July 1, 2016
ROCKWOOD, ON--(Marketwired - July 01, 2016) - Experts from HouseMaster Home Inspections say that while there may be multiple bids on a house, buyers shouldn't forgo the home inspection to help get their offer accepted.
As the weather heats up, there are no signs of the real estate market cooling in the Guelph/Cambridge market. Many real estate markets throughout Toronto remain hotter than ever, categorized by high demand and low inventory. "If you are in the market for a home in and around the GTA, you may find yourself making an offer above the asking price, to keep from losing the house to another bidder," says Felix Fujs, of the Wellington County-franchise of HouseMaster, the first company to franchise in the home inspection industry in North America. "In some cases, buyers may consider submitting their offers without a home inspection contingency -- a clause that allows the buyer to have a professional document of the condition of the major components of the home such as the roof, foundation, and major systems."
But "buyer beware," cautions Mr. Fujs. When it comes to buying a home in a hot market, buyers often get burned when they let emotion or pressure cloud their decision. While buyers want to get an accepted offer quickly, eliminating the home inspection to get a leg up over other bidders is not a good investment decision.
"Keep in mind that sellers who are inclined to accept an offer without the buyer's home inspection contingency (over other offers that have maintained this clause), may be doing so because they know many of the home's components are older and possibly in need of expensive repairs," says Mr. Fujs. "I've seen buyers skip the home inspection, only later to move in and find that the home needs thousands of dollars in repairs and replacements."
It can be understandable why home sellers and real estate agents see a deal without a home inspection contingency as an added value. Not having the home inspection saves time for all parties and keeps the deal moving forward, but at what cost? Ontario law does not require sellers to disclose any defect that would have been revealed by a home inspection, according to the Ontario Bar Association. "By not having the opportunity to review a comprehensive inspection by a professional home inspector prior to purchase, buyers can basically be guaranteed they will face unknown repair expenses after they move in," adds Fujs. Savvy, risk adverse real estate agents and astute home sellers can assist buyers to avoid post sale surprises even in hot markets by having a pre-listing inspection. Home sellers can hire a reputable home inspector to document the condition in writing before the bids even start. Buyers can then review the inspection report and make their offer without an inspection contingency, but with the peace of mind that they know what they are buying, the existing conditions, and what to expect once they move in. Home sellers and agents both win because by having a professional, third-party pre-listing inspection performed, they can still sell the home fast, eliminate negotiations, and accept the highest offer knowing they did the right thing. "In a market this hot, the seller is in the driver's seat, so disclosing the condition of it through a pre-listing inspection won't stall the home from selling; it will simply give all parties peace of mind with no surprises after closing," Fujs adds.
To view a quick informational video on Pre-Listing Inspections visit https://housemaster.com/sellers or contact your local HouseMaster office at 866 955-8617