Home Inspection Business Overview

Home inspection businesses perform detailed evaluations of residential properties to inform buyers, sellers, and real estate professionals about a property’s condition. Inspectors assess various components, including structural elements, electrical systems, plumbing, HVAC, roofing, and other major systems.

The inspection process typically takes 2-4 hours, depending on the property size, followed by a detailed report with photographs and descriptions of any issues found. These reports help buyers make informed decisions about property purchases and give sellers insights into repairs that may need attention before listing their homes.

The most common business models in home inspection include:

• Sole Proprietorship: One inspector who personally conducts all inspections and manages business operations
• Multi-Inspector Firm: A company employing multiple inspectors to handle higher inspection volumes
• Specialty Inspection Service: Businesses focusing on particular aspects like radon testing, termite inspection, or environmental hazards

Related: Checklist To Start A Business

How Do Home Inspectors Make Money?

Home inspection businesses generate their primary income by charging fees for conducting thorough property inspections. These fees typically vary based on the size and age of the property being inspected.

Industry Statistics

The Building Inspection industry falls under NAICS code 541350 – Building Inspection Services. This classification covers businesses that evaluate building structures, component systems, and code compliance. Here are some highlights of the building inspection industry.

Home Inspection Industry Size & Growth: The building inspection industry generated $5.1 billion in revenue last year. Over the past five years, the industry experienced a slight decline with a -0.2% annual decrease. Industry projections indicate continued decline over the next five years, primarily due to rising interest rates affecting housing market activity and reduced consumer purchasing power (IBISWorld).

Number of Home Inspectors: There are 30,251 home inspection businesses operating across the country. The industry remains highly fragmented with no single company controlling a significant portion of the market. Most businesses are small, independently-owned operations serving local markets (IBISWorld).

Home Inspector Profit Margin: Home inspection businesses typically achieve a net profit margin of 20% of revenue, though this can vary based on operating costs and service mix (International Association of Certified Home Inspectors).

Costs To Start a Home Inspection Business

Starting a home inspection business typically costs between $8,000 and $30,000, depending on equipment needs and training requirements. There are several expenses when starting a home inspection business, but here are some of the more expensive items.

Training and Certification: Professional home inspection training programs and certification courses cost between $2,000 and $8,000. These programs provide the technical knowledge and hands-on experience needed to perform thorough inspections. Many states require completing approved training programs and passing certification exams before starting work.

Equipment and Tools: A complete set of inspection tools costs between $3,000 and $15,000. This includes moisture meters, electrical testers, gas leak detectors, ladders, safety equipment, and thermal imaging cameras. Quality tools help inspectors identify issues accurately and safely access all areas of a property.

Insurance: Professional liability and general business insurance typically cost $2,500 to $4,000 annually. Insurance protects against claims related to overlooked defects or accidents during inspections.

Report Software: Home inspection reporting software and mobile devices for documentation range from $500 to $2,000. Modern inspection software helps create detailed reports with photos and descriptions that meet industry standards.

These costs represent general estimates, and actual expenses will vary based on location and business needs.

Resources:
American Society of Home Inspectors (ASHI)
National Association of Home Inspectors (NAHI)
International Association of Certified Home Inspectors ( InterNACHI )