Why Pest and Building Inspections are Essential
When you find the house of your dreams, it’s tempting to purchase the property on the spot. But don't rush in. Most property purchase contracts have a building and pest clause – and for good reason, it's essential to consider what lies beneath its surface.
Buying a property is a significant financial decision, and it's crucial to have a clear understanding of its condition and potential issues before committing to a sales contract.
That's where pest and building inspections come into play, serving as an indispensable tool for making well-informed decisions regarding the property, its condition, and its value.
What's Involved?
Typically initiated by potential buyers upon discovering a property of interest, pest and building inspections are fundamental components of the due diligence process.
The Australian Standard AS 4349-2007 serves as a guideline specifically focused on identifying structural faults within properties. However, it's essential to note that it excludes assessment of various building elements such as roof plumbing, wiring, windows, doors, and more.
The primary objective of this standard is to protect buyers from purchasing a property with significant structural issues, while also safeguarding sellers from last-minute contractual disputes arising from minor defects, such as a cracked roof tile.
What does a pre-purchase building inspection cover?
Building inspections aim to identify any existing or potential structural defects within the property and provide an expert evaluation of its overall condition. This involves a thorough examination of all accessible areas, highlighting any urgent maintenance needs, and delivering a comprehensive report on the property's structural integrity.
Moreover, besides offering peace of mind regarding the property's stability, the inspection findings can serve as leverage during negotiations.
What does a pre-purchase pest inspection cover?
Pest inspections focus on detecting any current or potential pest issues in the home, including ants and termites. Similar to building inspections, this process includes a comprehensive assessment of accessible areas, seeking out signs of pest activity, previous treatments, and property damage caused by pests.
The accompanying report also provides actionable recommendations to mitigate pest risks.
When should you get a building and pest inspection done?
Typically, a building and pest inspection is conducted after an offer has been made on a property. It's crucial to ensure that both a building and pest inspection are included as conditions of sale in the Offer and Acceptance agreement. The responsibility of organising both inspections falls on the buyer.
Once you've selected a preferred building inspector or inspection company, they will generally reach out to the agent to schedule the inspection.
While it's advisable to conduct inspections post-offer, it's also possible to arrange them beforehand. This approach may provide additional negotiating leverage if minor defects are identified that may not be classified as major structural issues. However, there's a risk of missing out on the property or encountering financing issues if someone else makes an offer and it's accepted in the meantime.
Sellers may have already conducted an inspection before listing the property. This can instil confidence in potential buyers and can save you the cost of conducting your inspection, provided you're satisfied with the level of detail and the qualifications of the inspector. It also allows sellers to address any issues that arise in the report, ensuring they are selling a defect-free home.
How much does a building inspection cost and how do I choose a building inspector?
The cost of a pre-purchase building inspection can vary significantly, ranging from $300 to $1000. This price range is influenced by factors such as the inspector's qualifications, experience, and reputation.
Reputation and experience are key considerations, as inspectors with extensive experience may command higher fees. Additionally, the complexity of the property can impact costs. Features such as multiple rooms, a pool, sheds, multi-level structures, or heritage listing can all contribute to increased inspection expenses. However, many inspectors offer fixed-price options, so it's advisable to inquire about this before scheduling an inspection.
It's vital to verify the relevant industry qualifications of your building inspector. In Western Australia, inspectors are required to hold a Diploma of Building and Registration, as well as qualifications in timber pest inspection (Unit 6 and Unit 10). Ideally, your inspector should have completed over 200 reports. Furthermore, it's recommended to check if they are affiliated with reputable industry associations such as the Housing Industry Association or Inspect WA, as membership in these organizations demonstrates adherence to professional standards.
What steps to take if items are listed on the Inspection Reports
The REIWA Australian Standard Pre-Purchase Inspection is designed to provide buyers with an accurate assessment of a property’s current condition and identify any major issues that could impact its value or safety. It applies to major structural defects. It’s important to note that the inspection only covers major defects and does not include minor issues such as cosmetic damage or wear and tear. The report may still highlight any minor defects that could lead to major issues if left unaddressed.
If major defects are discovered during the inspection and included in the report, the buyer can request that the seller make repairs or even negotiate the price. You can visit REIWA resources for more information on building inspections.
And if the seller is not happy to rectify other issues or accept a lower offer, then you may still have the option of walking away.
Ready to ensure your property purchase is in safe hands? Reach out to us today for expert guidance tailored to your needs! Let's make your real estate journey a smooth and informed one.
