Building and pest inspections are an essential aspect of property transactions. These reports provide all the information you need on the condition of the property so you can determine if it is worth purchasing a new home and what kind of repairs you need to get done. However, the building and pest inspection industry is deeply tied to the real estate industry so many people wonder if the reports provide authentic information.
#1 Report copy selling – Are they worth the paper they are written on?
Inspections can be worth a tidy sum which is usually paid by the buyer. When you purchase a property, you enter into a big financial commitment so most buyers will want to spend their money after a lot of thought to ensure they don’t strain their finances. It’s not surprising that they wonder if the inspection reports are really worth the paper they’re written on. Both the industry experts and government agencies will tell you they are and here are some reasons why:
Help determine the value
A poorly maintained home will require more repairs and investment so you can negotiate the value and bring the property’s price down considerably.
Forewarning
Reports will help you avoid bad deals and properties that are more trouble than they’re worth. If you don’t want to deal with frequent repairs and related problems, you can simply avoid purchasing that property based on your report.
Sellers benefit
Sellers can also benefit from reports because they’ll point out problems that need to be fixed before they can sell the property. If they do get the property repaired, they have better leveraging power and can increase the price to compensate for the expenses.
As you can see, pre-inspection reports are worth the money you spend on them and can help you save some in the long run. Buyers can also sell the report to the seller if they refuse to make the purchase and recover some of the money they spent on the report.
#2 Vendor commissioned reports – Can an Agent control Report content?
This is a common concern when it comes to inspection reports provided by the seller or vendor. Buyers often wonder if the seller can control the information on the report and exclude details. The simple answer to this question is no. Here’s what you need to know about vendor commissioned reports:
- All inspections must be carried out as per government rules and regulations. All these reports will have the same format and the same set of information and the inspector won’t deliberately hide the information on the reports. Inspectors can’t control vendor actions so if the vendor has done something to disguise the problem area during an inspection, the inspector won’t include it in the report and they won’t be considered at fault for that.
- The agent is obligated to discuss all past and present problems with the prospective buyer and share the contents of the report. For example, if the building had a problem in the past and which has been fixed since; the agent will still have to disclose the information.
- If the vendor asks the seller not to disclose vital information, the agent can either convince the seller otherwise, or stop participating in the transaction. They can’t hide potentially damaging information from the buyer.
If you want to know more about our services here at Inspect It First, don’t hesitate to call us at 1300 557 047 or contact us through our contact form.
Thanks for reading,
Inspect It First Team
1300 557 047