Cushman & Wakefield

Jackie Anderson

Real estate teams are following the model of home inspection teams to increase efficiency and productivity.

Home inspections are undergoing a similar metamorphosis to real estate, with inspectors teaming up similar to the real estate industry. Real estate teams have become increasingly popular over the past few years. There's a strong trend for agents to increase their market share and productivity by creating a team of agents working together, as RealTrends reported and discussed in recent podcasts.

Similar trends and changes are currently occurring in home inspections. The industry is seeing an increase in larger, multi-inspector firms. Home inspections were traditionally one-person businesses serving a limited area. Eventually, they built up a steady list of agents who referred inspection work frequently.

How is growth driven?

Multi-inspector companies are growing due to many factors. Inspection companies strive to be a one-stop shop for home inspection services, similar to brokerages and teams. Many groups are offering additional services along with inspections.

A range of services, including radon testing, sewer scope inspections, mold inspections, pest inspections, energy efficiency inspections, and environmental tests, are bundled into a package for home buyers. There is a need for a large team or group of inspectors to perform all of these services.

The tightening inventory in most markets has also resulted in shorter deadlines and closing dates. The result is an inspection objection time that has decreased from a week or ten days to a few days after a contract is signed. Increasing inspectors is essential to meet these shorter deadlines and improve responsiveness. An inspection company with more than one inspector can maintain a one- or two-day lead time when its schedule fills up quickly.

Enhancing efficiency

A large multi-inspection company follows the same boosting efficiency and productivity model by adding administrative support staff and lead-generating marketing employees. It has its scheduling and marketing teams to improve responsiveness and outreach to clients and agents in the same way.

Inspection companies can handle large volumes of referrals and agents by having a team of inspectors and support staff.

Obstacles

The changes in the industry come with their own set of challenges. The inspection industry is following the same trends as the real estate community has seen with the rise of coaching and training groups.

Many programs and organizations have emerged to help inspection companies hire, train, and manage their inspectors. Generally, inspection teams consist of ten, twenty, thirty, or more inspectors, while some teams have more than 50. Real estate teams face similar challenges when growing and managing a large team of inspectors.

A significant number of one-person inspection companies will continue to exist, just as individual agents will likely continue to exist. Home inspectors and agents develop a trusting and mutually respectful relationship that won't end any time soon.

Yet, it stays to be seen whether the rise of larger teams and brokerages that focus on providing complete solutions to home buyers will change the role of home inspectors and how referrals are made. Is home inspection included in the client solutions offered by brokerages and agent teams? Is the current trend of recommending three inspection companies and keeping the inspection transaction at arm's length in the purchase process going to continue? Agents are concerned about liability if they only refer their favorite inspector. Do teams and brokerage companies plan to bundle home inspections into packages for their clients? The answer will come with time.

The home inspection industry is likely to continue to innovate and mirror many of the changes taking place in the real estate industry. The home inspection industry is experiencing exciting times, and building and maintaining relationships has always been the key to success. There's no way that the trend will go out of style.