Making Lemonade from a Lemon: Buying a House Uninspected.
There's a few trends that have been happening in the last five years in the Real Estate Marketplace pertaining to home inspections.
Two years ago, in 2016, the real estate market boom became a disaster zone for many home inspectors, as inspections dropped drastically in a no-subject marketplace. in many cases, it left buyers with horror stories, as they moved in and found out that the electrical system was faulty, or there were hidden areas that now revealed cracked foundations. It became a field day for lots of badly maintained homes that would have normally sat on the market for a long time. But, with an explosive marketplace, they sold quickly, with little or no effort.
Such was the case with many homes, two years ago. One such property in my neighbourhood could have been called "the red headed stepsister". Most of the previous owners never showed the home much love. Without going into the home, one could see that it had probable mold problems, some rotting around one window ledge, cracked sidewalks and trip hazards everywhere, and a roof that was in need of repair – badly. And this is what you could see just from the road.
Although we have lived in the neighbourhood since 1988 (I built our house), there have only been around two waves of selling as the neighborhood children grew up and left home. Now, years later, only around 10% of the neighbours are original. But the house in question has been sold many times. And each time, very little in the way of maintenance happened.
Even in the 2016 frenzy, this house stayed for sale. That might be a testament to how bad things had gone, or that the owners were expecting a big profit from the last sale, using actuals from the house sales around them. Nothing had been done to the house. But, because it was sitting empty, with little or no action, a home inspection would likely have taken place, and the new owners were in an enviable position to negotiate a price.
Fortunately for that home, (and the neighbourhood), the most recent owners to buy the place did care. Shortly after moving in, a large box took up the front yard and filled up with debris from the roof and interiors. It appears that the entire home has been renovated, including the roof, driveway and the trip-hazards all around the broken and sunken sidewalks. The new vinyl looks great, and honestly, the ugly stepsister is now one of the prettiest house on the block.
2018 is a different world. Although Greater Vancouver home prices are predicted to keep climbing, they are doing so at a much slower rate. According to the Real Estate Board of Greater Vancouver, marrket conditions in the city are changing as sales in April 2018 fell to a 17-year low for the month.
About 18.6 per cent more properties were newly listed last month than in April last year, giving buyers more selection. More selection and a slower market condition can be a real bonus for the buyer though, as they have a bit more to choose from, and the time to make an informed decision with a thorough home inspection.
As a home inspector, I am not qualified to tell you in any way, when is the best time to sell, or to buy. There are so many pundicts telling you when the bubble is going to burst. Toronto writers are forever predicting Vancouver is in trouble and due for a bust. Economics experts tell us that the Canadian household debt is at an all-time high. But, at the same time, interest rates are probably going to be moving slowly, so if you are in an economic position to move into a new place, with prices moving forward, it might be the right time for you.
I wish I had a crystal ball. If I had, I would have kept every house I owned, and rented them out while living in mine. I would have been a multi-millionaire with no problem. Of course, as a young family we also struggled to keep afloat in the 1980's with high interest rates, but lower cost homes.
I may not have a crystal ball, but I do have 27 years of experience in determining things that go right, or wrong in the home you want to buy. The key to keeping any house from becoming the poor stepsister in the neighbourhood, is keeping it well maintained and clean. You'll be in a great position to "probably" reap profits when you go to move up - or downsize next time.
And the second tip (which is really the first?) Get your home inspected before you buy, and have a much better idea of what you are actually buying.
