Building Inspection - PLEASE HELP!

Hi all,

I've had my offer accepted for a new IP for asking price (which I am very happy with) in an up and coming area that I believe has a lot of potential. The vendors are separated and there has been some delay in getting all the relevant forms together, so technically the cooling off period has not begun yet (but should only be a few days away at this stage).

My original plan was some basic renovation once the tenant's lease is up in September (painting, polishing floorboards, painting deck, some minor landscaping).

BUT - I have just received the building and pest inspection back and there seems to be a few things that required urgent attention:
  • The gutters are shot and need to be replaced
  • There are some loose roof tiles that are letting some water into the roof, which need to be replaced and cleaned of moss
  • The water damage has also caused some cracking in the brickwork
  • and mold in the ceiling in the bathroom and one bedroom meaning that the ceiling panels will need to be replaced

Some other factors which may impact:
  • The co-owners are seriously not speaking to each other and just want the property sold, so the agent thinks they would not be amicable to making repairs before settlement
  • There are other offers on the table which means that my offer could be denied if I reduce it to make the repairs in favour of another offer that was made at asking or close to
  • We are in the middle of the most ridiculous rainstorm at the moment which should last out the week and is only making the problem worse

So my questions for you all are:
  • Are the issues fixable and has anyone bought a house needing these issues rectified before?
  • Does anyone have an idea of how much these things would cost?
  • Are they even fixable?

PLEASE HELP!

Cheers,
Erin
 
These issues are fixable, probably only a couple of thousand.

Established homes generally don't come in "as new" condition, and you should make an offer based on every home requiring at least the scope of repairs identified in this building inspection report. (It sounds like the "least bad" report of any house I've ever had inspected; they always make it sound like the house is falling down!)

To try and renegotiate the price based on repairs this trivial would certainly **** me off as a vendor, and I'd be looking more closely at some of those other offers.
 
Thanks Perp, that certainly makes me feel a lot better. It's hard to know what to be really concerned about when the building report does make it seem like the house is falling down like you say!

I've attached some screenshots of the building inspection to provide more detail. Any comments or suggestions will be warmly welcomed.

Cheers,
Erin
 

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My only reservation is that I was going off your first post where you said: "water damage has also caused some cracking in the brickwork". Are you sure that brickwork cracking is only due to water damage? Does it say so in the report?

I'd want to be pretty sure about that, because if it's due to movement of the structure, I'd have an entirely different perspective on the seriousness of this cracking. Unless you're convinced that's true, I'd want to run it by a structural engineer.
 
[*]The water damage has also caused some cracking in the brickwork
Looking at the photos, I'd give this one a miss on this point alone. That is, unless you are after a renovator and know what you're doing (which it does not sound like from your post).
 
Hello Erin :)
I would tend to lean this way too,the cracks are/and can be a absolute money pit.If you want renegotiate the price,or let someone else have the headache.Just my 2 cents.

Me too, having structural problems is a major no no!

I lost $450 for building inspection last week, but if I accept the deal it will cost me more.

Lucky OP organised building inspection
 
If you got it for a great price and know the costs then maybe.

Personally would not buy a property with that cracking, although I am proceeding with a property that has some defects I did not expect - maybe 20k+ HOWEVER the end result will be equity of 10 times that amount of repair work.

So if your offer is not under market value to cover the repairs then move on to a property that has not been neglected.
 
We bought a property that had structural issues. Owners had work assessed and provided the works to be done showing a cost of 60k so had purchase price adjusted for this.
I had no clue on what this would really cost but suspected it would be higher so had a structural engineer do a report after build and pest.

Like for like repairs to structural issues/retaining walls/stairs was approx $160k
We adjusted our offer, they went over the report we provided and came down on price.
It doesn't sound like you have a negotiating position here, could you use the cooling off period to get a structural review done so you have a good idea of cost involved to see if it is still doable?
Our report cost $700 but was in Brisbane. Even had we not gone ahead with the purchase I was happy to invest in that report. It was a difference of $100k had we gone on their one!
 
Thank you for all your responses!

After much deliberation I ended up cancelling the contract. I do think it still could have been a good purchase, even for the land value alone, but unfortunately not for me. Hopefully someone looking for a challenge ends up picking it up, if it is one of you lot I have a fresh and sparkly building and pest inspection report on offer ;)

If anyone is interested the property is 165 Peachey Rd Davoren Park and it is now available.

In other news I've just had my offer accepted on another property that looks to be much less drama!

Thanks everyone
 
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