Starting a home inspection business: year one

Most home inspectors work for themselves. So becoming one really means starting a home inspection business. You'll be the inspector, the writer, the salesperson and the person who answers the phone. Here is what that first year tends to look like.

First, a quick look at the work

Before someone buys a house, they want to know what's wrong with it. You find out. You check the roof, the walls, the base of the house, the pipes, the wiring and the heating and cooling. You climb ladders. You crawl under houses. You sweat in hot attics.

Then you write a report with photos. You tell the buyer the truth, even when it's bad news. Buyers are nervous. Agents want the sale to close. Your job is to stay calm and honest.

What it costs to open your doors

This depends a lot on your state. Some states ask for almost nothing. Texas asks for up to 194 hours of training. Here is a rough idea of the costs:

• Training: about $150 to $5,000. Illinois sets its course fee at $150. One Texas course package is listed at $2,674 on sale.
• The national exam: $225 each time you take it.
• Your state license: about $100 to $720.
• Insurance: about $300 to $1,200 a year. This covers you if you miss something.
• Report software: from about $800 a year.
• Basic tools: about $100 to $200 to start.

Some of these are rough estimates from the industry. All together, plan on about $1,500 to $6,000 before your first paid job.

Why the first year is slow

Here's the hard truth. Getting licensed is not the hard part. Getting the phone to ring is.

Most jobs come from real estate agents and home buyers. They don't know you yet. One software company says new inspectors get only a handful of jobs a month at first. It reports first-year pay of $25,000 to $80,000. That is a wide range, and it isn't an official number.

So keep some other income until your bookings are steady.

How to find your first clients

• Meet local agents. Drop by their offices. Tell them who you are.
• Show a sample report. Ask agents what they like and don't like about it. A clear report is your best ad.
• Ride along first. Ask a local inspector if you can follow them for a day. You'll learn fast, and you may find a mentor. Some states require one.
• Be easy to book. Many inspectors work evenings and weekends, because that's when buyers are free.

Mistakes that hurt new inspectors

Skipping insurance

Miss one big problem, and you could face a claim bigger than a whole year of pay. Some states require insurance. Think hard before you work without it, even where it's not required.

Thinking the exam is the license

Passing the national exam is not a license. Your state decides what counts. It may also want field hours, fingerprints or proof of insurance.

Wearing two hats

Texas doesn't let you act as both the inspector and the agent in the same sale. Mold checks need a separate license there too. Know what your state allows.

Buying a course because of a big promise

The Federal Trade Commission warns about courses that promise a proven system or big income. Ask what graduates really earn before you pay.

What about pay later on?

The U.S. Bureau of Labor Statistics doesn't have a number just for home inspectors. For all construction and building inspectors, the median is $74,690 a year. Most of those people work for an employer, not for themselves.

Home sales also go up and down with interest rates. When fewer homes sell, there are fewer inspections.

Is a home inspection business right for you?

It can be a great fit if you're handy, notice small details and want to be your own boss. It's a hard fit if you need a steady paycheck in your first year.

To see the rules and hours in your state, read our home inspector guide. If you like houses but want a steadier start, look at the construction helper path. Or take the career quiz.

Where these facts come from

We checked these sources when we wrote this post. Rules and fees change, so check them before you pay for anything.

• U.S. Bureau of Labor Statistics: construction and building inspectors (opens in a new tab)
• National Home Inspector Examination: state map (opens in a new tab)
• Texas Real Estate Commission: become an inspector (opens in a new tab)
• Federal Trade Commission: business offer and coaching scams (opens in a new tab)