If you’re about to sign on the dotted line for your dream home, stop and ask yourself:
How can I be sure the property I’m buying is in good shape?
A pre-purchase inspection is essential for every home purchase – whether it’s a new family home or an investment property.
Not only will it help identify potentially serious problems with your proposed purchase, it could save you thousands of dollars in the long run.
An inspection can reveal significant building problems or hazards, and help you decide if the property is really what you are looking for after all.
The person who inspects the property – typically a licensed builder – will check the condition of the interior, roof and roof space as well as the under-floor space of the home you intend to purchase – provided they are accessible. They’ll then provide a detailed report, usually in a checklist format, once they have completed their inspection.
The price of a pre-purchase inspection depends on the property and the time taken to make the evaluation, but as a rule of thumb the cost for a standard report on a typical residential property is usually around the $500 mark, but can vary in each state and even between different suburbs.
If that sounds steep, consider that any issues highlighted in the report can be a valuable bargaining tool to drive down the asking price. Just remember you’ll need the vendor’s permission to have the property inspected – so be sure to give plenty of notice.
This will help ensure that the places you need to have inspected are accessible.
Some important exceptions
A property inspection could mean the difference between a good and a bad investment, however, there are some things that it may not include.
Possible exceptions include:
- Footings
- Concealed damp-proofing
- Electrical wiring
- Plumbing
- Drainage
- Water systems
- Gas fittings
- Fireplace or chimneys
- Television reception.
If you would like to discuss this topic, John can be contacted on 0749722081 or 0410433919. You can also email him at jwhitten@ihl.net.au or look him up on the net www.ihl.net.au. John Whitten is a credit representative (CRN 399796) of BLASSA Pty Ltd (Australian Credit Licence No 391237).
