Home Inspection is a must when considering purchasing an investment property. Typically, a home inspection is completed after the offer has been accepted and a brief period has been negotiated for home inspection and financing. Find a home inspector who is familiar with the area and type of home you are purchasing and schedule approximately 3 hours to walk through the property. Many individuals believe a home inspection is not essential, however by getting one done, it is not only worth your money but it can lead to thousands of dollars of savings when any problems can be found up front.
When you schedule a home inspection, be sure to go through the house with the individual. This is a great learning opportunity and provides vital insight. Wear comfortable clothing and shoes and ask plenty of questions. The home inspector’s job is to essentially go through all the details of your home – he/she will typically start with the exterior providing perspectives on the roof, windows and pointing out any issues that he sees with the property. A good home inspector will go through the following areas:
- Roofing
- Exterior
- Structure
- Electrical
- Heating
- Insulation
- Plumbing
- Interior
At the end of your walk through, you should receive a package of material with their recommendations. These recommendations will range from “must do” items to “nice-to-do” items. Ensure that all the must do items are taken care of prior to moving in. If any surprises do come forward you have every right to decline and not purchase the home as long as a conditional offer is presented.
Home Inspectors are independent so keep in mind that they do not offer any guarantees. CBC Marketplace recently showed a great documentary on Home Inspectors. If you are interested, it can be viewed here:
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nice post. thanks.
While I agree that a home inspection is important, I am not sure if I would go so far as to say it is necessary. I agree that with a good and trusted home inspector, you can potentially find things BEFORE the sale goes through and thereby save yourself some money or headache. As Vishal points out, there are no guarantees. I once had an experience where a mistake was made in the inspection that wound up costing me $6000 on a roof repair (a page was left out of my report and I didn’t discover that till months later). The HI company refused to take any responsibility even though they agreed a mistake had been made and the org. that governs HI companies was of no help either. They basically protected their own and I was out the cost of the inspection plus the repair.
Now – well I would feel just as comfortable having a trusted ‘jack of all trades’ contractor that I knew and trusted come in and have a look around a place and if they noticed something fishy, I would then call in a professional that deals specifically with that area (plumber, electrician, foundation specialist etc.) who would be able to produce a solid quote for what would need to be done and how much. HI inspectors often give feedback like: ‘well this furnace is kind of old – it could last you 1 month or another 10 years…’ which I don’t find particularly helpful in the negotiation process of a property. And please note – this is based on my experience in residential property investment since 2004 (mostly in Alberta) and I know there are plenty of awesome HI companies out there that are truly working for the buyer – you just have to find them!
In a down market, a pre-sale inspection can make a home stand out