Are you ready to make money with home inspection services? If so, this post is for you. I will tell you the ways how.
Making money with home inspection services is a way to certify that the homes your customers are buying or selling are safe. That is, you are looking for defects with the electrical system, plumbing system, heating system, doors and windows, roofs, decks, and more.
But what are the best ways to make money as a home inspector performing these tasks?
1. Become a Real Estate Agent
A real estate agent is the most common career selection for home inspectors. Many home inspectors find it easier to make money working as real estate agents because realtors are given access to ownership status, knowledge about property prices, automatic experience with showing properties, and more.
If you double as a real estate agent, then your home inspection services can be an opportunity to generate additional income. If you’re not yet licensed, the knowledge and skills you gain can help you prepare for the licensing exam.
The basic scenario is that you get your license, get listed with a real estate firm, and start marketing yourself.
2. Sell Your Service to Property Sellers
The best business is selling your service. When selling a house inspection, you sell not only the inspection but the experience and knowledge to help sellers make their home listings stand out.
Your customers are the sellers of the property. Their purpose is to have a professional identify any defects that could affect the resale value or provide a reason for a price adjustment.
If you have a trustworthy reputation as a home inspector, doors will start to open for you as you talk with realtors, sellers, and other people around town.
3. Work for Another Property Inspector
You are just starting out as a residential, commercial, or mold inspector. You are thinking about how to make money with home inspection services. One way is to work for another home inspector who has more experience than you do. For example, doing the visual part of an inspection while he does the inspection.
This provides several advantages:
- You get to know how much it costs to build a clientele
- Gives you the opportunity to learn the job
- You are not the only one responsible if the company is unsuccessful
Many property inspectors hire subcontractors to help them complete a larger number of inspections in a shorter time frame. You can opt for such offers to make money and also gain more experience.
4. Work for an Appraisal Company
Working for an appraisal company is a great way to get started as a home inspector and make money with home inspection services.
When a prospective buyer or a lender needs an inspection of a home or a building, they may call an appraisal company. The appraisal company will then hire and send out an inspector to do the inspection.
When you are hired by an appraisal company, you perform inspections based on a schedule that is set up by the appraisal company. Once a month you send a report to the appraisal company based on the properties inspected.
Appraisal companies pay good money for a thorough home inspection performed by a licensed individual. Your report could help a bank or other lender determine if they will loan money to a buyer for a certain property.
5. Offer Training to Home Builders and Contractors
You can make money with home inspection services out of training home builders and contractors on a home inspection. This will bring you a continuous source of income from repeat customers.
With the rapid growth of the housing industry, there is always a need for trained home inspectors. Maintain a true entrepreneur spirit and offer your services for builder training and seminars.
You can hold classes in your own office using genuine acquired data to create workbooks and manuals. Your ability to teach can be supplemented with video recordings and multimedia presentations complete with graphics and illustrations.
6. Help the Realtor in Collecting Data
As a licensed home inspector, you can help out realtors by inspecting properties that are up for sale, then helping the realtor collect data about the condition of the house. This information helps prospective buyers decide which property is best for them.
Being a qualified inspector, you will be able to discuss the property, problems, and potential future problems. Your data will be used by the listing realtor in describing and selling property. In this case, everyone wins.
In addition, you can partner with local real estate agents to take their clients’ inspections for them.
7. Sell Your Services to Property Management Companies
One of the best ways to make money with home inspection services is to sell your services to property management companies. For property management companies, there will always be a need for home inspection services. And that’s where you come in.
Property management companies manage rental homes for their owners and will need them inspected regularly, so approach these companies and offer your services.
Let these companies know what you offer (appraisal, radon testing, water testing, pest reports, etc.) and give them an opportunity to take the service up on the spot.
8. Sell Your Services Directly to Home Buyers
Selling your services directly to home buyers can be one of the most profitable ways to run your home inspection business. Since you’re the only inspection service they’re using, you can set your prices however you like – and increase them over time.
The main challenge with this option is convincing homeowners that they need a home inspection before buying a house. Homeowners simply prefer to work with existing companies during their home buying process.
There are several things you can do to overcome this challenge — perhaps the most important of which is to get your business listed with real estate agents who are selling residential properties in your area.
9. Help People Purchase a Home
As a home inspection specialty inspector, you can help people purchase a home. From a tiny house to a massive mansion, the value of homes may differ widely, but home inspection work is all about inspecting important aspects while consulting about maintaining these aspects in the long run.
It is said according to data from the U.S. Census Bureau, that the average American moves 11 times during their life. If each move averages $8,000 or more in costs, your average customer will buy 3 homes and spend around $24,000. This means more money for you in the long run.
10. Offer Consulting Services
Home inspections are an excellent way to make some income. If you like the idea of having the option of more flexibility, but still like the idea of working on your own time (all day, evenings, weekends) this may be right up your alley.
Offer consulting services to homeowners, realty offices, and property management companies. These companies are always looking for ways to avoid costly mistakes when purchasing or selling properties. A home inspection service can offer the solution needed.
Homeowners usually think they know what’s behind the walls of their home, but let’s face it, nobody really knows for sure until they tear off the drywall. That’s where you come in. Offer consulting services to get paid to take a look around under the hood of their new home, or property before it goes up for sale.
11. Offer Repair Services While Inspecting Homes
Offering repair services while inspecting homes is another great option to make money with home inspection services. Interestingly, it doesn’t require any additional training or certifications. Since you know all about the house anyway, adding repairs to your inspection routine is logical.
The right home inspector provides professional home inspections for home buyers and sellers, as well as a repair recommendation checklist to make sure small issues are dealt with before they become expensive bummers.
So if a client tells you about a problem that needs to be fixed, let them know that you can fix it for a small fee. This gives you an edge over your competitors.
Starting a Home Inspection Business
Starting a home inspection business can be a profitable and fulfilling experience. The field of home inspection is always growing and there is room for competent entrepreneurs to enter the marketplace and build a respected company.
Here are the steps you need to follow to start a home inspection business:
1. Create a home inspection business plan
Once you have decided to start a home inspection business, the first step is to create a business plan. Creating a business plan is critical to your business’s growth and success. This is your road map―the strategic blueprint for where you want to go in setting up your business.
2. Acquire the necessary training and certification to become a home inspector
Becoming a home inspector and starting a home inspection business requires training and Certification. Getting certifications, as well as industry-recognized training, will help ensure that you’re providing your clients with the best possible services.
3. Buy liability/E&O insurance
It is highly advisable to get liability/E&O insurance even though home inspectors are not licensed. Property owners can sue for damages if their property is damaged during the inspection process, and the only protection that home inspectors have is their liability/E&O insurance.
4. Purchase home inspector tool kits
Having a full home inspection tool kit is a must-have for a successful start to a home inspection business. Basic kits will typically run between $150-$256.
5. Craft a brand for your home inspection business.
Getting the right name, selecting a perfect logo, and setting up a professional-looking website, are all essential for getting your business up and running.
6. Install important home inspection software
If you plan to have a successful home inspection business, you need to leverage the advancement in technology. Installing the necessary home inspection software will help you work efficiently.
7. Develop marketing strategies and launch out
The final step to begin a home inspection business is to develop marketing strategies and launch out. With many marketing strategies out there, you can employ digital marketing, social media marketing, or go with word-of-mouth.
How much is a home inspection business income?
According to the Bureau of Labor Statistics (bls.gov), on average, a home inspector’s salary in the U.S. is between $58,000-$65,000. Per inspection, you can expect to make $450 or about $28 an hour. Depending on what state you live in, on average you could expect to make up to $91,000/year.
What is a home inspection business plan and what should you include?
Your home inspection business plan is a written document that describes the way you intend to operate your home inspection business and set out your financial projections. Your home inspection business plan is vital and should include all of the following pertinent information below:
- Executive summary
- Mission and vision statement
- Market analysis
- SWOT analysis
- Financial projections
- Products and services offered
- Marketing strategy
- Business model
- Additional services offered
- Staffing and operations summaries
What is home inspection checklist?
A home inspection checklist is an essential item for home buyers. It has an extensive list of items that are inspected to ensure the safety of the buyers’ new property.
Some things on the checklist are damage to the foundation, roofing, siding, outside paintwork, water shutoffs, heating and air conditioning vents, electrical outlets, and internal plumbing system.
The real estate industry is currently booming in most parts of the country. According to US News, there has been an increase in property values for the last five years. This means it is a great time to get in on the action.
There are many ways to make money with home inspection services, but the options listed above are the reliable ones to make it big in the real estate industry. If you’re a beginner, work with or under an already established inspector with experience to learn the rope.
However, if you’ve been in the business for some years, you may want to consider doubling as a real estate agent, offering consulting services, helping people to buy homes, or offering training to builders and contractors.
Finally, if you’re interested in exploring more opportunities in the real estate industry, here’s how to make money with real estate investment.
I hope you found this post helpful. Thank you for reading.