There was a time when the most stressful clauses in an offer for a Seller were the ones associated with the Buyer obtaining financing or the Buyer selling their home, but over the last decade, this has changed.
Obtaining a Home Inspection has become the industry norm, and it's been standard for the Buyer to make an offer conditional for a period of time to obtain his/her own inspection report.
"Clause 13" in the Ontario Real Estate Association Standard Agreement of Purchase and Sale addresses requesting a home inspection:
"INSPECTION: Buyer acknowledges having 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. The Buyer acknowledges having the opportunity to include a requirement for a property inspection report in this Agreement and agrees that except as may be specifically provided for in the Agreement, the Buyer will not be obtaining a property inspection or property inspection report regarding the property."
Once the Buyer reviews the report with the Home Inspector, he/she assesses the deficiencies and or repair items for the subject property and then makes an informed decision whether or not they want to continue with the purchase. There is no doubt that these reports have been extremely valuable in helping Buyers make informed decisions along with protecting the Seller from litigation after the transaction closes, often from issues that they didn't even know existed!
Benefits of Having Your Home Pre-Inspected Before Listing
- Facilitate a faster sale for more money.
- Eliminate last minute fall throughs or 11th hour re-negotiations.
- Be aware of existing issues, giving you the chance to address them now with competitive pricing.
- Protect yourself from over-inflated buyer procured estimates.
- Get advise on the final report if there are items you wish to repair.
- Reduce your liability with full disclosure
- Provides purchasers the comfort of an unbiased 3rd party opinion.
- You can assist the inspector during the inspection, unlike the purchaser's inspection.
- The Home Inspector will be able to provide the Buyer with a review or actual secondary inspection to review repairs and deficiencies.
Benefits to Buying a Pre-Inspected Home
Saves a lot of time- upon reviewing a current Home Inspection report, you'll be able to see what the deficiencies are in advance of putting in an offer!
Allows you to focus on the deficiencies in a rational fashion and gives you time to get quotes and professional advise during your conditional period.
Allows you the ability to make a much more informed decision.
It doesn't matter if you're a Buyer or a Seller, the need for disclosure and discovery is paramount! The most successful and stress free property sales involve a Seller who knows exactly what he/she is selling and a Buyer who know's exactly what they are buying!
The Home Inspection Industry is far from perfect and there was a time when everyone and their brother were hanging up "Home Inspection" signs, but that has gradually changed. Real Estate Professionals and Consumers alike are looking for Inspectors who are both insured and knowledgable. The demand is on for Home Inspectors that tell it as it is and don't feel pressure to candy coat anything. A good Home Inspector will not over exaggerate minor deficiencies or to be biased against certain area's of a City or type of house. At the end of the day, it's the Home Inspection Report that a Buyer may be very well depending on when making the decision of buying a home.