Are Home Inspection Worth the Cost?

July 17, 2025

Good morning,

The journey to homeownership involves several critical checkpoints that can make or break your experience. Today, we're focusing on the steps that protect your investment and set you up for success in the real estate market.

Why Home Inspections Can Save You Thousands

A thorough home inspection stands between you and potential financial nightmares. Recent research indicates that buyers who skip this step often face unexpected repairs averaging $15,000 within the first year of ownership.

During your inspection day, watch for these red flags that could signal bigger problems:

• Water stains on ceilings or walls (possible roof leaks)

• Uneven floors or cracks in the foundation

• Outdated electrical panels or knob-and-tube wiring

• Signs of pest infestations

• Musty odors indicating possible mold issues

Pay special attention to key areas during the inspection like the roof, foundation, HVAC systems, plumbing, and electrical components. These high-cost systems can represent significant expenses if they need replacement shortly after purchase.

Remember: inspectors work for you. Ask questions, take photos, and don't rush the process. The few hundred dollars spent on inspection could prevent thousands in repairs later.

Protecting Your Purchase with Smart Contingencies

Contract contingencies act as safety nets in your real estate transaction. These provisions allow you to back out of a deal without penalty if certain conditions aren't met.

Common and essential contingencies include:

• Inspection contingency: Permits withdrawal if serious issues are found

• Financing contingency: Protects you if your mortgage falls through

• Appraisal contingency: Lets you renegotiate if the home appraises below offer price

• Title contingency: Ensures the property has a clear title

As one real estate expert puts it, contingencies in real estate are conditions that must be met for a transaction to proceed. They're not just bureaucratic hurdles—they're your protection against unforeseen circumstances.

Real Estate Roundup: What Else You Should Know

Tech tools are changing how people find homes. More buyers now use technology during their home search than ever before. Zillow recently introduced new tools to streamline buying, renting, and touring homes, making the process more accessible and transparent. Virtual tours and AI-powered search tools help buyers narrow options before setting foot in a single property.

Smart renovations offer significant returns. If you're looking to add value to your property, focus on projects with proven ROI. Kitchen updates, bathroom refreshes, and energy-efficient upgrades consistently add value to homes on the market. Canadian homeowners find especially strong returns from specific renovation projects like basement finishing and curb appeal improvements.

First-time buyers need specialized guidance. The initial home purchase comes with unique challenges and opportunities. If you're entering the market for the first time, seek out advice specifically for first-time buyers. Many financial institutions offer programs designed for first-timers, including BMO Canada's specialized mortgage application process with tailored support.

Final Thoughts: Knowledge is Your Best Tool

The most successful home buyers approach the process armed with information. They understand that real estate transactions involve multiple steps, each requiring attention and care.

By focusing on thorough inspections, smart contingencies, and informed decisions about improvements, you position yourself for a successful purchase and long-term satisfaction with your investment.

Have questions about your real estate journey? Reply to this email—we're here to help you make informed decisions about one of life's biggest investments.

Until next week,

Todd Babin