How much do people spend on home inspection services?
With the wide majority of Realtors recommending home inspection services, WIN franchise owners are capturing an outsized share of a growing industry
With the National Association of Realtors reporting that 99% of its members recommend an inspection, and that 77% of all home buyers hire inspectors before making their purchases, it is no surprise that the home inspection industry is valued at $1.5 billion per year.
While it is too soon to say how many homes were sold in 2015, the effects of the housing crisis of 2008 are nearly gone: The NAR reports that nearly 5 million homes were sold in 2014, and 2015 is likely to be an even stronger year for the housing industry and the home inspection industry alike. Zillow reports that the 2015 U.S. median home value is currently $182,000, which is a 3.2% increase over the year before, and the numbers show no signs of slowing down. Zillow projects the median home value will rise by 2.4% in 2016.
With the housing industry recovering at a steady pace, the home inspection industry is thriving — in large part because, as the Independent Home Inspectors of North America points out, a home inspection provides homeowners some “relatively inexpensive peace of mind.”
“Let’s put home inspection fees in perspective: If you’re buying a $400,000 house, and the inspection fee is $700, that’s less than 0.2% of the cost of the house,” the Independent Home Inspectors of North America reports on its website. “Most real estate agencies charge 3% to 6% to sell a home, that would be $12,000 to $24,000 for a $400,000 house! The cost of a home inspection is a bargain, even if you paid $1,500 for the inspection — and most are less than half that!”
WIN Home Inspection franchise is a best-bet investment
WIN Home Inspection is one of the fastest-growing home inspection franchises in the country, and it was ranked one of the Top 500 Franchise opportunities by Entrepreneur magazine in 2015. WIN stands apart from competitors by offering a consistent, professional home inspection service that home buyers appreciate and real estate agents respect. Training, technology and marketing support help franchise owners develop loyal relationships in the real estate industry that lead to a steady stream of customer referrals.
“There are many reasons why Realtors and homebuyers choose a WIN Home Inspection franchise for their inspection needs,” says WIN Chairman Thomas Knapp. “Chief among them are our sophisticated software and professionalism. Our advanced software technology quickly provides a report for Realtors and homebuyers. Secondly, our professionalism — the way we dress and the courtesy we show to our clients — stands above our competitors. That’s why franchisees continue to see growth year after year.”
WIN’s proprietary software helps inspectors perform a consistent inspection, guiding them through the various parts of the home, providing checklists of items to inspect and allowing the inspector to make notes that are incorporated into their home inspection report. The software streamlines the inspection process and makes it faster and easier to generate reports, saving inspectors time, which helps them do more jobs and make more money. While performing inspections, WIN also takes the opportunity to educate home buyers about their new home — “Here is the main water line shut-off valve,” “Here is your electrical panel,” “Here is how to operate your water heater and HVAC,” “Here are the air filters you need to replace each month.” These things, which might seem obvious to a veteran home inspector, are often unfamiliar to a new home buyer, and WIN inspectors take the time to make sure customers understand their home.
When a WIN inspector arrives for an inspection, they pull up in a white van, SUV or crossover vehicle branded in WIN colors and with the WIN logo, and they emerge dressed in a WIN-branded polo. Inspectors tote a tablet or convertible PC that is used to perform the inspection. Everything about our inspectors’ appearance and demeanor is designed to be welcoming, crisp and professional.
Home inspection: a recession-resistant business
Startup costs for a WIN Home Inspection franchise can begin at just $33,900, and in-house financing to cover a portion of the startup costs may be available for those with good credit.
WIN’s revenue has been growing sharply since 2010, and we are increasing our market share. As home sales continue to climb and gather steam, WIN expects strong revenue growth to continue. Our most recent Franchise Disclosure Document reflects our consistent growth: The WIN Home Inspection franchise reports a 32% increase in overall revenue from 2010 to 2014. That number reflects the dramatic and continuing rise in the demand for home inspection franchise services.