In October, we released our first-ever Spectora Industry Snapshot. Since then, we are still tracking industry data to provide updates. We just got some numbers in for the month of October; let's break down how they compare to the state of the industry in September, and what it means for home inspectors.
Solo inspectors who made at least $100 in the month of October grossed $2,415, down from $3,500. This includes industry insiders and veterans alike. Solo inspector revenue is clearly the most volatile, with new inspectors entering and leaving the industry every month in the best of times. Many solo inspectors are also part-timers. So let's go a level deeper and look at full-time, working inspectors.
For inspectors that have been using Spectora for three years or more, their median October revenue was a strong $4,650, nearly double that of their peers. They also had a healthy number of monthly inspections, averaging 10 a month. We've talked before about how veteran inspectors stand to gain the most from an industry that's getting leaner.
It's not smart to draw too many conclusions from a single month of data. We know that transactions for home sales have slowed and will probably keep slowing for a while. We also know that October is traditionally the start of the fall slowdown, even in a good year.
Kevin recently dropped an Instagram post talking about stalling home sales. This is a good sign. Homes on the market for more than a week or two is a sign of normalcy, and more time means more home inspections.
Wells Fargo has recently forecasted that national median single-family home prices will drop by 5.5% year-over-year by the end of 2023. But that number is likely to increase. While some markets are holding steady, others are seeing consistent price cuts. All that is a sign of a market that is evening out into 2023.
Two weeks ago, we dished out some data on new home inspectors or part-time inspectors who were leaving the industry altogether. While these inspectors may not have been particularly successful, they were still getting inspections, and their agents and clients will be looking for other inspectors now.
Ultimately, a thinning out after a major period like the last several years is a good thing. Serious inspectors who can withstand a drop in jobs should find themselves well-positioned as the housing market swings back next year.
Although industry attrition is good for home inspectors, it's important for inspectors to use the down market to their advantage. As home sales drop, home inspectors should focus on improving their businesses and continuing to market and grab new agent pipelines.
It's important to market your home inspection business more than ever in a recession. If you focus on marketing while there are fewer home sales and you're seeing fewer inspections as a result, you'll be the first on realtors' minds when the market bounces back.
It's also vital to maximize your revenue. Diversifying your business through add-on services is a great way to increase your revenue when routine home inspections are slow, and to maximize your RPI (revenue per inspection). Some common add-ons to consider:
By upping the ante on marketing and diversifying your services, you can come out of a down market stronger than ever.