Home inspection is important for sellers – even in Montreal’s Seller’s Market!
Home inspection – Montreal is currently experiencing a seller’s market! This simply means there is a very high demand for homes and the supply is extremely low. Buyers are competing to find a house and sellers may receive multiple offers.
Do sellers really have the upper hand?
Does this mean that sellers can set their asking price higher than usual and the buyers will pay? Does this mean that you simply “list” your home for sale and it will sell? Yes, the sellers do have the upper hand but If it was that easy, everyone would sell their house at top dollar right!?
What about the buyers?
With the tightening of the mortgage rules and the “stress test”, the profile of buyers has changed. Speaking from experience, in general, buyers nowadays tend to have little wiggle room for major repairs and have no savings as a reserve fund in case something comes up.
Sellers need to realize that more than ever, the banks are being cautious when lending money and the buyers are conservative in their buying decisions. Even before putting up a property for sale, there are lots of things on the to-do list. One of them is having your home inspected.
Get a Pre-Sale Building Inspection – Get ahead of the curve!
If I promise that you will save thousands of dollars, save lots of time, reduce your stress and the risk of future legal action, would you then consider having your home inspected before selling it?!
There are several advantages for the seller to inspect before selling. First, with the inspectors’ report in hand, the seller may perform certain repairs whether major or minor. Otherwise, the seller may declare these problematic situations rather than make repairs. The pricing of the property will take these issues into account, saving lots of time avoiding endless negotiations after a buyer’s inspection.
Second, the seller demonstrates his seriousness and transparency which reassures the buyers. This allows a seller to provide full disclosure. The more a vendor declares the less chances for legal action to be taken against him by a buyer. All the while, this minimizes the transaction “falling through” after inspection.
I witness this happening all the time: A defect is revealed during inspection and the buyers lose faith in the seller and assume a seller was hiding things when in fact the seller was not even aware.
Third, the inspection report provides the seller with more control over what future inspectors “find” and “reveal” about your property. Once an inspector “reveals” a potential defect, a seller is then stuck either accepting it as true or proving it wrong. We are assuming that all inspectors work in “good faith” however errors do occur.
With the pre-sale inspection, expert estimates can be obtained and then shared with the buyers. This avoids a buyers’ inspector potentially providing an incorrect “opinion” or over-inflated estimates of potential work needed.
Most buyers will in fact pay for their own home inspection however as the seller, you can choose to start off the transaction in the right direction and create a win-win situation for all parties involved! Make sure your property is “innocent until proven guilty”!
Eleni Akrivos is a Chartered real estate broker and President of North East Realties, Real Estate Agency in Montreal. Eleni is a lecturer in the Residential Real Estate Program at College Lasalle and Co-Hosts “The Real Estate Show” on CJAD AM800 radio every Sunday at 1:00pm. To send her questions or comments please write to firstname.lastname@example.org and visit www.northeastrealties.ca for more articles and videos.