A building inspection is imperative in uncovering any hidden secrets of your new property, and can also be used as a bargaining tool which can possibly save you thousands of dollars off the purchase price.
If you’re actively searching for a new property or investment then you probably know all too well how it feels to be outbid. The cost of having to pay for yet another building inspection for dream home number 3 can cause a great deal of financial angst. BUT, it is definitely worth it and here are a few reasons why:
The vendor is required, by contract, to disclose any defects that relate to the property that they are aware of at the time of selling. There are occasions where some defects can go unnoticed, which may mean it could potentially cost you thousands of dollars in repair costs. For example, a newly renovated bathroom could have been done on the cheap, resulting in shortcuts being taken with the waterproofing, or freshly laid flooring might cover up pest damage, rising damp or wood rot.
If your knowledge is limited, your best option is to engage an independent builder who will carry out and prepare and inspection report for you.
When to engage a builder
Should the property be a private listing, you should organise your inspection prior to exchange. This will assist you with the knowledge to negotiate down the final purchase price.
If the inspection is carried out after exchange, you generally have 14 days to make requisitions to the vendor for the property. This is your opportunity to highlight any concerns, and determine what the vendor will do to rectify the issues. Keep in mind that you may also be able to exercise your cooling-off rights under the contract.
The laws differ in each state, but generally, a purchaser buys the property on the fall of the hammer. This means that you have to be 100% satisfied with the property before you bid.
It is advisable to arrange a building inspection prior to the auction day. This enables you to feel confident in making a reasonable offer and you don’t end up with more issues than you bargained for afterwards.
How to organise a building inspection
Organising a building inspection is very common and you will find that most people have one done prior to purchasing a new home or investment.
Many companies offer services with a flat-rate fee and you can usually organise a pest and other inspections as well. It definitely pays to shop around, or alternatively your Real Estate Agent or Finance Broker may be able to advise someone with a good reputation.
The building inspection report will usually cost a few hundred dollars, but keep in mind that this could potentially save you thousands! It pays to know exactly what you’re buying.