Using inspection results to negotiate a better price
Buying property is a major investment and you want to make sure that there are no major issues that will end up costing you more in the future. As we discussed in our post What is a Pest Inspection, building and pest inspections are an important, essential part of buying and selling properties. By selecting an excellent inspector, such as Vital Building & Pest Inspections and making sure your inspections are completed before making any further negotiations you are giving yourself much needed information on the condition of the property.
Sellers can use a pest inspection report to bring up a relevant and reasonable offer by knowing the current condition of the property as well as using it as an opportunity to decide whether to spend money on hiring a pest control company to clear any pests before going to market.
For buyers, knowing the property’s condition gives you the advantage to bargain for the best price.
Look past the surface of the property
Unfortunately, there are many times when sellers are either not aware of or try to hide both major and minor flaws to make the property attractive and presentable in the eyes of the buyer. Sadly, just looking at the property through photos or an open house will not be enough to determine the state of pests or other damage to the building unless you are well trained to notice defects.
Some examples of these defects include walls or ceilings with problems, roof leaks, water damages, pest infestations, and more. If you decide that a building and pest inspection is necessary, a condition report will include any significant defects in the building or problems like the examples above. Concealed problems will be revealed in the report.
As a buyer you can bargain for the property or request that all the defects be restored before your actual move, if you know its existing condition.
How will a building and pest inspection save money?
You’re more likely to fix issues
Having a building and pest inspection conducted, whether pre-sale or after purchase, will save you money in the long term. When you’ve paid for the building and pest inspections you are more likely to follow up with the required pest controls and repairs to fix and upgrade the premises – by recognising and identifying the defects and any infestations you can be proactive and address the problems before they get too difficult and expensive to fix.
By postponing, ignoring, or being ignorant of the issues you are putting your property at risk of further deterioration, which means more money spent on repairs to reverse the damage.
You’ll increase the property sale value
Keeping in mind that a property’s worth is enormously affected by its existing condition, the resale price can be higher if a building and pest inspection is done. If you know what’s wrong with the property you have the chance to fix any issues before putting it on the market. Often by fixing the building and performing the necessary repairs you will not only preserve the property’s structure but also increase its value in the process.
Not performing a building and pest inspection means you won’t know about any damage, meaning you cannot repair it, and it could result in a lower resale value.
How can I leverage inspection results for a better price?
If you’re looking at buying a property and have a completed building and pest inspection report, you can use that to your advantage and potentially save thousands of dollars on the asking price.
Fixing termite damage can cost a fortune if you’re trying to retain and preserve the existing dwelling. By showing the pest report to the seller confirming the presence of pests, you may be able to use that to drive a hard bargain and get a discount based on how much it would cost to repair – regardless of your plans for the property.
Paying attention to water damage and damp areas
Using the building inspection report you can gather up quotes on how much the repairs would cost and present that to the owner. Whether or not they decide to do the repairs on their own or simply give you a discount is unknown, but it’s worth trying.
Your building inspection will determine whether any bedrooms are legally habitable, considering the size, ceiling height, and number of windows. If the report shows that one or more of the rooms are lacking in those areas, you have the power to negotiate for a lower price as the house is not as advertised.
Issues like cracked stumps, rusted roofs and unauthorised renovations are expensive to fix and can result in legal issues, too, so if these are revealed in your inspection, you’ll have the upper hand on the seller when it comes to negotiations. The same goes for pool fence compliance, retaining walls, and the safety of verandas and balconies, including stairs and railings.
If the building inspector discovers asbestos, you’ll need to check out your state’s law at asbestossafety.gov.au. Following that, you should get some quotes for the cost of removing and replacing any relevant walls or roofs before presenting a plan to clean up and protect the property to the seller.
Let’s get inspecting, with Vital Building Inspections
You’ve found the perfect property and you’re ready to move forward with putting in an offer and getting a pre-purchase building and pest inspection done. Who are you going to call?
Vital Building & Pest Inspections have over 20 years of experience in building restoration and building inspections. With our team of dedicated and experiences inspectors, such as Head Inspector Peter Ezeigwe, we have seen it all and understand the causes, fixes and costs.