Building Inspection. Yay or Nay? When Buying in BC
Building inspections are a common process for most real estate transactions in BC.
There are many good reasons for a building inspection. In my experience, the most important discoveries that arise in building inspections tend to raise issues that can prevent the buyer from obtaining insurance for the property.
In fact, mortgage lenders start to hesitate when they hear that a property is struggling to secure building insurance. To put it simply, lenders will not finance properties that cannot be insured.
Basically, if the property does not qualify for insurance it also does not qualify for a mortgage.
When we see a house that is priced drastically lower than other comparable homes it is often due to an issue with the property’s insurance.
In these cases the only potential buyer for this house is someone who can buy it without a mortgage.
Above is a video I made last year where I interview a Building Inspector and ask him what he inspects, and what is the point of a building inspection.