Home inspection: what you need to know before buying
When you consider buying a home, it is crucial to leave nothing to chance. An important step in this process is the pre-purchase inspection, often included as a clause of the promise to purchase. The inspection ensures that the property is in good condition and it helps avoiding unpleasant surprises after purchase.
In this article, we explain what a home inspection is and what your options are once the inspection report is completed.
SUMMARY
What is a home inspection
Is the inspection mandatory?
The purpose of a home inspection
Choosing the right building inspector
How much is an inspection?
What is covered by the inspection
Understanding the inspection report and your options
Teaming up with a real estate broker
What is a home inspection?
A building inspection is an assessment of the inside and outside of a property to give the buyer better knowledge about the condition of the building. This assessment is conducted by a qualified building inspector. The inspector assesses the structure, walls, ceilings, floors, foundation, roof, etc. In the case of a condominium, it is also possible to inspect common areas. The inspector then issues a report of his observations with comments.
Is the inspection mandatory?
No, the pre-purchase inspection is not mandatory. However, it is strongly recommended to help you make an informed decision for your real estate purchase.
What is the purpose of a home inspection?
Whether you're buying a new or used home, a townhouse or country cottage, a condo or bungalow, having a home inspection performed on the property you're considering can save you a lot of hassle. In fact, buying a home without an inspection exposes you to potential unforeseen problems that you want to avoid for one of the biggest purchases of your life.
1. Understanding the strengths and weaknesses of the property and avoid unpleasant surprises
Buying a property is a major transaction involving a considerable amount of money. So, it is essential to be aware of the property condition. Buying a house in full knowledge of the facts allows avoiding surprises that can sometimes be astronomical. Once you have been charmed by the neighbourhood, the look, the size, the kitchen, and so on, you should also know the flaws before making a long-term commitment to your property.
2. Getting an idea of the potential work to be done in the short, medium and long term
Sometimes, the inspection will identify work that needs to be done, but that had not been mentioned by the seller. Knowing what repairs need to be done at possession, or in 5 or 10 years, allows you to plan your budget and time accordingly. In the case of major problems requiring significant repairs, you can also negotiate the price or purchase conditions.
3. Having the ability to cancel the purchase if the inspection is not favourable
Since a pre-purchase home inspection can reveal major issues that you would not have known about otherwise, you are giving yourself the option to cancel the purchase transaction instead of ending up with a greater financial burden than you had anticipated.
Basically, a pre-purchase inspection allows you to enter your new home with peace of mind. This step should not be neglected, even in a context where you have to decide quickly on your purchase.
Choosing the right building inspector
Choosing a building inspector is an important step. The goal is to find an inspector you can trust and who will also be available to meet your deadlines.
Make sure the professional you choose has undergone specialized training to become a building inspector. Also find out if he or she is a member of a professional association such as the Association des inspecteurs en bâtiment du Québec (AIBQ). Membership in these associations is not mandatory, but qualified inspectors are usually members.
Real estate brokers have an address book with a list of trusted inspectors they can refer you to. Also make sure to ask the right questions to the building inspectors you contact to help you make your choice. |
How much is an inspection?
The price varies according to a number of factors such as the size of the house, the inspection services requested, the region, etc. For information purposes only, based on the 2024 market, the inspection cost for a single-family property is between $600 and $900.
This may seem high, especially when added to the other purchase-related expenses, but it is a smart investment compared to the potential costs of unexpected repairs.
Who pays for the inspection?
In most cases, the pre-purchase inspection is requested by the buyer in the conditions of the promise to purchase. Therefore, the buyer must pay for the cost of inspection.
What is covered by the inspection
When inspecting a property, the inspector walks around the outside and inside of the house, taking note on the components being observed.
The following is a non-exhaustive list of the items assessed by the building inspector during the pre-purchase inspection:
- Structure: foundations, walls, floors, ceilings, etc.
- Systems: plumbing, electricity, heat and air conditioning
- Exterior: doors and windows, siding, driveways, porches, etc.
- Interior: walls, floors, stairs, counters and cabinets, doors, etc.
- Other elements such as insulation and ventilation
You should attend the house inspection to see for yourself the condition of the property and get a good understanding of it. This will give you the opportunity to ask questions and get answers directly.
Your real estate broker will also attend the inspection to provide advice on what will be observed. |
Understanding the inspection report and your options
Following the inspection, the inspector provides a detailed report that lists his observations. The document includes descriptions of problems found, pictures, and recommendations for repairs. If necessary, ask for clarification to properly understand the content of the report.
Then, it is up to you to assess whether the findings influence your decision to buy the property, or the terms and conditions, for example. After the inspection, you have several options:
Continuing with the purchase
If nothing major puts your choice in question, no changes are made to the transaction.
Renegotiating the price or conditions for the purchase
If more significant issues have been identified, you may want to renegotiate. In particular, you may want to:
- Negotiate a lower price
- Conduct a more in-depth inspection to better assess the problem
- Ask the seller to make the repairs
Canceling the sale
Another option is to cancel the sale. To be able to cancel the transaction, a clause must be included in the promise to purchase that the promise to purchase is conditional on inspection, in case of an unfavourable inspection.
Whatever the scenario, your real estate broker will advise you and explain what is available to you, and how to proceed. |
Team up with a real estate broker
Inspecting the home you want can be a stressful part of the buying process, which is why it is a good idea to work with a real estate broker.
The real estate broker:
- Helps you choose a trusted building inspector;
- Attends the inspection with you to ask the right questions;
- Ensures that you clearly understand the inspection report;
- Helps you renegotiate the terms if necessary.
Your real estate broker will help you make the right decisions while taking a weight off your shoulders.
The pre-purchase inspection is your ally to secure your investment and guarantee the safety and well-being of your family in your future home. Make sure you prepare well for this crucial step and make the most of the information provided by the inspector.
