Also known as….
And when should you have it done?
Buying a home is exciting, whether you are a first time home buyer or an experienced home buyer. Once you have purchased a few homes, you basically become an expert on the process, however for first time home buyers it may all seem a little overwhelming.
One of the most important parts of buying a home is the House Inspection before you actually move in. When buying an existing property, a house inspection will ensure that you, as the buyer, know exactly what you are purchasing. A house inspection can also help to get you out of a deal that is not up to scratch.
However, when buying a new home through Buy Real Estate Australia, the house inspection, also called the building inspection, will be done by an independent building inspector. The fee for the building inspection will be included in the Full Turn Key Price. To find out how you can buy a new home using Fixed Price, Full Turn Key option, Please Click HERE.
In this post, we’ll talk about how you can protect yourself with a house inspection, when buying an existing property and what exactly you can do with the information that is provided to you.
A Building Inspection as a Condition in the offer to purchase
If you are buying an existing home through a real estate agent, chances are that they have already suggested a building inspection prior to finalising the deal. If they haven’t, or if you are purchasing an existing home through a private sale, you should consider including a building inspection as a condition in your offer.
That means that the amount that you and the seller agree upon is based on a positive outcome in regards to the inspection. If there are any issues once the inspection has been done, you should be able to back out of the deal with reasonable ease.
If you don’t include a building inspection, as a condition in your offer, you risk being stuck in a deal that you are uncomfortable with, for a home that may not be worth what you originally thought. That may result in additional costs to you.
Building Inspections and the Selling Price
A building inspection can affect the value of a home, which may in turn affect the original offer to purchase. When you put in a formal offer, and the seller accepts it, there is a chance that you may not end up paying the specified amount if you made the offer dependent on a building inspection.
When the inspection report comes back and issues were mentioned that will cost you money to fix, you can respond with a request that the seller take those amounts off of the selling price.
If the seller does not agree to the lower offer and you no longer feel that the accepted offer price is fair, you can back out of the deal at this point, generally without penalties. That is legal, as long as the building inspection was included as a condition in your offer to purchase.
However, the seller have the right to call in a Building Inspector to verify the results of the inspection report.
Any home that has been pre-owned or that was not built by a professional residential construction company, should be inspected by a professional in order to ensure that it is built according to Australian Building code and that the buyer doesn’t encounter any unpleasant surprises.
What Does a Building Inspection Cover?
A building inspection should take a couple of hours to complete, since the inspector will be looking at so many different things. A building inspector will check things such as:
- Wiring and outlets
- Signs of water damage
- Exterior and interior structure
- Roof damage
- Other issues that could turn out to be costly if left unnoticed.
It’s important to remember that although a building inspector will take note of as much as they can, they are not obligated to report any damage that they weren’t able to access or see. It is your responsibility to make sure that he has access to all areas that you think may have an issue. If you are buying the home privately, you should arrange access to all areas with the owner. However, if you buy your home through a Real Estate Agent, the agent should arrange that with the owner.
Make sure to be well informed regarding the responsibilities of the building inspector. Ask questions about what they will check for and what they can’t. Have a clear understanding of your own responsibilities, and those of the inspector, prior to having the home inspected so that you are both on the same terms.
Finalising the deal
Having a home inspection done can save you a lot of time and even money. Think of it as insurance on your offer, which can protect you from a bad deal or unknown issues that you hadn’t anticipated. Be a smart buyer by doing your research, so that you can enjoy your home once your deal goes through.
After the home inspection has been completed, and the price negotiated (if necessary), it is time for you to go ahead and sign the contract. It is important to keep the building inspection report with all of the other paperwork that involves your new home so that you can refer back to it in the future if necessary.
Make copies of it all and save that in digital format so that you can access it easily. Store the original documents in a safe place.
If you feel at all that you don’t want to go through the stress of buying a pre-owned property, in case there may be some issues 🙂 , Buy Real Estate Australia will be able to assist you in finding your ideal new home. To find your Fixed Price, Full Turn Key Home Package, please complete the form below.