Is the Expense of a
Home Inspection Report
Worthwhile?

Home Inspection Report

... is a wise precaution.

The fee for a house inspection is a small price to pay for the peace of mind offered by knowing what you're buying.

A qualified house inspector will go over the property from basement to roof-top, inside and out.

They'll closely examine the visible structural components, including roof and insulation, and the electrical, plumbing, heating and air conditioning systems. If appliances are included, they may even check them for proper operation.

A home inspection report will usually identify patent (clearly visible to a trained eye) defects, and often the symptoms of latent (not clearly visible) defects, any of which could result in costly repairs or replacements.

However, it must be made clear that including a condition in this regard is not intended to allow you an opportunity to escape from a contract simply due to minor concerns, or if you've just changed your mind about buying the property.

Let's be Fair

When reviewing the home inspection report supplied by the house inspector, you must take into consideration that as a structure ages, the more maintenance and repair it'll require. So, don't expect a 30 year old house to be in the same pristine condition as one built yesterday.

The purpose of a home inspection is for ...

Protection From Major Surprises

... and to generally inform you of the physical condition of the property. In other words, to let you know what you're buying.

If the home inspection report exposes a significant defect, depending upon the terminology of the condition contained in your agreement, you'll have the option of being released from the contract, with the return of your deposit. Or you may ask the seller to either remedy the deficiency, or adjust the purchase price downward to reflect the estimated cost of repair of the defect or replacement of the defective component. In either case, if they agree, then an amendment to the agreement of purchase and sale would be used to simultaneously remove the condition on satisfactory home inspection, and specifically detail the work the seller has agreed to perform, or the adjusted purchase price.

Included with most home inspection reports, in either hard copy or e-format, will be a manual containing information on home construction, with details on roofing, insulation, exterior and interior components, structure, and electrical, heating, cooling and plumbing systems. The manual will often include illustrations on how each component of the house is built, how it works, wears or fails. And most importantly ...

How to Maintain Everything

A buyer will receive a wealth of information on normal life spans of such items as roof shingles and furnaces, as well as estimates of the costs of replacing them. Advice will be offered regarding the recommended frequency of household maintenance so that the new home owner can prevent minor problems from developing into major ones.

And, of course, the buyer client will receive a report on the condition of the home's major systems and components, including improvement recommendations with the nature, urgency and approximate cost of each improvement.

The most immediately important part of the report is the summary of any and all components requiring significant and near immediate improvements and/or major expenditures. This is obviously important because it could affect a buyer's financial ability to buy the house. If the buyer must hold back funds from the down payment in order to perform repairs right after closing, then they may have insufficient funds to actually close the sale. So, at that point, the decision must be made whether to remove the home inspection condition, ask the seller to make the repairs, or failing seller agreement, abort the sale.

And how does one ...

Find Home Inspector?

Your REALTOR® will likely have their favourite, someone s/he trusts, who probably does every house inspection for them. They'll simply organize it all for you. All you'll have to do is show up for the home inspection, be prepared to learn and ask questions, and pay for the home inspection report upon completion.

So, is the expense of a home inspection report worthwhile?

You Bet It Is

Visit the website of the National Certification Authority for home inspectors to learn more about home inspections and the home inspection report. And visit CMHC to learn more about the professionals a buyer should seriously consider hiring to protect their interests.

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