What Is a Pre-Offer Home Inspection?

The average price of a home in Canada soared to more than $700,000 this year. But before you submit that offer, consider this: a pre-offer home inspection that could save you tens of thousands.

Let’s see what is a pre-offer home inspection, how it differs from a full inspection, when you really need it, and how to be smart about it.

What Is a Pre-Offer Home Inspection?

Like many other types of home inspections, a pre-offer home inspection includes a thorough visual examination of residential properties; but it’s conducted before the buyer submits their offers.

This inspection enables future homeowners to better evaluate the home’s condition, identify potential deal breakers, and submit more competitive offers.

Why Is Pre-Offer Inspection Important? When Is It Recommended?

The main goal of pre-offer home inspection is to protect the buyer by providing known facts about the property before making an offer. So, while it’s encouraged in most cases, it's especially crucial when the market is competitive and multiple offers are common.

This allows buyers to make their offer more intriguing to sellers; for example, by submitting a non-contingent offer on acceptable inspection results. A pre-offer inspection is also useful for older homes, or when the property shows signs of neglect.

Consider your own situation too. If you’re on a tight budget or planning to buy an upper fixer, it is critical to schedule a pre-offer inspection.

Pre-Offer Inspection vs. Full Home Inspection

A pre-offer home inspection is scheduled before an offer is made, helping buyers to make an offer with confidence, negotiate for better prices, ask for mitigating issues before moving in, or even re-evaluate the situation.

On the other hand, a full inspection is carried out before closing, when the offer’s been made and accepted. Its goal is to protect the buyer, their investment, and identify issues that might otherwise be overlooked.

The most important difference is in thoroughness. Pre-offer inspections are less inclusive and limited to major parts and systems like exterior, structure, roof, HVAC, plumbing, and electrical. Full inspections are more detailed and cover the attic, crawlspace, fireplace, walls, windows, etc. as well. Here’s a full checklist from InterNACHI as a reference.

Things to Consider Before Pre-Offer Home Inspection

All benefits aside, there are important things to consider before requesting a viewing:

• Consider the costs: Depending on multiple factors, pre-offer inspection costs $400 on average. Think about your budget for this stage and estimate how many properties you’re able or willing to see before making a purchase. You may think it’s a big expense (and you’re right), but it’s far better than buying a house with major issues.
• Inspect after personal viewing: Since you can request 2 viewings, always reserve the first one for yourself. If you liked the house, take an inspector for a second viewing.
• Time is limited: Inspectors need a couple of hours to perform a thorough evaluation. However, in the case of pre-offer home inspection, it’s rarely possible. Most sellers have back-to-back viewings or time slots that are no more than 30 minutes. Due to this time crunch the evaluation won’t be extensive, and the inspector’s work is limited to pointing out major problems in accessible parts.
• It is not a contract: requesting a pre-inspection doesn’t mean that the seller is contractually obligated to you. They can sell the house to other customers, especially if they make an offer without preconditions.
• Consider inspector availability: Depending on the market in your region, finding available professionals on short notice or at a specific time could be challenging.

Finally, always see how much the seller is cooperative. Some owners aren’t willing to provide full access regarding time or specific locations, which is a red flag for many buyers.

You may even encounter sellers who have arranged an inspection beforehand and provide the report. However, most buyers prefer to have their own inspector.

How to Find a Qualified Inspector for Pre-Offer Inspection

Start by seeking recommendations from your realtor and searching in online directories. Check the inspector's licensing, insurance, and reviews from previous clients. You can hire directly or manage interviews with promising candidates, and ask about their work system.

To make this process easier and faster, submit your request at Houmse, get free quotes, and have access to an extensive list of professionals in your region (along with their expertise, added values, ratings, reviews, etc)

Before the inspection, provide them with the property details, specific concerns, any photos, or prior reports. Also, it’s highly recommended that you be present during the process.

Frequently Asked Questions

Can you get a home inspection before making an offer?

Absolutely. The only issue might be possible limited viewing times.

What are the pre-offer home inspection requirements?

A pre-offer home inspection isn’t mandatory and requires the seller's permission to enter the premises and involves a visual assessment of key components like structure, roof, HVAC, plumbing, and electrical systems.

What are the disadvantages of a pre-offer inspection?

The cost of the inspection if the offer is not accepted, and the possibility of another buyer making an offer while the inspection is being arranged are among the important drawbacks.

How much does a pre-offer home inspection cost?

Depending on the region, home size, age, and other factors, home inspections cost $250-$700. However, you might be able to get a better deal due to the limited time and if you don’t want a report.

What if the pre-offer inspection reveals major issues?

This informs you of your decision to proceed with an offer, negotiate based on the findings, or move to the next house.

The Bottom Line

In competitive real estate markets like Canada, every advantage counts. A pre-offer inspection gives you a clear understanding of a property's condition, enabling you to make a stronger, more confident offer and potentially outbid other buyers!