Ravi Punia - REALTOR®

Fraser Valley Specialist


Home Inspections are Still Important When Buying a Home

Macleans Magazine recently published a very good piece on the role of home inspections in the home buying process.  See Want to buy a house? Don't bother checking the foundations.

In the recent pandemic-era frenzied housing market, many buyers have chosen (or been forced) to forego home inspection clauses in their offers to purchase.  This can and does often lead to nasty and sometimes costly surprises.  Listings have been relatively scarce in recent time and demand incredibly high.  It's led a lot of buyers to forego inspection clauses to ensure that their offers were "competitive" with other bidders.

And winners of such bidding wars who might have unexpected repairs on their hands have also been aided by a fast-rising market, giving windfall equity gains.  So the pain of surprises around repairs is maybe more than offset by paper gains. These market conditions, however, are unlikely to persist in a new era of inflation and rising mortgage rates.

There is a lesson that many first-time buyers have or are about to learn: homeownership entry is far more than just the purchase price.  On-going maintenance and repairs can suck a meaningful amount of household income.  Not to mention property tax and insurance costs. The bigger the home, the more the costs tend to be.  As such, it's best to go into a major life-altering transaction with your eyes wide open.  

It's my personal view that all prospective homebuyers should include a home inspection clause into their offers.  This mitigates financial risk. At todays high prices in places like the Fraser Valley, the stakes are high.  That is to say, with a home inspection, at least you're able to identify what the major deficiencies in a home might be and you can budget for their fixes, accordingly.  Assuming you actually have a financial buffer to take such fixes on.

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*This blog communication is not intended to cause or induce breach of an existing agency agreement.  Views are my own and do not reflect those of any organizations that I may be associated with.

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