Once your offer on a home is accepted, costs do start to add up. Skipping the $200 to $600 home inspection might seem like an easy way to save, but doing so could cost you much more in the long run. Here’s why a home inspection is an investment you can’t afford to miss:

1. An Exit Strategy

An inspection can reveal hidden issues with the property’s structure and systems. If the report uncovers significant problems, you still have time to renegotiate or walk away.

2. Prioritize Safety

Inspections check for dangerous conditions like mold, radon, and carbon monoxide. Make sure your contract includes a clause allowing you to back out if hazards are found.

3. Spot Unpermitted Work

Illegal additions—like basement conversions or garage remodels done without permits—can affect insurance, taxes, and the home’s resale value. Don’t get stuck with costly code violations.

4. Critical for "As-Is" Purchases

Buying a foreclosure or short sale? These properties often harbor hidden issues like mold or missing plumbing. An inspection helps you understand what repairs you’re signing up for.

5. Gain Negotiating Power

Use the inspection report to negotiate repairs, price adjustments, or seller credits. It’s a valuable tool for getting the best deal.

6. Plan for Future Expenses

Learn the age and condition of major systems—like heating, cooling, and roofing—to anticipate future costs and plan accordingly.

7. Identify Deal-Breakers

Not ready to tackle extensive repairs? Inspections can reveal issues that help you decide if you should keep searching.

8. Get Maintenance Tips

A good inspector doesn’t just find problems—they offer guidance on maintaining your new home, helping you save money over time.

9. See Beyond the Surface

Don’t be fooled by a fresh coat of paint or stylish decor. An inspection uncovers the realities behind the walls.

10. Satisfy Insurance Requirements

Many insurers require inspections and certifications, like wind mitigation or four-point inspections. Getting these done early streamlines the process.

Final Thoughts 

A home inspection is a small upfront cost that can save you thousands—and countless headaches—down the road. Protect yourself by knowing exactly what you’re buying.

Some details courtesy of : https://www.investopedia.com/financial-edge/0511/10-reasons-you-shouldnt-skip-a-home-inspection.aspx

What is a Subject to Sale Offer?

A subject to sale offer allows a buyer to purchase a property on the condition that they first sell their existing home. This prevents them from being financially overextended or left without a place to live.

Example of a Subject to Sale Offer

Consider a homeowner looking to upgrade to a larger home. They are concerned about selling first and not finding a new home in time. To mitigate this risk, they include a subject to sale clause in their offer, making their purchase conditional on selling their current home.

Pros and Cons

Pros

• Provides security, ensuring you don’t sell without securing a new home.

Cons

1. Higher Purchase Price & Lower Selling Price: Sellers may be less flexible on price, and buyers under pressure to sell may accept lower offers.

2. Bump Clause Risk: If another buyer submits an offer without this condition, you may have 24-72 hours to waive your conditions, potentially losing the home.

3. Financial Costs: Home inspections and appraisals are most likely non-refundable if the deal falls through.

Key Considerations

• Your home must be ready to list immediately after your offer is accepted, time is very much of the essence.

• Many sellers require a tight deadline for your sale.

• Have a backup plan (temporary housing rental, staying with family or friends) in case your home sells first.

A Better Approach?

Many buyers list their home first and wait for an accepted offer before making an offer on a new home. This strengthens their position, improves negotiations, and reduces financial risks.

Final Thoughts

Preparation is key to making the buying and selling process smooth. Understand the pros and cons, plan ahead, and consult  with us to make the best decision for your situation.

Looking for more details? Check out our podcast https://www.youtube.com/watch?v=vkm_oN2isTI&t=2s

Buying a first home is a major financial step, and government programs are available to help ease the burden for new buyers in Canada. Understanding these programs can make homeownership more affordable and accessible.

Property Transfer Tax Exemptions for First-Time Buyers

The First-Time Home Buyers' Program in British Columbia helps reduce or eliminate the property transfer tax when purchasing a first home. Eligible buyers may qualify for a full or partial exemption, potentially saving thousands of dollars.

To qualify, a buyer must:

• Be a Canadian citizen or permanent resident

• Have lived in B.C. for at least one year before registering the property or have filed two B.C. income tax returns in the last six years

• Have never owned a property used as a principal residence anywhere in the world

• Have never received a first-time home buyer exemption or refund

The property must also:

• Be used only as a principal residence

• Have a fair market value of $835,000 or less (effective April 1, 2024)

• Be 0.5 hectares (1.24 acres) or smaller

• Contain only residential improvements

How Much Can a First-Time Buyer Save?

If all requirements are met, the buyer is exempt from property transfer tax on the first $500,000 of the home’s value. A partial exemption applies to homes valued between $835,000 and $860,000, as well as properties that exceed size limits or have additional buildings.

New 30-Year Amortization for First-Time Buyers of New Builds

To further support first-time homebuyers, the federal government has announced a 30-year amortization period for insured mortgages on newly built homes, effective August 1, 2024.

This change is designed to:

• Lower monthly mortgage payments

• Improve affordability for younger buyers

• Encourage new housing construction

This initiative is part of the Canadian Mortgage Charter, which aims to make homeownership more accessible while also protecting mortgage holders facing financial difficulties. It builds on other programs, such as the Tax-Free First Home Savings Account, which has already helped more than 750,000 Canadians save for a down payment.

Conclusion

With rising housing costs, these programs provide first-time buyers with critical financial relief. Understanding available tax exemptions and mortgage options can make homeownership a more achievable goal. Those considering purchasing a first home should consult with a real estate or financial expert to determine their eligibility and explore the best path forward.

Some details provided by : https://www.canada.ca/en/department-finance/news/2024/07/government-announces-30-year-amortizations-for-insured-mortgages-to-put-homeownership-in-reach-for-millennials-and-gen-z.html 

https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/first-time-home-buyers