How HomeTeam Thrives Despite Real Estate Market Shifts

In recent years, the real estate market has seen dramatic shifts, driven by fluctuating inventory, changes in buyer sentiment and changes in the overall economy, driving uncertainty among buyers. For some in the home inspection industry, changes in the real estate market can feel destabilizing, but HomeTeam Inspection Service, the 200-unit home inspection franchise, has a distinct advantage, even during market shifts.

“The ups and downs of the real estate market do not worry us because homes are always being sold,” said Director of Operations Matt Cook. “The market is always moving. And, even when sales slow, homeowners still need additional services like asbestos testing, energy audits and four-point inspections.”

Even in slowing real estate markets, HomeTeam’s data tells another story. Though total home sales are below what is considered standard for a “good market” this year, HomeTeam is still outpacing the industry, seeing double-digit year-over-year revenue growth.

HomeTeam’s resilience is driven by a few key factors.

One of the biggest shifts HomeTeam has observed is in buyer behavior. A few years ago, when interest rates were low and competition for homes on the market was high, many buyers would waive the home inspection contingency in order to close the deal. Today, buyers are more conscious about making the most of each dollar spent, and inspections are a key tool for doing so.

“A home inspection is not a pass/fail evaluation,” Cook said. “It’s an opportunity to learn about the state of the home, and the report can be used as a tool for negotiation.”

He gives the example of an inspection report that identified a roof issue. Rather than walking away, buyers used the findings in the report to secure a solution that worked for both parties. In this case, the seller had the roof replaced prior to closing — without increasing the sale price at all.

In addition to sale-related inspections, HomeTeam offers ancillary services that increase ticket size and help franchise owners make the most of each client relationship. The “One Call Does It All” philosophy means an agent or buyer can make a single call to HomeTeam and schedule every necessary service, from a standard inspection to specialized testing.

This allows owners to capture more revenue from a single interaction and position themselves as the expert resource in their community. And with the team approach, inspections can still be completed more efficiently, creating a more seamless experience for the client and allowing owners to fit more inspections into a single day.

Possibly one of the most important factors driving HomeTeam’s stability, despite real estate market shifts, is the community-focused approach emphasized in the HomeTeam model. The franchise model empowers franchise owners to act as true owners rather than just operators. While inspection teams handle technical work on-site, owners focus on sales, marketing and becoming a true pillar of their local communities.

Cook notes that franchise owners who are constantly out and about, engaging with members of the community, build a positive reputation for themselves and lay the foundation for trust well before a transaction takes place.

“People want to do business with people they have a relationship with,” Cook said. “We’ve seen this time and time again. Even when the real estate market slows, our owners who stay true to the model and remain involved in their communities stay steady, and when the real estate market bounces back, they rebound even more strongly because they have made this time investment on the front-end.”