Guardian Inspection Payments

Home Inspection Payment Processing

Call Today

FlexFund Users: Are You Getting What You’re Worth?

Home inspectors – here’s a question for you: Have you changed your pricing since you’ve started using Guardian’s FlexFund? If not, did you know that a small increase in your inspection fees easily offsets the FlexFund fee? It’s true, and it means FlexFund’s buy now, pay later payment method is a win-win for you and your clients.

We’ve recently taken a deep dive into the art and science of pricing inspections, and we’re going to share what we’ve learned. Warning: math ahead.

A Look at Inflation and Pricing

Since 2003, inflation has averaged 2.61%, leading to an overall 67.28% increase in prices. This illustrates how the compounding nature of inflation can lead to a significant rise in prices over an extended period.

Over the same period, home inspectors’ prices have only increased an average of 17%. 17% is a lot less than 67% (there’s that math we mentioned).

So, say you were charging $410 for an inspection in 2003. If you have increased your prices to match the average cumulative price increase, you would be charging $685 for an inspection today.

A Small Change in Fee Structure Goes a Long Way

As you know, FlexFund allows home inspectors to offer clients a convenient way to roll the cost of their home inspection into their closing costs. Inspections are paid upfront, and clients settle the payment at closing, even if the sale falls through.

You are charged $50/transaction fee to be able to offer this payment option to your customers for free. Your customers and their agents love the peace of mind that comes with the flexibility to pay later, and to add services for a more complete home inspection. It’s just an easier way for them to pay for their home inspection.

However, you are unable to pass along this fee to your customers because of legal regulations.

To navigate this, Guardian recommends a modest increase of just $2-3 on your base inspection fee.

This calculated adjustment takes into consideration the average FlexFund adoption rate of 5% by inspection clients (based on data going back to 2022). This strategic pricing approach aims to maintain fairness and sustainability while accommodating the added value offered through FlexFund.

With all of the above said, you’re still able to leverage FlexFund to drive increased revenue without a price increase. Consider the 5% adoption rate above – that means that just 1 out of every 20 clients will elect to pay with FlexFund…that’s just $50 per 20 inspections.

Also keep in mind that FlexFund adds value to your inspections regardless of whether the client chooses to pay with it or not, because they’ve seen it as an option when they’re selecting the range of inspection services they’ll be purchasing from you! Perhaps the client is comfortable paying out of pocket to a certain threshold, and in their mind FlexFund is there as a second choice should their inspection needs warrant it.

FlexFund’s Worth to Home Inspectors

We just wanted to remind you how FlexFund helps home inspectors make more money from every job. The numbers from our active users illustrate what’s possible:

  • 30% average increase in inspection invoices
  • $154.63 average increase in inspection invoice values
  • $6,298.32 average increase in overall revenue (January 1 – October 31, 2023)

If you’re a FlexFund customer, or someone who is interested, and want to speak with someone about how to strategically adjust your inspection fees, give us a call at 1-800-608-7363.