Considering buying a new home? When is the right time to organise a building inspection?
For such a large financial investment you may be well aware of the importance around organising a building inspection, but when is the right time to arrange one? It really depends on when and how the building is being sold. In Victoria, auctions and private sales are the most popular ways in which properties are sold, off the plan is another way but for the purpose of this blog, we will focus on Auctions and Private Sale.
If buying at auction
The winning bid at an auction is legally binding, so if you are serious enough about a property to bid at an auction you need to arrange the building and pest inspection prior to the auction date. As soon as you have decided that you will be bidding at the auction, it’s time to organise the inspection. Consider that you will need some time to process and understand the report and you may need to inquire about repair costs. If the report is returned to you and there is some unfavourable information included, you can use this to have a better understanding of the value of the property and bid more wisely on the day. Or if it has discovered that the property is potentially a money-pit, then you are free to walk away knowing this small investment of the inspection has potentially saved you thousands in repair costs.
Remember, when you bid at an auction you cannot include a conditional offer that includes a satisfactory building inspection. That is why you must obtain the report before the auction.
If buying by private sale
For properties being sold by Private Sale, offers are submitted to the vendor for consideration after scheduled inspections. When considering buying a property this way, a building inspection should occur before you place or sign a contract. If a contract needs to be submitted before you have had a chance to organise a building inspection, you can include a condition in your offer that your purchase is subject to a satisfactory building inspection. This however, should be done once you have sought legal advice for the correct wording for your offer. Organising a building inspection before the cooling-off period ends can help present you with information to negotiate a better price that you may have previously offered.
Are you the seller of a property? It is wise to organise a building and pest inspection before listing your property, as the report will discover defects that a potential buyer is likely to find when they organise their own inspection. Repairing defects can add more value to your property and allow you to achieve a more favourable price.
Think of building and pest inspections as great value for money, because they reduce a lot of risks and enable you to negotiate the price and conditions of the offer with the seller more confidently. It can also provide you with the information to develop a maintenance program if you do carry through with the purchase. The information gathered in a building and pest inspection report can also allow people to pay less than they expected for a property, either when purchasing at auction, or private sale.
For more information about booking a Building & Timber Pest inspection see our pricing page.