Whether you’re renting, buying or selling a home, it’s well worth getting a property inspection. A property inspection will let you know if anything in the home needs to be fixed or if there are issues, such as termites, dampness or other problems that could be quite costly to repair.
Initially, you may not want to spend the money on a building inspection, however they can be extremely beneficial because they provide a strong insight into the condition of the property. Thousands of people around the world have decided against a building inspection and then they’ve found that their property has issues that they didn’t allow for.
It’s important that you get your building inspection prior to signing any legal contracts. Doing so prior to signing gives you the opportunity to back out of a sale that you don’t want to carry on with, which can save you money in the long run.
Now here’s something that you may not consider. It’s probably something you’ve only ever considered when buying a car or other vehicle. The building could have illegal modifications. If that’s the case, then you could find yourself liable. In some jurisdictions city councils or state governments have the authority to ask you to revert back to the original condition. This is most common with heritage buildings that must remain in their original condition.
The other possibility is that such additions haven’t be carried out safely or in compliance with building codes and standards. When you get a building inspected you will be able to find this out. It could well be that the additions were not completed with safety in mind, so you could find yourself in a death trap. If you have your building inspected, you may be up for the cost of repairs, however, you will find yourself being able to ask for a property price reduction, or you could negotiate the terms of the sales agreement so that you do not have to pay for such repairs yourself.
Without a property inspection you could find that you make an unconditional offer on a property and then when you try to take out insurance you can’t. Most banks make it a condition of your loan agreement that you take out insurance. If an insurance company won’t insure you, but you’ve already paid your deposit, you could find yourself severely out of pocket.
It may cost a couple of thousand dollars and hurt when you need to pay that fee, but in the long run you will find yourself saving money.
House Inspections Melbourne
When you’re purchasing a home in Melbourne, or anywhere else for that matter, it’s really important that you do your due diligence before signing any agreement. Buying a property is a lengthy process and can take several months, if not years because of the magnitude of the decision that you will be making. The first step is to obtain your finance and work out your budget. Then you’ll need to start searching for a property, and once you find properties you like, attend the open for inspections/open homes. There are other steps in the property purchase process that you will need to take as well. One of these is getting a home inspection
A home inspection is essential because it lets you know the faults prior to signing any documentation. This protects you should there be something wrong with it. If you bought a home without getting a home inspection done, you could find yourself losing a lot of money if you were to later find out there were defects. If this was the case, then you, not the vendor would be liable because you wouldn’t have conducted the relevant checks. That could cost you thousands of dollars, and that would assume the issue was minor
Let’s say the issue major and you wanted to back out of the sale, but had made an unconditional offer, you would have no legal recourse if you hadn’t had a home inspection done, so if you found that you didn’t want to proceed with the sale you could lose the deposit plus any legal fees or finance approval fees.
A home inspection may be a cost that you don’t want to fork out for, but considering you’re spending hundreds of thousands of dollars, if not millions of dollars, it’s much better to spend a couple of thousand dollars getting the property checked over by an independent builder, so you know exactly what you’re getting. By getting a home inspection completed, you will also find that you may have more bargaining power and can negotiate the price down if you find that there are defects that need to be repaired.
You will also avoid the risk of defects being omitted by the vendor if you get an independent home inspection conducted. Let’s be honest, if you were selling a house or any other goods or service, would you let the potential buyer know the faults? The chances are you wouldn’t because you’d want to sell the property. A home inspection will help you because you will know exactly what you are getting and there will not be any nasty surprises later on.
Building and Pest Inspections Melbourne
If you want to avoid unnecessary expenses then it’s absolutely imperative that you get your home checked for termites. Did you know that termites can actually wreck entire rooms and you may need to spend several thousand dollars repairing or replacing entire rooms. Some people have reported their bills ranging from a few thousand dollars, right through to the tens of thousands of dollars.
When you get a building and pest inspection, you’ll be able to reduce the risk of termites and pests spreading in your home and will be able to fumigate before they become a major issue. The sooner pests are dealt with, the easier it will be to keep them under control, and you’ll be able to prevent further infestations and save yourself hassle and increased costs.
If your home does have termites and they are left in your home, you could find yourself needing to spend a lot of money dealing with the issue. There is the cost of removing the termites, and there is also the future cost. Homes can lose value if termites are found. When you do sell your home, it could cost you at least $50,000 in the resale value. Potentially, people may lose all interest in buying your home, which means you’re stuck with a home that you can’t sell, and that will end up costing you money. This said, with property prices the way they are in Melbourne, the impact may be mitigated.
A building and pest inspection can help you when buying a property for the very reason above. On the flipside, if you’re a buyer, and termites are found, you’ll have bargaining power and will be able to negotiate the price of the property down, assuming that you still wish to purchase it.
Aside from losing interest when you resell your property, if you don’t have regular pest and building inspections and your building gets infested, you could find that you constantly need to repaint the walls, which can be expensive and frustrating due to the time and effort involved. It’s been said that if you do have termites, you will need to get them treated as soon as possible or you might as well knock the entire house down which can be extremely costly. Let’s think about it, if you’re living in a home and it has termites requiring you to knock a room down, you may find that you can’t even live in it for a few weeks or a few months, costing you the cost of the building repair/renovations, plus the cost of any temporary accommodation.
It’s much better to have a small inconvenience and expense of a building and pest inspection than deal with a larger problem later on that’s much harder to deal with.
Pre Purchase Inspections
Buying a property can be very expensive. There are legal costs, the real estate costs and the time spent looking for a new property. There are also pre purchase inspection costs. They may not be an expense you want to pay, however, it is cheaper in the long run to spend the money than risk buying a property that you haven’t inspected. Property pre purchase inspections are essential for a number of reasons and can save you significant issues in the long run. When you’re spending hundreds of thousands or more than a million dollars, a few hundred dollars is “nothing” in the grand scheme of things.
When you get a property pre purchase inspection, you will be able to identify structural or other issues that may either be costly to repair, or could pose a serious risk to you later on.
A pre purchase inspection will give you the opportunity make one of two decisions. You can either decide to proceed with making an offer on the property or you can back out of it prior to making an offer. If you decide to proceed with the former, then you will have negotiating power if you find that there are undisclosed issues. Let’s say repairs will cost $5,000, you could negotiate the exact amount off your offer, or you could negotiate more off the purchase price because of the time involved and any potential inconvenience or associated costs such as temporary accommodation.
You will also be able to budget for any repairs, which is essential if you’re going to require finance for such repairs. Getting repairs done will also allow you to negotiate the terms, such as when you settle or move into the property, and when you exit your existing property. This is essential if the repairs will take several months to complete.
The most common faults that are found tend to be structural or related to electrical wiring, however you will also be able to identify any plumbing issues that there may be and start getting quotes prior to making an offer (subject to the vendor or real estate agent’s consent) and that will give you a great indication of how long the repairs will take, and what will be involved in them. If you’re selling your current property you’ll be able to make decisions based upon this, which will reduce the possibility that you will need to seek temporary accommodation while the repairs are being completed, which will save you money in the long run.