During the COVID-19 pandemic, multiple-offer scenarios in the Canadian housing market led to a decline in inspection conditions, making it more challenging for buyers to include a home inspection clause in their offers. Without a home inspection, buyers may be unaware of potential issues with the property that could cost them significant amounts of money to address. Home inspectors play a crucial role in identifying these problems for buyers, especially for first-time homebuyers who may not be familiar with the maintenance needs of a home. When a bid is accepted, buyers have the opportunity to hire an inspector to walk through the property and identify any maintenance issues or larger problems that need to be addressed.
Home inspectors, such as Peter Weeks and James Buren, are described as independent third parties who diagnose issues in a home to help buyers make informed decisions. Inspections typically focus on readily accessible areas of a home, such as the exterior, roof, electrical panels, heating, cooling, insulation, and plumbing. However, inspections are not technically exhaustive and may not uncover concealed defects within the structure of the home. Inspectors are unable to move furniture or take samples from the house, limiting their ability to detect certain issues such as the presence of asbestos.
As the housing market cools from the pandemic-era frenzy, inspection conditions are making a comeback, but sellers in high-demand areas may still opt to remove these conditions to attract more competitive offers. Home inspections are particularly valuable for first-time homebuyers and those purchasing older homes, as they may be less familiar with proper maintenance and at a higher risk of potential issues. Buyers may choose to include an inspection condition in their offer, but it may require a financial incentive to offset the risk for sellers, such as offering a higher price.
In some cases, sellers may opt to have a pre-list inspection done to provide potential buyers with information about the condition of the property upfront. While pre-list inspections can offer some insight into a home’s condition, buyers should not solely rely on these reports and should still consider hiring their own inspector to conduct a thorough examination. In provinces like British Columbia and Alberta, home inspectors are required to be licensed, but in Ontario, no licensing system has been put in place despite legislation being in effect since 2017. Buyers can vet inspectors by checking their qualifications, experience, and whether they carry errors and omissions insurance.
A qualified home inspector should have a website that showcases sample reports with detailed explanations and photographs to help buyers understand the issues identified during the inspection. Pricing for inspections should reflect the professionalism and expertise of the inspector, with fees typically ranging from $550 to $600 for a standard inspection. Buyers should choose an inspector who is transparent about their fee structure and who prioritizes thoroughness over quantity of inspections. Ultimately, a home inspection is an essential step in the homebuying process, providing buyers with valuable information to make informed decisions about their investment.
