Ask Big Tuna, The Renovating Realtor

Dear Julien, a friend of mine just purchased a home and did not include a home inspection clause, is this a big mistake? Would you recommend a home inspection? Sincerely CarLover

Hey CarLover, good question! A home inspection is not necessary for a transaction to occur but it is always a good idea. Purchasing a home is a major investment, so why not verify that the home is in good condition. A thorough and qualified home inspector can spot potentially costly repairs that you, as the new homeowner, may have to undertake.

During the recent ‘housing boom’ here in Aurora, the majority of accepted offers were firm.  Meaning no conditions and no home inspection. Now that the market has cooled and corrected itself, sellers are now accepting conditional offers on home inspection and financing.  Typically, if the offer is conditional on home inspection, you have five business days to get the home inspected.

If you are including a home inspection clause the wording you choose is critical.  A good home inspection clause should typically include the following: “This offer is conditional upon the inspection of the subject property, by a registered home inspector, at the buyers own expense and the obtaining of report satisfactory to the buyer and the buyer’s sole and absolute discretion.” This type of clause will protect the buyer should the inspection yield an unfavourable report.

If the inspection raises issues of concern, you will have some options. One option could be to walk away from the purchase entirely; second option is to allow the sellers to fix the identified issues prior to the completion date, or, lastly, reduce the purchase price reflecting the repairs needed.

CarLover, conditions in a contract are to protect you as the buyer from potential headaches.  The purchase of any property is costly and negative consequences could arise when they are not part of the purchase process.  Wherever possible, I always opt to include them. Cheers!

 

Who is Big Tuna,
The Renovating Realtor?

 Julien Laurion AKA Big Tuna,
is a local Real Estate Sale Representative with
RE/MAX Hallmark York Group Realty in Aurora.
I am a real estate agent who has expertise in both
Real Estate and Renovations and have been
involved in this community for over 20 years.
If you have a question for my monthly article
or if you are considering buying,
selling or leasing a home please feel free
to call or email me directly at (416) 402-5530
or julien@bigtuna.ca or by alternatively by
visiting my website www.bigtuna.ca
or Facebook page @bigtunarealty