Posted by Ryan Womeldorf / Uncategorized / 0 Comment
Home Inspections are Key in a Hot Housing Market
The Saskatoon housing market is hotter than ever before. COVID-19 has led to a lot of questions along the way, but those questions about the housing market have been answered to surprising effects. Despite predictions of a downturn, there does not appear to be one in sight. With home inspections, appraisals, and everything else that comes with the process, it can all feel overwhelming.
Navigating a hot housing market like the one in Saskatoon requires more than just patience. There are a few key components to navigating a tough market as a buyer. More than time and patience, the home inspection becomes a crucial aspect of the homebuying process.
When trying to find a home in a seller’s market, it can feel like there is no hope. Homes come and go faster than they can get listed. Prices soar above list price. Bidding wars happen left and right, making it tougher and tougher for buyers to find what they are looking for.
For those reasons, the home inspection becomes vital.
Why Home Inspections are So Important in a Hot Market
After seeing enough homes, it can feel difficult to maintain resolve and patience. When that happens, it can feel like times are desperate and action needs to be taken. Whether that is the proper action or a move made for the sake of taking action is another story.
What does that mean? In a seller’s market, buyers feel like they have to do something. That often times leads to buyers making rash decisions. It leads to buyers making an offer on a home that is not only not right for them but has major issues.
The home inspection becomes crucial at that point. The need for the inspection can perhaps illuminate a problematic home for the buyer. If they still choose to move forward, then that is their decision. But they at least have the proper information to make a sound decision.
What is the Point of a Home Inspection?
The sole point of home inspections is to give the buyer a better idea of the condition of the home. The typical home inspection covers both the exterior and interior aspects of the home. The inspector will check for any potential issues with the home as well as those issues that already exist.
The average home inspection generally takes a couple of hours. The inspector will walk through the home, taking a close look at the various systems both inside and outside of the home. Just keep in mind that an inspector does not get in behind the walls. If you think that there may be any underlying issues, a specialist will be required to perform that kind of inspection.
When the inspector is done, they give the buyer a detailed report. The report outlines all of the current issues with the home as well as those that may require addressing in the near future. It may seem shocking at first, but there could be dozens of issues. They range from minor aesthetic issues to major structural issues.
In a hot market like Saskatoon, it can feel like a move needs to be made now. But finding out that a home has serious structural issues could be a bullet dodged in the long-run. The inspection is there to aid the buyer in their search.
Do Home Inspections Impact the Seller?
That can be a little tricky to answer. The short answer is “yes, but.” In a regular market, as well as a buyer’s market, the inspection would serve to inform the seller of what they would need to fix in the home.
Most minor aesthetic issues can be changed by the buyer later, but structural issues – like a foundation cracking – would present the seller with two options. They could either fix it at their own cost or lower the asking price of the home.
The reality, however, is that sellers don’t have to do anything right now. In a market as hot as Saskatoon’s, inventory is at a premium. That means plenty of buyers are willing to overlook issues with the homes that they are buying.
It puts buyers at another disadvantage because they are on the hook for repairs and upgrades. In a cool market, they may be able to negotiate with the seller to make those things happens. Now, there is very much a “take it or leave it” attitude from the seller.
What Do Home Inspections Look at?
The various components in a home can each have different impacts for the buyer. In a hot Saskatoon housing market, patience is a virtue. While it is understandable that some buyers need a home as soon as possible, waiting may be more prudent.
That said, not everyone can afford to wait. So, at the very least, buyers who need something sooner rather than later can give themselves a measure of protection through the inspection. At the very least, they can arm themselves with all the information available and make the best decision at the time.
The inspection is basically a visual check. The inspector will look for things that are potentially unsafe, that may need repairing or replacing right now, and things that may come up for repair or replacement in the near future.
The electrical and plumbing will get looked at. The inspector will check their condition and determine whether or not they will need work to meet current coding standards. Ventilation and insulation will also be inspected. Improper insulation may require immediate replacement to meet the aforementioned building code standards, for example.
The roof and foundation will also get looked at. These are two of the most important (and expensive) parts of the home. The inspector will look for any visible signs of cracking, water, damage, and other structural issues.
While spotting these issues may not lead to a price reduction as they would in a buyer’s market, they are important to know. A foundation or roof, for example, can cost well over $10,000. That is information that the buyer needs to know before making their decision.
When Should the Home Inspection Happen? Should You Be There?
Having a home inspection done is key. That said, it doesn’t have to happen at a designated time. There is a good rule of thumb, however. The inspection should generally home after the offer but before a full commitment is made to purchase the home.
Buyers will usually make their offer to purchase agreement conditional on the results of the inspection. That may not be 100% of the case in a market like Saskatoon’s, but that is how buyers should approach the process.
For the most part, the period between the offer and the inspection is anywhere from five to seven days, though it is often specified by either the buyer or the seller.
The other important question is “should I be there for the inspection?” There is no obligation on the part of the buyer to attend the inspection. That said, the buyer should attend the inspection. It will give them a chance to see the house in person. It will also give them a chance to see any potential issues that there may be with the home.
Besides, the inspection takes no more than a few hours to perform. If anything, it lets the buyer get a better feel for the flow of the house and how the various systems work. Although it is not required to be present for the inspection, it is certainly recommended.
How Much are Home Inspections and Who Pays for Them?
The cost of a home inspection in Saskatoon can vary based on a few factors. The experience and level of certification that the inspector has are certainly important. You always want to go with an inspector that has a track record of success and the certifications to back it up.
The cost of a home inspection ranges from $200 to $500. While the costs may be enough to worry some buyers, cutting corners is not advised. Remember that the quality of the inspector is important for determining the condition of the house.
Going with an inspector that is either unqualified or who cuts corners can wind up costing the buyer in the end. Missing something as important as foundation or roof damage could wind up costing thousands in the end.
So far as the responsibility for payment goes, that will nearly always fall on the buyer. Unless there are specific guidelines stating otherwise, the buyer should always assume that they are responsible for paying for the inspection.
Also, keep in mind that for each house an offer is made on, an inspection should be performed. At a cost of, say, $500 that can add up quickly. The fact that it comes after the offer certainly helps to keep those costs in line.
SaskEquity Can Help
Perhaps most importantly, have the help that you deserve when finding the right home. SaskEquity has the tools, knowledge and experience to help you every step of the way. Going it alone means running into situations that you are not prepared for.
By having a guiding hand like SaskEquity in the mix, you can feel comfortable and confident during your home buying journey. Don’t find yourself in a position you would otherwise like to avoid. Let our team help you through the homebuying process.
Navigating through a tough housing market can feel scary and, at times, impossible. With SaskEquity at your side, you can not only find the home that you have been looking for but avoid giving up your rights. More importantly, you can avoid falling into a money pit of a home that has dragged down countless buyers before.
