In the last few years, the real estate industry has seen some very highs interspersed with some unsettling lows. Now that the market appears to be stabilizing and bouncing back, Matt Cook, Director of Business Development with HomeTeam Inspection Service, says it’s also offering an attractive landscape for new franchise owners.
“The HomeTeam system has been seeing year-over-year increases for the last few months,” said Cook. “The fact that the real estate market is looking up is even more encouraging. Franchise owners who have been doing the right things all along — going to trade shows, building relationships and continuing marketing efforts — never stopped sales and are feeling that tightness of the market go away.”
For example, Brad Lawler, who owns multiple HomeTeam territories in the Kentuckiana region, has seen a 10% year-over-year increase in inspection count.
“Last year, in a tough market, our revenues were up, and we gained additional market share,” said Lawler. “I’m bullish on the real estate market for 2024, and I do think it’s going to be another good year for us.”
As the real estate market becomes more favorable for those looking to buy or sell a home, HomeTeam franchise owners can also expect to see more movement from real estate agents, owners and buyers in need of inspections.
According to Cook, interest rates for 30-year fixed-rate mortgages dipped below 7% at the end of last year, and the rates are currently similar, or just below, the historical average. With interest rates decreasing, buying a new home is becoming an attainable goal for more people and, fortunately, inventory is rising to meet the demand.
Previously, housing inventory served as a major challenge for those looking to buy. Even buyers who were willing to take out mortgages with higher interest rates had no guarantee of finding a suitable home available for purchase. But now, decreasing interest rates are making mortgages more attractive to families looking to move out of their current homes. This means more homes will be placed on the market, and the entire ecosystem will be able to grow.
While many homebuyers will be motivated by favorable circumstances of the real estate market, others will be driven by the high costs that come with renting.
“Per the U.S. Census Bureau, as of July of 2022, there are roughly 130 million people between ages 25 and 54,” said Cook. “That is the most active buyer group. People on the upper end of that range are downsizing, but the younger people in that range are looking to buy. Rents are increasing and mortgage rates are coming down, and that is a recipe for excitement.”
According to Statista, there were over 21 million households in the U.S. that were “housing cost burdened” in 2021. A household is considered to be housing cost burdened if over 30% of the household income is spent on housing costs, and a household is “severely burdened” if it spends over 50% of the household income on rent.
The average rent increased by 14% between 2021 and 2022, and, though the climb is slowing, costs are still increasing. This trend is not reversing, but mortgage rates are, creating a prime market for renters to move into home ownership.
All of these trends come together to paint a favorable picture for home inspectors. Although home inspections aren’t always mandatory to close a deal, home buyers and real estate professionals recognize their value. As a result, the number of home inspections typically correlates to the number of houses sold.
“It’s going to be a good year for real estate, and it’s going to be a good year for HomeTeam,” said Cook. “With moderate to aggressive growth in the market, our owners have an opportunity to ride that momentum and grow their businesses as well.”
While the home inspection market at large is expected to be strong in 2024, partnering with HomeTeam to launch a home inspection business provides franchise owners with an even better foundation and the support and systems they need to build a strong, long-lasting business.
“Partnering with HomeTeam in 2024 will give entrepreneurs the scaffolding they need to jump into the warming real estate market and begin making connections, doing inspections and bringing in revenue as soon as possible,” said Cook. “The best time to invest in a business is when the market is coming out of a slump. The last real estate upswing was 10-plus years long, so it’s a perfect time to catch that wave.”
As it grows, HomeTeam is looking to partner with driven entrepreneurs in all states and especially in Arizona, California, Idaho, Louisiana, Nebraska, Oklahoma, Texas and Utah, where numerous territories are available.
To find out more information on costs to buy this franchise, please visit https://1851franchise.com/hometeaminspectionservice
HomeTeam Inspection Service
SPONSORED
As interest rates decrease and the real estate market heats up, 2024 is a great year for entrepreneurs to partner with the home inspection franchise to break into the industry.
In the last few years, the real estate industry has seen some very highs interspersed with some unsettling lows. Now that the market appears to be stabilizing and bouncing back, Matt Cook, Director of Business Development with HomeTeam Inspection Service, says it’s also offering an attractive landscape for new franchise owners.
“The HomeTeam system has been seeing year-over-year increases for the last few months,” said Cook. “The fact that the real estate market is looking up is even more encouraging. Franchise owners who have been doing the right things all along — going to trade shows, building relationships and continuing marketing efforts — never stopped sales and are feeling that tightness of the market go away.”
For example, Brad Lawler, who owns multiple HomeTeam territories in the Kentuckiana region, has seen a 10% year-over-year increase in inspection count.
“Last year, in a tough market, our revenues were up, and we gained additional market share,” said Lawler. “I’m bullish on the real estate market for 2024, and I do think it’s going to be another good year for us.”
As the real estate market becomes more favorable for those looking to buy or sell a home, HomeTeam franchise owners can also expect to see more movement from real estate agents, owners and buyers in need of inspections.
According to Cook, interest rates for 30-year fixed-rate mortgages dipped below 7% at the end of last year, and the rates are currently similar, or just below, the historical average. With interest rates decreasing, buying a new home is becoming an attainable goal for more people and, fortunately, inventory is rising to meet the demand.
Previously, housing inventory served as a major challenge for those looking to buy. Even buyers who were willing to take out mortgages with higher interest rates had no guarantee of finding a suitable home available for purchase. But now, decreasing interest rates are making mortgages more attractive to families looking to move out of their current homes. This means more homes will be placed on the market, and the entire ecosystem will be able to grow.
While many homebuyers will be motivated by favorable circumstances of the real estate market, others will be driven by the high costs that come with renting.
“Per the U.S. Census Bureau, as of July of 2022, there are roughly 130 million people between ages 25 and 54,” said Cook. “That is the most active buyer group. People on the upper end of that range are downsizing, but the younger people in that range are looking to buy. Rents are increasing and mortgage rates are coming down, and that is a recipe for excitement.”
According to Statista, there were over 21 million households in the U.S. that were “housing cost burdened” in 2021. A household is considered to be housing cost burdened if over 30% of the household income is spent on housing costs, and a household is “severely burdened” if it spends over 50% of the household income on rent.
The average rent increased by 14% between 2021 and 2022, and, though the climb is slowing, costs are still increasing. This trend is not reversing, but mortgage rates are, creating a prime market for renters to move into home ownership.
All of these trends come together to paint a favorable picture for home inspectors. Although home inspections aren’t always mandatory to close a deal, home buyers and real estate professionals recognize their value. As a result, the number of home inspections typically correlates to the number of houses sold.
“It’s going to be a good year for real estate, and it’s going to be a good year for HomeTeam,” said Cook. “With moderate to aggressive growth in the market, our owners have an opportunity to ride that momentum and grow their businesses as well.”
While the home inspection market at large is expected to be strong in 2024, partnering with HomeTeam to launch a home inspection business provides franchise owners with an even better foundation and the support and systems they need to build a strong, long-lasting business.
“Partnering with HomeTeam in 2024 will give entrepreneurs the scaffolding they need to jump into the warming real estate market and begin making connections, doing inspections and bringing in revenue as soon as possible,” said Cook. “The best time to invest in a business is when the market is coming out of a slump. The last real estate upswing was 10-plus years long, so it’s a perfect time to catch that wave.”
As it grows, HomeTeam is looking to partner with driven entrepreneurs in all states and especially in Arizona, California, Idaho, Louisiana, Nebraska, Oklahoma, Texas and Utah, where numerous territories are available.
To find out more information on costs to buy this franchise, please visit https://1851franchise.com/hometeaminspectionservice
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