Pre-Listing Inspections: Should You Inspect Before You Sell?

A pre-listing inspection means hiring your own licensed home inspector before your home goes on the market, so you see what a buyer's inspector is likely to see. Here is what it can do for you as a seller in BC, what you have to disclose once you know, how to use the report and which specialist checks are worth adding.

The short version

What a pre-listing inspection is

It is the same kind of inspection a buyer would book, ordered by you, before buyers are involved. I explain what inspectors check, and what they don't, in Home Inspections in BC. For a seller, a few rules matter most:

• Licensing. Consumer Protection BC licenses all home inspectors in BC, and you can confirm an inspector's licence on its website before you book.
• Scope. Consumer Protection BC describes inspections as visual, non-invasive assessments of accessible areas. It says inspectors don't do destructive testing, give repair estimates, assess specialized hazards such as asbestos or mould, or judge market value or insurability, and can't do repairs on a home they inspect.
• The contract. Under BC's Home Inspector Licensing Regulation, your written contract must say what the inspection covers, whether the inspector will check for mould and asbestos, and whether it will be non-invasive.
• The report. It must be in writing, give an opinion on each item in the contract, identify items you should get expert advice on and say what wasn't covered.
• Confidentiality. The inspector must not disclose what is in the report without your permission, except as required by law or where they see a serious health or safety risk.

Why some sellers inspect first

• Fewer surprises mid-deal. Problems found during a buyer's subject period leave little time to respond, and they can lead to a renegotiation or a collapsed sale.
• Time to act. You can get quotes, permits and repairs done on your own schedule, rather than within a buyer's deadline.
• A price based on facts. Known issues, with written quotes, can be reflected in your list price from the start.
• Accurate disclosure. If you complete a Property Disclosure Statement, your answers rest on better information.
• You may learn anyway. BCFSA, the regulator, tells REALTORS® that a material latent defect they discover through documents, or through the inspection of a buyer who then doesn't proceed, must be disclosed to other buyers considering an offer. It is usually better to find out before you list than in the middle of a sale.

What to weigh before you book

• You can't unlearn it. Whatever the report tells you shapes what you have to disclose, even if you decide not to share the report itself.
• Buyers may still inspect. Your report was prepared for you, under your contract, so a buyer may still want their own inspector's opinion, especially on an older home.
• It can start a negotiation. A report that lists repairs gives buyers a ready-made list to discuss, so decide in advance what you will fix and what you will price in.
• It has limits. It is a visual snapshot of the accessible areas on one day, not a guarantee, and it costs an inspection fee and some time before you list.

Once you know, you have to disclose

I explain the disclosure forms in detail in The Property Disclosure Statement. In short:

• Your own duty. BCFSA says sellers have a duty at common law to disclose latent defects to a buyer. BCREA describes a latent defect as one that can't be discovered by a reasonable inspection and makes the home dangerous or uninhabitable. Anything you do tell buyers must be accurate, not a half-truth.
• The Property Disclosure Statement. It is voluntary, but if you complete it, your answers are based on your current actual knowledge, and you answer "do not know" only when you really don't. If your inspector found a leak, you can no longer say you aren't aware of one. The form also says important changes made known to you will be disclosed before completion.
• The no-disclosure form. BCREA's Property No-Disclosure Statement doesn't excuse you from disclosing known latent defects.
• Your REALTOR®'s duty is broader. Under section 59 of the Real Estate Services Rules, your REALTOR® must disclose any material latent defect they know of before a contract is made, and if you tell them not to, they must stop acting for you. The definition includes a defect that would be very expensive to fix, a lack of permits, or a circumstance a local government has given notice must or should be fixed.

Choosing not to inspect doesn't change your duty to disclose what you already know. If you are unsure whether something must be disclosed, BCFSA suggests getting independent legal advice.

Using the report: repair, price or share

• Repair. Fix safety issues first, using licensed trades. Technical Safety BC says most electrical and gas work needs a permit before it starts, and WorkSafeBC says to have your home tested for asbestos before a renovation. Keep invoices and permits, and describe the repair accurately where the disclosure statement asks. Older work done without permits needs its own plan, which I cover in Selling a Home with Unpermitted Work.
• Price. For anything you won't fix, get written quotes, so the cost can be reflected in your list price. I explain how a list price is set in Inside a Comparative Market Analysis.
• Share. Generally, you decide whether buyers see the report itself. If you share it, share all of it. In Gundersen v. Savoy (2012), as BCREA summarized it, a BC court held a listing agent liable to buyers after he passed on only some of an earlier buyer's inspection findings.

Specialist checks worth adding

A general inspection points you to items that need expert advice. For older homes in particular, these are the checks I suggest sellers consider:

• Sewer scope. A plumber or drainage specialist checks the sewer pipes on your property for damage. In Vancouver, you are responsible for the sewer lines on your property, which can crack from damage, age or tree roots, and renewing them needs City permits. Coquitlam notes that Metro Vancouver recommends this kind of inspection at least once every 10 years.
• Oil tank search. Until the 1960s, most Vancouver homes were heated with oil from underground tanks. The City says confirming whether one is there, by hiring a contractor to search the property, is the owner's responsibility, and a tank unused for two years must be removed unless the City agrees removal isn't practical. Removal, it says, satisfies lenders, buyers and insurance agents. BCFSA lists underground storage tanks as an example of a material latent defect. Other cities have their own rules.
• Roof. If the report flags wear or leaks, a roofer's assessment and written quote help you decide whether to repair, replace or price it in.
• Electrical. If the report flags older wiring or the panel, have a licensed electrical contractor assess it. BCFSA gives electrical or gas work done without permits and inspections as an example of a material latent defect. I cover older wiring in Buying an Older Home in BC.

Questions sellers often ask me

Do I have to get a pre-listing inspection in BC?

No, it is your choice. It can be most useful for an older home, or when you want to deal with repairs and pricing before buyers are involved.

If my inspection finds a problem, do I have to tell buyers?

Often, yes. You must disclose known latent defects that make the home dangerous or unfit to live in, any Property Disclosure Statement you complete must reflect what you know, and your REALTOR® must disclose material latent defects they know about. If you are unsure, get legal advice.

Do I have to give buyers a copy of the report?

Generally, that is your choice, and your inspector can't share it without your permission, with narrow exceptions. What it told you still shapes what you disclose, and if you do share it, share the whole report.

Will buyers still do their own inspection?

They may. Your report was prepared for you under your contract, and a buyer may want their own inspector's opinion, especially on an older home. Sharing your report can still help them decide whether to make an offer.

Should I fix everything the inspector finds?

Not necessarily. Fix safety issues and anything that would worry most buyers, get written quotes for the rest, and price the home with those costs in mind. Use licensed trades and get the permits the work needs.

Getting ready to list? Read my seller's checklist, see what it costs to sell a home in BC and the BC selling process from listing to completion.

This article is general information, not legal advice. Disclosure duties depend on the facts, so speak with a lawyer if you are unsure what to disclose. The details come from Consumer Protection BC, BC's Home Inspector Licensing Regulation, BCFSA, BCREA, Technical Safety BC, WorkSafeBC and municipal websites, and were current at the time of writing. For Consumer Protection BC's guide, see 5 things to know before hiring a home inspector in BC.