- 10 Apr
Rising Property Prices Leading Buyers to Skip Home Inspections
Rising property prices, along with a low supply of homes available for purchase, are some of a number of reasons prospective homebuyers are entering a trend of forgoing home inspections prior to purchase.
In Toronto, the average home price has increased to over $900,000 dollars, as the supply of homes for purchase has dropped. In that time, home-inspection firms have seen a decrease in the volume of inspections they perform. In order to have a chance at securing prime real estate, buyers must compete and place bids that can outperform any other potential investors. The low supply is causing potential buyers to both place bids much higher than the asking price, and not require a home inspection or gain more information on potential problems that may exist or repairs that may need to be performed.
Skipping a home inspection can lead to issues down the line. Home-inspection firms have reported that houses purchased without a previous inspection have ended up with problems such as faulty pipes, unstable foundation, insect infestations, outdated building materials, and even rodents or small animals living within the walls. While some firms say that homeowners are relatively well-equipped to handle problems because of information online or on various television shows, electing to not have an inspection places a buyer at risk.
While skipping inspections is on the rise in Toronto, there are many other cities in North America also seeing this trend. Vancouver has seen an increase in “unconditional purchase offers,” as well as cities in the United States such as San Francisco. In markets with few properties, buyers are forced to increase their bids and cut off conditions that were once routine. However, if you are purchasing homes near one-million dollars, a few thousand more in repairs may be worth it in order to secure a valuable property.
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