  2. Fran, thanks for the comment and for stopping by. Yes. I agree with your statement – the seller does, indeed, pay the commissions for the sale of a home.

    But isn’t it a little like buying a product at Walmart? Part of the cost of that product is the shipping fee to get it to the store. Walmart (the seller) is responsible for paying that fee, and its not a published fee that you as a buyer know about. But in the end, who really pays for the product? The purchaser. Without that additional transportation fee, the price may or may not have been different.

    To anyone else paying attention here: My point is not about accounting. Fran is absolutely right in that regard. My point (of the article) is that if a buyer is looking for a truly unbiased opinion on the property, then they can hardly go wrong by paying such a (relatively) small fee for a forensic home inspection. It protects the buyer, it protects the seller, and it protects the agents that may or may not be involved. How can you go wrong?

    OK, there’s another topic for a later date.

  3. Thanks for clarifying that. I ALWAYS recommend to my clients that they get the best inspector for their inspection. It protects everyone.

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