N.L.'s hot housing market has some buyers forgoing home inspections
‘It's protection. That's what it's all about,’ says home inspector Michael Guihan
As prospective home buyers feel the squeeze of a hot housing market in Newfoundland and Labrador, some are skipping home inspections that are meant to protect them.
Jerry Boyles, an agent with Royal LePage Property Consultants, said home inspections are an "essential component" to the real estate sector, which lets the buyers know the pros and cons of the property they are interested in. But in the current hot market, which is geared toward the seller, Boyles said he is seeing more cases of people going without.
"I'm certainly dealing with it all the time. I have several on the go right now," he told CBC News.
For example, if a house receives dozens of bids, Boyles said an interested party who waives the home inspection might be more attractive to the seller as there's less risk to them.
"When we're doing an offer in a multiple-bidding situation or competitive scenario, there's only so many things we can control," he said.
Those factors include offering more money, changing the contract terms and conditions as well as the issue of a home inspection.
Boyles said one of the roles of a real estate agent is to discuss with their client their level of motivation — how badly they want the house — and sometimes to secure a house it could mean not getting the inspection.
"I think in a position where I don't need to buy a home, naturally it's easy to say that I would never waive an inspection," he said.
He said everyone needs a home inspection, but that doesn't necessarily mean they get one.
"There's certain elements of due diligence there that are being skipped as a by-product of the client motivation and of the market's craziness," Boyles said.
'It's protection'
Mike Guihan, a registered home inspector and owner of Guardsman Inspections Canada Inc., has been doing home inspections for decades. He said he has seen mould in attics, windows rotting out, improper ventilation and homes he isn't sure of how they are still standing.
"We see just about everything, and of course every time I think I've seen everything, I'll find something new," he said.
Guihan said people avoiding a home inspection isn't new and that can be driven by the market. But, he said, they're still worth getting.
"It's protection. That's what it's all about" he said. "Home inspection is the ultimate form of consumer protection."
Guihan said he "absolutely" believes there are people going without home inspections in the current market, and he's heard of homes selling for more than $80,000 over the asking price.
However, all home inspectors aren't equal, and an inspection isn't guaranteed to ensure a buyer is informed about the home's condition.
CBC News previously reported on Tiffany Elton, who had an inspection but ended up having to tear down her St. John's home because it turned out to be a converted garage with fire damage.
Guihan said if someone gets an inspection report and it turns out to be poorly done, they can go to the courts. But that costs money.
He said home inspectors aren't provincially regulated, something he'd like to see change.
Ultimately, Boyles said clients should be patient with the house hunting process and try to avoid being in the position where they need to find a home quickly.
"Sometimes there's deaths, financial situations, sometimes there's divorces. These situations can't be avoided," he said.
"But if you can plan to put yourself in a position where you don't have to move, then you're giving yourself the runway, we'll say metaphorically, to be able to make a decision on your own terms."
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