Registered Property Inspectors Could be Bad For You!

If you ever bought a property (as an investment or for personal use), chances are you hired a property inspector. What could be smarter than have a specialist inspect and advise you on any potential problems? And who is better - a registered inspector with lots of certificates and memberships in inspector's organizations or just a licensed guy? Well sometimes the answer could surprise you.

For a peace of mind, Matthew Burke of St. John's area hired a registered home inspector."We wanted to have a quality home inspection done so we’d know what we were walking into,” he said. “We didn't want to get hit with the unexpected surprises of $1,000 here, and a lot more money … potentially."

But shortly after moving in, Burke says they got a big surprise.“We have water damage all on the studs throughout the entire basement." The home inspector didn't see it. Estimates for fixing either run into the tens of thousands of dollars.

"We were in shock, at first,” Burke said. He called his lawyer, and his real-estate agent. “Everybody kind of directed me in the same area,” Burke said. “Call back the home inspector and give them an opportunity to see what we're talking about."

The inspection was performed by a company called Pillar to Post. Its inspectors are registered and carry insurance for errors and omissions. After re-inspecting the basement, Pillar to Post sent Burke a letter saying the company accepts no responsibility. "They believe they provided an adequate report, and that that's it. There's nothing further to be done."

Burke wanted to take it further, and take Pillar to Post to court. His lawyer suggested he contact Mike Guihan, the provincial vice-president of CAHPI — the Canadian Association of Home and Property Inspectors. Guihan also sells his services as an expert witness when home inspections go bad. But when contacted by Matthew Burke, Guihan refused the job. The inspectors from Pillar to Post are also member of CAHPI. Guihan says it's a conflict of interest to testify against fellow members.

Burke believes there is irony in his situation. If he had hired an unregistered inspector, Guihan and CAHPI may have helped him with his claim. Instead, he says, the registered inspectors have closed ranks and left him holding the bill.

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Toronto Market Watch: September 2013

Greater Toronto Area REALTORS® reported 7,411 residential sales through the TorontoMLS system in September 2013, representing a 30 per cent increase compared to 5,687 transactions reported in September 2012. Year-to-date, total residential sales reported through TorontoMLS amounted to 68,907 during the first nine months of 2013 – down by one per cent compared to the same period in 2012.

“It’s great news that households have found that the costs of home ownership, including mortgage payments, remain affordable. This is why the third quarter was characterized by renewed growth in home sales in the GTA. We expect to see sales up for the remainder of 2013, as the pent-up demand that resulted from stricter mortgage lending guidelines continues to be satisfied,” said Toronto Real Estate Board President Dianne Usher.

The average selling price for September transactions was $533,797 – up by 6.5 per cent year-over-year. Through the first three quarters of 2013, the average selling price was $520,118 – up by over four per cent compared to the first nine months of 2012.

The MLS® Home Price Index composite benchmark for September was up by four per cent year-over-year. The annual rate of growth for the composite benchmark has been accelerating since the spring of 2013.

“The price growth story in September continued to be about strong demand for low-rise home types, coupled with a short supply of listings. Even with slower price growth and month-to-month volatility in the condo apartment market, overall annual price growth has been well above the rate of inflation this year. This scenario will continue to play out through the remainder of 2013,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

How Will Blackberry News Effect Real Estate in Waterloo Region?

On Tuesday, September 23, Blackberry officially announced that Fairfax Financial consortium signed a $4.7 billion deal to purchase the struggling tech company. Just days after announcing a loss of nearly $1 billion, the company also announced impending lay-offs of close to 40% of its workforce. 

Locally, many are speculating as to just how deep the impact of Blackberry’s misfortunes will go. Since its inception in 1984, the Waterloo-based firm has become the largest occupier of office space in Waterloo Region. Currently holding a regional inventory of 1.6 million square feet of office space, Blackberry comprises nearly 15% of the total office market. At one time, the company was the single largest driver of office construction in the region, leading many to wonder how a potential influx of office space could affect market dynamics. Karl Innanen, Managing Director with Colliers International Waterloo Region, commented, “Blackberry has always been a very big fish in a relatively small pond; however, there are extremely successful companies in Waterloo Region that need more space and have been overshadowed in recent years. The real estate component could be an opportunity.” As Blackberry has steadily declined over the past two years, some of its real estate has already come to market and been quickly absorbed. Given current trends in the Waterloo Region market, the possibility also exists that any Blackberry space brought to market would be developed into higher and better uses - removing it from office inventory altogether.

Waterloo Region has benefited greatly from Blackberry’s success over the past three decades, and it is expected that the highly diversified industry in Waterloo Region, and in particular, the flourishing tech sector, will be able to bear the weight of Blackberry’s losses. After years of competing for the best and brightest minds, companies such as Desire2Learn and OpenText will now have access to an experienced pool of talented employees seeking new opportunities. Innanen went on to say, “The Region of Waterloo has always been a market of ‘enterprising adaptors’. We have gone through many evolutions, right from the wagon wheel to the Blackberry, so we will make the best of this and determine what the next great product or service is, and work on that.”