Home Inspections- Are they worth it?

BY: JAY BRIJPAUL

It was a blistering winter evening when John and May found their perfect home. The home was recently renovated and there were many bidders. John and May forged the inspection, despite their realtor’s recommendation, and submitted a firm offer. They were the lucky ones, or should I say unlucky?

The crocuses sprouted with the heavy rain and melting ice in early spring when John and May took possession. With the thaw, water seeped into the basement walls and toxic mold mushroomed. John immediately contacted his lawyer but soon realized that he bought the home “as is”. The previous owner was not aware of the problem because the ground was frozen, and the basement was dry. A home inspector would have noticed the crack on the outer wall and, with a moisture meter, would have found any other problems. The roof was covered with snow at the time of purchase and John did not realize that it was at the end of its life. The attic was poorly insulated and inadequately ventilated.

Home inspections may not reveal all the problems, but a reputable inspector will certainly discover any major ones. Inspections usually take between 2 to 3 hours to perform. It is advisable that the buyer accompanies the inspector. A good inspector will give maintenance advice to the buyer during the inspection. Most inspections start with the outside of the home and finish in the basement, checking for foundation cracks, soil gradient, receptacles, vents and anything visual. Home inspectors will snap photos of any defect and comment on it.  Inspectors will check for moisture levels in the home and, with an infra-red camera, can detect whether there is heat loss or even insect or rodent infestation.

May sat in the living room and admired the open concept design. It was love at first sight. With more daylight and all the blinds opened, she gazed at the ceiling. There was a small hairline crack that she hadn’t noticed before. The previous owner removed a supporting wall to create the open concept design. John and May had no recourse because it is stated in the agreement of purchase and sale that “buyer acknowledges, having had the opportunity to inspect the property and understands that upon acceptance of this offer, there shall be a binding agreement of purchase and sale between the buyer and seller.”

In multiple offers where the buyer has a better chance of securing the home by going firm, it is better to have an inspection done prior to the offer presentation date. It is becoming increasingly common where sellers have an inspection done and provide the report to an interested buyer prior to offering presentations. This saves time and allows the sellers to receive offers that are not subject to inspections. Buyers can make an offer based on the report. In addition to the inspection report, ask the seller to complete a seller property information statement. It is a standard document that is drafted by the Ontario Real Estate Association that has important information about any renovations or defects of the property known to the seller.

Inspections are advisable for condo townhomes and freehold properties. With condominium apartments, it depends. In a condo apartment, there isn’t much to inspect because the common areas such as the roof, underground garage and elevators are the responsibility of the condo management. The interior space would include the walls, plumbing for kitchen and washrooms, some electrical and the appliances. Usually, inspectors charge less for condo apartments.

Most buyers would inspect only after financing has been arranged. If the inspection reveals major deficiencies, then the buyer can terminate the deal and have their deposit returned. In many instances, the buyer can renegotiate with the seller. It is a good practice to inspect the appliances and note the make, model and serial number at the time of inspection.

New homes should be inspected as well. There are many cases where problems already existed — in one instance, the attic was never insulated and in another, the floor joist was further apart than what is recommended.  Although new homes are covered under the Tarion Warranty, certain defects can remain undetected.

Home inspections will not reveal every defect and there is no guarantee that problems will not arise after closing.  Buying a home is an expensive venture and it should be inspected. After all, it will become your nest egg.