The history of home inspections is a fascinating journey that spans several decades, evolving from informal assessments to a professional industry standard. Let’s explore how this crucial aspect of real estate transactions came to be.
Origins in the 1970s
The home inspection industry as we know it today began to take shape in the early 1970s.
Prior to this, homebuyers often relied on informal inspections conducted by friends or family members with some construction knowledge. These “Uncle Buck” inspections were limited in scope and reliability.
Emergence of Professional Inspections
As the 1970s progressed, a new trend emerged: buyers began hiring general building contractors to perform pre-purchase inspections.
This shift was partly driven by Federal Housing Administration (FHA) requirements for certifications on various home systems before loan approval.
Formation of Professional Organizations
A significant milestone occurred in 1976 with the formation of two key organizations:
- The American Society of Home Inspectors (ASHI)
- The California Real Estate Inspection Association (CREIA)
These associations established the first Code of Ethics and Standards of Practice for the industry, laying the groundwork for professionalization.
Legal Developments
The 1980s saw important legal changes that further solidified the role of home inspectors:
- In 1984, the Easton v. Strassberger case in California established that real estate brokers had a duty to inspect properties and disclose relevant facts
- In 1985, Texas became the first state to regulate home inspectors and later, the first to license them
Growth and Standardization
By the 1990s, home inspections had become the norm in real estate transactions. Key developments included:
- The shift from “contractor inspections” to specialized “home inspections”
- Increased cooperation between real estate agents and home inspectors
- By 2009, nearly 80% of homes nationwide were being inspected before sale
Modern Era
Today, home inspections are an integral part of the home-buying process. The industry has expanded to include various specialized inspections, such as:
- Environmental assessments
- Energy efficiency evaluations
- Building science applications
Home inspectors now use advanced technology and software to provide comprehensive reports, offering valuable insights to both buyers and homeowners throughout the lifecycle of property ownership
The evolution of home inspections from informal assessments to a regulated, professional industry has significantly improved the home-buying process, providing crucial protection and information for consumers in one of the most important financial decisions of their lives.