When you are about to make a massive decision on a house the ods are you know that a building inspection is important.
If you get the timing right, your report can be worth far more than it costs, if you get the timing wrong; it could be worth far less.
Getting a report done when you have already made an offer, or worse yet when you have already finished cooling off can be a major mistake!
Your Building Inspection Report Serves Three Main Purposes
The report that is generated after our inspection can be used to assist you in:
- Deciding on whether to purchase the property
- Negotiating on the actual purchase of the property
- Planning on what maintenance needs will be needed if you buy it
Depending on when you arrange your inspection, you can benefit from all of these purposes, or only some of them.
You can organise an inspection before you place on offer, after you place an offer, and every now and then we even have someone organise their inspection after their cooling off period.
Organising Building Inspections Before Placing an Offer
This tends to only be done by property investors in our experience. When the main goal of purchasing the property is to increase wealth over time, then maintenance issues play a major role in making even an initial offer of purchase.
If you are finding it hard to choose a place, this can also help you make that decision.
Having the inspection completed before placing an offer can help you to:
- Decide if it is even worth purchasing
- Decide on how high or low your initial offer should be
- Negotiate on the price of the home
- Plan for any maintenance needs coming up
When you make your initial offer after the building inspection, you can be more confident with how much you believe the property is worth.
It means that you do not lead with an offer that is too high, only to find that you need to negotiate it down if the building inspection comes back with multiple problems.
This way you can calmly assess the property, and make your offer with full confidence!
Organising Your Building Inspection After Your Initial Offer
Hands down this is the most common period in which most people arrange their inspection.
Your initial offer typically will be placed with the golden phrases "subject to finance" as well as "subject to building inspection".
The main benefit of getting the inspection done in this stage is that you have pretty much narrowed down your property choice to one place.
This means that if that inspection comes back with no problems, you will have made it through the home buying process only needing one building and pest inspection!
Having The Inspection Completed After Your Initial Offer Helps You To:
- Decide if you will back out before the cooling off period
- Negotiate on some maintenance or price reduction before sale
- Plan for any future maintenance that will be needed
When it comes time to negotiate with a Real Estate agent, having as much knowledge up your sleeve about the property can only help.
Remember, it is the agent's job to always be reminding you of the positive features of the property, and to use this as an argument for an increase in price.
The building and pest inspection report helps give you some ammunition to negotiate back with!
Arranging The Building Inspection Report After You Have Already Cooled Off
This is obviously not the ideal scenario to find yourself in.
Whilst an earlier report would have helped you make your decision, negotiate on price and then prepare for the future; you now only have the benefit of being prepared for the future.
Never the less, it is still worth knowing what you have gotten yourself into.
One recent client we had, lets call him Bob, did not actually realise that his cooling off period was completed.
Bob decided that since his contract stated 'subject to building inspection' that he should probably go and get an inspection completed.
Bob's main problem however, is that the building inspection was almost entirely an afterthought.
This meant that when we found some significant structural issues, it was actually too late for Bob. The period in time in which he could have called it all off due to a building inspection was over.
This meant that Bob's primary use for the inspection report that he had completed, was simply knowing that he had better get some repairs done reasonably soon before the problem became larger.
The False Economy of Putting of an Inspection
Some of the common reasons we hear from people for not getting their inspection done earlier in the process are:
- They didn't want to get it done until they knew they could negotiate to a price they wanted
- They didn't want to have to get more than one inspection done during their house hunt
- They assumed the house would be fine, so the report would show nothing
It may seem like you are saving money by only getting a report done on a house you are extremely likely to buy, but the report itself can play a major role in helping you actually decide.
You could spend weeks and multiple inspections, gradually falling in love with the home, only to have us bear the bad news to you that the home is about to need significant work done.
As far as the escalating cost of getting more than one inspection done, we can help you there. We can offer discounts for people who are getting more than one report done, so your diligence and preparation can be a way of saving money! Ask us about the discounts available here.
There can be significant benefits to getting your inspection completed sooner rather than later!