Property inspections without the pain
In the current market, building inspections have played an integral role in the due diligence process of purchasing a home or investment. But what is essential when it comes to buying the essential pre-purchase building report?
To the average home buyer, all reports are the same, however, according to Jordan Attard from Resicert Property Inspections, some things are not what them seem. Here are the FIVE key tips to purchasing and reviewing a property report.
Ensure that the property inspector is certified and the report is compliant with the Australian Building Standard 1 – 2007.
Like any industry there are good and bad inspectors. However, the duty of care and integrity of an inspector is deciphered by their reporting process and thoroughness. Therefore, it is strongly recommended that home buyers and investors only use inspectors that are certified and compliant with the Australian Building Standard 4349.1 – 2007.
Generally, inspections carried out to this standard will ensure structural components such as foundations, walls and roof structures are covered in the report. Some inspectors will also include general maintenance and preventative items that can also provide greater reassurance and depth in the report.
Ensure the property inspector has professional indemnity insurance.
All too often in our industry we hear nasty stories of inspectors missing a vital issue in their report, resulting in costly repairs to the purchaser. Therefore, it is extremely important that the property inspection company has professional indemnity insurance. Today, most inspectors are open to showing their certificate of currency as proof.
Supplying this document can reduce the risk of hefty repair costs down the track, as both inspector and buyer are covered in the event that something is missed during the inspection. It is important to think of professional indemnity insurance as a form of warranty for your purchase.
The cheapest company is not necessarily the best company to engage for your property inspection. Inspections conducted by two inspectors (a building inspector and a pest inspector) is a better approach.
The pre-purchase inspection industry is fast becoming a competitive price market, however the industry does not have any regulated or standard fees. Generally, the cheaper the report, the less thorough the inspection and subsequent report. In Sydney, the average price for a combined building and pest package is $495.00 incl. GST. Although, there are companies that offer a package for less then $300.00 incl. GST.
Spending a little more will ensure the most thorough inspection and the most detailed report is provided. Better companies also have two inspectors on site (like Resicert Property Inspections) where both a building inspector and a pest inspector are on site to conduct two separate reports.
There is merit and weakness for reports that are offered for free by a real estate agent.
Offering a report that was conducted on behalf of the vendor to buyers is a good initiative that some real estate agents undertake as a service for their potential purchasers. However, sometimes a conflict of interest may arise in regards to the integrity of the report. It is recommended that if a report is available to purchase at a discounted rate with the opportunity to place your name on it, this is the better option as you can claim the professional indemnity insurance on the report, which may save you in the event that something is missed during the inspection.
Resicert Property Inspections does provide this service, whereby our existing reports are available for purchase by other potential buyers at a cheaper price. The reports are completely independent and all buyers are re-assured with their ownership to the report.
Alternatively, using your own independent inspector is always a safer option.
If you do not understand terminology utilised in the report, ensure you consult the inspector for a verbal briefing.
Most reports use words and terminology that you may not understand. It is imperative that you consult your inspector to explain the difficult and technical terms and expressions to make the report more legible. By doing so, any questions, queries and assumptions can be answered and explained, which can assist you in making a sound decision in regards to your purchase.
Furthermore, an inspector should be able to provide you with tips and advice in a preventative sense, to further extend the longevity and improve the condition of your home.
As the property market continues to be competitive, it is essential that all property purchasers conduct due diligence to ensure their purchase is the correct one. In reference to building and pest reports it is imperative that a certified, honest and thorough inspector is chosen to ensure the property is in a standard relative to your plans.
Jordan is an experienced inspector with extensive knowledge of a wide range of property building and developer. He is certified and ensures his reports are compliant with the Australian Building Standard 4349.1 – 2007. Jordan can be contacted by emailing firstname.lastname@example.org.
Resicert is a specialist provider of building inspections, Australia-wide, with more than 20 years industry experience.