When you’re buying a new home or budgeting for your mortgage, it can feel as though building inspections are yet another expense to think about on top of growing list of financial commitments. Unfortunately, although building inspections might not be the most exciting thing to think about when you’re purchasing a property, they are an important concern for would-be homeowners.
Since we’re here to save you money at Home Loan Cash Back, we think it’s worth telling you that a good building inspection can uncover dangerous secrets within your home, and be used as a bargaining tool to save you thousands on the purchasing price.
Here is our guide to having a building inspection.
Discover any Defects
By contractual law, it’s up to the vendor to disclose any defects that might be included in the property that you’re buying. However, this contract only covers as much as the vendor actually knows about. It’s often the unseen or latent defects that can end up going unnoticed and causing the most damaged. For instance, a freshly-painted ceiling could cover up a ton of black mould and leaking roof tiles.
At the same time, some new tiles in your bathroom could just be a cheap renovation that fails to cover the essentials – such as waterproofing. If your DIY know-how is pretty limited, then your best bet is to make sure you work alongside an independent builder to prepare your new inspection report.
When to Work with A Builder?
So, when should you start working with a builder? Well, here’s where things can start to get complicated. If you’re buying your new property from a private listing, then your inspection should generally take place before the exchange, or within the two weeks following the exchange. This way, you can arm yourself with all the information you need to cut down the purchasing price.
However, if you carry out your inspection shortly after your exchange, you’ll have a period of around 14-days to start making requisitions to the vendor with respect to your new property. This is your opportunity to start highlighting any concerns you might have, and see if your vendor is willing to fix them on your behalf. You can also potentially exercise your cooling-off rights under contract.
The situation with auctions is often very different to if you’re buying a home. The laws will differ here from one state to the next, but in most cases, a purchaser is agreeing to buy a property as it stands when they bid for it. This means that you’re pretty much required to be one hundred percent happy with the property you’re buying before you start bidding.
If possible, it’s a good idea to make sure that you arrange for your building inspection to be fully completed before your auction takes place. This will allow you to make a more reasonable offer, and ensure you don’t get caught up bidding more than you bargained for.
How to Organise your Inspection
Given how popular pre-purchase building inspections can be, most companies will offer their services using flat-rate fees. You should also be able to organize inspections through these companies that cover things like pests.
Make sure that you take the time to shop around, find a builder that offers the service most appropriate for you, and get a great deal. Remember, a building inspection might cost you a few hundred dollars in the first place, but the savings you get could reach the thousands mark in no time!