Save money now. Spend more later. That's the short version of what happens when home buyers get caught up in the emotional excitement of buying a new home and waive their contractual right to a home inspection, says Richard Golumbia, who runs HouseMaster Home Inspection in Calgary.

But don't take a home inspector's word for it, says Valden Palm, a full-time Edmonton-based real estate investor who's paid cold, hard cash for misplaced enthusiasm.

With a real estate portfolio that focuses on single-family, townhouse and condominium properties, Palm launched his business several years ago thinking home inspections presented an avoidable expense.

That approach cost him tenants when property wasn't ready for possession. It cost him money for repairs that weren't part of the original budget and it created headaches for joint-venture partners who learned the deal wasn't quite as sweet as expected. One hot tub alone set him back $1,500. The darn thing looked like it worked, Palm recalls with a self-deprecating laugh.

Dave Olecko, Business Edge
Home inspector Richard Golumbia of HouseMaster Home Inspection checks out the skylights on a residence in Calgary.

Without the benefit of an inspection, Palm admits he bought the seller's story about the tub's value - missing parts and all.

"It did cost me. And that's the main reason I decided home inspections are insurance, really cheap insurance," says Palm.

"Home inspectors are typically hired by buyers who want to ensure that what they're purchasing with their heart, makes sense to their wallet," says Golumbia. Even though all offers to purchase, whether homeowner or investor, should have the clause "subject to completion and review of a professional building inspection acceptable to the buyer," competition for the right house means some buyers will trade expediency for a little sober second thought, courtesy of an independent evaluation.

Buyers have told Golumbia they are sometimes in a "home for as little as 20 to 30 minutes before they write an offer.”

From where Golumbia sits, that's just not enough time.

There are signs that's changing. Golumbia figures independent inspections, which need to be pre-arranged and can take two hours or more, are done on 75 to 80 per cent of homes sold in the Calgary region, up from 25 to 30 per cent when he opened his business more than 10 years ago.

And the inspection industry has changed to keep pace with demand. In a business where service counts, the pressure to make a particular deal happen as fast as possible means there are more home inspectors than ever - and guys like Golumbia will man their phone lines at 10 p.m. to make sure they don't miss a call.

At least part of the interest in home inspections is stoked by news of people buying homes unaware they were previously used as marijuana grow houses.

Although that kind of disclosure is not mandated under law and these houses can be reclaimed with extensive renovations, it's the kind of information home buyers deserve - and will get with a good home inspection service, insists Golumbia. (Amounts vary with damage, but the Insurance Bureau of Canada says the average claim for repairs of grow-op damage was $41,000 in 2003.)

Golumbia's own inspections have revealed several of these homes in recent years. He says it's not enough to "know what to look for," since criminals can be pretty innovative when it comes to hiding evidence.

"I think realtors are doing a very good job of educating people about home inspections. They know why it is being done,"says Golumbia. While many of the deficiencies cited in his reports won't make or break the home purchase deal, it is information the buyer can use to negotiate price.

Reputable home inspection companies won't give specific estimates of what it will cost to make repairs or upgrades to cover a home's deficiencies. But most will give a ballpark number to give the buyer an idea of how much repairs could cost.

Golumbia says he's inspected estate homes needing more than $150,000 of work to windows alone. Buyers in that market may not be too worried about that kind of tab for a single item. They still need the information "to know if this (purchase) is a good business decision."

Rick Clark of Clark Inspection Agency, also based in Calgary, says the educational component of a home inspection, which should always be conducted with the client onsite, is increasingly important. Experience tells Clark that potential buyers need to know about deficiencies. But they also need information about the short- and long-term maintenance required to prevent future costs.

A good home inspector, for instance, can talk to potential buyers about furnace and hot water-tank maintenance, roof repairs and attic insulation. If the inspection notes potential concerns with site grading, the inspector may also have ideas about what should be done to prevent problems with water seepage.

Demand for independent home inspection services is also fed by the growing disconnect between the people who own homes and the technology that runs their homes.

Clark says his company responds to two or three calls a week from homeowners who want an independent assessment of what's causing a perceived deficiency (is the wet spot on the kitchen ceiling a ventilation problem or a roof issue?). They also want a home inspector's help with questions about whether they need a new furnace or a new hot-water tank - or need to change the way they operate those machines.

Paying for that kind of advice from a reputable home inspector is worth it, adds Golumbia. He cites statistics that show homeowners should spend one to three per cent of their home's value on maintenance every year. "Most of us don't do that and some of us only spend the money when we have to."

(Joy Gregory can be reached at joy@businessedge.ca)