It is tempting to perceive property inspections as an unnecessary task, prolonging the property investment buying process and another expense out of your pocket.
Getting a pre-purchase property inspection completed however, can actually save you thousands of dollars in future expenses and help you during the negotiating process.
By investing in a professionally carried out building inspection, you avoid the possibility of expensive financial outlays due to repairs and structural damage, and also the risk of putting yourself and others in danger.
You should personally inspect each property that you are interested in buying, and consider taking someone else with you to gain another perspective.
As well as a thorough inspection of the interior and exterior of the property, consider the following checks:
Download our free property inspection checklist to help you evaluate the condition of each property you view.
A pre-purchase property inspection is carried out by a qualified, professional inspector who provides information on the property’s current condition. It enables you to make informed decisions about the property and be aware of any significant problems.
The format and detail contained in the report will depend on:
These factors will also influence the cost of the report.
You should always ensure that the inspection report you receive complies with Australian Standards.
The person carrying out the inspection should inspect all accessible areas of the property, and the report should contain information on:
The summary is possibly the most important part of the report.
It should give you an overview of the major faults found in the property and its overall condition considering its age and type. Photographs may be included depending on the company you use.
Remember that the report you receive is based on a visible inspection of the property, and may not identify any structural defects or other hidden issues.
If you have further concerns about the property, consider having it checked by another suitably qualified specialist e.g. structural engineer or surveyor.
It is also important to note that the pre-purchase property inspection is not the same as a pest inspection. Whilst the report should pick up any visible signs of damage that may have been caused by termites, it usually will not necessarily detect the presence of these pesky critters.
It can be advisable to get a separate pest inspection carried out by a qualified professional.
However you can make specific requests to your property inspector if there are particular items that you want included.
When you invest in a property inspection, you gain knowledge and awareness of the property’s overall condition, including areas of the property that may need improvements and repairs.
You can use this information as a tool to negotiate an appropriate, discount purchase price based on existing property damages and repairs that need to be carried out.
The seller could potentially be more likely to reduce the price, or in some cases, even pay for necessary repairs.
*Tip: When you receive the property inspection, c
By doing so, you will receive insight into the property’s status since it will be fresh on the inspector’s mind.
You can then read through the full property inspection report and digest all the details.
These foreseeable costs include repairs such as:
Early access to such information lets you budget with a more reasonable estimate of potential expenses which could affect your cash flow.
A property inspection shines light on unsafe areas in a home, such as presence of asbestos, mold, or any other harmful materials, which could lead to extra expenses in repairs and possible medical bills - which can easily be avoided.
Knowing about these safety hazards, especially before purchase, allows you to decide whether or not you’re willing to pay the necessary costs to keep the property safe – saving you money in the long-run.
Not all home insurance companies will cover a property due to certain conditions, which is why it’s important to be aware of the property's condition beforehand.
Always use a suitably qualified person to carry out the pre-purchase property inspection.
Many property inspectors will require 2 - 3 days notice in order to carry out the property inspection, so make sure you give them enough time to get the report completed.
If you are interested in an investment property, get the vendor's permission to have the property inspected as early in the sale negotiations as possible, so you can leverage the information in the property inspection report to your benefit if possible.
When investing in property, you can get peace of mind and knowledge by getting a building and pest inspection report carried out.
Thanks for reading!