ARE PROPERTY BUYERS IGNORING BUILDING AND PEST INSPECTION IN THE RED HOT MARKET?

Desperate house buyers are ignoring the building and pest inspection reports in the race to beat the competition in the red hot market. The real estate experts are saying that this is a dangerous trend and some buyers are not even ordering the pre-purchase building inspection.

In February, Australia has seen the fastest growth in property prices in 2 decades where both capital cities and regional areas are benefiting.

There is a shortage of properties in the Australian property market and demand is bursting at its seams.   The main reason for this situation is the covid-19 restriction that stalled the buying and selling for months.

This limited supply of property has created fierce competition in buyers which is pushed the prices. The property buyers have no time to hire a  building and pest inspector.

As per Max, a building inspector in a Melbourne-based building inspection company, ” Although the demand for the building inspection has grown by 30% but not all the buyers are paying any attention to the report.”

“At the end of the day, it is seller’s market. the buyers have to proceed even after finding negative remarks in the report” Max said.

Buyers have to compromise on this as they know that there are so many other buyers who will buy the same property no matter what.

The property market is so hot that no one bothers about getting the pre-purchase inspection done or are ignoring building and pest inspection and this is a dangerous practice. Building Inspection Council has been shared a story by this selling agent about this house which was beyond the repair and still there are many offers without any building inspection condition.

Sellers are considering only unconditional offers and buyers are pressured to transact within few days.

The agent said,” Only 30%-40% people are ordering the building inspection, rest of the property buyers are making offers without any building and pest inspection at all “. Building inspection Council just learned about a story of a couple who skipped building inspection and end up losing $30,000 in form of repair cost.

Another agent from the Melbourne-West asked the buyers to extra care as in the strong market is perfect opportunity to sell a house full of problems. The agent said ” we are selling houses which no one would have touched in normal time. That is why in the hot market, there is a disproportionate percentage of houses with issues.”

People are finding this a perfect opportunity to get out the problems houses and area. Most of these houses will be in the market after some time as buyer end up with a lemon.