THIS 1 MISTAKE CAN MAKE YOU LOSE MONEY IN PROPERTY BOOM

Building and Pest Inspection is a must, whether the property market is in boom or sluggish. Desperate property buyers skipping building inspection is top property mistake to lose money and had to bear the loss of thousands of dollars in form of hidden building defects

The Australian property market is red-hot right now and it is a seller’s market. A staggering 84.4% success rate of auction proves it and they are getting above the asking price. Even in private sales (non-auctions), sellers are getting multiple offers and buyers are not getting any chance to negotiate.

In this race to take the advantage of the situation, buyers are making 1 huge mistake that can make them lose money during the property boom – skipping the building and pest inspection. According to a real estate agent, only 30%-40% of buyers are ordering building and pest inspection services. In attempts to outrun others, buyers are taking shortcuts and may become victims of hidden building defects.

Here are 3 reasons why you should not skip building and pest inspection

100% of buildings have defects

According to a report published by mozo.com, 100% of properties have been found to have building defects. Property buyers have to bear the bill of $10.5 Billion dollars to fix the building Problems. The average cost of fixing these problems in apartments and houses is $6,434 and $5,839 respectively. 1 in 20 house buyers have to spend more than $20,00 to repair the building defects and 1 in 20 apartment buyers have to fork out more than $50,000 to fix the building defects. There may be building issues that may be fatal for your family or leave your dream home unsafe for living. These expenses

Vendor Try to hide defects

Building defects lower the value of a property and vendors go to any extent to hide building issues in the property. Building Inspection Council has observed that significant percentage of property seller uses creative techniques to conceal problems such as water damage, cracks in walls and ceiling, roof leak or damage, faulty doors and other. Some of the common deception methods are fresh paint, carpet, strategically placed furniture or boxes, painting or wall paint, placing pots, etc.

It is impossible for an untrained buyer to identify building defects in this scenario and you need an expert building inspector. With experience, they learn where to look and what to look for. Usually, house sellers hide only those defects which are expensive to repair. This means you have to bear the bill if you skip building and pest inspection.

For more information, please read ” 10 WAYS SELLERS USES TO HIDE SERIOUS BUILDING DEFECTS“

Agents are on vendor's side

An agent works for the vendor and his job is to obtain the best sale price for the property. Both property sellers and real estate agents do not want building defects to be found out during the inspection. This will lower the value of the property and may jeopardize the sale. The real estate will make money when the sale gets through otherwise all of his hard work will be wasted.

Some agents hire their own inspector to create a building and pest inspection report of the property. This report is supposed to help you make your decision but the building and pest inspector works for the agent. They provide the report as per the instruction of the real estate agency. It is extremely important to hire your own 100% independent building and pest inspector for a pre-purchase inspection. Only an independent building inspector is on your side.

All these reasons make buyers vulnerable to losses during this property boom. Building Inspection Council has many stories to share where families have lost a huge amount of money. All the official bodies highly recommend all the buyers arrange building and pest inspection before settlement.

Building Inspection Council is a not-for-profit community service and we help Australian property buyers with free quotes from qualified building inspectors so that you do make top property mistake to lose money. Users save $104.7 on average as compared to the market price. We pre-verify each building inspector on strict criteria before they can send you quotes. The best thing about being a not-for-profit organization is that we do not have to compromise on anything for profit. You get the most genuine and honest quotes. FOR FREE QUOTES, CLICK HERE.

How to get a building inspection done during the property boom?

It is very difficult to get the building inspection done during the hot property market. Sellers are getting multiple offers and they are considering unconditional offers. Building Inspection Council has observed that buyers are getting inspections done even before mortgage approval. The option is to have building and pest inspection completed before the property hits the market.

What are the risks of skipping building and pest inspection?

Properties do have building defects that may cost thousands of dollars to fix or leave your house unsafe to live in. During the property boom, people try to sell the bad properties as they know that buyers won’t be that careful. If you do not have done your building inspection completed, you may end up with a lemon.

Can I rely on the vendor's Building Inspection report?

No, you cannot depend on the vendor’s building inspection report. The building inspector is hired by the vendor and a report is prepared to show the property in good light. Building Inspection Council advises hiring an independent building inspector. Only an independent inspector can give impartial, unbiased, and uninfluenced advice.