Have you been thinking about buying a home or condo? It’s important to do your due diligence when it comes to evaluating the present condition of a property that you may be interested in. You wouldn’t want to find out months after your move that the roof has been leaking, would you? A home inspection is a service conducted by a certified professional to thoroughly examine every material aspect of a property, both inside and out. It typically takes two to three hours to complete.
In a traditional market, a home inspection is a condition that gets written into an agreement of purchase and sale. When writing an offer, the sale of the home is often conditionally sold upon the completion of the inspection and usually occurs within 5 days of the accepted offer.
In today’s busy and competitive market, the vast majority of homes are selling unconditionally. For buyers, this means that inspections, mortgage approvals and other typical conditions need to be figured out well in advance of the offer process in order to have a good chance at winning the home.
But what about those inspections? Right now, if an interested buyer wants to be competitive with their offer, they may want to consider having a “pre-inspection”. This gives the buyer an opportunity to have an inspector complete the inspection process before they submit an unconditional offer and provides them with the peace of mind to be able to do so.
An inspection doesn’t just have to be for homebuyers, however. Prior to listing, some home sellers may opt to have an inspection as well, in order to ensure that their home is appealing to interested buyers and potential inspectors who will likely be looking at the property with a fine toothed comb. If a home is older, it’s possible that a seller may be unaware of potential issues that have come up over the years. The inspection will give them the opportunity to resolve these issues before listing and prevent headaches for them in the near future.
In this post, we’ll detail the home inspection process so you’ll know what to expect if you need to complete this step on your buying or selling journey.
About the Home Inspection Process
The home inspection is conducted by a licensed professional who is in good standing and has a membership with the Canadian Association of Home and Property Inspectors. The inspection will follow the National Standards of Practice and Code of Ethics, both outlined by CAHPI.
Typically, an inspection report will be provided within 24 hours of having been completed and the findings are based on the visual examinations of the accessible aspects of a property. Buyers and sellers who use the services of an inspector should understand that the report does not constitute an engineering evaluation, nor an architectural one. The report is a home inspector’s opinion of the condition of the property at the time that it is evaluated. While the inspection provides real insight and information into the condition of the property, it does not provide guarantees, warranties or serve as a substitute for transfer disclosures.
The inspection itself does not identify any defects that are not readily accessible to an inspector, such as the condition of the property behind ceilings, walls or floors. An inspector is not legally able to disassemble, excavate or remove obstructions to test the property by these means. While the inspector is generally well versed in all aspects of a home’s condition, they may refer a buyer or seller to a specialist to further examine potential defects or concerns that the inspector may have.
It must also be noted that a home inspector’s report is not an environmental assessment and will not detect or identify the presence of potentially harmful substances or chemicals. For serious concerns such as buried oil tanks, presence of carbon monoxide or other related issues, an environmental consultant should always be brought in to complete an accurate assessment.
Most home inspections are limited liability in nature and typically, an inspection company will outline in its agreement with the customer that a refund for the cost of the inspection and report would be the extent of any discrepancies.
Components of a Home Inspection Report
As mentioned, the inspection report is comprehensive and broken down into multiple different sections pertaining to the condition of the property. We’ll outline the major sections that you can expect to see evaluated as part of the inspection process.
In a typical report, the inspector will grade the condition of the aspect in which they are examining and include photo evidence to accompany it. Throughout the report, items may be graded as: Acceptable (A), Not Present (NP), Not Inspected (NI), Marginal (M) – not fully functional and requires repair or Defective (D) – requires immediate repair or replacement.
Lots and Grounds
This includes the evaluation of steps, patios / interlocking, slope grading and window wells. The report would assess the general structure of steps or stairs, signs of overgrown vegetation, drainage of rainwater around the foundation, trees impeding the property’s safety, etc.
Exterior of the property
This includes the evaluation of the exterior surfaces such as brick, concrete, siding, doors and entry ways, windows, foundation, lights, vents and A/C lines. Cracks in concrete, caulking seals, weather seals, parging coat repairs may all be identified in this section of the report.
Air Conditioning
This includes the identification of the make and model of the Air Conditioner, its approximate age and fuel type, as well as its operational condition. An assessment on the condition of refrigerant lines, coils and electrical disconnect will also be made. If the unit is not working correctly or shows signs of issues / age, a 3rd party HVAC specialist may be recommended.
Roof
All accessible aspects of the property’s roof condition are evaluated. This includes the approximate age, material and condition of the main surface, flashing, soffits, plumbing vents and chimney. If the roof is not fully accessible to the inspector, other methods such as a camera poll can still be used to make an assessment.
Structure
This includes a general assessment of the structure type, foundation walls, presence of any cracks, beams, joists / trusses, piers / posts, floor / slab and subfloor. An inspector will likely check for signs of moisture when there are signs of any potential cracks in the foundation walls.
Electrical
This includes an inspection of 120V and 240V Branch circuits, presence of smoke detectors and carbon monoxide detector, basement electrical panel, main breaker fuses and any identifiable safety issues or concerns.
Plumbing
The inspection does not include the evaluation of concealed supply lines or the operation of shut off valves, water treatment filtering systems or private wells. The service line, main water shutoff, drain pipes, service caps, vent pipes and gas service line are all included in this part of the inspection. The hot water tank’s functionality is evaluated at the time of the inspection including its operation, flue pipe and drain tube.
Basement heating system
The furnace’s age, manufacturer, operational status and cleaning recommendations are all provided as part of the report. Components of the furnace such as the heat exchanger, blower fan / filter, draft control, flue pipe and thermostat are all assessed. Radon gas testing may be recommended.
Basement
The overall condition of the property’s basement is evaluated. This includes ceilings, walls, floor, floor drain, doors, windows, electrical, the HVAC source and airflow to basement, insulation, ventilation, basement stairs and railings.
Bathrooms
The ceilings, walls, floors, doors, electrical, counter and cabinets, sinks / basins, faucets / taps, tubs, showers, toilet, HVAC source and ventilation are all reviewed. Issues such as moisture, mould and leaks are all assessed. Plumbing services may be recommended if applicable.
Kitchen
All appliances are assessed for functionality only as well as the vents leading to the home’s exterior. The sink, counter tops, cabinets, ceiling, floors, walls, backsplashes, windows, plumbing and HVAC source are all reviewed as well as the electrical and lights. An electrician may be recommended if applicable.
Bedrooms
Closets, ceilings, walls, floors, doors and windows (+ screens if applicable) are all reviewed in every bedroom. Electrical is checked to ensure lights are functional and working as well as the HVAC source and airflow.
All other living spaces
Other areas of the home such as living / dining rooms are also evaluated including closets, ceilings, walls, floors, doors, windows, electrical source, HVAC source and smoke detectors. The laundry room is assessed for unit functionality, laundry tub condition, washer hose bib, dryer vent, electrical and washer drainage.
Inspection summaries
Towards the end of the report, the inspector will fill in a marginal summary report which details the pressing areas of concern for each part of the property’s evaluation. Buyers and sellers are still encouraged to read through the entirety of the report from top to bottom to ensure a substantial understanding of the inspector’s findings and recommendations. An additional ‘defective summary’ will outline items that require immediate repair or replacement for regular use.
Condo Home Inspections for Buyers & Sellers
Inspection are not nearly as common for condo buyers and sellers as it is for those participating in residential real estate transactions. Typically, the status certificate contains all of the pertinent information that a buyer would need to assess the unit as well as important items relating to the building’s reserve fund and management group. There are a few key things you should know regarding condo inspections before you consider getting one.
A condo differs greatly from a residential home when it comes to the property’s utilities. Systems such as electrical, plumbing, heating and air conditioning are often the responsibility of the building’s management to maintain, therefore these items would not be assessed during a typical condo inspection. Instead, the condition of these items would be included in the status certificate – a comprehensive document which details important information about the building itself as well as a particular unit. An area of concern for buyers is the condition of the common elements and the reserve fund.
As you probably know, owning a condo still involves the payment of a monthly condo fee which is each unit’s contribution to the upkeep of the building. The status certificate details the building’s management structure as well as the reserve fund and the history of the unit and overall building. A prospective buyer likes to be assured that the building will have enough financial resources on hand to cover the cost of any major issues that may arise during their time as owner. The buyer’s lawyer will typically review the status certificate, either before an offer is made or it can be included as a condition in an offer with time to have it reviewed before waiving the condition.
In the event that the management company does not have sufficient funds to cover the cost of a major issue to the building, a special assessment could occur. This process determines an additional amount that a unit owner would be responsible for paying towards the required repairs. Ultimately this makes the review of the status certificate incredibly important to a prospective buyer and often more so than a typical inspection.
In saying this, a condo inspection can still happen, but it’s not as common. The typical items that a home inspection would often cover such as the roof or foundation would not be included. In some cases, a condo inspection may be worth while, especially if there are elements that are not the building’s responsibility. Items such as walls and flooring for example are typically the responsibility of the unit owner as are the appliances. While the building is responsible for the distribution of the utilities to individual units, issues such as leaks, water flow or smells can be found during an inspection.
Conclusion
For many buyers and sellers, a home inspection is a routine part of the sales process to ensure that there are no glaring and immediate issues with a home before a potential sale. While an inspector’s report does not definitively tell you whether a home passes or fails an inspection, it serves as a great resource to aid with your decision making and helps you navigate next steps, such as placing an offer. The home inspection provides peace of mind and recommendations to move forward.
If you have any questions relating to the home inspection process, please get in touch with us today. My team and I have worked with countless clients who have completed home inspections as part of the sales process and we would be happy to provide you with additional information.