There is no shortage of inspiration for people who want to start a home inspecting business. Follow your dreams. Isn’t that what all of the motivational posters say? But what about all of the things that you should never do?
Some practices can hurt your business before it gets off the ground. Others can land you in trouble with the government. If you want to succeed, avoid these 5 quick and easy ways to lose your business.
#1: Who Needs Insurance?
Home inspectors need liability insurance to protect against damage that might happen on the job. If you accidentally knock over a vase or tip your ladder into a window, liability will cover the damage. However, there’s another kind of insurance that some inspectors skip.
Errors and Omissions, usually shortened to E&O, covers you against errors and omissions or oversights in your inspecting work. If you miss a serious defect with the HVAC system or roof, your customer might file a lawsuit. E&O can protect your business if the customer incurs an expense because you missed a defect.
#2: Nobody Will Know if I Don’t Get CE Credits
Not every area requires home inspectors to earn continuing education credits, but many markets do. The same applies to home inspector associations, as credits are often part of renewals.
If you skip continuing education where it’s required, you could lose your license, your association membership or both. Do yourself and your customers a favor. Study up and keep your requirements current.
Skimming of defects to support a home sale can come back to bite you in the form of a lawsuit later.
#3: I Can’t Afford to Risk Killing a Sale
If you’re like many home inspectors, referrals from real estate agents help keep you in business. If a home inspection report reveals defects that make a buyer think twice, your bread and butter might be at risk.
Some inspectors gloss over defects to preserve their professional relationship with agents. However, the customer depends on you for an honest and thorough report. Do yourself and your customers a favor: don’t be afraid to kill a sale with the truth.
#4: I Don’t Have Time for Email and Phone Calls
Buying a home is one of the most stressful ordeals that anyone can go through. If customers can’t depend on a return call or email, their stress multiplies. You might also get fewer and fewer referrals and a reputation for poor communication.
Some inspectors choose a certain time of day for communicating with customers. However you fit in those calls and messages, communication shouldn’t slide to the bottom of the priority list.
#5: The IRS Will Never Know How Much Money I Make
If you work for yourself, who could possibly know how much money you earn for performing home inspections? Without an employer who reports to the IRS, you might cut your tax duty down to almost nothing, right?
The retirement plan for tax evasion is pretty poor, so don’t risk fudging the numbers. If bookkeeping and taxes aren’t your strong suit, hire an accountant to set up a system file your taxes or both.
Working for yourself is part of the American Dream. But starting and operating a solid, above-board home inspection business isn’t easy. The more difficult route takes effort. In the long run, however, it pays off in a reputable business that gets a little stronger every year.
Not everything has to be difficult, and that includes your home inspection reporting software. If you’re not happy with the reports you produce now, it’s probably time for a change. Report Form Pro has the answer. Download home inspection app for Android or get it at the Apple App Store today.