Best:

1. Front Door Make-Over: Whether you re-paint it, or get a new one, this is considered one of the best investments.
2. Paint: A fresh coat of paint looks clean and updated. This spells value!
3. Kitchen or Bathroom Remodel: Kitchen remodels typically get you around an 80% return on your investment, with bathrooms following not too far behind. Keep in mind that granite countertops add to overall value more than any other material. And remember, your home should have at least one bathtub!
4. Deck: A deck generates about an 85% return on your investment, while a patio only gets you between 30-60%.
5. You can’t go wrong with: new windows, new siding, or turning an attic into a bedroom

Worst:

1. Pools: They’re very costly, and don’t do much for a home’s value. Many prospective buyers may be turned off by the maintenance and insurance costs.
2. Sunrooms: They can be beautiful, but aren’t necessarily a smart investment. With an average return of less than 60%, you’re better off to spring for a deck that is actually less expensive with a higher return.
3. Homes Offices: If you turn one of the bedrooms into an office, ensure that it can be converted back to a bedroom easily. Home buyers prefer an extra bedroom to office space.
4. Garages: Adding an addition to a garage can be very costly, and gets you an approximate 60% return. You’re better off to insert storage units or shelving in the home.
5. Master Suites: Upgrading your master bedroom typically results in a loss of about 40% of your investment. Focus on kitchens and bathrooms if you’re looking to upgrade!  

Effective June 1st, 2015, the mortgage loan insurance premium for homebuyers with less than a 10% downpayment will increase by approximately 15% through CMHC mortgage default insurance.

Mortgage default insurance is required if you put less than 20% down. Note that for $1,000,000 + homes, a minimum downpayment of 20% is required.

Example: If you bought a home today with 5% down, and needed a mortgage of $350,000, your CMHC insurance premium would be: 
$350,000 x 3.15% = $11,025

#10 – Improper Materials For Climate

There is a big difference between materials intended for dry summer heat in Southern California and materials that can stand up to 6 months of cold, wet, and sometimes frozen in BC’s lower mainland. Your home inspector can tell you about risks of materials and installation methods in your home.

#9 – Age of Equipment and Materials

Life cycles of house equipment range from 8 years to 100 years however around 20 years, all sorts of equipment starts to reach the end of its expected service life. Your home inspector can tell you what equipment or materials may need to be budgeted for replacement soon.

#8 – Amateur Renovations

“If you think it’s expensive to hire a professional to do the job, wait until you hire an amateur.” – Fred Adair. Amateur renovations can cost big bucks to ‘fix’ and in some cases you may be putting your families safety at risk. Your home inspector will help you know if your home is safe and solid.

#7 – Builder Errors

Builders are people and they can make mistakes too. Worse yet, builders hire and trust sub-trades who often don’t even have qualified or experienced people on the job. Missing insulation, improper installation of materials, and broken materials are not uncommon to discover in a home inspection in brand new homes and can even lay dormant for years after.

#6 – Leaking Water Pipes

In new homes, drain lines not connected properly or incorrectly installed whirlpool tubs can cause a surprising disaster on move in. In used homes, normal wear and tear, recent renovations, or long unused equipment can often leak when tested. Your home inspector will check all your pipes for signs of leaks and help prevent expensive surprises.

#5 – Because Your Realtor Advised You Too

A good realtor has ’seen it all’ when it comes to homes and knows that just because it looks good does not mean it is well put together. When your realtor says you need to get a home inspection they are not trying to spend your money, they are trying to protect you from unexpected costs.

#4 – Poor Maintenance

A $6 tube of caulking at the right time can save thousands of dollars at the wrong time. Basic paint and maintenance is part of home ownership but too many home owners have no idea how to do maintenance and by the time a home inspector arrives there are expensive damages that could have been prevented. Your home inspector will help you know if your new home was properly cared for.

#3 – Lipstick on a Pig

There are 3 types of home renovators, professionals, amateurs, and con-artists. Professionals and amateurs generally are trying to get it right (with mixed results) but the con-artist is all about making money quick. Don’t be fooled by granite countertops and stainless steel appliances in that renovation if the roof and the furnace are about to fail. Your home inspectors experience will tell you if you have quality work or not.

#2 – For the Safety of Your Family

Your dream home could be a death trap. Emergency exits, carbon monoxide, missing smoke/fire alarms, missing handrails, electrical fires, and so much more could be wrong with your new house and could cause your family harm now or in the future. Your home inspector is trained to look for and report on life safety concerns.

#1 – You Can’t Afford Not To

With average house prices approaching $1,000,000, a $500 house inspection is 0.05% of the purchase price and well less than a typical single mortgage payment. This is a small fee compared to the costs of home ownership and purchasing but could save you thousands of dollars in unexpected costs and perhaps even save your life.

Written by James Bell, Owner/Operator of Solid State Inspections Inc.