Pre-purchase inspections for auctions

From: Geoff Whitfield


I'm a bit turned off by auctions- mostly for the need to have a pre-purchase inspection for something you may have a 10% chance of acquiring.

I know it's worth while if you do get it. I went to an auction with estimated $18,000 of termite repairs needed. So $600 inspection fee is peanuts by comparison.

But, if you're borrowing, the $600 fees are out of pocket. And you might have to pay quite a few before you find one. And I gather these fees are only claimable against cap gains of a property you actually do buy, and then sell (I may well be wrong).

I heard about a property for sale recently where the vendor had actually paid for an inspection. But when I inspected the property, the fact that an inspection was made was not mentioned. But the business card of the inspector was there.

Do I have the whole bit about inspections wrong?

I'd much rather see a property, offer, haggle- and use the inspection result as a further haggle if there's a problem. It seems a far less riskier strategy.

Or do I have things wrong?

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