So Much Potential
The primary purpose of a home inspection is to inform Buyers of the condition of the property they are purchasing. The secondary use of the inspection report is to negotiate a better purchase price.
Buyers Need Time
Under best case circumstances, the inspection should be performed at least one week before ‘subject removal’ date. This is most important because any identified deficiencies need to have the ‘fix it’ cost established. Time is needed to have Contractors reply to Buyers’ inquiries or for the Buyers to check material costs at a big box store.
Best Use of Repair Costs
Once repair or replacement costs are determined, the Buyers can return to the Sellers with an adjusted offer, based on the home inspection.
Existing Practices Fall Short
The home inspection is not performed. In a competitive market, the Buyers want to present the most attractive offer with no ‘subject to’ conditions.
The home inspection is performed within a day or two of ‘subject removal’ date. Its purpose is used to only inform the Buyers of issues. No adjustment to the initial offer is anticipated as there is fear of the deal falling through.
Better Future Practices
CREA (Canadian Real Estate Board) modifies its business model and makes home inspections mandatory like the PDS (Property Disclosure Statement) and is performed at least 5 business days before ‘subject removal’ date to allow for costing any needed repairs.
