History of Home Inspection Industry

History of Home Inspection Industry

How it all started:

The whole process started during the 1970’s when home buyers would acquire the services of building contractors for inspection of houses before purchasing it. The contractors would use to give their opinion about the condition of the house which lead to the appearance of a new term “contractor’s inspection”. But seeing it from a buyer’s perspective this wasn’t enough as they needed the complete professional knowledge about the house they were going to buy. From there the term “home inspection was requently used, which meant the inspection of the house done by an expert who provided the whole insight of the particular building. This term generally describes an industry from where professionals are hired to provide their expert opinion on all aspects of the building.

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Timeline of Events:

** 1975

– Individual home inspectors joined and formed a type of study group. They wanted to increase their knowledge on this profession by sharing their insights with each other. This was the first initiative taken to form a sort of industry or business. This group finally formed CREIA – California Real Estate Inspection Association in 1976.

** 1977

ASHI or the American Society of Home Inspectors was formed this year. A code of conduct, ethics and standards were needed for the home inspectors so they made this code in cooperation with CREIA.
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** 1984 (California)

– The famous “Easton vs. Strass Berger” court decision was held in which the duties of a real estate broker regarding the disclosure of information to their client were outlined: “the affirmative duty to conduct a reasonably competent and diligent inspection of the residential property listed for sale and to disclose to prospective purchasers all facts materially affecting the value of the property that such investigation would reveal.”

Easton v Strassburger. Court of Appeals of California, First Appellate District, Division Two. N.d. Justia. N.p., n.d. Web. 16 Oct. 2013.

This made it compulsory for the sellers to make aware to the homebuyers everything about the property they owned. The California Association of realtors also changed their contract forms which allowed home buyers to hire the home inspector professional they wanted to. From there on the home inspection business emerged as an industry on the west coast and then other states adopted the disclosure laws which expanded the home inspection industry.

** 1985 – 1995

– In 1985 the first professional Practice Act was set up by Texas.

1987The National Association of Home inspectors (NAHI) and the Ontario Association of Home inspectors (OAHI) was also created.
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– In the same year (1987) Texas also made compulsory for home inspectors to be state registered.

1990 – Creation of the National Association of Certified Home Inspectors (NACHI)

1991 – Texas enacted a full licensing law for home inspectors.

1994 – In this year Ontario Association of Home inspectors OAHI became a self-regulating professional institute.

Where its going

In the United States more than 14,000 home inspectors were operating in the year 2002 and by 2007 this number increased to 50,000. This number has greatly increased even more so today with figures ranging from above 80,000 to over 100,000(including licensed and non-licensed inspectors. The great influx of those in the industry have come from many finding it to be a profitable occupation.

From what we see now, this industry will not be slowing down anytime soon. With population growth ever rising, more and more homes are being built, this is a profession that has much potential for growth. So now you get an idea how home inspections started from such a small scale and has inflated to a large industry on its own. The numbers are not expected to fall any time soon, and we will continue to see it grow and develop.

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