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The
Propertybuyer

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Hear the latest weekly insights into the property market via podcast by Rich Harvey, CEO and founder of Propertybuyer.

 
Sun 23 Jun '24 with Rich Harvey Why Tax Depreciation Matters
 
 
Fri 14 Jun '24 with Rich Harvey Tax Effective Property Investment Strategies
 
 
Fri 24 May '24 with Rich Harvey Granny Flats: Boost Your Yields & Faster Mortgage Repayments
 
 
Fri 3 May '24 with Rich Harvey Unpacking the Northern Beaches with Incredible Agents
 
 
Fri 29 Mar '24 with Rich Harvey How to build a $7 Million Property Portfolio from scratch
 
 
Sat 16 Mar '24 with Rich Harvey Why Invest in Melbourne?
 

 

Listen to many more
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See Before You Bid: Why a Building and Pest Report Matters

June 14, 2024 / Written by Written by Rich Harvey

 

During inspections, most buyers are captivated by a home's aesthetics, picturing furniture placement and personal belongings in the space. While these considerations are important, they only scratch the surface. The true structural integrity and potential hidden threats lurk beneath the paint and finishes.

 Why pay for  building and pest inspection reports?

In the world of real estate, they say a strong foundation is key. But without the ability to see through walls, how can you be sure the structure supporting your dream home isn't on the verge of collapse?

Building and pest inspections are your safety net during the home buying process. Many purchase agreements include a clause allowing you to have a qualified professional conduct comprehensive pre purchase building reports. This inspection goes beyond aesthetics, revealing potential structural weaknesses – from shaky foundations to a hidden termite infestation.

Building and pest inspections offer a clear advantage: peace of mind. If you're uncomfortable with the unknown, a thorough inspection can provide comfort. It can also offer some recourse if the inspector misses significant problems.

Focus on Prevention, Not Blame

While the potential to hold someone accountable for missed issues might be appealing, that shouldn't be your primary motivator. The true value lies in uncovering hidden problems before they turn into costly repairs down the road.

Savvy property buyers use pest and building reports not just to identify problems, but also to make informed decisions about the purchase. These reports reveal potential issues that can be addressed before finalising the deal. Here's how:

Cost Transparency: An inspection uncovers the extent of necessary repairs, allowing you to estimate rectification costs. This empowers you to negotiate a lower price with the seller to account for these repairs.

Case Study: Avoiding Hidden Costs

For example, a retired couple considered a 1950s cavity-brick home advertised as "solid." Thankfully, their building inspection revealed a hidden roof leak and water damage to the trusses. The estimated repair cost of over $10,000 allowed them to negotiate a price reduction that covered the repairs, preventing a costly surprise after the purchase.

Beyond Repairs: Ensuring Compliance

Building and pest reports also ensure structural compliance with local regulations. Unpermitted additions or handyman projects can pose safety hazards or lead to future demolition orders from the council. Knowing about these issues allows you to factor in potential costs for repairs or removal.

Negotiation Strategies: Collaboration Over Conflict

While some buyers use reports solely to find problems and demand compensation, this adversarial approach can backfire. Building a reputation for being difficult can damage your rapport with agents and sellers in future negotiations.

Focus on a Win-Win:

Aim for a collaborative approach. Use the inspection report to have a transparent conversation with the seller about potential repairs and a fair price adjustment. This approach fosters trust and increases your chances of a successful purchase.

When you shouldn’t commission a report

While building and pest reports are highly recommended, there are a few rare instances where they might not be essential:

  • Demolition Projects: If your plan is to demolish the existing structure and rebuild entirely, a report on its current condition becomes less relevant.

  • Extensive Renovations: When substantial renovations are planned, a contractor's assessment can identify structural issues during their evaluation of your project costs.

Proceed with Caution:

Even in these scenarios, consider the potential risks:

  • Hidden Problems in New Builds: New builds can still have hidden defects. A "defect rectification" report can uncover issues requiring repair by the builder under warranty.

  • Competitive Bidding: Skipping an inspection to make a more competitive offer can be risky. Weigh the potential financial burden of hidden problems against the benefit of securing the property. Consulting with a property advisor can help you navigate this decision.

Always Consider the Value of a Report:

In most cases, building and pest reports offer significant benefits:

  • Peace of Mind: Identifying potential issues upfront reduces the risk of unexpected repair costs later.

  • Informed Negotiation: The report empowers you to negotiate a lower purchase price to account for needed repairs.

  • Quality Assurance: Choose a reputable, licensed inspector with clear liability insurance and explanation of their service limitations.

Seek Expert Guidance When Needed:

If you're unsure about the necessity of a report in a specific situation, consider consulting a local property professional. Their knowledge of the area and potential problems can help you make informed choices. They can also assist with commissioning the right reports and negotiating a deal if unforeseen issues arise.

While a building and pest report is a crucial step in the property buying process, it's just one piece of the puzzle.  Navigating the complexities of the property market, especially for first-time investors, can be daunting.  That's where a reputable buyer's agent comes in.

Partnering with a Buyer's Agent: Expert Guidance for Your Investment Journey

Propertybuyer’s experienced buyer's agents can be your trusted advisors throughout your property investment journey.  They offer a wealth of local market knowledge and can help you with every step of the process, including:

  • Identifying the Right Property: 

Our agents will work closely with you to understand your investment goals and find properties that align with your criteria.

  • Skilled Negotiation:  Leveraging their negotiation expertise, they can help you secure the property at a competitive price, potentially saving you thousands of dollars.

  • Streamlined Process:  They handle the legwork of property search, shortlisting, and inspections, saving you time and effort.

Whether you're looking for buyers agents in Sydney, Melbourne, Brisbane, Gold Coast, Northern Beaches, Eastern Suburbs or for a buyers agent in the Central Coast or across Australia, our buyer's agents can provide invaluable local insights and expertise.

Contact Propertybuyer Today and Invest with Confidence

Propertybuyer can connect you with a qualified buyer's agent in your target location. Don't hesitate to reach out for a free consultation and discuss your property investment goals.

 

The Propertybuyer
Podcast

 
Sun 23 Jun '24
with Rich Harvey
Why Tax Depreciation Matters
 
 
Fri 14 Jun '24
with Rich Harvey
Tax Effective Property Investment Strategies
 
 
Fri 24 May '24
with Rich Harvey
Granny Flats: Boost Your Yields & Faster Mortgage Repayments
 
 
Fri 3 May '24
with Rich Harvey
Unpacking the Northern Beaches with Incredible Agents
 
 
Fri 29 Mar '24
with Rich Harvey
How to build a $7 Million Property Portfolio from scratch
 
 
Sat 16 Mar '24
with Rich Harvey
Why Invest in Melbourne?
 

 

Listen to many more
podcasts on our
Podcasts page.