Outcome of Building and Pest Report

Hi Guys,

We signed a contract for a PPOR last week. Unfortunately we couldn't do the Building and Pest Inspection before we signed as we were in a bidding war with another buyer and since we thought that the house was solid we decided to continue on to secure the property. The home is being sold as a beautifully presented home with enhancements and renovations since it was built 40 years ago.

Unfortunately the building and pest reports which were conducted the day after signing and during the cooling off period have come back with some issues which we definitely did not factor in to the price and can not afford to do unfront when we move in. Termite damage was spotted but no actual live termites were found. However the pest report has advised a "Very High" risk of current concealed or future infestation and possible damage by Termites. The owner of 26 years has apparently never done any treatment for pests in this high risk area, very strange.

I have passed on the following list to the agent which I categorised into importance based on my view of the issues and will be looking to discuss with him what can be rectified by the vendor or alternatively a reduction in the price. The latter is not my preference as the bank won't lend me money upfront to fix anything so I would still need to come up with the cash to fix these items.

I am looking for people's thoughts on
a) Relative costs to fix each issue OR
b) Experience with similar issues
c) any general advice

Requires immediate action

* A water test revealed that the shower recess is leaking to the subfloor and adjacent walls. The extent of deterioration cannot be ascertained until repairs are undertaken.
* Timber members adjacent to the bathroom have significant decay and there is a high probability of further concealed decay. All decayed timber members should be removed and replaced to provide structural adequacy.
* All rubbish and formwork timbers should be removed from the subfloor area as this can attract pest infestation.
* One of the tile battens was seen to be broken and rectification is required to prevent leaks in this area of the roof.
* A leak was evident through the roof tiles above the front verandah at the time of the inspection. Rectification is required to prevent further deterioration in this area.
* Termite treatment: Evidence of termite workings was sited in the cupboard. Evidence of termite workings was sited to the roof space. Evidence of termite workings was sited in the subfloor.


Requires attention

* It is recommended that additional surface drainage be provided to the left and rear elevations, to prevent long term maintenance or settlement movement from surface water damage.
* The subfloor soil was found to be damp at the time of the inspection and there was evidence of water pooling. A plumber should be consulted to check all water/drainage lines for compliance/damage and to prevent further water entry to the subfloor which may cause movement of the foundations and/or moisture damage/decay.
* It is recommended that additional ventilation be provided to the subfloor to allow continual movement of air throughout the entire area. Adequate ventilation reduces the risk of moisture and termite problems within the dwelling.
* Some sections of the timber fencing are termite damaged, decayed or out of alignment and require repairs/replacement to obtain a satisfactory secure finish.
* The conventional timber rafted roof frame is consistent with the era it was built and appears satisfactory, except for some shrinkage or settlement of the strutting members. Several struts require adjusting or replacing to remove the deflection from the roof lines.
* The steel beam in the roof space has evidence of corrosion and requires repairs /recoating with a rust prohibitive to prevent further deterioration.
* Several tiles are loose. If repairs are made now, rectification will be minimal and will prevent water entry to the dwelling.
* The shower screen is cracked. It is recommended that it be replaced for safety reasons.
* The subfloor ant capping was rusting in some sections. Rectification along with regular inspections are recommended to reduce the risk of pest entry to the building.
* Windows - The cracked glass to several windows requires replacement to provide a satisfactory finish.
* The toilet pan is loose and should be re-set in cement mortar to the floor for stability. It is recommended that a licensed plumber be consulted for further advice.


Needs to be repaired

* Several windows have been painted shut and most window sashes require easing and adjusting along with all operating devices requiring servicing to allow freedom of use.
* The damaged/missing sheets and trims require repairing or replacing to provide a satisfactory finish to the eave linings.
* Water hammering was detected when several of the taps were turned on/off. It is recommended that a licensed plumber be consulted for further advice.
* Bedroom 1 - The mirror to one of the cupboard doors is cracked and requires replacing to provide a satisfactory finish.
* Bedroom 2 - The missing door hinge screw requires installation to make door more functional.
* Bathroom - Several floor tiles are loose/drummy and require repairs/re-fixing to provide a satisfactory finish.
* Ensuite - The door is damaged and requires repairs to provide a satisfactory finish.
* Several downpipes are not adequately sealed to the stormwater connections. Repairs/re-pointing with a cement mortar is required to provide a satisfactory finish.
* Replace damaged timbers in main bedroom cupboard.
* Window and barge has fungal decay and requires replacement.

Thanks for reading!
 
Honestly, if I was the seller and had another buyer sniffing around I wouldn't be fixing these things. The seller may negotiate a lower price but you would need to define what you are prepared to pay. - How much do you believe this will cost to fix. THe seller is also wanting to move so probably wont hang around to get tradies and get these things done

A number of the things mentioned are small - replacing door hinge screws etc and other things you should have seen on the inspection and in signing a contract you have agreed to buy as is - shower screen door cracked, mirror in bedroom cracked etc

The major stuff would worry me especially as you cannot afford to fix it up front and whilst termites can be dealt with, if you cant afford to do it now then you are inviting trouble.
I would be walking and finding something else, assuming your contract is subject to building and pest
 
Move on to another home...........i didnt like what i saw...

termites and especially water issues..............either or both can be costly...

get out of it if you can...
 
Did you put a building and pest clause in the contract you signed?

If not, get out on the cooling off and next time make sure you put one in or potentially be up for thousands of dollars in repairs.
 
Truebeast, you are from Sydney so assuming you purchased in NSW, you will forfeit the 0.25 % deposit you paid when you rescind within the cooling off period. That amount (whatever it might be) plus the cost of the building and pest inspection and any legal advice already received will be the cost of your le$$on$.

Probably not what you want to hear, however expecting a discount now (or repairs) after you entered a bidding war, is very wishful thinking indeed. It is a forty year old house with issues. Have you received some indication from the building inspector as to the costs of the more major items? Do you have time to get quotes on these?

You can either walk away within the cooling off period or rectify the faults at your convenience and as your pockets allow.

What does your intuition tell you? You've already paid top dollar for if you hadn't you would not have entered a bidding war. The owner has sold the sizzle and not the steak and you have paid for that.

Personally, I would be more concerned with the "Requires Attention" section as that has issues with damp, roof beams, and ventilation amongst others, rather than cracked mirrors or window panes that are cheap and simple to rectify.

This isn't advice, however if it were me, I'd be walking.
 
I am in agreement with the others ....... move on!!!!!

At the end of the day and in reflection you will think yourself lucky as termite damage can be extensive and just to treat the house for termites let alone fixing the damage will be $2k+.

Having bought a house that had been termite invested (they had sprayed when finally the previous owner became aware) and fixing all the damage I can assure you that termites can do an amazing amount of damage. Our house is 2 story and every internal wall of the downstairs area needed to be replaced in addition to a number of structural beams that make up the upper floor.

From your description it sounds like you also have some moisture source in the ceiling areas and the termites have even ventured up into the ceiling cavity.

So unless you are prepared to rebuild a substantial amount of the house or conversely live in a very damaged house (subsequent to treatment) then move on and at least now you have some idea of what to look for in any future house.

Cheers
 
My first post, because a lot of that report sounds very familiar. However, in my case, I'd already been in the house for a year. It was a spur of the moment purchase, all heart, no head! When we finally faced up to the problems, everything was fixable but fiddly and costly. Four years on, we've just sold that house and learnt a very important lesson the hard way. From a been-there-done-that perspective, I would be walking away. Hindsight is a wonderful thing though....
 
Hi Guys,

We signed a contract for a PPOR last week. Unfortunately we couldn't do the Building and Pest Inspection before we signed as we were in a bidding war with another buyer and since we thought that the house was solid we decided to continue on to secure the property. The home is being sold as a beautifully presented home with enhancements and renovations since it was built 40 years ago.

It doesn't matter what the property is sold as, what matters is what it is. And agents are not required to be 100% truthful to the buyers either (unfortunately).

Exit the contract if you can and next time don't buy on an emotional high.
 
And agents are not required to be 100% truthful to the buyers either (unfortunately).

Well yes, they are. However, unfortunately some are not. If you pull out of the contract the agent must tell the next buyer of the issues with the property and the next buyer could potentially get a really good deal.

I do agree with the emotional high though.
 
Hi Truebeast,

I would get quotes on all the items and go back for a price reduction or ask for the owner to pay for your quotes to be actioned. The next buyer if she rejects is probably going to do the same thing.
 
Honestly, if I was the seller and had another buyer sniffing around I wouldn't be fixing these things. The seller may negotiate a lower price but you would need to define what you are prepared to pay. - How much do you believe this will cost to fix. THe seller is also wanting to move so probably wont hang around to get tradies and get these things done
I have contacted today and requested that a plumber, carpenter, pest control and roofing tradie go and provide me with a quote for the relevant items to be repaired. I am 100% sure the other buyer would want a reduction in price after finding out about the more serious items.

A number of the things mentioned are small - replacing door hinge screws etc and other things you should have seen on the inspection and in signing a contract you have agreed to buy as is - shower screen door cracked, mirror in bedroom cracked etc
I simply put those on the list to show that there are many more items which have been listed on the report which I won't be contesting.

The major stuff would worry me especially as you cannot afford to fix it up front and whilst termites can be dealt with, if you cant afford to do it now then you are inviting trouble.
I would be walking and finding something else, assuming your contract is subject to building and pest
As I am in Sydney, I am currently in the cooling off period which means I can walk away. Albeit with a loss of the 0.25% which i put down as a deposit.
 
Move on to another home...........i didnt like what i saw...

termites and especially water issues..............either or both can be costly...

get out of it if you can...

Hi csc2,

I can walk away with a small loss at this stage of the cooling off period.

My wife does like the location and the home if all was in order, so we are hoping that we can sort this out with the vendor. Maybe we are being too optimistic??

Cheers
 
Did you put a building and pest clause in the contract you signed?

If not, get out on the cooling off and next time make sure you put one in or potentially be up for thousands of dollars in repairs.

Didn't need one, as in NSW you can walk away during the cooling off. You simple lose your 0.25% deposit.

If we don't end up following through with this property, next time I will make sure to do a pest and building report upfront. It is difficult with the timing though, as we could have spent the money on this and then been gazumped by the other bidder.
 
Didn't need one, as in NSW you can walk away during the cooling off. You simple lose your 0.25% deposit.

If we don't end up following through with this property, next time I will make sure to do a pest and building report upfront. It is difficult with the timing though, as we could have spent the money on this and then been gazumped by the other bidder.

I know, I am from Sydney - It's the same with Melbourne and most states I think with the cooling off period.

For the record, there's always other properties just the same, if not better! Sometimes it is best to walk away and let the other buyer deal with it and if it's put back on the market because of this (as the agent should disclose) you can put in an appropriate offer. If I hear from an agent that someone has an emotional attachment, I don't bother, it's not worth it.
 
Truebeast, you are from Sydney so assuming you purchased in NSW, you will forfeit the 0.25 % deposit you paid when you rescind within the cooling off period. That amount (whatever it might be) plus the cost of the building and pest inspection and any legal advice already received will be the cost of your le$$on$.
You are very correct. It will be a costly lesson if we don't proceed.

Probably not what you want to hear, however expecting a discount now (or repairs) after you entered a bidding war, is very wishful thinking indeed. It is a forty year old house with issues.
]

I know it is an old home, but I wasn't expecting any serious issues or a pest problem. As mentioned in my original post, it looked like it has been very well maintained and then mostly renovated. I wouldn't be thinking twice about this if it was a renovator or if the only issues were the peeling paint, settlement cracking etc.

Have you received some indication from the building inspector as to the costs of the more major items? Do you have time to get quotes on these?
Yep, I went through with the inspector today and it is looking like it will easily add up to 15-20k to fix the serious stuff building stuff that can be seen. The pest treatment would be on top of this.

I have organised to get several quotes done for the work as I have a 10 day cooling off period. It is probably a stretch but I thought If I obtained quotes and presented them to the owner she would understand that this will most likely occur again with the next buyer.

What does your intuition tell you? You've already paid top dollar for if you hadn't you would not have entered a bidding war. The owner has sold the sizzle and not the steak and you have paid for that.

Personally, I would be more concerned with the "Requires Attention" section as that has issues with damp, roof beams, and ventilation amongst others, rather than cracked mirrors or window panes that are cheap and simple to rectify.

This isn't advice, however if it were me, I'd be walking.

Sorry for the confusion my "Requires Attention" is the second priority after "Requires immediate action". The latter stuff is there to show I am willing to repair these myself later down the track. These are the types of things I would have expected in an older home.

I appreciate your comments player. Your last line interests me. Would you walk away because the next 40 year home might have less issues, or would you not buy a 40 year old home?
 
I am in agreement with the others ....... move on!!!!!

At the end of the day and in reflection you will think yourself lucky as termite damage can be extensive and just to treat the house for termites let alone fixing the damage will be $2k+.

Having bought a house that had been termite invested (they had sprayed when finally the previous owner became aware) and fixing all the damage I can assure you that termites can do an amazing amount of damage. Our house is 2 story and every internal wall of the downstairs area needed to be replaced in addition to a number of structural beams that make up the upper floor.

From your description it sounds like you also have some moisture source in the ceiling areas and the termites have even ventured up into the ceiling cavity.

So unless you are prepared to rebuild a substantial amount of the house or conversely live in a very damaged house (subsequent to treatment) then move on and at least now you have some idea of what to look for in any future house.

Cheers

Thanks handyandy for your comments.

It really is quite frustrating not being able to tell how much damage the termites have done inside the walls. The building inspector says that while he noted some localised damage and knows exactly where they came into the house, the original formwork was still in tact, 40 years after building the place! he can't advise if they have moved on elsewhere.

What concerns me the most is that the owner never did any treatment! And secondly where the inspector found the evidence was near the ensuite which had only been redone 12 months ago. He thinks that the worst case scenario is that they have been disturbed and moved elsewhere in the home. Someone could make a lot of money if they produced a tool which could demonstrate if a wall had been eaten away at after the fact.
 
My first post, because a lot of that report sounds very familiar. However, in my case, I'd already been in the house for a year. It was a spur of the moment purchase, all heart, no head! When we finally faced up to the problems, everything was fixable but fiddly and costly. Four years on, we've just sold that house and learnt a very important lesson the hard way. From a been-there-done-that perspective, I would be walking away. Hindsight is a wonderful thing though....

Hi MrsChatz,

Did your home have building defects or termite damage?
 
Well yes, they are. However, unfortunately some are not. If you pull out of the contract the agent must tell the next buyer of the issues with the property and the next buyer could potentially get a really good deal.

I do agree with the emotional high though.

I think my agent has been truthful. I am a little suspicious of the vendor not knowing anything about the termites or the other more serious building defects.

That's what I keep coming back to, the vendor will have trouble down the track if she doesn't negotiate on the price with me as the agent must disclose this information to future buyers.

I don't think the emotions played a big part in it, as I was pretty analytical with the whole deal. I think maybe lack of experience and assuming that more tangible things looked right than wrong with the property compared to others we inspected.

I have a lot more knowledge through this experience.
 
I think my agent has been truthful. I am a little suspicious of the vendor not knowing anything about the termites or the other more serious building defects.

That's what I keep coming back to, the vendor will have trouble down the track if she doesn't negotiate on the price with me as the agent must disclose this information to future buyers.

I don't think the emotions played a big part in it, as I was pretty analytical with the whole deal.

You must remember they're not your agent - They act for the vendor and the vendor is not legally bound to give up to the agent whether the property has termites or not. Of course it would be nice if all vendors told the agents and if all agents were 100% honest.

No, the vendor will have trouble selling the property if they do not wish to negotiate the price with anyone - Not just yourself. If you choose to pull your contract, there will be another buyer (maybe even the one you were bidding against). The agent should disclose what came back in the building and pest and this will effect the price, however you are not the only buyer, this is proof as you were in a bidding war.

I think if you're in a bidding war, and keep upping your price to beat the other buyer this constitutes to an emotional buy.
 
You must remember they're not your agent - They act for the vendor and the vendor is not legally bound to give up to the agent whether the property has termites or not. Of course it would be nice if all vendors told the agents and if all agents were 100% honest.
Absolutely, so while I think he has conducted himself with integrity at the end of the day he wants his commission cheque.

No, the vendor will have trouble selling the property if they do not wish to negotiate the price with anyone - Not just yourself. If you choose to pull your contract, there will be another buyer (maybe even the one you were bidding against). The agent should disclose what came back in the building and pest and this will effect the price, however you are not the only buyer, this is proof as you were in a bidding war.
True, true.

I think if you're in a bidding war, and keep upping your price to beat the other buyer this constitutes to an emotional buy.

Emotions definitely formed part of the deal as it was to be our PPOR. However, our increase which was only 10k between our first offer and final offer.
 
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