One of the fallouts from this hot Toronto Real Estate market is the big drop in demand for home inspectors. I have spoken to several inspectors saying the same thing "2016 is my worse year ever" but why?
In a market that continues at a pace we have never really seen before home inspections are becoming a thing of the past. This is because there often isn't time, and even if there is you can be sure any competing offers would have an unconditional offer.
In todays market, if you have conditions, your offer is probably dead before it hits the water.
In past years, if a listing is holding back offers I often tell my buyers to do a pre-inspection before offer day so they can remove the home inspection clause and increase their chances. But with bully offers, competition with 10+ buyers and crazy sale prices on almost every deal even this is hard to justify as they may spend $300/400 and still not be in with a chance. And this could happen over and over again. I have made unconditional offers on 10 properties before my buyers have been successful this year. if they had done an inspection on every one that would have added $3000+ to the price they paid for the house.
Often a buyer will start their search with the great advice they have been given by everyone such as family, friends and mortgage brokers.
- Do an inspection no matter what
- Make it conditional on financing
Whilst this is great advice, and advice as an experienced and knowledgable Realtor I would urge them to follow. But after missing out on 3/4 or more homes due to their offer including these conditions they soon come to the realization, if they want to buy they have to go in high, firm and with a big deposit or they will keep missing out.
I ALWAYS want to do an inspection on EVERY sale, but right now it may not be possible.
Its also more important than ever that a buyer works with a seasoned professional GTA Real Estate Agent, who can give careful guidance on pricing their offer and give solid advice about conditions and what to do and what the risks are.
I actually managed to get a property inspection clause in on 2 home sales this week, but its been a very rare occurrence this year. Personally I hope to do many more home inspections this year.
See what the TORONTO STAR have to say about this issue.