Why a Building Inspection is a Must for Property Buyers

Getting a building inspection is always recommended, but what could go wrong if you chose not to do it? What are the benefits of having one?

A thorough building inspection can uncover issues that might not be obvious at first glance—issues that could cost you thousands down the road.

For example, when is a 3-bedroom house actually a 2-bedroom house? It happens more often than you think, and without a proper inspection, you might not find out until it’s too late.

A Real-Life Example on How a Property Inspection Saved a Buyer from Disaster

One first-time home buyer learned this the hard way. After getting advice from so-called "experts" on Dr. Google and Dr. Facebook, he made an offer on what he thought was his dream home. Good price, large land, and decently presented property. What more could he have asked for? Trusting the faceless "experts" on social media property groups, and believing the sales agent—two mistakes no property buyers should ever make—he nearly overpaid by over $100,000.

Luckily, we crossed paths just in time. Our builder-trained buyer's advocate took one look at the property and immediately noticed something was wrong. His offer was accepted, but we stepped in, took over the purchase process in time to help him walk away from the contract without penalties.

What was The Shocking Truth? 

What was advertised, priced and sold as a 3-bedroom house was actually a 2-bedroom house with an illegal extension! Yes, the owner had stapled a few planks together to create a third bedroom. When our buyers agent inspected the property, we noticed something not quite right. It was colder in the room, and the walls are flimsier. And our suspicion was proven correct when we ordered a building inspection for the buyer.

What Can a Building Inspection Uncover?

Building inspections can cost a bit, but a good inspector can reveal tons of hidden problems. Some of these range from minor superficial cosmetic problems to major issues like:

• Structural issues that could lead to costly repairs.

• Illegal extensions or modifications that don’t comply with building codes.

• Termites and Pest infestations or damage that could compromise the property’s value.

• Safety hazards like faulty wiring or asbestos.

What Should You Do After Getting the Building and Pest Inspection Report?

What happens after you get the building and pest inspection report from the inspector? A detailed inspector may identify hundreds of 'defects' or concerns in the report, and buyers are usually overwhelmed by a detailed report. But, while you might be overwhelmed by the amount of information, it is also critical that you go through it and understand what your responsibilities are.

What do You Need to know in the Building and Pest Inspection Reports?

Good inspectors will usually categorise the concerns and defects into major or minor, and where possible, explain what the issues can cause. Once you have the inspection report, it’s crucial to:

1. Understand the findings: Review the report thoroughly or consult with a professional to understand the implications.

2. Negotiate or walk away: Use the report to negotiate a better price or, if the issues are too significant, walk away from the deal.

3. Plan for repairs: If you decide to proceed with the purchase, factor in the cost of necessary repairs or renovations.

How can you be Affected by the Building and Pest Inspection Report?

It is critical to understand how these defects and concerns apply to you. Some of the things to look for might include:

1. Structural Defects. Structural issues would usually be clearly identified in the reports. If your contract is done properly, this will almost certainly let you walk away from the purchase commitment without any penalties.

2. Seriousness of the Issues. Good inspectors will next classify the other identified issues into either Major or Minor. Whether this is sufficient for you to walk away, depends on what your contract says.

3. Cost to rectify. Depending on the issues identify, a serious issue may not necessary mean it is an expensive fix. Conversely, a minor issue may not mean it is a cheap fix either. And the sad fact is, an expensive fix is usually not sufficient for you to walk away from the purchase.

4. Responsibilities and Liabilities. Having this report done also mean it comes with some responsibilities and liabilities.

How Much does a Building Inspection Cost?

A formal building inspection takes about 2 hours and need not be expensive. Depending on location, type and size of the house, and obviously, other competitors in the area, a formal building inspection can cost between $500 to $800. In the bigger scheme of things, it is less than 1% of the price of the property, and it is a small price to pay, for your biggest investment in life.

Building inspectors usually does not include a pest inspection, which looks for pest infestations and pest damages, such as termites, boring insects, etc. Most building inspectors offer this as an additional cost option, of approximately $300.

Are there Lower Cost Building Inspection options?

Yes there are, but these would usually be limited to a 15-30 minute visual, non-invasive inspection of property.

Our builder trained buyers advocates offer this scaled down inspection as part of the Open-For-Inspection inspection service. As we inspect the property during the regular open for inspection times, we watch for obvious areas of concern in the properties. While it might not be a comprehensive inspection, this is usually sufficient to highlight major issues, such as stumping issues, major concerns such as structural cracks, falling walls, etc.

We also include an independent appraisal, so you fully understand the true value of the property, what other buyers will likely offer for the property and avoid the risk of overpaying. Let us help you make informed decisions, no matter where you are.

Note: Due to the limited time available, this will be not be detailed inspection report.

The Bottom Line- Importance of Building Inspections

Never underestimate the importance of a building inspection. It’s a small cost and it can save you from making a costly mistake. Do not rely on social media "experts" or sales agents—get professional advice, and make informed decisions.

Contact us today to learn more about how we can guide you through the property buying process and protect your investment.