Buying a home will be one of the largest investments most Canadians make in their lifetimes. Therefore, it is so important to include a home inspection as one of your conditions when putting an offer down on a property. A home inspection not only investigates the structural soundness of a property but also looks at the mechanics, roofing, foundation, plumbing, heating, electrical, interior/exterior and identifies any expensive concerns within the home that could come back and haunt you later.

Once you acquire this information the buyer can ask forma a price reduction to cover the costs of the needed repairs; or they may approach the current owners to complete these needed repairs before the sales agreed closing date. In some cases, the situation could be so detrimental that they may choose to walk away from the house completely.

Home Inspections will save you money and a whole lot of frustration. Despite the large amount of risk that is now involved in purchasing a home, home inspections are not mandatory. Currently a buyer can opt to not have a home inspection done, however, this is far from the right decision. It is so important for your financial future to make sure that the property you’re putting you hard earned cash into doesn’t have large issues in its future, it will always be best to seek an expert to diagnose, inspect and report on the entirety of your subject property beforehand. This will give you peace of mind, a stable trajectory and a positive financial future ahead.

Yes, the inspection is an out-of-pocket expense, but it's an expense now that could save you thousands of dollars down the road. In some situations, a lender could require an in-depth home appraisal prior to approving financing on a home that has been purchased (common for uninsured mortgages). This combines elements of an inspection with market value assessment based on current sales to allow the lender ease of mind that the home is worth its current purchase price.

The lender is only able to finance the mortgages based on the appraisal value, so if the appraisal comes in lower than the purchase price the buyer will have a few options to choose from.

• Dispute the appraisal value.

• Find the money to cover the difference.

• Find another lender, acquire another appraisal, and hope for a different outcome.

If all these attempts are unsuccessful, they buyer may not be able to complete the conditions and there could be loss of the deposit or could be potentially sued. Booking a home inspection prior would have uncovered any major issues before the home transaction reached this pivotal stage. If you have any further questions about the importance of a home inspection please don’t hesitate to give us a call.