Due to the dwindling new home listings in some regions of B.C., particularly the Lower Mainland, and the competition it is causing, some home buyers are potentially risking tens of thousands of dollars by making a “subject free” offer on a home in order to win a bidding war. These home buyers need protection, says the Home Inspectors Association BC (HIABC).
According to HIABC, as few as 10 per cent of homes sold in greater Vancouver and the Fraser Valley are being inspected before sale, but one year ago that number stood at 75 per cent. The HIABC believes this number indicates that as many as 30,000 homes were sold in 2016 without undergoing a professional home inspection first. This could potentially lead to devastating consequences for thousands of home buyers that don’t know the condition of the property they are buying.
HIABC recommends the provincial government begin implementing a seven-day cooling off period to protect consumers after a home offer is accepted in an effort to protect buyers with due diligence strategies, including a professional home inspection.
The B.C. government currently has protection measures in place for consumers purchasing real estate with pre-sale real estate contracts with a seven-day cooling off period. The HIABC is proposing the government extends that cooling off period to all real estate transactions.
“We have recently learned from disgruntled home buyers that they are making subject free offers without inspections out of fear of losing the house in a bidding war,” said Helene Barton, executive director of the Home Inspectors Association, in a press release. “This is putting them at great financial risk since most buyers’ funds are stretched to the limits after the purchase of a property, and would have little, if any, money left over to deal with significant repairs. We anticipate widespread litigation between buyers and sellers over the next few years.”
“Purchasing a property is a huge decision to make and the buyer needs to be given a fair opportunity to have their home inspected,” said Gary Eyre, an HIA member. “It should be a buyer’s right to be aware of defects in the house before the sale goes through.”
Eyre adds that risks include significant structural issues, worn out and leaking plumbing, defective electrical wiring, poor roofs and foundations and environmental issues such as mold or old oil tanks that must be properly removed.
