Home inspection can be a lucrative business, especially when it’s done right. Becoming a home inspector can be a lucrative business venture, especially when it’s done right. If you’re interested in starting a home inspection business, there will be a few upfront costs and investments you’ll need to make before you begin performing inspections. The right investments, planning, and saving will get your business up and running smoothly.
Before you can begin the process of conducting business, you’ll need to do a few things, including training, passing a certification exam, getting licensed, and finding the right software. Some equipment and tools are also required to operate a successful home inspection business.
Read on to learn more about some common home inspection business start-up costs, what you’ll need to know about how to start a home inspection business, and how to stand out compared to big home inspection franchises.
What are home inspection business start-up costs?
The costs to starting your own home inspection business vary based on your state, the type of training you receive, and goals. The costs will also be dictated by your business plan, your budget, your marketing, and whether you want to franchise.
Here are the most important things you’ll need to pay for to get your business started:
Home inspector training
First, you’ll need to enroll in training. This may be done on-site through a community college or online, as there are many programs to choose from. Read up on the quality of the certification, and the services it allows you to provide. It’s not always best to sign up for the least expensive program. Consider your education and training as an investment in your business.
Some schools charge an additional fee to take the final exam, while others include it in the tuition cost. Make sure you confirm whether or not your exam fee is included before you enroll. Upon completion of the training, you’ll be required to pass a final exam to assess if you qualify to be a home inspector.
Home inspection state license
After passing the exam, you’ll be able to apply to the state for licensing. Depending on your state, you may need to pay an application fee. Once you have your certification, you’ll be able to start your business.
Marketing your home inspection business
If you’re planning to branch out, add the cost of marketing and networking to your start-up costs. Invest in high-quality software for marketing your business, establishing your website, managing your business, and keeping track of things like appointments, processing, billing, payroll, and other key administration when you hire staff.
Just as important as your office software is your home inspecting tools and equipment. This is a worthwhile investment, as you don’t want to be on a job without the equipment you need.
How lucrative is a home inspection business?
With the housing market being so dynamic, home inspectors are doing very well right now, especially in areas where real estate is booming. If done well, your home inspection business can be quite lucrative.
The amount of money you bring in depends on how much work you get, what you charge, and where you live. Each of these factors can be addressed strategically. For example, if you’re willing to travel to work in a more lucrative area, your chances of doing well will be higher. Similarly, if you plan your marketing strategy well and deliver consistently good work, you’ll build a good reputation and expand your business.
Make sure you charge a competitive rate for your work. Charging too low will have customers convinced your work is subpar, and an inflated rate will be just as unattractive. Pay attention to what other home inspectors in your area charge for their work and what services they offer. You can set yourself apart from them while still charging an amicable rate.
Overall, having a home inspection business is lucrative for those who perform home inspections consistently and build a quality client base. If you want to take it a step further and scale your business, home inspection franchises are a great way to increase your revenue. Home inspection business start up costs are minimal and will be well worth it.
What’s the average annual revenue of a home inspection business?
A home inspection business has an estimated annual gross revenue of about $144,000 at 400 inspections performed at approximately $350 each. This is for a small business; a franchise home inspection company will have the same amount of revenue, but the total will be reduced by about 12% due to franchise fees.
Keep in mind that these numbers are before you pay for things like operations, marketing, and other business-related costs. There are also some overhead fees you’ll need to calculate into your budget.
Your revenue will also fluctuate depending on what you charge for each inspection, how many inspections you perform, and whether or not you have other people working for you.
What are the benefits of having a home inspection business?
One of the main benefits of having a home inspection business is being able to work for yourself. You’ll also have complete control over your schedule, which means a flexible career that works for your lifestyle.
Housing is a basic need. No matter the market, homes are being sold. A home inspection business will have the staying power and can be extremely lucrative when operating with integrity and efficiency.
Most home inspectors enjoy what they do because it gives them a chance to help others. As a professional home inspector, you’re allowing potential home buyers and home sellers to find out important things about their property. A home inspection is a valuable service, and you’ll have the satisfaction of knowing you’re able to provide it to your clients.
Inspecting properties allows you to learn new things, so there’s always something exciting and new to discover. This is especially fitting for those who don’t have a history in homes and real estate — you don’t need a lot of experience to start a home inspector business. Once you get your license, you’ll be able to practice, and there are a lot of resources out there to help along the way.
How to start your own home inspection business?
There are a number of things you have to do to start your own home inspection business. Here is a comprehensive guide to get you started:
- The first step in how to start your own home inspection business is determining your upfront costs and savings.
- Next, you’ll need to enroll in training classes in order to take your exam and get fully licensed and certified.
- Research the best quality tools and equipment you’ll need to do the job and invest accordingly.
- Once you receive your license, begin the process of marketing and reaching out to customers. Make sure you choose a quality inspection software program that will make doing business easier.
- Decide on a name for your business, set up a website, print some business cards, and work on branding for your inspection business.
Some other things you might find helpful are researching other home inspectors in your area, making a business plan, and deciding how to set your home inspection business apart from others. Also, consider your target audience, registering your business with the state, starting a business bank account, and getting the proper insurance coverage.
After you have all of these things in place, you can start scheduling your inspections. If you need help finding customers, reach out to some local real estate agents in your area. They’re a terrific resource for networking and finding new clients.
What equipment do I need to start a home inspection business?
You’ll need some basic tools such as pliers, screwdrivers, sturdy ladders at a few different heights, a quality flashlight, and a digital camera or smartphone so you can take photos when performing home inspections.
Other key equipment includes various meters to perform basic tests, including an A/C voltage detector, a moisture meter, and an infrared thermometer, to test heat and moisture.
Where can I find licensed home inspectors for my home inspection business?
When you start a home inspection business and it grows enough to hire staff, the first thing you’ll need to decide is whether your home inspectors will be employees or independent contractors.
There are some great databases, including ASHI® and InterNACHI® to find certified home inspectors in your area. Other ways to recruit people include putting ads out in your local newspaper’s classified section, using career websites to list job opportunities, and through social media.
One of the most overlooked avenues to finding home inspectors to hire is by getting to know the real estate agents in your region. Talk to realtors near you and tell them you’re looking for certified home inspectors. You may not only find staff but having relationships with local realtors is the best way to network and increase your client list.
What’s the best home inspection software for a home inspection business?
The best home inspection software should make doing your job easier. There’s an abundance of software to choose from, but what really matters is that the software you choose functions to keep your home inspection business running seamlessly.
Look for software that includes the following functions:
- Appointment and scheduling management tools to help you stay on task.
- Helps you bill customers and accept payments.
- Provides methods to market your business.
- Is able to integrate with vendors and reporting software.
- Offers the ability to automate messages to customers.
- Have payment capture to keep a paper trail of all payments.
- Follow-up emails to keep in touch with clients.
With proper budgeting and planning, you can start your home inspection business for a reasonable cost. The most expensive factor will probably be your training, as you don’t need an office or a staff to get started. Once you factor in things like licensing, software, equipment and tools, and marketing, the cost increases. As you take on new clients, these initial costs can be paid off quickly.
With their high revenue margins, home inspection businesses and franchises are taking off in popularity, as they’re recession-proof and evergreen in the business world. Inspection Support Network is here to help you succeed in starting your home inspection business. Explore our resources section to find helpful articles and more so you can start inspecting homes and making money.