Home Inspection Mistakes – Facts and Fiction

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Home Inspection Mistakes Facts and Fiction
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• With the busy spring selling season nearly
  upon us, plenty of would-be buyers are preparing
  to hit the real estate websites to see what new
  stock is about. Potential buyers may engage a
  building inspector because they have done so in
  the past or have had a great recommendation from
  family or friends. Others are only motivated to
  do an inspection if they think they can use the
  report to negotiate a better price. But what are
  some of the biggest mistakes they make when it
  comes to a home inspection?

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FICTION Not every purchase needs an
inspection

• FACT A home inspection is one of the most
  important steps you can take to make sure your
  new home is a sound investment and a safe place
  to live. It is vital to do your homework before
  making the biggest purchase of your life. Most
  people would never dream of buying a car without
  getting a mechanic or a RACV check. Having a
  building inspection done by an experienced
  building inspector, even on a new-build
  home, should be one of the highest priorities for
  a buyer because it will assist in making an
  informed purchase decision.

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• To the untrained eye a building might appear
  to be in good order, but it is a far safer option
  to draw on the experience of a reputable building
  inspector who can look for problems lurking below
  the surface. We find newly renovated
  constructions which usually look fantastic but
  are often not built according to Australian
  Standards can be a disaster waiting to happen.

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FICTION I have a builder friend who can
look over the building and he will do a similar
job to a building inspector

• FACT I have seen the family builder
  friend at many inspections. They rarely inspect
  the roof or get down to inspect under floor. They
  do not have to equipment to determine moisture or
  wood decay. You are also not covered by
  appropriate insurances.

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FICTION A bad report kills a
purchase

• FACT A report that flags one or several
  issues doesnt necessarily signal the end of a
  potential sale. Instead, it offers the buyer a
  clear understanding about what may need urgent
  attention and what longer term maintenance should
  be considered. Not only does it offer a
  negotiation aspect, it also provides opportunity
  to source estimates on the cost of any repairs
  before the cooling off period expires or before
  signing a contract.

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FICTION the real estate agent or vendor
must disclose any major defects in the property
I wish to purchase.

• FACT Having an inspection prior to a home
  purchase in Victoria is vital as laws governing
  house sales in Victoria stipulate that it is
  Buyers Beware. It is up to the purchaser to
  conduct relevant checks to establish the
  condition of the property.

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• Potential areas that may push your budget over
  the edge or make you so uncomfortable that you
  may not wish to go ahead are the presence of
  asbestos, structural issues, mold and termite
  damage. Many times the vendor is not even aware
  that the shower is leaking causing major
  structural damage or that previous termites have
  caused the deterioration of the structure of the
  dwelling.

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FICTION A home being built doesnt need to
be inspected

• FACT Even experienced homebuyers can believe
  that a home under construction doesnt need an
  independent review of work being done. It can be
  a rookie mistake that can result in major faults
  that are not being picked up until well down the
  track often years later, or when it comes to
  sale time. Dont assume a builder or contractor
  is doing everything to the highest standard, and
  remember that an inspection might be a last line
  of defense against major defects.

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FICTION A would-be buyer cant go to the
inspection

• FACT A growing number of buyers are opting
  to go to an inspection so that any matters raised
  can be discussed with the building consultant and
  considered in greater context. This avoids a
  novice buyer placing an over-emphasis on a minor
  problem, or even worse, not realizing the
  seriousness of a defect. The inspector must
  inform the real estate agent that the potential
  buyer will be present so make sure you inform the
  inspector at the time of booking.

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FICTION Recommendations made by an
inspector can be delayed

• FACT There are times when a pre-purchase
  inspection flags an issue that might need greater
  examination, and a Building Inspector may
  recommend that the buyer refers it to a
  specialist expert before the sale concludes.
  Ignoring that advice runs the risk of an issue
  turning out to be a far more expensive to rectify
  or a much bigger deal than originally anticipated.

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FICTION A buyer needs to sign the contract
before they arrange an inspection

• FACT Anyone seriously thinking of buying a
  home can exercise the right to have a property
  inspection done at any stage during the sales
  process, and they do not have to wait until a
  contract has been signed or a cooling off period
  has started. Dont forget that an offer on a
  property can also be made subject to the outcome
  of a building inspection report.

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• However many contracts stipulate that the
  defects need to be major before you can get out
  of the contract. Be aware of any agent who wont
  give the inspector access until after the cooling
  off period. In every case this has happened to me
  there was something big the vendor was hiding.

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FICTION A real estate agent is there for all
parties

• FACT An agent is primarily acting in the
  best interests of the seller. In comparison, a
  building consultant is engaged to give a would-be
  buyer an honest, straight opinion about the
  current condition of the house and flag any
  potential issues to be considered during the
  sales process. Do your own research and engage an
  inspector you feel comfortable with.

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