We've written before about the importance of a home inspection when you're buying a property. Even if you're pre-approved for a mortgage, your lender may hesitate if there's something slightly unusual about the property you choose. Your home insurance company also wants to make sure your property is in good condition. Allstate Canada conducted a survey earlier this year that shows 1 in 4 homebuyers had problems after buying their home that could have been caught by a home inspection.
What does a home inspector do?
A home inspector's role in the buying process is to check the safety of your potential new home, with a focus on the structure, construction and mechanical systems of the house. An inspector will generally check the:
- Roof and upper structure
- Plumbing system
- Heating system
- Electrical system
- Foundation and lower structure
They will also inform you of the presence of pests or mold, and point out problems with windows, ceilings, floors, etc. While there are more likely to be issues in older homes, every property can benefit from an inspector's expert eye.
What does this mean if I'm selling my home?
If you wait until your potential buyer comes back to you with a list of problems, it's usually too late to fix them before you want the deal to close. Even if you're able to address the concerns, it will likely mean spending money out of your pocket, lowering the sale price – or both. Having an inspection before you list your home gives you a clear picture of what you're selling and lets you choose what work to do in advance. You may end up making your home more appealing for that future buyer, as well as increasing the value of your property.
How Can I Pay For These Renovations?
That same Allstate Canada survey we mentioned above also found that 58% of homeowners are planning to do renovation work, but 32% of those projects are cosmetic. While it's definitely more fun to pick out wallpaper or paint colours, wouldn't you rather make sure your home is a safe place to live and invest in its value?
Whether you're buying a property that needs renovations or selling the home you currently own, there's a program to help you out with that. It's called Purchase Plus Improvements (or Renovation Plus Improvements if you're already in the home) and can let you borrow against the increased value of the home to fund the renovations.
If you're ready to start on the next step of your homeownership journey, the Auxilium team is here to help. Give us a call Toll-Free at 1-855-590-6520 or visit us at 307 Goldstream Avenue during regular business hours for your free consultation. We can also arrange an appointment evenings or weekends to work with you.
Auxilium Mortgage Corporation is based in Victoria, BC and works with clients locally and across Canada. The Auxilium team has over 100 years of combined financial experience and access to dozens of lenders to help you meet your goals.