While purchasing a property is a very exciting time in ones life it can become a nightmare if the buyer does any of these three things:
1. Fail to select the right company to carry out the pre-purchase building & pest Inspection
Just because someone advertises themselves as a building inspector, it does not mean that they are a licensed builder or have have any building experience what so ever. Queensland is the only state in Australia which regulates the carrying out of building & pest inspections.
Most property buyers are totally unaware of this today, and simply assume if someone advertises themselves as a building inspector they will have the relevant qualifications and this is simply not always the case. Also it is not compulsory for a building inspector to hold professional indemnity insurance to cover their client in the event the inspector does make an error or oversight. Without insurance you will have little or no recourse other than to try and hold the inspector responsible and if he has not been able to get insurance cover or he has chosen not to hold insurance you are on your own.
Ask the question: Are you a licensed building/pest inspector and do you hold professional indemnity insurance?
2. Fail to get an independent inspection company
Unfortunately many inspectors rely heavily on referral business from real estate agents and as we know real estate agents only get paid their commission if the property sells. If an agent pushes or insists you use their preferred building inspector you should be very wary of this practice as an agent will likely receive a commission in excess of $10,000.00 on the sale of the property you are looking to purchase.
Don’t get me wrong, there are a lot of great real estate agents in the marketplace and we also receive a few referrals from real estate agents.
Ultimately you want an independent report that provides you with all the relevant information pertaining to the properties condition good or bad. Remember a pre-purchase building and pest inspection report is not a pass or fail report, it is a report outlining the properties condition on the day of inspection.
3. Didn’t read the report & carry out all recommendations
Your pre-purchase building and pest reports should provide you with a lot of information about the properties condition as inspected on the day. These reports will also likely contain a number of recommendations that will need to be addressed. Some of these may need to be undertaken prior to your contract becoming binding and this may include the carrying out of a further investigation, obtaining paperwork and or warranties from the vendor, quotes from relevant trades or making further enquiries relating to additional or illegal structures.
By following through on all recommendations as contained in the report you will be more empowered to make the right decision to purchase the property or terminate the contract and pursue a more suitable property that fits your needs.
Unfortunately in the excitement of the process often buyers will not realise the importance of following through with our recommendations and simply buy the property hoping everything will be ok.
Follow this advice and the process of buying your next property should make this a smooth exercise. Happy house hunting!