Edmonton Real Estate Blog

As a Realtor interested in protecting the interests of my clients, I strongly recommend that every buyer have a home inspection conducted by a professional home inspector.  In one of the largest financial investments they will ever make, I want them to be certain that a qualified ‘third party’ will identify all the major issues they might face if they purchase the property.  Peace of mind one way or the other (My clients have walked away from a potential home purchase based on an unsatisfactory report!) should be an end result.

I have tried to steer my clients to inspectors from franchised companies who can demonstrate training and knowledge in home inspections together with ‘Errors and Omissions’ Insurance to cover my client in the event that the inspector misses something in his written report.  I am aware that one of these well-known company stepped in and paid a homeowner over $5000 when it was discovered that the acreage sewage system that they had paid to have inspected and was designated as ‘satisfactory’ was proven, upon possession, to be completely unsatisfactory!

Most of the inspectors I have worked with over the 17 years I have been in real estate have been qualified and helpful.  However, I can vividly remember two inspectors hired by my client with whom I was not acquainted (Believe it or not, there are at least 225 Home Inspection companies in the province).  One I had been warned about–he had a reputation of giving a failing grade to almost every home he inspected; true to form, he scared my clients my grossly over-inflating the cost of re-doing some minor depressions in the front landscaping to the point where they walked away from an otherwise reasonable house.

On another occasion, I met a home inspector who arrived at the house with a short-stepladder that prevented him from inspecting the roof (‘I’ll do a visual inspection,‘ he declared.  But with the flat roof, he had to go two houses away on the sidewalk to complete this unsatisfactory step).  This same inspector then told us, ‘This home does not meet current building codes.’    I then reminded him that the house was 30 years old and met the code at the time!

In order to protect the consumer, the Alberta Government has just announced that beginning on September 1, 2011, all home inspectors must be licensed by the provincial government.  Accordingly, all inspectors must have a degree, diploma or certificate in home inspection from an approved educational institution and must successfully complete a test inspection.  Conditional licenses valid until March 31, 2013 will be issued to those who are in the process of acquiring the necessary qualifications.  Qualified inspectors will be able to make recommendations on deficiencies they discover in a particular home such as recommending the potential buyer obtains expert opinion; they will not be permitted to estimate the cost of any repairs or improvements.

In a further step to protect home-buyers, home inspection companies must:

• Carry ‘Errors and Omissions’ Insurance
• Post a security deposit to cover consumers if the regulations are not followed
• Establish the specific parts of the home and property that are covered in the inspection
• Not include contract clauses to limit the liability of the home inspector

There are several models that sellers can choose when selling their place of residence in Edmonton.  They can sell by owner, sell with a discount brokerage, sell on the Multiple Listing Service with a mere posting or they can sell with a full-service brokerage.  Some fees-for-service are involved with each model depending largely on the range of services provided.

For many sellers, listing their home for sale is a march into unknown territory.  They are unclear about important details like the marketing and sales process, the legal and financial risks, the options along the way, the legal contracts and their wording, the offer presentation, the deposits, the conditions, and so forth.  The questions cascade through their minds: What do i need to do to get my home ready for sale?  What should I do with my valuables?  What is a fair asking price for my property in a fluid marketplace?  How do I know if a potential buyer who wants to view the house is in fact qualified to do so?  If a buyer brings a purchase contract to me, how do I know whether or not my interests are protected?  How much of an initial deposit should I request and to whom is that deposit made out?  How do I negotiate a fair selling price since I have little or no experience in that important phase of the sale?  How do i know that my interests are clearly being protected along the way?  The questions are endless and the cause of sleepless nights!

Precisely because of these important questions, the seller must answer the question–How much representation and service will I require to sell my home and still keep my sanity?

If a seller chooses to sell by owner or to list on the Edmonton Real Estate Board’s Multiple Listing Service with a mere posting [the listing appears but is unrepresented by an agent], they have chosen to walk down the road by themselves.  This can be a risky choice filled with potential heartache if some glitch occurs along the way with which they are unfamiliar.  At the least, such sellers should seek legal opinion from a real estate lawyer before signing any documents.

Even if they have been down that road before, many, for peace of mind, will still choose to rest behind a third party (ie., an experienced real estate agent)  and the promise of fair representation.  They want the assistance of a trusted professional to guide them safely through the myriad of details to a successful conclusion.  At this point, they will have two alternatives: the use of a discount brokerage or the use of a more traditional brokerage.  The difference largely revolves around the amount of commission being assessed.

Again, the savvy seller should be quite certain, before making a final choice, about the level of service each alternative will offer.  Will he/she provide a list of several clients who have recently used his/her services so that the seller can verify the facts?  What will be the specifics of an on-going aggressive and effective marketing campaign? Will there be regular progress updates from the listing agent? Will there be helpful feedback and suggestions following showings?  Will the listing agent handle all inquiries about the property?  Will he be present for all offer presentations?  Will he/she adequately answer the question, ‘What advantages and disadvantages will I face if I offer the defined commission structure being recommended’?

After all, the old adage, ‘You get what you pay for’ probably applies!  Therefore, satisfy yourself that the real estate goal of yours – to sell your home as quickly as possible for top dollar with a minimum of disruption to your life–will be accomplished by the model you choose!