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BMO Financial Group

April 04, 2012 09:00 ET

BMO Financial Tip of the Week: Consider Making a Conditional Offer Based on a Successful Home Inspection

In competitive housing markets consider completing the home inspection before making your offer

TORONTO, ONTARIO--(Marketwire - April 4, 2012) - As part of BMO Financial Group's ongoing commitment to financial literacy and 'Making Money Make Sense' for Canadians, BMO is releasing a financial tip every week in 2012.

BMO's Financial Tip of the Week: Consider making a conditional offer based on a successful home inspection

To ensure your home purchase goes smoothly, consider making your offer conditional on a successful home inspection. This clause allows you to withdraw your offer if the inspection uncovers significant flaws in the home.

"Regardless of how perfect a home may seem, it's a good idea to consider making your offer conditional based on a successful home inspection," said Laura Parsons, Mortgage Expert, BMO Bank of Montreal. "An expert can tell you whether the place is structurally sound and if the major housing systems are in good working order. A BMO mortgage specialist can help find an experienced inspector."

In very competitive housing markets, however, conditional offers could place you at a disadvantage, so you may want to consider completing the home inspection before making your offer.

What the inspector does - The inspector performs a visual inspection of the home's structure and major systems and looks for areas that are worn, need repair or replacement, and are unsafe or inefficient. They list necessary and recommended repairs or replacements, which can range from minor, inexpensive repairs to major, costly replacements and expenses.

How the inspection helps - It is almost always advisable - especially as a first-time buyer - to make your offer to purchase conditional on a successful home inspection. In some situations, it could help you to negotiate a better price.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly-diversified North American financial services organization. With total assets of $538 billion as at January 31, 2012, and more than 47,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.

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