Multiple-offer scenarios in the Canadian housing market during the COVID-19 pandemic led to a decline in inspection conditions, making it difficult for buyers to include clauses like ‘subject to a home inspection’ in their offers. This trend was observed by Peter Weeks, the president of the Canadian Association of Home and Property Inspectors (CAHPI), who highlighted the importance of inspections in identifying potential issues in a property. Inspections became crucial, especially for first-time homebuyers who may not be familiar with maintenance issues in a home and may need guidance on what to look for.
When a bid is accepted for a home purchase, buyers have the opportunity to hire a home inspector to assess the property and identify any maintenance or repair needs. James Buren, a 30-year home inspector, described the role of an inspector as that of a “jack of all trades” who can provide an independent assessment of the property’s condition. Home inspections primarily focus on visible elements of the home, such as the exterior, roof, electrical systems, heating and cooling, insulation, and plumbing. However, inspections do not cover concealed or latent defects that may be present in the structure.
While a home inspection is essential for buyers, it is important to note that inspections are not exhaustive and cannot uncover all potential issues in a property. Inspectors are limited by what is readily accessible and cannot perform invasive procedures during the inspection process. Buyers should be aware that inspections do not involve moving furniture, taking samples, or conducting tests for substances like asbestos. Despite these limitations, home inspections play a crucial role in helping buyers make informed decisions about their potential purchase.
In the current housing market, inspection conditions are still a point of contention, with sellers sometimes reluctant to accept offers that include inspection clauses, especially for high-demand properties. However, real estate experts suggest that inspections can provide peace of mind for buyers, especially first-time buyers who may not have experience in assessing a home’s condition. Putting in an offer condition may require offering a financial incentive to persuade sellers, but it can be a worthwhile investment to avoid potential issues in the future.
Some sellers are now opting for pre-list inspections to reassure potential buyers about the condition of their property and potentially eliminate the need for post-offer inspections. However, buyers should be cautious when relying on pre-list inspections, as not all reports may provide a comprehensive assessment of the property. It is crucial for buyers to conduct their own due diligence and seek advice from qualified home inspectors to ensure they are making informed decisions about their home purchase.
While some provinces in Canada have licensing systems in place for home inspectors, Ontario has yet to implement such a regime. Buyers are advised to vet the qualifications of inspectors before hiring them, looking for memberships in associations like CAHPI and OAHI, and ensuring they carry errors and omissions insurance. A thorough inspection fee typically ranges from $550 to $600, with additional charges based on the property’s size and age. Ultimately, a home inspection serves as a valuable tool for buyers to understand the condition of a property and make informed decisions about their investment.
