A home is often the largest investment someone ever makes, making home inspections an invaluable part of the home-buying process. Home inspectors play a crucial role in ensuring that homebuyers are fully informed about the home’s condition so they can consider all factors before making that home investment. According to the Organization of Real Estate Professionals, approximately 80% of all homes are inspected by a professional inspector.
Aspiring entrepreneurs can join the thriving home inspection industry by starting a home inspection business. Opening your own business may seem daunting, but with the right tools and information, you can begin to take the steps toward operating your own home inspection business.
Why A Home Inspection Business is a Good Investment
There’s a growing demand for home inspectors and home inspection businesses, making home inspection businesses an excellent industry to consider. According to the National Association of Realtors, existing-home sales have surged recently, marking February 2023 as the largest monthly percentage increase since July 2020.
Protecting home buyers and sellers, a home inspection business can help identify any issues, assess what repairs should be made, and provide an idea of what future maintenance a home may require. Home inspections are a critical part of the home buying and selling process, so there is ample opportunity to build and grow a successful home inspection business.
Do Your Research
Knowing the opportunity available, how do you start a home inspection business? As with starting any business, conducting thorough research before you get started is crucial for success. Careful research will be vital for helping you make better business decisions and avoid costly mistakes. This research may include exploring locations that best fit your business or analyzing the market to ensure future profitability and demand forecasts. You’ll likely want to understand how your industry performs historically, potential competitors, and the overall business landscape.
Ensure You Have the Necessary Qualifications and Certifications
As part of your industry research, you’ll want to ensure you have any required paperwork or licensure to operate your new business. This may involve looking into regulations at the local, county state levels to verify you have the proper documents and qualifications in place. Each state has its own licensing and training requirements, and the American Society of Home Inspectors (ASHI) has a comprehensive listing of state regulations.
Write a Business Plan
Through this research, you can build your business plan to help you execute your business model effectively. A business plan for a home inspection company should outline the course of the business for the next three to five years and will generally include:
- Executive summary
- Business description and structure
- Market analysis
- Service or product line description
- Financial documents
Secure the Necessary Funding
Starting a business comes with startup costs and for most aspiring entrepreneurs securing funding is a critical piece of starting a new business. Obtaining financing for your new business starts by determining what costs you expect to incur. Calculate the initial investment, including startup and operational expenses, and account for other associated costs like business insurance or other fees.
Depending on the amount of funds you need to start your business, you may consider various funding options such as self-funding, investors, or small business loans that can provide financial aid as you get started. If you select to use outside financing to start your business, you’ll want to make sure you understand the full terms of your funding, including the payment amount, interest rate, and schedule.
Market Your Business
Just as important as building your business is marketing your business. Getting your name and services out there for potential clients is important as you get started. That can include attending networking events to promote yourself and your business to people within the industry, it can involve developing interesting search-engine optimized online digital content and thought-leadership for your customer community, and it can include media buying in the media channels that your customers research and become informed of service providers.
Franchising: Start Your Home Inspection Business Faster
Starting a home inspection business can take time to develop plans and the skills needed to succeed. Another path toward professionally capitalizing on the opportunity in the industry is through franchising with a reputable company. HouseMaster® is a leading home inspection franchise in the Neighborly family of brands that helps you streamline the startup phase and start your dream business with a proven business model and support team behind you. HouseMaster® is one of the country’s most successful, values-driven home service brands with a track record for innovation, longevity, and customer service scores that cannot be matched. Along with a straightforward, proven system to help new owners get started quickly, you get access to resources including business coaches, operational support and a dedicated marketing team specializing in social media, digital, local campaigns, national campaigns, and more to give you the blueprints to succeed.
Download the Franchise Guide today to learn more about whether franchising with HouseMaster home inspection could be the right professional path for you.