When you’re buying a home or investment property, you may decide to get a professional building and pest inspection. These are highly recommended as they could not only prevent you from buying real estate riddled with issues, but they could also save you money.
If you have a great conveyancer on your team, they may be able to leverage the results of your building and pest report to negotiate big discounts.
How? Because these types of inspections take a deep dive into the property’s ‘unknowns’, and when there is uncertainty, there is an opportunity to negotiate.
Your ticket to significant savings
Some buyers opt out of organising these types of inspections in an effort to save money. They can cost anything from $350-$800 for both inspections, depending on the location and the size of the property.
However, we believe it’s an essential part of your due diligence, first and foremost to ensure you don’t buy a property that hides a host of issues. Moreover, a building and pest inspection report can deliver much more than just peace of mind: it can also be your ticket towards significant savings.
At Think Conveyancing, our team of legal professionals have amassed experience in using the results of building and pest inspections to negotiate savings for our clients.
The reality of real estate is that buildings often develop problems as they age. The challenge for buyers is that not all defects are easy to spot. There can be mould hidden behind walls; cracks hidden beneath paint; structural issues hidden inside cupboards; the list goes on.
There can also be a number of less serious issues identified on your building and pest report – and these can provide an opportunity for your conveyancer to negotiate on your behalf.
Points of negotiation can include:
Cracks – Cracks may occur in the foundation, the exterior and/or interior walls, and they are often simply the result of a building settling over time. Many cracks are minor and can be easily repaired, while others are more expensive to fix. If the property you want to buy has evidence of cracking, have your inspector advise you on how much it is likely to cost to fix.
Water leaks – Issues like leaking taps and poorly joined pipes are not a big issue on their own, but they can lead to much bigger and more expensive problems. Building inspectors can use specialised equipment to look for leaks and water damage in hidden areas.
Termite damage – Certified building and pest inspectors can identify costly problems such as termite activity and past termite damage. This is important, as termite damage may not be easily identifiable or even visible. Even the word termite is enough to cause property owners stress, but if you catch them early enough, this can be an easily treatable problem.
If you find evidence of any of the above issues – or other complaints, like faulty wiring or structural risks – through your building and pest report, you’ll have to decide if you still wish to buy the property.
If you do, your conveyancer may be able to negotiate a price discount with the vendor to compensate for the cost of repairs.
In many cases, the repairs won’t cost you nearly as much as the discount you have negotiated. For instance, the cost to repair some leaky pipes might amount to $800, however your conveyancer might negotiate a saving on the purchase price of $2,000 – giving you a net profit of $1,200.
Negotiating over your building and pest inspection is just one of the myriad ways your property legal team can add value to your transaction. Our lawyers are committed to delivering exceptional customer experience and advice, so if you have any questions about the building inspection process or require more information, contact our friendly team on 1300 932 738. You can also contact us online here