By Peter Ewanchuk
Potential buyers grapple with many difficult questions in their quest for home ownership. But when it comes to deciding if a home inspection is necessary on a property you are making an offer on, the answer is easy: Yes, and it may be the best investment you make in your home-buying journey.
A qualified home inspector can help you make an informed decision about what is likely the largest investment you will ever make. Though not mandatory in Canada, these inspections are highly recommended to avoid discovering costly issues down the road.
What to expect during an inspection
Home inspections are usually carried out after a potential buyer puts in an offer and before the closing process begins. Many offers to purchase will include an inspection contingency, obligating the seller to allow the buyer’s agent to inspect the home before closing.
Before they start, home inspectors in Alberta must provide a contract that outlines the scope of the inspection and its limitations. For example, the inspection will just be visual, meaning that holes will not be drilled into walls or ceilings to look for deficiencies.
Even buyers of new homes should insist on an inspection. It may uncover that the homebuilder took some shortcuts during construction that could come back to haunt you in years to come. While an inspection is not a guarantee the home does not have issues, it is the closest you can come to knowing what fixes may be needed now and in the future.
A inspection lasts two to three hours, with the inspector looking at all the home’s systems and components (interior and exterior) that are subject to wear and tear. Features commonly examined include:
- Roofing and how many more years before a replacement will be needed.
- Flashing beneath the roof and around the chimney.
- Lot grading that may affect drainage issues.
- The condition of walkways, retaining walls and the driveway.
- The overall structural soundness of the home.
- The state of the electrical system and capacity of the electrical panel.
- Any signs of mould.
- The age and condition of the furnace, heat pump and air conditioner.
- Insulation, which should be visible in the attic.
- Plumbing issues, especially in toilets and the kitchen.
- Hairline cracks in the wall are normal as homes settle but larger cracks in walls or floors can be a sign of a structural issue.
- Cracking around window frames is another common sign that the foundation should be evaluated.
- Bubbles on the ceilings underneath the bathroom or brownish stains can indicate the home was water-damaged, which can encourage the growth of mould and mildew.
Attached garages or carports are usually included in the inspection but not other structures, unless that is specified in the contract.
Make sure everything you want to have looked at is listed in the contract. Talk to your inspector about adding anything else that you want examined, with some ideas at the end of this post.
If the home has a wood-burning fireplace or stove, the inspector must be WETT (Wood Energy Technology Transfer) certified to inspect those appliances. This inspection is usually an additional cost and may add an hour to the overall work.
After they have done their work, the inspector should walk you through the home and discuss any issues that were detected. They must also provide you with a written report that notes any repairs that are needed.
Inspectors must be licensed
Alberta and British Columbia are the only provinces that demand that home inspectors be licensed and regulated. That is good news for homebuyers in the Edmonton area as they can be reassured that they are getting an unbiased assessment.
Under Alberta’s Consumer Protection Act, an inspector must disclose information honestly and openly. The Home Inspection Business Regulation sets out specific rules for home inspectors and home inspection businesses, including the required education and training. It also lists the requirements for home inspection contracts and the report provided to the consumer.
Home inspection businesses must have:
- a licence from the Government of Alberta;
- a bond or other form of security; and
- errors and omissions insurance.
Home inspectors who are working for an inspection business must have a personal licence. To hold a licence a home inspector must:
- Be employed by a home inspection business.
- Be a Registered Home Inspector (RHI) or Certified Master Inspector (CMI) or have a degree, diploma or certificate in home inspection from an approved school and they must pass a test inspection by a CMI or an RHI.
- They must hold an approved home inspection designation from an approved industry association or a licence from an approved regulatory body.
How to hire a home inspector
Your real estate agent may be able to recommend home inspectors previous clients have used. Another option is to consult the directory of Alberta Professional Home Inspectors, which currently lists eight professional home inspectors in the Edmonton area.
Even if the home inspector you are considering is recommended by a person you trust, ensure they are properly licensed and willing to show you that document before you take them on. You can check the Service Alberta website to see if a business is licensed.
Avoid any inspector who may have a conflict of interest. That would include an inspector who is set to receive a fee from the realtor, your bank or mortgage broker.
It is a good idea to ask the inspector for references and to call your local Better Business Bureau to check the business complaint history.
Issues not included in home inspections
Some problems with homes fall outside the regular parameters of home inspections. You can ask your inspector if he can do these jobs for an additional fee or you may have to hire someone else.
Sewer lines. These buried lines can collapse or plug up and can cost tens of thousands of dollars to replace. Getting the line scoped before you buy may reveal potential problems.
Asbestos testing. Homes built before 1980 may have asbestos in the insulation, floors or walls. If you plan on doing renovations, you may want to get testing done first as asbestos is a known carcinogen when airborne. If asbestos is detected, you may be able to negotiate with the seller on remediation costs.
Toxic paint on the walls. According to Health Canada, a home built before 1960 that hasn’t been updated will likely contain some form of lead-based paint. Some contractors specialize in lead detection using X-ray equipment.
Unusual smells. A musky smell often indicates the presence of mould or mildew. Musty smells can also indicate the presence of mice, while an ammonia-like smell can be a sign of a rat infestation.
Contact us for assistance
Home inspections typically cost between $400 to $600, making them a great investment for any home buyer. When it comes to the legal issues involved in buying and selling a home, the team at Demas Schaefer is here to help clients across northern Alberta. Contact us for a free consultation.