A Little Bit of History

We tend to think of home inspection as a relatively young profession, but in reality, people have been seeking advice on home purchase decisions since forever. Prior to the 1970s though, that consultant was usually a father, brother in law, or some other friend or relative who had some background or experience in real estate or construction. But those were simpler times. Following a strong post World War II nationwide demographic shift in the home buying population came a new paradigm. People traded farm life for the suburbs. Blue collar workers sent their children to college and raised the next generation of upwardly mobile professionals. Informed by the adage,"Knowledge is Power," this new generation was much more comfortable paying a consultant to empower them with knowledge.

In the early 1970s a few pioneers hung out their shingles and began to fill the information void. By the mid '70s, the home inspection profession was growing strong as more people began to realize the value of the wisdom of an experienced professional. In the late '70s a forward thinking group of home inspectors realized the need for a professional organization. In 1977, the American Society of Home Inspectors (ASHI) was born. Soon after, a sister organization, the National Association of Home Inspectors (NAHI) came into existence. These two organizations existed in relative harmony for nearly two decades. Each defined itself and its mission with clearly written Standards of Practice and Codes of Ethics.

Through the 1990s, ASHI did a very good job of outreach to the real estate community and somewhat successfully established itself as the standard bearer for the profession in most metropolitan markets. NAHI however, continued to grow in numbers as it succeeded in differentiating itself from ASHI. A healthy competition for membership and recognition by the public ensued.

Absent a state issued license or certification, membership in a national organization became the accepted credential nationwide. In order to gain full membership in ASHI, a candidate was required to illustrate a minimal level of practical knowledge of residential construction methods and materials through an entrance exam. He had to have some minimal level of experience and was required to abide by a comprehensive set of standards and ethics. NAHI established a credential in excess of membership. The NAHI, Certified Residential Inspector (CRI) credential was on paper similar in scope to ASHI membership.

As home inspectors gained recognition and the inspection profession grew in stature, aggregation ensued. Some of the large local firms merged into larger regional firms and regional franchises began to appear. Large corporate interests began to ignore the ethics codes and money began to change hands under the table.

ASHI responded aggressively by moving first to stiffen and then to enforce its Code of Ethics. Under threat of suspension, many of the franchisees and employees of the larger multi-inspector firms migrated away from ASHI.

In 1999 the Virginia Association of Realtors (VAR) lobbied the Virginia legislature to impose a home inspector license law. The Virginia Department of Professional and Occupational Regulations (DPOR) responded by expressing little concern about the profession sighting the absence of complaints and law suits. The profession had apparently, up to that point, done a good job of policing itself. In 2000 home inspectors operating in Virginia mobilized, creating a statewide organization, the Virginia Association of Real Estate Inspectors (VAREI). Under continued pressure from VAR and with the guidance of VAREI, the Virginia legislature did enact a voluntary certification law. This law went into effect on July 1, 2003. Some inspectors chose to become certified, but many did not.

By the turn of the century a few franchises and at least one multi-inspector firm had gained national prominence. Over half of the states had imposed license laws. And the average consumer had discovered the internet...