What’s the cost of skipping a home inspection?
As Newfoundland and Labrador’s housing market intensifies, some homebuyers are choosing to skip home inspections in a bid to secure properties faster, raising concerns about consumer protection and long-term risks.
Real estate agent Jerry Boyles, with Royal LePage Property Consultants, said the shift is a response to a seller’s market where bidding wars are becoming more common.
“I’m certainly dealing with it all the time. I have several on the go right now,” Boyles told CBC News, noting that buyers are waiving inspections to gain an edge in competitive offers. “When we’re doing an offer in a multiple-bidding situation or competitive scenario, there’s only so many things we can control.”
He explained that buyers are often willing to offer more money or adjust contract conditions, including removing the home inspection clause, to make their bids more appealing. Sellers, faced with dozens of bids, may lean toward offers with fewer conditions.
Boyles said agents work closely with clients to assess how motivated they are and to what extent they are willing to take risks. “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 added.
While acknowledging the urgency many buyers feel, Boyles emphasized that skipping inspections means foregoing important due diligence. “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.”
Mike Guihan, a longtime inspector and owner of Guardsman Inspections Canada Inc., has witnessed the consequences of uninspected purchases – from mould in attics to rotting windows and dangerously unstable homes.
“It’s protection. That’s what it’s all about,” Guihan highlighted in an interview with CBC News. “Home inspection is the ultimate form of consumer protection.”
Although bypassing inspections isn’t new, Guihan noted the trend appears to be growing alongside soaring property prices. He said he’s heard of homes selling for over $80,000 above the asking price, increasing the temptation for buyers to take shortcuts.
However, Guihan warned that not all inspectors are qualified, and poor inspections offer little reassurance. He called for provincial regulation of the home inspection industry.
Boyles urged buyers to avoid rushing the process when possible. “If you can plan to put yourself in a position where you don’t have to move, then you’re giving yourself the runway… to be able to make a decision on your own terms,” he said.
What are your thoughts on this emerging trend? Share your insights in the comments below.
