Buying a home is probably the single most significant investment you’ll make in your lifetime. When you’re making such a significant purchase, you want to know exactly what you’re getting.
This is the goal of a home inspection. A professional inspector will review the home and point out any potential concerns. Here’s how it works.
1. Arrange for the inspection: Typically, you will include an inspection contingency as part of your offer to purchase the home. This contingency will allow you to order an inspection (at your expense), then determine if you would like to proceed with the purchase, based on the results.
2. Complete the inspection: You should be present during the inspection so the inspector can review any items of concern with you in person.
He or she will inspect all the home’s systems, structural components, and general condition and provide a report that notes any areas of concern.
3. Request repairs: You’ll review the inspection report with your real estate agent and decide if there are any items you would like the seller to address. You can request that the seller make the repairs or provide a credit to cover their cost.
Typical things to address are safety concerns and anything that is not up to code. If the sellers refuse to negotiate, you can decide whether you want to move forward with the purchase or move on to another home.
I’d be happy to connect you with a qualified inspector and help you smoothly navigate this process.
You want to make smart financial choices for your future. Do those include buying a home? Here are five financial benefits that point to yes.
1. Tax breaks: As a homeowner, you may qualify for certain tax breaks or refunds, such as the Home Buyers Tax Credit or the GST/HST New Housing Rebate. Check out the taxes section of canada.ca to learn more about the qualifications for these programs.
2. Stability: If you take out a fixed-rate mortgage, you’ll know what payments to expect for the life of the loan. Rent, on the other hand, often increases annually. When you own a home, you also typically have more control over expenses such as utilities, so you can make choices that encourage efficiency and save money each month.
3. Forced savings: Each month, as you pay down your mortgage, you are adding equity. This can be an excellent way to build wealth. In the future, you can sell the home for a profit or borrow against the equity to obtain needed funds. Medical emergencies, college tuition, and home repairs or renovations are common uses for these funds.
4. Good credit: A mortgage is considered “good debt,” meaning that it looks good on a credit report and can help you establish a healthy credit score. As you faithfully pay off the loan, your score can increase. This can prove helpful in obtaining lower insurance rates and qualifying for lower rates on future purchases.
5. Final payment: When you buy a home, there will come a day when you no longer have to make your mortgage payment. It will eventually be your property, free and clear. (Time to celebrate!) This scenario is much different than paying rent, which will continue for a lifetime.
Are you wondering if a home purchase makes sense for your financial future? I’d be happy to discuss these and other benefits and help you determine if now is a good time for you to pursue homeownership.