June 17, 2021 | Christianah
One regular condition that buyer’s want in a purchase agreement is the opportunity to hav ea home inspection completed, this can be very important – in particular because most buyer’s won’t know exactly what to look for when trying to determine if there are any serious repair issues that may be present in the home for purchase. A home inspection is simply an examination of the exterior and interior features of a house, usually with a view to finding major and minor defects, this is normally done after the purchase agreement is signed, but can also be done prior to entering into an Agreement of Purchase and Sale (APS). In our post today, we would discuss the importance of home inspections and the benefits it offers to both Buyers and Sellers of property.
A home inspection is a process that can be done by either party, both before listing, and before closing the sale. Therefore, Sellers can conduct a pre-listing inspection before listing the property for sale and Buyers can also conduct their inspection before finalizing an APS. While home inspections are usually thought to be beneficial to only Buyers, it does offer benefits to Sellers as well and these would be discussed below.
Benefit to Buyers
1) “What you get is what you see”
In our previous article on Buying a home, we discussed how crucial is it for Buyers not to overlook important steps in the home buying process . It is very necessary for Buyers to look beyond the beautiful images and conduct inspections of their dream home. During home inspections, a professional inspector may discover major issues that would need to be repaired in the short term after closing. These issues could range from foundation issues, roof damages, waste systems, plumbing, heating and electrical issues. While it is impractical to ask a Seller to fix every problem that arises, whether minor or major, it helps for the Buyer to be aware of the actual state of the property they are spending their money on.
2) It helps with Renegotiation
This is not always a favourite for Sellers, but home inspections can help the Buyer renegotiate the sale price of the home or repairs that have to be fixed before closing of the Agreement. Where a Seller undertakes a pre-inspection listing however, this would help to reduce negotiations as they would have already been aware of any issues that may arise and take steps to rectify them.
3) It helps to improve Buyers’ confidence
Home inspections may help to dispel doubts that Buyers may have about going ahead with a purchase. Although inspections are not guaranteed to reveal 100% of the problems, it helps Buyers feel more confident about purchasing a property. It is always advisable for Buyers to be present during their home inspection so that they can ask questions about the home inspector’s findings.
Benefits to Sellers
1) It helps with deal killers
Just as we have learned above, home inspections offer a chance for Buyers to become aware of defects in the home. These defects may be minimal while some may need a major change or repair. Having this information may increase Buyer’s remorse and prompt them to back out on their offer. Therefore a seller may want to arrange for a home inspection to be done prior to the property being listed so that Buyers are aware of the condition of what they are purchasing – and it can also help speed up the closing period since the buyer won’t need to arrange for an inspection after signing the purchase agreement.
2) It helps properties sell faster
Sellers often have the notion that inspections only highlight problems in the property and may drive potential Buyers away. However, conducting home inspections before listing may actually create higher chances of Buyers making a decision on purchasing the property. This is because Buyers have been adequately informed about possible defects in the home and can decide to go ahead with the sale confidently with that knowledge. It also makes Buyers feel comfortable with the knowledge that there is nothing hidden about the property.
3) Repairs prior to sale
Home inspections allows Sellers to take preventive measures and fix defects in the house before putting it up for sale. This will also help the seller determine an accurate price for the home and getting the desired value for it.
A home inspection is an investment for both Buyers and Sellers and it ultimately assists in quickening the home purchase process. It is, however, important to engage the services of a professional home inspector that is knowledgeable about home construction, repair and safety matters and can provided impartial findings about the property.
At Northview Law, we would love to discuss any questions you have about protecting your interests in your home purchase transaction. You can book a free consultation with Northview Law on this link, or contact us at 416-639-7639. We look forward to hearing from you soon.