Conducting a pre-sale building inspection in Perth is oftentimes left to the bottom of the list. However, having one done is imperative prior to commit to purchasing a property.
Buyer beware: do your due diligence
Homebuyers will be familiar with the phrase, “do you due diligence”, which basically means to do your homework. It is wise advice. You should also order a prepurchase property inspector report to evaluate the condition of the property’s exterior and find any faults or hazards.
You don’t want to end up with a lemon. It’s like a mechanic before buying a used car. While you could inspect the property yourself it is wise to have an expert (in this case, a licensed builder) look at it and identify any defects that may not be obvious during a walkthrough.
Setting Proper Expectations
A pre-sale building inspection in Perth is a basic tool that identifies any problems and allows you to negotiate the price of the property or exclude those in serious disrepair. The report should contain all the information you need to know about the property you are looking to buy.
This is the ideal situation. You may not get a perfect score on every building report that you receive. It is possible to make investments in any building if you set your standards too high.
Most investors are comfortable with reports that identify major defects in a property and indicate how serious they are. If the report details the cost and how these issues can be fixed, it can be considered good. This will allow you to make an informed decision about the property you are considering buying.
However, it is natural to be anxious about the sight of building reports. This is especially true if you are looking to buy older homes. Because houses were built differently back then, and often used materials or construction methods that are not up to today’s standards, problems can almost be expected with period properties. If you are looking to invest in a period property with its incredible features and rustic beauty, you can expect to receive a building report listing a few defects.
Conditions of the Contract
When you purchase a property, you must sign a contract. Both the seller and buyer must agree on the terms at the time of signing. Real estate contracts are generally conditional. Certain conditions must be met before the sale can proceed.
Most contracts will include financial and pest inspections as well as building inspections. You have the right to cancel the contract if a property fails to pass a pre-sale building inspection in Perth.
So, what exactly is a failed building inspection?
What Inspectors Must Never Miss
Most properties will have some problems, regardless of their size. While inspectors might miss a few things on occasion, they shouldn’t overlook the most important concerns.
Water penetration in Masonry
Water penetration in masonry can cause structural damage and mould growth if it is not addressed. This will lead to termite invasion, which can quickly turn your investment into a disaster.
Signs of disrepair can indicate a major problem. Cracks in brickwork, bulging/cracked inner walls, and other signs of disrepair can all be indicators that a major problem is present. Property investors will not be able to tell if property defects can easily be repaired by minor cosmetic changes.
Property that is not maintained regularly will eventually fall into disrepair. Inspectors must ensure that any property is maintained and not subject to decay. You and your investment will be at risk if the inspector overlooks this.
Without a roof, a property is more vulnerable to the elements. The roof will make a property more vulnerable to the elements. The cost of replacing the roof can add a lot to your initial investment in real estate.
Conditions of the Contract
Before you sign a conditional contract, it is important to be familiar with its terms and conditions. There are no two contracts the same. It is important to confirm that any building inspection report you believe has been rejected will be included in the contract.
If the inspection report doesn’t contain enough information, these are some conditions that your contract might include:
- The vendor must repair any minor defects before closing the deal.
- If the defects are major/structural, or both, the contract will be cancelled.
- Although the vendor will be given a time frame to fix major defects, this could also mean that the contract term is extended.
- The contract can be terminated if there is severe damage.
- You may be able to negotiate a lower price to cover the repair costs.
If you are forced to cancel your contract due to a failed building inspection, you might need to seek legal advice right away. These documents are admissible in court. A lawyer can help you ensure that you are following the correct legal process.
Reviewing a prepurchase house inspection is mandatory. It isn’t only for legal compliance. Although you want your building report thorough, a visual inspection has its limitations and may affect the final property assessment. It’s not uncommon for areas of a property that are difficult to assess to be excluded from an inspection.
Also, it is impossible to get a building inspection report that is perfect. This would mean that the inspection will be intrusive. Due to the potential damage that this type of inspection could cause, most vendors won’t allow it.
WA building inspectors like us can provide a building inspection report that is both accurate and meets your expectations.