Property Inspections

If you haven’t had a property inspection before you are likely wondering how it works. Of course, all property inspections will depend on who is doing the inspection. This write up is meant to give you a basic understanding.

Reason for having a Property Inspection 

Most commonly, it is to understand an issues with the property, big and small, to avoid surprises in the future if you go ahead with a property purchase.  In this case it is generally added as a condition when you put in an offer on a home, so that you can have the time right after the offer is accepted to have the property inspected before you finalize the purchase of the property.

Or, if you are the homeowner, which is less common, you might have a property inspection to make any of the needed fixes to your home either before you sell or just for general maintenance.  For Seller’s I have never recommended that they spend the money for a property inspector before they sell as that money is generally not money they would be able to add to the sale price amount and buyers usually won’t look at a seller’s property report instead of having their own inspection.

Price of a Home Inspector

In Edmonton, Sherwood Park and surrounding areas, hiring a property inspector in Edmonton costs $475 to $575.

How to find a Home Inspector

If you would like to reach out to Josh, you can find his contact details here:

https://dkeet.ca/guest-speakers.html

Here is a list of Edmonton certified home inspectors:

https://www.nachi.org/certified-inspectors/near/edmonton--ab--canada

Or if you need a few options of recommended home inspectors in Edmonton and the surrounding areas, please feel free to reach out to me.

I am also connected to realtors and professionals across North America, so if you need support in other cities, I can also likely refer you for other cities as well. 

Inspection Day

The property inspector shows up with ladders, humidity detectors, a drone (usually) and everything else they need to inspect.

They usually start from the exterior, logging everything they note on the property.

They look for everything big and small but remember that they cannot open any walls. 

They will walk the buyer through the home to show them issues.  Property inspectors in Alberta, and I assume other provinces, are not allowed to give quotes for fixing issues but they should be able to give an idea of what it takes to fix and issue and approximation of the cost.

At the end of the inspection the buyer should have a clear idea of what they are getting as their new home.

The property inspector works for the buyer and the report is confidential to the extent that the buyer doesn’t have any obligation to share it with anyone unless they want to.  I am almost always there for the inspections. 

Massive Reports and Buyers left not knowing how severe issues are

Get an idea of how severe things are.  There are legal guidelines for property inspections which can get them in trouble for underplaying issues in the house.  This can cause property inspectors to report the issues to the buyer without their opinions. Leaving buyers with just a huge list of big and small things for the buyer to figure out the meaning.  I understand that reason why property inspectors may protect themselves, but the buyers should want to know clearly what it would cost for them to get issues fixed or even if the issue is one that most people would not fix. 

I was looking through a property inspection report (not through an inspector that I recommended) and it was extremely thorough. Pages and pages of information including points that mentioned parts of the house that were great.  The report was extremely thorough to the point that it was exhausting reading through this manual of a report. I am not a qualified home inspector, but I have more experience than most and found reports like this overwhelming. 

You may want to review the list later and try to fix all the little things, so the details might be good to have. So long as the 100+ page report is verbally explained in a much shorter non-overwhelming way, you should be fine, but if you are feeling overwhelmed, clearly tell your property inspector to simplify and explain everything in a way that you are comfortable with.  

Negotiations after an inspection, when the inspection is connected to a buyer condition on an Offer to Purchase

Some issues can be used as leverage.  I have had buyers that assumed that every cent it would take to fix every issue would be coming off the purchase price. That is likely not going to happen unless it is truly a buyer’s market and the seller fears that you are their only chance at selling.  In a balanced market if there are major repairs, like a new roof, furnace, or foundation issues, then lowering the price may be negotiated. If it is a strong seller’s market and there are buyers lined up behind you, you will likely need to either accept the issues or move on to a home that is in better condition. 

Fixes found in a Property Inspection

Sometimes they can be small fixes that can be fixed with a screwdriver or a wrench or even possibly left alone. 

To give you an idea of some recent issues, on a property that I manage, one “major” issue was an electrical issue. The sump pump and the hot water heater were sharing the same outlet.  Talking with an electrician, the breaker box was on the other side of the home, and it would mean opening walls (and then repairing, mudding, sanding, painting walls) plus running long lines of electrical.  The decision was made to just leave it.  Sometimes you can find issues that have been technically issues for 20+ years and have never been a problem. In the case of this shared outlet the danger is that there is a power overload and both the hot water heater, and the sump pump stop working is the breaker trips, but again this seems like something that hasn’t been an issue for probably 20+ years.  Another “major” issue found was a capped off downspout. In the end this was also not something that the roofing company saw as a problem as they felt like just making sure your eavestroughs are clear is more important and would prevent it from being a problem.

Expectations for Property Inspections

Josh mentions that there is always some issue that can be found, even when homes are brand new, so it is best not to expect a perfect home.

Inspectors should be helpful and have your best interest, but also explain things clearly at your level of understanding. 

Takeaways 

Ask lots of questions, know exactly what an issue would take to fix/resolve it and how important or severe the issue is.

Remember to see the process as a learning experience. Property inspectors will usually be very happy to educate you on simple fixes, how systems work, and better ways to maintain your home. Learn and enjoy.