“Sometimes – and especially in today’s market, with so many offer presentations and so many clients afraid to put in an inspection clause – it’s nice to have inspections done before the listing goes up,” says John Whyte, an agent in Toronto. “In most cases we’ll get pre-inspections done before the property is listed, so people are aware of what they’re buying.”
Whyte says the tactic of holding back offers is essentially commonplace in Toronto, particularly in the detached and semi-detached market, and bidding wars are largely considered part of the game. In an effort to compete, buyers are foregoing inspection and financing conditions altogether.
“There was a time that I wouldn’t put an offer in with an inspection clause,” he says. “But buyers want houses and they’re willing to buy a property without an inspection.”
As a listing agent, having the inspection completed gives potential buyers piece of mind – and more money to play with.
“I think you can get more return on your investment that way,” Whyte says. “And at the end of the day, it’s a small cost.”
As bidding wars become increasingly common in markets with low inventory, buyers remain weary of submitting a condition-free offer, but listing agents have one trick up their sleeves to help potential buyers off the fence.