What makes home inspection industry attractive?
Home inspection industry is very large and recession resistant. Nearly 6 million existing and new homes were sold in 2018, which is over 10 homes sold every minute*. Over 85% of home buyers get a home inspection making the home inspection industry recession resistant even during economic downturns.
Our homes are our single biggest investment. Not knowing potential issues before buying a home can lead to significant headaches and cost thousands of dollars in repair bills that could have been avoided with a proper home inspection. Moreover most lenders and mortgage companies require home inspections, and the millions of home sales every year, regardless of the ups and downs in the housing market, makes the industry recession resistant.
Home inspection is a high margin industry. An entrepreneur can grow a home inspection business without having to invest in a physical storefront and merchandise inventory. This significantly reduces overhead costs. Moreover, there are virtually no inventory requirements, which helps eliminate headaches and costs.
Home inspection industry provides flexible growth options. The industry offers significant financial rewards and fulfillment to those who learn how to navigate the industry. You can thrive as an individual business owner without hiring or you can hire to grow and expand over time. We can help you navigate whichever path is best for you, based on your personal and professional goals.
Additional factors are driving industry growth
Historically, homebuyers have driven the industry growth since most inspections are conducted on behalf of buyers. However, increasingly, industry growth is being driven by additional factors.
Regular, check-up inspections. While still a small portion of the industry, customers are becoming more comfortable with regular check-ups of their home in a manner similar to how consumers may opt for a regular car tune-up.
Pre-listing inspections home sellers. Home sellers are increasingly opting for pre-listing inspections to learn about and mitigate issues that may be uncovered later during the buyer’s inspection, with the objective of expediting the sales process.
New construction warranty inspections. Buyers of newly constructed homes prefer to have their home inspected during the construction process and just before their home warranty expires. The inspections during construction, referred to as “Pre- drywall inspections,” allow customers to identify and fix during construction. Additionally, warranty inspections help identify issues to be fixed before the warranty expires, thereby potentially saving thousands of dollars in repairs later.
Moisture and water damage inspections. Water damage incidents are on the rise. Water claims are up 46% in the last 5 years according to the Insurance Journal. Over 90% of homeowners who have basements can expect to experience at least one basement flooding. A thorough home inspection helps provide buyers information about prior water damage.
Mold inspections. Mold inspections are important because certain types of mold can be harmful to health. Mold is found indoors and outdoors, and can enter through doorways, windows, vents, and HVAC systems. Mold will grow in areas with moisture and poor ventilation. More buyers are increasingly opting for add-on mold tests.
Radon testing. Radon is a radioactive airborne carcinogen. According to the Environmental Protection Agency (EPA), all homeowners should test their homes for radon as it has been found in all 50 states and in all types of houses. It is impossible to predict which homes are safe without a radon test. Scientists have found that radon causes between 15,000 and 22,000 lung cancer deaths each year in the United States.
*Source: National Association of Home Builders.