How to Start a Home Inspection Business

Here are the key factors to keep in mind when launching your home inspection venture:

1. Certification & training — You will need a home inspector’s license or certification from your state. Education and other requirements vary by state, so check with your state government to find out what you need. The International Association of Certified Home Inspectors (InterNACHI), provides free training, online testing, and certification.
2. Home inspection franchise — Here are the best home inspection franchises: WIN Home Inspection, HomeTeam Inspection, and Pillar To Post franchise.
3. Quality tools — Invest in high-quality inspection tools for accurate assessments. Here are additional tips on how to finance commercial equipment for home inspectors.
4. Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
5. Legal business aspects — Register for taxes, open a business bank account, and get an EIN.
6. Build a network — Build relationships with real estate agents, mortgage lenders, and insurance agents who can refer clients to you.
7. Learn from real entrepreuners who run a home inspection business:

How Tyler Quintard Built a Trusted Home Inspection Brand

Transforming Home Inspections with a Firefighter’s Eye

Steve Nadeau’s Path to Home Inspection

A Conversation with Michelle Adler of Our Best Home Inspections

You May Also Wonder:

How can I get clients for my home inspection business?

Realtors usually recommend home inspectors to their home buyer clients, so you should try to build relationships with real estate agents to get referrals. You can call them directly, go to places where you can network with realtors, or connect with them on LinkedIn.

What is the best state to be a home inspector?

According to data from the Inspection Support Network, the best state to be a home inspector is Texas, followed by Connecticut, Washington, Oregon, and New Jersey. However, it is important to note that the number of home inspectors in a state does not necessarily correspond with the demand for home inspections in that state.

What are the most common home inspections?

The most common types of home inspections include:

• Pre-purchase inspections, which are conducted before a home is sold to identify any potential issues or hazards
• New construction inspections, which ensure that a newly built home meets quality standards and building codes
• Annual maintenance inspections, which help homeowners identify and address issues before they become major problems

Can I start a home inspection business on the side?

Yes, it is possible to start a home inspection business on the side, especially if you have the necessary training/certification (a licensed inspector) and experience in the field. However, it is important to be aware of any legal or regulatory requirements for starting a business in your area and to ensure that you have the necessary insurance and liability coverage.

Below you’ll find a detailed, step-by-step guide to starting a successful home inspection business.

Step 1: Decide if the Business Is Right for You

Pros and Cons

Starting a home inspection business has pros and cons that you should consider before deciding if it’s right for you.

Home Inspection Industry Trends

The home inspection industry is heavily impacted by the housing market and flourishes when the real estate market does well. 

Industry Size and Growth 

• Industry size and past growth — In 2023, the whole US building inspectors market (which the home inspection industry is a part of) was worth $5.1 billion in revenue. On average, this is an increase of about 1.7% per year since 2018. The annual revenue of the home inspector industry alone is estimated at $3.3 billion((https://www.ibisworld.com/industry-statistics/market-size/building-inspectors-united-states/)) ((https://gitnux.org/home-inspection-industry-statistics/))
• Growth forecast — The Bureau of Labor Statistics predicts nearly 15,700 job openings for construction and building inspectors per year through 2032.((https://www.bls.gov/ooh/construction-and-extraction/construction-and-building-inspectors.htm))
• Number of businesses — There are more than 29,400 building inspector businesses in the US, as of 2023.((https://www.ibisworld.com/industry-statistics/number-of-businesses/building-inspectors-united-states/))
• Number of people employed — The industry employs about 45,000 people, over 10,500 of which are home inspectors.((https://www.ibisworld.com/industry-statistics/employment/building-inspectors-united-states/)) ((https://www.zippia.com/home-inspector-jobs/demographics/))

Trends and Challenges

Trends

• Home sales are projected to be up almost 0.1% in 2024, which is pretty good news for the US home inspection industry.((https://www.realtor.com/research/2024-national-housing-forecast/))
• The pandemic started a trend toward virtual home inspections in which the inspector is physically at the home and the buyer attends through a digital application such as Zoom. This trend is expected to continue into the indefinite future.

Challenges

• Changing technology in home elements, such as electrical systems and heating and cooling make it necessary for home inspectors to continue their education.
• Low barriers to entry for home inspection businesses have made the industry extremely competitive.

What Kind of People Work as Home Inspectors?

• Gender — 86% of home inspectors in the US are male, while 14% are female.
• Average level of education — 45% of home inspectors hold a bachelor’s degree.
• Average age — The average age of an employed building inspector is 50.3 years old.((https://www.zippia.com/home-inspector-jobs/demographics/))

How Much Does It Cost to Start a Home Inspection Business?

Startup costs for a home inspection business range from $3,500 to $7,500. The largest expenses are for a website setup, education and certification, and tools. States generally have approved education providers which you can find on your state’s website, and you will have to pass an exam to receive your certification.

You’ll need a handful of items to successfully launch your home inspection business. Here’s a list to get you started:

• Ladders
• Digital camera
• Gas and moisture detectors
• Circuit tester and voltage sniffer
• Infrared thermometer
• Screwdrivers and pliers

Start-up Costs	Ballpark Range	Average
Setting up a business name and corportation	$150–$200	$175
Licenses and permits	$100–$300	$200
Insurance	$100–$300	$200
Business cards and brochures	$200–$300	$250
Website setup	$1,000–$3,000	$2,000
Education and certification	$1,500–$2,500	$2,000
Tools such as moisture detectors and ladders	$500–$1,000	$750
Total	$3,550–$7,600	$5,575

How Much Can You Earn From a Home Inspection Business?

The average price for a home inspection is about $340. Your ongoing expenses should be limited to fuel and marketing costs so your profit margin should be about 90%. 

In your first year or two, you could work from home and do five inspections per week, bringing in up to $90,000 in annual revenue. This would mean more than $80,000 in profit, assuming that 90% margin. As your brand gains recognition, sales could climb to 12 inspections per week, with an expected annual revenue of almost a quarter million dollars.

What Barriers to Entry Are There?

There are only a few barriers to entry for a home inspection business. Your biggest challenges will be:

• Completing the training and passing an exam
• A highly competitive market that will require building relationships with realtors

Step 2: Hone Your Idea

Now that you know what’s involved in starting a home inspection business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Why? Identify an Opportunity

Research home inspection businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a home inspector who offers virtual inspections.

What? Determine Your Home Inspection Services

In addition to basic home inspection services, you could become certified to do add-on types of inspections, such as radon gas testing and termite inspections. 

How much should you charge for home inspection services?

Home inspection prices range from $300 to $450, but generally cost about $340. Your ongoing expenses will be low so you should aim for a profit margin of at least 90%.

Once you know your costs, you can use our profit margin calculator to determine your markup and final price point. Remember, the price you use at launch should be subject to change if warranted by the market.

Who? Identify Your Target Market

Real estate agents usually recommend home inspectors to their buyer clients so your main target market will be realtors. Calling real estate agents personally to build relationships with them is the best way to get business. You can also find them on LinkedIn. 

Where? Choose Your Home Inspection Business Location

You probably can always run your business from home, but if you do decide to get an office you can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Home Inspection Business Name

Here are some ideas for brainstorming your home inspection business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “inspections” or “home inspections,” boosts SEO
• Name should allow for expansion, for example, “HomeView Inspections” over “Eco-Home Inspections”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion
• Use online tools like our Business Name Generator. Just type in a few keywords, hit Generate, and you’ll have dozens of suggestions at your fingertips

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation.

Your business name is one of the key differentiators that sets your business apart. Once you pick your company name and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Home Inspection Business Plan

Here are the key components of a home inspection business plan:

• Executive summary — A concise summary outlining the business plan, including its purpose, goals, and key highlights
• Business overview — A brief description of the home inspection business, its mission, and the problem it aims to solve
• Services — Detailed information about the specific home inspection services offered, including any additional offerings or packages
• Market analysis — An analysis of the target market, including demographics, trends, and potential growth opportunities for the home inspection business
• Competitive analysis — Examination of competitors in the home inspection industry, highlighting strengths, weaknesses, opportunities, and threats (SWOT analysis)
• Sales and marketing — Strategies for promoting and selling home inspection services, including target audience, pricing, and promotional activities
• Management team — Profiles of key individuals involved in running the business, emphasizing their skills and experience relevant to the home inspection industry
• Operations plan — Details on the day-to-day operations of the home inspection business, covering processes, technology, and any partnerships or collaborations
• Financial plan — Projections and analysis of the financial aspects of the business, including startup costs, revenue forecasts, and profit margins
• Appendix — Supplementary information, such as additional charts, graphs, or supporting documents that provide further context or details about the home inspection business plan

If you’ve never created a business plan yourself before, it can be an intimidating task. Consider hiring an experienced business plan writer to create a professional business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose Where to Register Your Company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to home inspection businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state. 

Choose Your Business Structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your home inspection business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole proprietorship — The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General partnership — Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) — Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corporation — Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corporation — An S Corporation refers to the tax classification of the business but is not a business entity. An S Corp can be either a corporation or an LLC, which just needs to elect to be an S Corp for tax status. In an S Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online, by mail, or by fax. Visit the IRS website to learn more. Keep in mind that, if you’ve chosen to be a sole proprietorship, you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans — This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans — The Small Business Administration can act as a guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants — A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and family — Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding — Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal — Self-fund your business via your savings or the sale of property or other assets.

Personal funds or family and friends funding are probably the best ways to finance your startup costs since they are relatively low.

Step 8: Apply for Home Inspection Business Licenses and Permits

Starting a home inspection business requires obtaining a number of licenses and permits from local, state, and federal governments. You will need a home inspector’s license or certification from your state. Education and other requirements vary by state, so check with your state government to find out what you need. The International Association of Certified Home Inspectors (InterNACHI) provides free training, online testing, and certification.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account. 

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your home inspection business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability — The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business property — Provides coverage for your equipment and supplies.
• Equipment breakdown insurance — Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation — Provides compensation to employees injured on the job.
• Property — Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto — Protection for your company-owned vehicle.
• Professional liability — Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) — This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential Software and Tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You can use industry-specific software, such as Buildium, 3D Inspection, or Spectora, to manage your scheduling, pricing, billing, relationships, and inspection reports.

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences of filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop Your Website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.

However, your clients are unlikely to find your website unless you follow Search Engine Optimization (SEO) practices. These steps help pages rank higher in the results of top search engines like Google. Still, make sure you’re creating content that’s made for your audience, not SEO purposes only.

Marketing

Here are some powerful marketing strategies for your future business:

• Professional branding — Ensure your branding, including your logo and business materials, reflects expertise and trust.
• Local SEO — Optimize your Yelp and Google Business profiles and encourage satisfied customers to leave positive reviews to boost local visibility.
• Direct outreach — Build relationships with real estate professionals and participate in local events to enhance your visibility.
• Content marketing — Maintain a blog with home maintenance tips and create newsletters to keep your network engaged. Produce instructional videos on home inspections.
• In-person engagement — Offer workshops on the home inspection process and participate in local real estate events to establish your presence.
• Collaborations — Form partnerships with local realtors for referrals and get involved in community activities to increase your brand’s recognition.
• Customer relationships — Provide follow-up services and referral incentives to encourage ongoing client relationships and new referrals.
• Advertising — Engage in targeted advertising through local media and distribute informative brochures in your community.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Today, customers are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your home inspection business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your home inspection business could be: 

• All your home inspections in one day including radon and termites
• Extended hours home inspections on your time
• Virtual home inspections to protect your health and home

Networking

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a home inspection business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in home inspection for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in home inspection. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees, and you may just continue to do business that way. If your business grows to a large level though, you may want to hire employees. Potential positions for a home inspection business would include:

• Home inspectors — performing inspections, creating reports
• General manager — scheduling, staff management, accounting
• Marketing lead — SEO strategies, social media marketing, networking with realtors

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Home Inspection Business — Start Making Money!

Home inspection companies perform valuable services for customers that can save them thousands of dollars in repair costs. Building inspection is a huge industry valued at a remarkable $5.1 billion in the US, and as the real estate market booms, it will continue to grow. 

A home inspection business can provide you with an excellent steady income and, at the same time, allow you to help home buyers with the largest purchases of their lives. Now that you’ve started your educational process and know what is required, you’re on your way to becoming a home inspection entrepreneur!