Why you should pay for a building inspection
Estimated read time: 3 Minutes
When you think you’ve found the home of your dreams it’s easy to charge ahead and get straight to gearing up to make an offer.
But before you sign on the dotted line, it may be worth having someone who isn’t invested in the outcome to take a closer look at the property to avoid problems and extra costs down the track.
Do you need a building inspector? Building inspectors are professional builders, surveyors or architects who will provide you with a standard property report. They follow specific guidelines and know exactly what to look for. If you’re interested in finding out something specific, like whether the property could sustain a second storey in the future, they may be able to give you an indication of that too. You can also have a separate pest inspection report completed to ensure there are no hidden nasties under those polished floorboards. Below are three reasons why smart and savvy home buyers choose to pay for a building inspection.
1. See problems without rose-tinted glasses
When you first look at a property, it’s only natural to get carried away thinking about which room will be the study and whether the kitchen cupboards need a modern overhaul. A building inspector understands those little details that can easily escape the untrained eye. Has a good paint job covered up rising damp? Is the ceiling buckling under pressure? Are the waterworks flowing as they should? Is there movement in the walls resulting in cracking? These are all issues that can be overlooked in a standard walk-through, but they can make all the difference when you’re looking at making one of the biggest financial investments of your life.
One of the often-overlooked advantages of a building inspection report is that it could potentially increase your negotiating power.
2. Plan for future costs
While not everything picked up in a building inspection will necessarily require a fix, the report can highlight significant repairs or costs that may be required in the future, and may impact your decision to purchase the property. If you know you’re going to have to get the entire house restumped in a couple of years, or that the energy rating may triple your electricity bills, you can plan for these costs and perhaps take them into account when working out how much money you need to borrow.
3. Increase your negotiating power
One of the often-overlooked advantages of a building inspection report is that it could potentially increase your negotiating power. While you can’t use this at auction, you can pull out your bargaining chip if the house is passed in on your bid or is being sold through private sale. By understanding what structural issues the house has, and being able to produce a formal report to back it up, your position of power at the negotiating table will be well grounded, potentially saving you thousands of dollars.
Armed with this knowledge after reading your report, you can make an informed decision about whether you want to purchase your new home, negotiate a better price for the property or look for something more suitable.
When should you get a building inspection?
While a building inspection deals with many aspects of the property, make sure you understand exactly what is included in the report before paying for the service by contacting a qualified and licensed home inspector in your local area.
When you're ready, get in touch with one of our Lending Specialists.
Contributor | Barry Saoud, General Manager, Mortgages and Commercial Lending
Barry joined Pepper Money in July 2021 as General Manager, Mortgages and Commercial Lending. He is responsible for the strategic direction and operating performance across product, credit, and settlements for mortgages, commercial loans, personal loans, and direct sales. Read more.
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