Dealing With The Home Inspection Condition

One of the often contentious issues regarding the sale of a property is the attainment of a satisfactory home inspection report.  This aspect of selling a home or condo need not be the confrontational situation that it sometimes turns out to be and sometimes it’s not the property but rather the REALTORS® and or the home inspector that is to blame.

  Most Agreements of Purchase and Sale threes days will contain a home inspection condition which has been inserted on behalf of the Buyer.  What does this condition stipulate?  The condition is worded as such that the offer is “conditional” upon the Buyer obtaining a home inspection report that is satisfactory to the Buyer in the Buyer’s sole and absolute discretion.   Failing this, the offer can become null and void and the Buyer’s deposit is returned in full to the Buyer without deduction.  In the event issues with the home are uncovered during an inspection, there are several remedies which can be made so as to keep the Agreement alive.

  Sometimes when representing a Buyer where we have completed a home inspection, the Seller’s REALTOR® will call me asking, “..did the house pass the home inspection?”  A home inspection is not a test.  There is no passing or failing.  A home inspection is simply a report detailing as best as the inspector can following a visual inspection, the condition of the property at that point in time.  No home is perfect not even new or ultra expensive ones.  One home inspector that I use and respect, often does inspections on homes in new subdivisions.  Time and again he has found the same issues in most if not all homes built by a particular builder.  It’s not necessarily a fault or even a building code violation, it’s just a repetitive characteristic found in these homes or condos that may pose a problem down the road or may detract from the energy efficiency of the property etc.

  Just as a home inspection is not meant to be a test, it’s also not meant to be a ways and means of driving down a previously agreed to price.  Often Sellers approach the home inspection condition with fear and trepidation and that need not be the case.  Again when home inspections create problems, it’s often the REALTOR® or the home inspector that is to blame. In my next post I will cover what Sellers can do in preparation for the inevitable home inspection and some of the available options that Buyers and Sellers have when addressing items of concern that has arisen during the home inspection process.

Just Out - The Latest Issue of My Georgian Triangle Real Estate News

Further to my last post, luxury home sales in the southern Georgian Bay area during 2013 remained strong yet as we start 2014, there remains a significant level of available inventory over the $1 million mark.  

The latest issue of my Georgian Triangle Real Estate News summarizing the entire local real estate market for 2013 now available to 
download.

Luxury Home Sales Above $1.5 Million Double in 2013

Despite dire predictions from various media sources regarding Canada’s real estate market being on the verge of a major correction, sales across the country in 2013 remained very robust.  

  Here is the southern Georgian Bay area, MLS® sales in 2013 totaled $624.5 million, up 9% from 2012 and a new all time high.  MLS® single family home sales in terms of units sold were up 4% while 
condominium sales increased 6% during 2013. 

  The upper end of the market reflected the same positive growth with luxury homes very much in demand especially those priced over $1.5 million.  Sales over $1 million totaled 31 properties up from 26 sales in 2012.  MLS® unit sales between $1 and $1.5 million were actually 1 less than the prior year with 21 sales reported versus 22 in 2012.  Meanwhile, sales above the $1.5 million threshold more than doubled with 10 MLS® sales reported compared to just 4 in 2012. 

  The accompanying charts illustrates the five year trend for MLS® sales in our area from 2009 to 2013.  On this chart I have also included the number of current MLS® listings in the area over $1 million.  Based on the rate of sales for $1 million+ properties that we experienced in 2013, there is currently a 48 month inventory of properties priced at $1 million or more in our marketplace.       

  Successfully attracting a buyer for properties in this segment of the market is very  much dependent on price.  Potential buyers for luxury, high-end properties are perhaps the savviest of consumers.  Obviously there is an abundance of resale inventory for them to choose from.  If you are contemplating either selling or purchasing a high-end, luxury home in our area during 2014, please feel free to contact me for a candid, confidential and no obligation discussion about your needs or plans and put my expertise to work for you.  Happy New Year!