Starting a Home Inspection Business: Frequently Asked Questions

Most people have had the urge at some point in their lives to take something they loved and turn it into a business. Maybe you have always wanted to be an entrepreneur. Maybe you just lost your job and are looking for something new to do. Maybe you have been in the construction business and are now ready to try your hand at inspections. Whatever the reason for your interest in starting your own home inspection business, below you will find the answer to some commonly asked questions.

ARE HOME INSPECTORS IN DEMAND?

Home inspectors are currently in demand, and projections are that they will continue to be sought after in the future. According to the Bureau of Labor and Statistics, the demand for home inspectors will continue to grow at a rate of 3% over the next ten years. Additionally, the rate of new homes is expected to rise from 5% in 2020 to 10% in 2021. With all of these new homes on the market, home inspectors will continue to be necessary and busy.

Whether you are buying or selling a new or old home, the country continues to be interested in safety. And with many homes getting older, inspectors are even more important than ever! Whether it’s loose pipes or shingles on the roof, mold in the crawl space, or asbestos tiles, home inspectors have their work cut out for them with older homes. There will be a lot of work for years to come.

IS BEING A HOME INSPECTOR DANGEROUS?

Any job can be dangerous, but there are a few more inherent risks in going to work each day inspecting homes. Make sure to always let someone know where you are if you are inspecting a house alone, in case you have an accident.

The following are some key safety issues for home inspectors, so pay careful attention to these:

• Make sure to check your ladder and other equipment frequently for wear and tear.
• Electricity can be dangerous and should be dealt with using care and caution.
• Water can cause mold, slippery conditions, and other problems. Be wary of it.
• Many older homes have asbestos problems and need to be dealt with carefully.
• Crawl spaces and attics have many hidden dangers that you need to watch out for.
• Be conscious of your surroundings. No matter what part of the house you are inspecting at any given time, since you have never been there before, you need to proceed with caution.

CAN YOU MAKE GOOD MONEY AS A HOME INSPECTOR?

Let’s face it, you wouldn’t take a job if you couldn’t make a living. As of May 2019, the median salary for a home inspector was $60,710. On average, and depending on what part of the country you live in, home inspectors make about 28 dollars an hour. In some parts of the country, home inspectors can make up to $91,000 a year. Home inspectors who specialize in certain areas or are really well-respected make even more money.

ARE HOME INSPECTORS SELF-EMPLOYED?

If you are thinking about becoming a home inspector, there are several ways to play this. Most home inspectors are self-employed. If you are self-employed, you will need to handle all the planning, paperwork, inspections, taxes, and marketing yourself. There are many tips below for starting your own home inspection business.

About 80% of home inspectors work full-time, and 20% do this part-time. If you love the idea of home inspections but want to hang on to your job, then consider the best of both worlds and do the inspections part-time.

HOW DO I START A HOME INSPECTION BUSINESS?

The idea of starting your own business may seem daunting, but it doesn’t have to be. By following several easy steps, you can be well on your way to autonomy in the workplace and owning your own business.

• Decide on a business plan. This will take time to research. What type of business are you trying to create? Will you specialize in a niche? How much will it cost to start up? Will you have a co-owner? How many employees will you need?
• Get the training and licenses you need. Find out what licenses you will need, which vary by state. You also need to be trained, which you can accomplish via online training.
• Make your brand work for you. Although marketing might feel overwhelming at first, once you develop a logo and a tagline, your branding will start to come together. Make sure to be consistent on all of your advertising.
• Acquire insurance. It will protect you in case of an accident.

HOW MUCH DOES IT COST TO START A HOME INSPECTION BUSINESS?

As with anything, the startup costs vary widely. You could start a home inspection business for as little as $1,000, but most times you will shell out about $4,000-10,000. It definitely takes money to make money. You can expect to spend money on the following:

• Licensing and training
• Business Insurance
• Home inspection equipment
• Marketing and advertising

DO HOME INSPECTORS NEED INSURANCE?

Yes, ASHI and InterNACHI both recommend two kinds of home inspectors’ insurance: errors and omissions and general liability. Make sure you have coverage for property damage and bodily injury on both.

• General liability insurance covers any accidents or damage that occur while you are on the home owner’s property.
• Errors and omissions insurance covers you for anything you do or do not do that costs the homeowner money. In case of negligence on your part, you want to be covered.

Although it might feel like you are throwing away money every month paying for insurance, one accident and the subsequent payout to rectify it could ruin you for life, so it is very crucial that you have insurance.

HOW MANY HOME INSPECTIONS DOES A HOME INSPECTOR DO IN A WEEK?

Before you consider home many home inspections you can do in a week, make sure you understand all that goes into your busy day as a home inspector. You need to plan your day, set up your paperwork, do the physical inspection at the residence, complete the paperwork after the inspection, and set yourself up for the next day.

If you own the home inspection company, you have even more jobs to do in a day, such as marketing, payroll etc. Many home inspectors do about 7-10 inspections a week, but the numbers vary widely. Expect to work around 50 hours a week in most situations.

Running your own business is exhilarating, exasperating, and everything in between. Carefully studying the answers above can help you decide if starting a home inspection business is right for you.