The real estate market and residential demand are high, so this is the best time to start a home inspector business. There was a pause for almost three years in purchasing a house, and people have started to find new houses.
As a result, real estate businesses have increased sales by around 7%, and construction businesses have a rise of 9%. The average home inspector’s salary is around $50,000 to $60,000. So you can make a significant profit with your business.
With the increasing number of home sales, there is a need for home inspections. If you can build a medium-sized business, you can earn up to $3 million a year. There are part-time companies that make around $50,000 a year, so you can have a pretty good profit with a home inspection business.
How To Start A Business As A Home Inspector?
Most businesses fail for some reason if you want to start one. However, there are some steps you can follow.
1. Business Plan
A well-documented written business plan is a must thing before starting any business. The purpose of a business plan is to clarify all the visions that you want to do in the future with your business. Some people may think that a business plan is key to attract investors.
In reality, business plans help a business to identify its goals, clarify the vision and give a path to do those. Now the question is, what a business plan contains? The basic things are an executive summary, market analysis, competitive research, services and price details, sales strategies, and revenue estimation.
2. Business Structure
You need to choose your business structure before registering your business. After that, you can register your business with the state and apply for permits and licenses. But the first thing you will need is a legal business stricture. Remember, your business structure will have an impact on personal liabilities, taxes, and operations. Some common structures are as follows.
? Sole Proprietorship
The structure is simple, you are the only one in your business. There will be no fixed employees, and your inspectors will be acting as contractors. There will be no separate business entities. All your personal liabilities and assets and your business liabilities and assets.
If you want to start a home inspection company, you will need people who have worked as home inspectors. Or if you have worked as a home inspector, that will be very helpful for your business. Whether you are involved in a limited partnership or a liability partnership is important for your business. It is best that the partners will have limited liability so that everyone will be responsible for their own deeds.
? Limited Liability Company (LLC)
You can take an LLC as a corporation or a hybrid partnership. One of the best things about an LLC is that it will protect you from personal liability. This way, you can reduce the risks to your personal assets. There are times when your business can face a lawsuit or bankruptcy. When it comes to giving corporate taxes, an LLC is the best way to reduce that.
This corporation structure is different from other business structures. This type of structure is best when it comes to protecting your personal liabilities. But the cost to build a corporation is high, and there are other record keeping too that are extensive.
3. Training and Licensing
The scenario is completely different if you have experience as a home inspector. But if you don’t, after a business plan and structure, you need proper licensing to start your business. And the most important thing is to have the necessary training to help you build your business. There are different trainings and experiences to determine whether you can start a business or not.
So, how to become a home inspector? There is a list of requirements and regulations written by the American Society of Home Inspectors. You can enroll your name into a training program for better knowledge. All you need is to have a high school diploma. You will be trained under a licensed home inspector; after that, there will be an examination.
4. Purchase Omissions Insurance And Liability
A home inspector’s major work is ensuring that a property is safe to move. The job seems easy, but there is a huge responsibility for someone who is behind the protection of so many families. A common reason many home inspection businesses fail is that they don’t get liability insurance.
The International Association of Certified Home Inspectors says every insurance, like omissions, errors, and general liability should be taken. You should also check the state’s home inspection regulations so you will have a clear vision.
5. Get Proper Tools
To start a home inspection business, you will need a flashlight and an electrical tester for basic tools. But with the growth of your business, you will need other tools like respirators, glasses, and gloves. In addition, there is an inspector’s tool available for a home inspector. Also, an infrared camera, moisture meter, infrared thermometer, and telescoping ladder will be beneficial for your business.
6. Build Your Brand
There are a lot of home inspector businesses in the market. So, why will people choose your business over other companies? First, you need to make a unique home inspection business so that you will get customers. You will need an attractive website, legitimacy, brochures, business cards, and flyers to spread awareness. People search for home inspectors near me, so your brand needs to be at the top of the list.
7. Connection With Real Estate Agents
I think I don’t need to elaborate on this point to you as you already know that every business needs to make connections at ground levels. Making some good connections with real estate agents will benefit you for reference.
For example, if a new family is moving to a new house, if the real estate agent recommends your company for the inspection, you will benefit from that. Also, the reference will work both ways when it comes to you.
For a start, you can watch Home inspector Joe, this show is not only entertaining, but you will get interesting information that will benefit you in many ways. Please let us know in the comment section below if you have any further questions.