From, Realtor Terry Black
For many years it has been common in the Toronto housing market for a Buyer to submit an offer in competition with other offers. In the past few years, it has been common also in Nova Scotia to submit an offer in competition with other buyer’s offers. The Toronto scenario of submitting an offer with no conditions has become somewhat common here also in Nova Scotia. However, it is fraught with risk to do so. I’ve never written one of these type offers and for the most part it seems that Seller’s have not had a problem with accepting an offer with an inspection condition. I hope that is a trend that continues.
On the one hand it is exceptionally frustrating when wanting to own a property that it is by no means certain if you have the money that you will secure a home to live in. Pricing and competition have made it challenging. I understand the thinking that in order to make an offer as attractive as possible it is considered a needed thing to do to waive the right to an inspection. However here are some thoughts that run through my mind as to why I don’t advise client’s to not include a property inspection.
I’ve heard it said that a 20-minute water leak can cost $20,000 to repair. Admittedly I have no idea if a water leak will cause $1,000 per minute of damage. However, I know of water damage costing this much and more and if the water piping had been inspected it could have been avoided. Consider also that if an insurance company is involved in fixing the damage it could mean living in a hotel for many months. I recently know of a situation where hotel was home for 4 months and another for 6 months.
A structural problem can cost into the tens or higher thousands of dollars to repair too. An electrical wiring problem can cause a house fire or electric shock that could cost someone their life. The bottom line is if you are considering not having an inspection, I hope to have given some food for thought to reconsider.
Besides potentially revealing major problems before owning the property another upside is that it would reveal in detail minor maintenance items that could be taken on one at a time over many years of ownership. Minor is generally considered less than $500.00
Although a buyer is at liberty to have no inspection or choose anyone that they want to do the inspection my thinking is this. Contract with an Inspector who is a member of CAHPI (Canadian Association of Home & Property Inspectors) or InterNACHI (International Association of Certified Home Inspectors). The inspector will provide a written report that can provide a guide for maintenance for the property during your ownership. It is a big investment. Perhaps the biggest you will ever make. Consider receiving professional advice from an Inspector that works in the industry full time.
Photo by RODNAE Productions: https://www.pexels.com/photo/person-in-yellow-reflective-safety-vest-holding-a-pen-and-checklist-of-house-inspection-8293680/