Why a buyer should get their own building report
The first ever national survey asking Australians about their experience buying and selling property has found three-quarters of all Australians who bought and sold property in the last year encountered challenges, with property prices, market conditions, and finding a property.
The 2024 State of Real Estate Report from prop tech firm InfoTrack shows Australia’s housing shortage is impacting buyers, with more than one in 10 admitting they struggled to find a property.
What we found concerning is InfoTrack’s Head of Property Australia, Lee Bailie said: “In the rush to snap up available homes, more buyers seem to be compromising on important property checks in favour of putting in a speedy offer. Not even half of all respondents (46%) had a pest inspection carried out, for example.”
We believe buyers should not skip on this critical part of the buying process. While it may seem like an added expense during the buying process, the potential savings it can offer far outweigh the costs involved.
Here are our thoughts:
What is a Building Inspection Report?
A building inspection report is a detailed analysis carried out by a qualified building inspector, assessing the condition of the property in question. This report typically covers various aspects of the property, including structural integrity, pest infestations, safety compliance, and any potential maintenance issues.
Why a building inspection report is important
A thorough building inspection report provides a clear picture of the property’s condition. A property may look appealing at an open inspection, but there may be some underlying, and sometimes costly issues can significantly affect their value and safety.
A building inspection report can reveal hidden problems such as:
- Structural defects
- Plumbing faults
- Electrical compliance issues
- Roofing and guttering problems
- Signs of past or present pest infestations (such as termites)
In addition, many inspection reports often include assessments of compliance with local building codes and safety regulations, and recommends remedial action.
Negotiating power
By identifying these potential issues early, buyers can factor the cost of these repairs into the offer they are going to make should they wish to purchase the property.
Whether it’s requesting repairs to be undertaken before the sale, or negotiating a reduction in the purchase price to account for the findings, having the inspection report strengthens your position. More importantly, it ensures that you are not paying for a property that requires costly repairs shortly after purchase, or even decide to withdraw from the sale if the property poses too many risks.
The importance of your own independent report
Some vendor’s do provide a building report with the property details, however, unfortunately, building inspections is an unregulated industry and you do not have to be a registered builder to be an inspector. Therefore, the quality of the inspectors and the subsequent report may vary greatly.
We work with three licensed quality inspectors who advise a good inspection should take between 1-2 hours – possibly more if it is a big property. Unfortunately, we have known some building inspections to take considerably less time, perhaps suggesting the inspector isn’t being as thorough as others would be.
We highly recommend buyers arrange their own reports, as it gives you, the buyer protection:
- the buyer’s inspector report may not be comprehensive, and may have missed something important.
- As the vendor’s report isn’t made you to you, you have no legal comeback if there are any major, costly issues discovered later down the track.
The three inspectors who we recommend to buyers are licensed and we know they deliver a thorough, in-depth, independent unbiased report; obviously, if you are buying a property, you may have been recommended a building inspector from other trusted sources.
If you are thinking of selling, our experienced team can also give advice on how to present your property features to maximise your sale price. Plus, we have developed unique marketing strategies to ensure your house appears at the top of the search list for your particularly type of property.
We are a family run business with nearly 50 years’ experience, have a database of potential buyers to market to, so we can get your property in directly in front of genuinely interested people – we’re constantly achieving great results and our aim is to make your sale as stress-free as possible.
Call in and see us in the Cardiff office, give us a call on 02 4954 8833 or send us an email to: mail@apnewcastle.com.au.
For tips on selling your property and what to look for when buying a property, visit our Facebook page.