Ask a Wahi REALTOR®: How Should a Buyer Respond if an Inspection Reveals Problems?

It’s normal for a home inspection to uncover issues, but how a homebuyer responds depends on a variety of factors from budget and risk-tolerance to severity, Wahi Realtors say.

By Josh Sherman | 4 minute read

Home inspections shouldn’t be taken lightly, but you shouldn’t panic if one reveals problems with the property you want to purchase.

A home inspection is an important part of the buying journey. It’s like a check-up for the property you’re planning to buy.

“A home inspection should be a functional analysis of the home where the homebuyer learns how to maintain the home and knows the condition of the home that they’re buying,” James Porteous, a certified master inspector at the Inspection Services Group, explained during the latest Wahi webinar, Home Inspections 101: What Every Homebuyer Should Know.

During an inspection, a home inspector goes over the property with a fine-tooth comb. They’ll check the condition of all interior and exterior systems, structural elements, and even the landscaping to see whether there’s proper grading so water isn’t directed towards the foundation.

The home inspector then prepares a report and walks the potential buyer through the findings. The cost and time required for an inspection varies depending on the location and characteristics of the property.

Generally, though, homebuyers in the Greater Toronto Area can expect to pay about $500, Wahi Broker of Record Anne Alkok estimates. “It’s well worth the money. I always recommend it,” says Alkok. She adds that the expense often catches purchasers by surprise, though as far as the hidden costs of homebuying, it’s a relatively small line item.

But what should you do if the home-inspection report you receive says there are problems with the property you intend to purchase? For the latest installment of Ask a Wahi Realtor, we spoke to Alkok and Wahi Realtor Barb Funt to answer this question.

1. Don’t Panic 

Take a deep breath. It’s normal for a home to have some deficiencies. “When you go into a home inspection, it’s important to understand that the goal is to identify any major issues with the property,” says Alkok. “The inspector will thoroughly assess all the major systems, and it’s completely normal for some issues to come up during the process,” she adds.

A home inspector is there to catch issues big and small, and many problems could be quick fixes. However, the home-inspection report doesn’t tell you exactly what a repair will cost. “They put in a price range of what things can cost,” Funt explains. Sometimes, she notes, clients fixate on the high-end of the range or on the number of items that need to be addressed. However, the report should provide a timeline of when repairs are necessary. Some could be five or more years down the road. While it may appear that a lot of work needs to be done, this work could be done incrementally over time.

2. Speak to Your Realtor ASAP 

Alkok emphasizes the importance of discussing any issues uncovered during a home inspection with your Realtor right away. “It’s crucial to determine whether the problem needs immediate attention,” she explains. “For instance, a leaking roof could eventually lead to structural damage if left unchecked.” On the other hand, some findings may be cosmetic or less urgent.

Your Realtor will speak to the listing agent to see whether the seller is willing to remedy the problems. Often, this results in an amendment, with the seller agreeing to address the problems by a certain date.

3. Weigh Your Options 

Not all sellers are willing to fix issues. “There are homes that are being sold in as-is condition, and the buyer will need to consider whether  they’re willing to take on the work,” Alkok says. In cases like these, it’s important to weigh your options. “Also consider whether the property has already been priced to take into account the condition of the home,” she continues.

If you have family or friends in the construction industry, you may be in a better position to take on a home that needs a little TLC. Similarly, your budget and risk-tolerance will help inform your decision. “It really comes down to the individual buyer’s circumstances,” says Alkok.

However, be aware that renovations can lead to further complications. “Any kind of renovation that you do can illuminate other issues with the home,” says Alkok. “There’s never any guarantee.”

4. Follow Up 

In the final days before closing, Alkok recommends doing your own walk-through. “Make sure the home is still in the same condition as when you made the offer, that there’s been no additional damage, and no fixtures are missing,” she said during the recent Home Inspections 101 webinar.  “I’ve had that happen. You don’t want any unexpected surprises.”