A great question to ask before you jump into the inspection business is how much do home inspectors make? What can you expect to earn as a home inspector and should you work for someone else or go out on your own?
As you plan the transition from your old 9-5 to inspecting houses, knowing the earning potential will help you decide if it’s a viable option or not.
I’ve created a simple tool to help you determine how much you can make as an independent home inspector, some of the expenses you will need to factor in, how many inspections you will need to complete each week, and how many days off you can take to achieve your revenue goals.
Should You Work for Someone Else?
While owning your own business is not for everyone, you’ll quickly find that working for yourself can be much more lucrative than working for someone else…if you are able to keep you schedule full.
Take a look at this salary report for home inspectors in Los Angeles from ZipRecruiter. Ignore the average salary of just under $60k and focus on the table in the corner. The top 25% of inspectors earn between $80k and $100k. Not bad, but in today’s economy, it’s not spectacular either.
If you do an online search for “home inspector salaries” you’ll see that the numbers range anywhere from $30k per year to over $160k per year. The best way to find this info for your location is to look at actual job postings that list the salary.
Another factor to pay close attention to is whether not a vehicle and tools are provided. If you are paying your own expenses, that will quickly eat into your take-home pay.
For me, I’d rather not be limited in what I can earn. When you work for someone else, there will always be a ceiling.
“You’ll work harder as a business owner, but the reward is 100% yours. Hard work in a job makes your boss richer.” @AlexHormozi
What factors determine how much a home inspector can make?
The short answer is you. It really comes down to how well you operate the business, how well you market your service, and how well you treat your customers.
But that’s not a very useful answer. There are several factors that can influence how much an independent home inspector can earn:
Location: The demand for home inspectors can vary significantly based on location. In areas with a higher volume of real estate transactions, home inspectors may command higher fees.
Experience and Expertise: Seasoned inspectors with a wealth of experience and specialized knowledge in areas like structural integrity, HVAC systems, or other specialized inspections may be able to charge more for their services.
Certifications and Training: Home inspectors with relevant certifications and ongoing training may be perceived as more qualified and, therefore, can often charge higher fees.
Market Demand: If there’s a high demand for home inspectors in a particular area, inspectors may be able to charge more for their services. Conversely, in areas with more inspectors than demand, fees may be more competitive.
Scope of Services: Some inspectors offer additional services beyond a standard home inspection, such as radon testing, mold inspections, or energy efficiency assessments. These extra services can potentially increase earnings.
Networking and Marketing Efforts: Effective marketing strategies and a strong professional network can help inspectors attract more clients, potentially leading to higher earnings.
Customer Reviews and Reputation: Positive reviews and a solid reputation for thorough and reliable inspections can lead to more referrals and repeat business, allowing inspectors to command higher fees.
Business Expenses: Inspectors need to consider their overhead costs, including insurance, equipment, marketing, and administrative expenses, when determining their pricing.
Negotiation Skills: The ability to effectively negotiate fees with clients can impact an inspector’s earnings. Knowing how to communicate the value of their services can lead to better compensation.
Economic Conditions: The overall economic climate and the real estate market in a given area can affect the number of inspections available and, consequently, an inspector’s potential earnings.
The Bottom Line
Remember, being a successful home inspector is a journey, not a destination. It’s about continuous learning, adapting to industry changes, and honing your skills. As you navigate the ever-evolving landscape of technology and marketing, always keep an open mind. Embrace new tools and strategies that align with your goals and values.
Don’t be disheartened by slow progress. Building a business from scratch takes time and effort. What works for one inspector may not work for another, and that’s perfectly fine. Your unique approach will set you apart in this field.
