Dear David,

We are getting ready to buy our second home. We bought our first directly from the builder, and lived there for a decade. Because our first home was new and covered by a warranty, we didn’t get a home inspection. This time around, most homes we’re looking at are in established neighbourhoods, and up to 50 years old. We love the mature trees and character of these areas, but are nervous about older construction. When friends of ours were buying a few years ago, they lost out on several homes because they put a home inspection condition in their offers. How important is an inspection when buying an older home? – PLAYING IT SAFE

DEAR SAFE: An unfortunate side effect of the COVID-era real estate boom was the loss of several top home inspectors in our area. At the time, many buyers were removing conditions to make their offers more competitive, and with less work, inspectors had to pivot.

Back then, one workaround was to do a home inspection before submitting an offer. Some buyers struggled with the idea of spending $500 or $600 on an inspection for a home they might not ultimately buy, but it was money well spent if it allowed them to submit a confident offer, considering the size of the investment. 

I have always described a home inspection as a “to-do list” for the new owner. It offers an intimate understanding of a house you may have fallen in love with after only spending a few minutes there. The older the home, the more items typically require attention, but that doesn’t mean a 50-year-old home should make you nervous. Many homes of this era are extremely well maintained, and may have undergone substantial updates over the years.

What I tell buyers we’re looking for are the “ah-ha” items that could materially change their decision to purchase. Fortunately, catastrophic discoveries are very rare. An inspector will commonly identify things such as aging shingles, older windows, plumbing and electrical issues, grading, insulation, furnace life expectancy or maintenance items. None of these mean you shouldn’t buy the house, but they allow you to understand what you’re buying and budget accordingly.

PRO TIP: These days, it’s common for sellers to accept an offer conditional on financing, home inspection, and in some cases, the sale of the buyer’s existing property. Desirable homes can still attract multiple offers, so if you find a house that checks every box and expect to have competition, talk to your agent about scheduling a pre-offer inspection. It’ll cost you a few hundred dollars whether you get the house or not, but also allows you to make a stronger offer without giving up the protection of knowing what you’re buying. 

Don’t fear buying an older home, as mature neighbourhoods often offer things newer subdivisions can’t replicate. You’ll want to go into the purchase with your eyes wide open, which is entirely possible with the help of a good inspector. #Advice #AskDavid #TheNegotiator