(LifeWire) - Overview of the Home Inspection Business
A home inspection business can be quite lucrative for a solo entrepreneur: Many home inspectors make between $250 and $450 for a thorough three-hour home inspection.
A home inspector checks for structural problems, creaky appliances, leaks, mold, faulty wiring and anything else that can affect the value or safety of a home prior to a buyer's taking possession of the structure. A home inspection service may be called in before an offer is made, or after the contract is signed, with an out provided if you declare the home unfit.
The home inspection field is expanding: Nearly 77% of home buyers hire an inspector, according to a study conducted by the National Association of Realtors and the American Society of Home Inspectors.
With popularity comes a growing demand for home inspection experience. Several states now have licensing requirements for home inspectors, including field hours and an exam. Even in states that don't, customers often expect a certification. The American Society of Home Inspectors' accreditation is considered by many to be the most stringent because it demands experience of 250 professional home inspections and the passing of two written tests before accepting a member.
The National Association of Home Inspectors Inc. is another prominent body that accredits and lists training sites of affiliated home inspection members. Regulation varies between a due-diligence reminder in California to New York's state law declaring that home inspectors must complete at least 200 hours in the classroom, 40 hours of hands-on training and pass a state licensing exam.
Pros of a Home Inspection Home Business
- You can save clients a lot of heartache or confirm their hopes on what could be the biggest purchase of their lives by conducting a home inspection for them.
- New gadgets, such as a portable carbon monoxide monitor, are making the job more thorough and convenient.
- In boom times, your home inspection skills will be in high demand; in slow times, you can market your services to homeowners who are simply looking to make their homes as safe and sound as possible.
- Regulations governing dwellings vary from state to state and municipality to municipality, and are frequently changing. You'll need to do your homework on the requirements in your area to stay informed. One way to do that is to join a professional association.
- Burned-out construction professionals are seeking less stressful work, so there's more experienced competition, according to the Bureau of Labor Statistics' Occupational Outlook Handbook.
- Cases of collusion between real estate agents and home inspectors has stained the profession, making it harder to earn trust.
- Business license or certification, as well as bonding, if necessary. Check with your local chamber of commerce and your state and local regulatory authorities to find out.
- A website, vehicle signage, business cards and print and online advertising to promote your home inspection business
- Strong networking skills to develop relations with real estate agents, contractors and homeowners
Home Inspection Business: Real Life Example
On his website, Greg Peterson of Rome, Ga., says that he does the majority of his inspections for between $300 and $325.
