Home inspectors are an elite group of talented professionals who offer a valuable service. Their skills in testing and evaluating the condition of a home are essential for new home buyers to discover potential expensive repairs, and these services are vital to most home mortgage approvals.
A home inspector has a large responsibility to their clients. Their evaluations and opinions of a home’s condition can help a new homeowner know what to expect when they buy a home. Many home purchase contracts are contingent upon a “satisfactory” home inspection, putting much pressure on inspectors to be thorough and have expert opinions.
With 77 percent of all homes sold obtaining a professional home inspection, according to the American Society of Home Inspectors, there is a big market for this field and still room for growth potential.
Skills Required: Understanding of home construction, including structure, plumbing, electricity, utilities, HVAC, and landscaping.
Starting a home inspection business is not as easy as hanging out a proverbial shingle. Even as a part-time business, a home inspection business should be qualified to perform home inspections and give confidence to clients.
Subsequently, becoming certified either through the National Association of Home Inspectors or the American Society of Home Inspectors can help you get your part-time business off the ground.
Startup Expenses: $500 – $3,000
A part-time home inspection business does not need to run out of an office, since the work is performed on-site at a house for sale. Startup expenses would be for your marketing materials, including advertising, letterhead, business cards, and flyers.
In addition to normal tools, you may need to purchase additional equipment for your part time home inspection business, such as a flashlight, AC voltage meter, moisture meter, natural gas or carbon monoxide detector, and a sturdy ladder.
Monthly Revenue: $1,200 – $5,000 per month
Typical home inspection fees range from $300 to $500 per inspection. Some home inspection businesses can perform up to three inspections per day. With just one inspection per week at $300, you could earn an extra $1,200 per month. You could perform just two or three a week at $500 and make a nice living.
Monthly Expenses: $100 – $1,000
Overhead expenses for running a home inspection business are typically minimal. You pay only for your regular marketing costs and transportation expenses.
Most established home inspectors get regular business from word-of-mouth and do not market any more than a simple Yellow Pages ad. You could utilize the internet to your advantage and pay for PPC ads or target local SEO for your area.
You may want to pay for an extra phone line to take your home inspection business calls, which could run an extra $50 to $100 per month.
Home inspectors usually use their own vehicles, typically a pickup or SUV for their transportation. Your vehicle maintenance and expense costs can be written off as a tax deduction for your business.
Home inspection is always a needed service, even when the real estate market is soft. As a part-time business, home inspection can generate solid extra income, which can easily become your full-time income once the real estate market grows again.