Getting a home inspection

So, after making a conditional offer, which was accepted, we had to get to work meeting the conditions of the offer!

Because we'd gotten a mortgage pre-approval, we already knew we could secure the needed amount, so meeting the financial conditions were as simple as emailing Ann, our mortgage broker, and providing a copy of the MLS listing, the agreement, and any other supporting documents.

As for our second condition, we knew from the beginning of our hunt that we'd want to do a home inspection. It's not legally necessary, and, in a competitive situation, people often go without it in order to strengthen their offer. It's also another expense in an already costly process.

But, it's also a great way to get a handle on the current condition of the home, the life expectancy of major elements, such as the furnace and roof, and any serious issues that could even prevent you from buying the property.

Mr. Speedy and I definitely didn't feel comfortable relying on our very, very limited knowledge of home construction, termites, electrical and plumbing systems (to name just a few aspects) in order to decide whether the house was a sound investment.

So we asked around for recommendations and booked an appointment. The inspection lasted roughly three hours, during which time our inspector, Richard, examined the roof, deck and exterior elements as well as the interior and all of the mechanical systems.

I was at the home during the inspection and, in between getting updates on things Richard found, I hung out with RealEstateSimon and RealEstateEmily and started thinking about redecorating!

By the end of the inspection, I had a pretty good idea of the home's condition, which was augmented by an 11-page report with the full details and cost estimates.

There were some nice surprises, such as a double brick wall between us and the neighbouring semi, and one not so nice one: a lot more knob and tube wiring than we'd been told to expect. (Knob and tube is an outdated electrical system, which isn't grounded, and it's becoming increasingly tricky to insure.)

This was not good news. Mr. Speedy and I weren't looking for a big project, and the quantity of knob and tube in the home definitely warranted almost immediate, and large scale, repairs. Our insurer could also require us to fix it within months of moving in. With all the other costs of buying a home, from the downpayment and closing costs to moving fees and new furniture, it could put a pretty serious dent in our already depleted pocketbooks.

Basically, we got spooked. Which led to a lot of discussions, and a few more sleepless nights.

I sent out emails and phone calls to family, friends and the Twitterverse trying to figure our just how bad it could be. Mr. Speedy and I talked a lot, trying to decide if an electrical overhaul would be enough to make us walk away from the house, and the deal. It was really tough.

Because the home was otherwise in good shape, we decided to move forward, but see if we could knock the purchase price down because of the unexpected repairs. So, back we went to negotiations ...

Photo: Yours truly and home inspector Richard J. Gaughan (of National Home Inspection Ltd.) at our inspection. Here, well, to  be honest we're actually posing for the photographer. But we are re-creating a moment when he was explaining some needed roof repairs. (Photo by Paul Irish/Toronto Star)

Find me on twitter @jenspeedy

Catch up on the home hunt:

Making an offer

Home hunting makes me nauseous

How to know when the house is right?

Resources for first-time buyers

Our first showings

Crunching the numbers

Finding Mr. or Mrs. Right ... Realtor, that is

Home hunting: Exciting, terrifying, all-consuming

What do we want in a home?

Am I house crazy?

Comments

[Eug]

You had the benefit of a buyers' market to make the offer conditional on a home inspection. In a seller's market, some real estate agents try to discourage the inspection, esp. if there may be multiple offers. Your experience is a prime example of why it's foolish to forego the inspection for a detached or semi-detached home, in any kind of market.

In the very least, even if there isn't anything wrong with the house, the inspection as done by a reputable company will teach you a lot about the house and to what to place close attention in the future. And of course, it can also give you some peace of mind.

P.S. When a friend of mine tried to find a insurer for her knob-and-tube home, the quoted rates were just too high, so she just bit the bullet and rewired the place before she even moved in.

[greg]

ouch....knob and tube is no "little" thing to be replaced...both expense wise and the amount of reno/repair to be done if it is "large scale".....and the cans of worms opened when doing it...ouch again....for me...if the electrical and wiring isnt up to date and already done in a home to be sold.....not being handy....i pass those by unless the price is quite the steal.

[Certified Home Inspector]

Inspectors who have made the commitment of time, training, testing and money to belong to a reputable professional home inspection society are generally more committed to doing a high quality job for their clients. so if you need this type of home inspector then you can visit http://equityinspection.com// site!!

[Home Inspection]

This is a great post. I think that way too many times buyers only look at the monthly mortgage payment and fail to account for everything else that goes with home ownership.
Principal, interest, taxes and insurance are just the beginning. Whether your a first-time buyer or thinking about moving up, you should plan for extra costs that could add up to thousands each year. Give yourself the piece of mind and get a home inspection.

[Home Inspection]

This is a great post. I think that way too many times buyers only look at the monthly mortgage payment and fail to account for everything else that goes with home ownership.
Principal, interest, taxes and insurance are just the beginning. Whether your a first-time buyer or thinking about moving up, you should plan for extra costs that could add up to thousands each year. Give yourself the piece of mind and get a home inspection.

[Home Inspectors Melbourne]

Excellent post, one of the few articles I’ve read today that said something unique! One new subscriber here :)