Real Estate Talk:
Fear of Inspection
Not worth stressing about if handled properly
By Joseph Marovitch
Updated February 20, 2019
You accepted an offer to sell your home. The offer has conditions which include inspection. Many experienced individuals who have sold more than one home know the feeling that comes with the condition of inspection.
What if my house has a defect that I was not aware of? What if the windows have a crack, the foundation is damaged or the fireplace allows smoke in the house?
What if there is nothing wrong but the buyer is making up issues to get a price reduction? These are all legitimate concerns but they are not worth stressing about if they are handled properly.
Legitimate issues that can devalue the house are headaches you do not have to deal with unless you want to. Illegitimate issues can be easily detected by an experienced eye.
The bottom line is, if the house has an issue that can devalue the property, it should be dealt with by reducing the price or repairing the damage.
Should an issue be detected in an inspection, the buyer is required to provide the seller with a full copy of the inspection report and a written document stating what the problem is and what they would like to do to remedy the situation. The buyer can request a price reduction or that the seller repair the damage to the buyer’s satisfaction, or they can cancel the sale.
Should the buyer request a specific price reduction, the seller should get a couple of contractors to provide quotes for the work. These quotes will validate if the work is required and what it will cost. If the issue is legitimate, the buyer and seller can usually come to a compromise. If the issue is not legitimate, the seller has to decide if they want to sell and if they are prepared to compromise or not. The seller must also guess the buyer’s motivation to determine if the buyer will try and cancel the sale or not. This is not difficult for an experienced real estate broker or experienced individual who has purchased and sold several properties.
If the house has an issue that can devalue the property, it should be dealt with by reducing the price or repairing the damage. It is that simple. We cannot sell a home with defects.
On the other hand, the seller cannot avoid hidden defects, unless they sell the property without warranty, a situation that was discussed in a previous article, Real Estate Talk: With or without warranty.
Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, click here.
Have a great week!
Next article: Mental Preparation To Sell A House
State Of The Market
According to the Canadian Real Estate Association (CREA), there will be slight growth in the Canadian market with new construction levelling off by 2020. In Montreal, according to CREA, there will continue to be construction of condos and rental property and increased sales until 2020. A seller’s market will continue due to more and more competition and prices will rise.
The Quebec Federation of Real Estate Brokers (QFREB) is also positive about the real estate market for 2019. They claim the average Quebecer is accumulating more disposable income, which will translate into more buyers. However, with the forecast of an interest rate rise, there will be a slight dip in sales in the second half of 2019. Despite that, according to the QFREB, the market will come back stronger after the interest rate rise due to stronger population growth and the addition of immigrants to Quebec.
I would tell you that all of this is true for the short term. Prices will continue to rise as will competition for property by buyers, however, in the long term, prices will continue to rise until the city of Montreal expands beyond the St Lawrence river and Lac St Louis. The Island of Montreal is not growing; however, the population is. The law of supply and demand states that when there is little supply and more demand, prices rise. Any investment in Montreal real estate, whether it be a single home, condo, apartment building or commercial building is good at this time. As time passes, real estate value will rise.
FORMULA: BUY – HOLD – SELL MUCH LATER
Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 to 16 as the owner and director of Camp Maromac, a sports and arts sleep away summer camp established in 1968. Using the same strengths caring for the families, such as reliability, integrity, honesty and a deep sense of protecting the interests of those he is responsible to, Joseph applies this to his present real estate broker career. Should you have questions please feel free to contact Joseph Marovitch at 514 825-8771, or firstname.lastname@example.org