Imagine buying a house and then realising it’s a dud. It’s not so fun when you end up spending hundreds of thousands of dollars on repairs to your new property and can’t get your money back.
Fortunately, there’s a way to avoid this horror scenario, and it comes in the form of a building and pest inspection report. This guide takes you through what’s involved with both types of inspections, including how much they cost, which parts are inspected and more.
If you’re looking to buy a property then this blog is for you. Don’t let fate decide your future – instead, take the time and learn about buying a property whether it’s your first time or you’ve done it before. Hopefully, by the end of this, you can be well on your way to learning how to treat property like a business.
Importance of building and pest inspections
Due diligence is crucial to make sure a building is safe and sound. It is important for the property buyer to know what the property consists of, ensuring that there are no hidden concerns or issues that may lead to bigger problems in the future.
When purchasing a property, it is important to ensure that the building and pest inspections are completed. No matter how old or new the property is, these inspections are essential in order to protect yourself from any unexpected surprises. This is where you get an inspector to come in and check the condition of the building, look for signs of pests or termites, and see if any major repairs or defaults are there.
Let’s break this down into 2 sides, you have a building inspection and you have the pest inspection. Both of these are independent of each other but are both very important. A building inspection looks at the structure and integrity of the property, while a pest inspection checks to see if there are any types of pests like termites or rodents that may be damaging the property from the inside out.
Building Inspector
Let’s first talk about the building inspector. When looking for a building inspector it is also important to find an inspector who has the experience and qualifications necessary to do the job properly. Don’t be scared to call and interview your building inspector to ensure that you are getting someone who is qualified and up to date with the current building regulations. With experience comes knowledge so you would want to check the inspector has at least 5 years of experience and a full builders license.
Pest inspector
The 2nd person you need is a pest inspector or someone who has experience in pest management. This is important to identify if there are any infestations of pests or termites as this could lead to bigger issues and more expensive repairs in the future. Experience in pest inspections is also essential, so again check qualifications and license and we still would suggest looking for someone who has at least 5 years of experience in pest inspections.
While these are 2 separate tasks, you can get an inspector who does both to save time and money. This will ensure that you are getting a complete overall evaluation of the property and can make an informed decision about whether or not to purchase the property. Let’s work with you using a professional that does both.
Tasks for the building inspection
You’ve found a reputable inspector, it is important to know what they will be looking for during the inspection. The tasks for the building inspection are as follows:
- Inspecting the building’s structure and materials to identify any defects or damages
- Checking for any water damage, cracks, moulds, and other forms of decay
- Identifying safety hazards like electrical faults and gas leaks
- Checking for signs of infestation or termite activity
- Inspecting the building’s systems such as plumbing, drainage, and ventilation
- Brief appliance testing such as water heaters, dishwashers, and ovens
- Providing a thermal image evaluation of the areas to identify any drafts or insulation issues
- You should also be aware of what is included in the pest inspection:
- Checking for signs of pests like termites, rodents, and other insects.
- Evaluating the property’s risk factors associated with pests.
- Inspecting the building for entry points that pests could use to get inside
- Checking cracks in walls or foundations for signs of termite activity
- Inspecting areas like under the house and inside cabinets for any signs of infestation
- Examining furniture and other belongings for any signs of pests or eggs
- Checking for any signs of water damage or mould that could attract pests
- Identifying any weak spots that may need repairs to prevent pests from entering the property
Building and pest inspections limitations
While understanding the importance of both building and pest inspections is essential, it is also important you know the limitations of these inspections. These limitations include:
– The inspector may not be able to access certain areas of the building, such as crawlspaces or attics if they are blocked off or inaccessible.
– In some cases, the property may be too old and have outdated building materials that are no longer in compliance with current regulations.
– Pest infestations can be difficult to identify if there are not any visible signs or evidence, so it is also possible for pests to go unnoticed during the inspection.
-They aren’t licenced for electrical, plumbing, gas fitting or drainage, so these areas and systems may need to be evaluated by separate professionals.
-Some things, like asbestos, for example, may not be able to be picked up during an inspection.
-It is possible that there may be more serious underlying issues with the property that are not visible during the inspection and can only be found through further investigation, such as a structural engineer.
Obviously, we are starting to understand the roles which a building and pest inspection play on our property decisions, but at what point would you carry these out?
Should arrange a building and pest inspection first or after an offer is accepted?
So you’ve found the perfect property and are ready to buy, but before you make an offer, you need to decide if you should arrange a building and pest inspection first or after an offer is accepted. This decision can be tricky, especially in a hot market, were subject to building and pest clauses might give you a disadvantage when negotiating with the vendor. However, there are pros and cons to each approach, and it ultimately depends on the individual situation.
When doing the inspection before an offer is inspected, you can use the results to assess and either walk away from the property or negotiate the selling price of the property based on any issues that are uncovered. This can be beneficial in case there are serious problems with the property, as it could give you an upper hand when negotiating with the vendor. Though in a hot market, securing the property instantly and then doing inspections could be the difference between getting the property or not. You can protect yourself by adding subject to building and pest clauses to your offer, which ensures that you get access to the inspection results before officially purchasing the property.
The more subject-to-clauses you have in your offer, the less desirable it is going to be to the vendor. What are subject to clauses? These are clauses that need to be completed before settlement but are in favour of the buyer and not the seller. In the event these clauses aren’t met, the buyer has the option to pull out or negotiate the repairs or work that is required. The seller may not want to repair the items or they may agree to a discounted price on the contract price that reflects the repair’s costings. So your offer will be more desirable to them if they don’t have any subject-to clauses or very minimal subject-to clauses. Some sellers may not be flexible with subject-to-clauses, so if you’re in a hot market and the property is priced right but there’s competition, you might want to remove all of these subject-to-clauses and make an offer.
You should consider if the building and pest is better before or after making an offer. Can you remove the emotion in the chance it comes back where you have to walk away from the property or the vendor refuses to further negotiate? Is this emotionally going to get to you and where do you start to make irrational decisions based on emotion if you’ve already fallen in love with the property This is something you need to think about. During hot markets, it is quite hard to way up all of these factors, but the right decision will differ depending on the individual situation.
Go out with the building and pest inspector to view the property
Lets now fast forward, you have finally gotten your inspector out on a property, what else do you need to know? Did you know that you can actually go out with the building and pest inspector to view the property? This can be a great time for you to get more answers to any questions that you might have, or if you want them to take pictures of particular areas on the property so you can re-familiarize yourself with it when you look through their report. Be careful not to distract the inspector and make sure you don’t interfere with their work.
It doesn’t take much to miss a structural fault or some long-term damage. Another option is once they finish their site inspection is that you can ask them to do a quick walk-through with you, where the inspector can explain their findings in more detail.
Another option which is our favourite is for them to call you from the property, or if they will be taking longer than expected, to provide you with a recap over the phone once their inspection is complete. This way you can ask more questions and get more information without having to wait for them to finish, which would otherwise take hours depending on the size of the property.
If you don’t do either the phone call or site inspection make sure you read the report thoroughly and understand what it means – if there are any problems highlighted, we highly recommend a call to your inspector to discuss your concerns and how they can be rectified. For example, if there are termite issues found during the termites, this could mean that you need to get a pest management company out before purchasing or even in some cases once you buy.
Something that you may think is major like a structural fault or damaged floorboards, may actually not cost as much to repair and rectify as you think – it all depends on the type of work needed to be done. But at the end of the day, you don’t want to buy something that has major issues that will require either extensive renovations or even worse cause your property value to depreciate.
Also once you receive your report there are 2 other professionals that you should consider getting to give their opinion on the report. Your buyer’s agent and your solicitor or conveyancer. If there is anything that doesn’t make sense in the report or you don’t understand, it’s always a good idea to get someone else’s opinion.
Do you have any questions about building and pest inspection, as you can tell there is a lot involved and we hope this blog has helped you out a little bit! If you want to learn more about building and pest inspection feel free to reach out.