Building / pest inspection before offer?
- Thread starter LoneWolf
- Start date
Offer subject to building and pest, or at least agree on a price before spending money.
If they won't allow a building and pest after your offer, ask them why they think the property wouldn't pass a building and pest inspection.
If they won't allow a building and pest after your offer, ask them why they think the property wouldn't pass a building and pest inspection.
Can you elaborate this point?
It would be silly to spend money on inspections if there's a chance that you won't be able to agree on a price.
I've seen people spend money across multiple properties where they missed out at auction or the vendor didn't like their offer and they wouldn't raise it.
I've seen people spend money across multiple properties where they missed out at auction or the vendor didn't like their offer and they wouldn't raise it.
When we bought our Sydney PPOR late last year, the asking price was dropping from a high level over 2 years and there was no strong interest in the property, so no pressure to act too fast.
So we got a building report done before our official offer.
That way, if the report had negatives, we could use this to determine our offer.
If you are in a hurry to buy and there is high demand for a property, you may want to try and secure it first before doing a B&P inspection.
So we got a building report done before our official offer.
That way, if the report had negatives, we could use this to determine our offer.
If you are in a hurry to buy and there is high demand for a property, you may want to try and secure it first before doing a B&P inspection.
I think this is going to continue to be a "debated" point. On one hand, we have buyers that are prepared to back their judgement as far as the state of building are concerned, and then on the other hand, those that treat a sellers inspection report suspicious, and still get their own. On balance we have found that getting the seller to have a report done, in the first home buyer range, the buyers by a huge percentage appreciate and accept it, however in the higher ranges the suspicion creeps in. So we look at each property and depending on its "obvious" state and the price range, make the call. My opinion is that most agents do appreciate the dilemma that buyers face, and do try to make a real attempt to assist them as much as we can. I think I saw in a thread that someone felt that agents forget that buyers may become sellers. To me that statement is a no brainer, so I would have thought that agents would be working accordingly. Sadly, I do think that at auction, or private treaty, some buyers may end up doing a few inspections, before the finalise a purchase.
Pretty sure Canberra does this. It will be made mandatory... One day....
Some buyers will want to get their building and pest reports before putting in an offer and some buyers will want to negotiate first. If a price is negotiated first and the reports come back unsatisfactory, you can always try to negotiate the price further. (As long as the contract is subject to the building and pest report.)
I've had situations where the property has been full of termites and the repair bills have been estimated in the tens of thousands. The buyers have still purchased but at a much lower price than first agreed on.
I've had situations where the property has been full of termites and the repair bills have been estimated in the tens of thousands. The buyers have still purchased but at a much lower price than first agreed on.
We recently put in an offer subject to finance and building inspection.
The offer was accepted and we the proceeded to have the building inspection completed. The building inspection identified that the house needed re-stumping so we walked away from the deal. There was no complaints or resistance from the Agent/seller at any stage.
The offer was accepted and we the proceeded to have the building inspection completed. The building inspection identified that the house needed re-stumping so we walked away from the deal. There was no complaints or resistance from the Agent/seller at any stage.
