Defects should not scare you from buying a home!

We get asked all the time by buyers, “ok, so the seller has to fix all these defects listed on the report, is that right?” and the answer is, “well that largely depends what conditions you have in your contract.”

It’s important to understand there are generally three distinct stages in regards to building inspections in Western Australia during the sales process.

  1. The Structural Building Inspection,
  2. The Timber Pest Inspection
  3. The Pre-Settlement Building Inspection.

There is also a fourth one which is less formal when the keys are handed over at final inspection.

In this blog we are going to shed some light on the first inspection. The Structural Inspection.

In Western Australia the most commonly used Annexure when a buyer says “I’d like to have a building inspection carried out please”, is the REIWA Australian Standard Pre-Purchase Structural Inspection Condition. Many Real Estate Agencies have their own annexure which can be different to the REIWA one, but all the Non-REIWA annexures have a similar theme. They are all concerned with defects of a structural nature.

Building inspections when broken down into their purest form, are simply recording the condition of building elements at a particular time. The REIWA and most other annexures ask the inspector to complete the inspection in accordance with the Australian Standard 4349.1-2007 Pre-Purchase Building Inspections. The Standard is a guide and basically has 4 appendices (A) through to (D) which the report can be written in line with.

(A) Refers to inspections and reports carried out on the structural elements only.

(B) Refers to Strata and common property.

(C) Refers to almost all other building elements and

(D) refers to the building elements that should not form part of the inspection and report.

This all sounds pretty simple right? Or does it?

There are many Building Inspection companies offering all types of inspections which include sections A, some parts of C and even D (insert shocked emoji)! Prices can vary dramatically, along with the scope of what they are including or sometimes not including in their inspections, and this is where clarity is needed.

You can pay a building inspector a tonne of money to inspect the entire house from sub-floor to the very top roof tile, produce a detailed 85 page report only to find contractually, the seller may not be obligated to fix anything. So why is this? Because almost all Building Condition Annexures are of a Structural nature and require the seller to “make good” or compensate for the structural defects only.

We come across defects both structural and non-structural all the time during our inspections. We have found most structural defects occur in the Roof Void and are in relation to the roof or ceiling frame. Most of the time, these defects are easily repaired. While non-structural defects can be in relation to a leaking shower, cracked roof tile or rusted gutter just to name a few.

We have found most home buyers are generally accepting that their second hand home will come with a few non-structural maintenance items, but if there is an area of concern you would like inspected the Real Estate agent needs to know about it. They will be able to insert a special condition into the contact. If there is no special condition agreed to, the seller is not contractually obligated to fix it.

Home Integrity offers inspections to satisfy all buyers. From the essential Structural Building and Termite Inspections to the comprehensive Structural Premium, Electrical, Plumbing and Gas in good working order and Swimming Pools and Safety Barriers inspections.

So if you would like absolute clarity, and the confidence to move, request a report from Home Integrity now!

For an instant quote Click here, or phone Anne on 0420 803 292 to book your inspection now.

Auctions – Proactive Sellers Give Confidence to Prospective Buyers

Auctions can be a great way to sell your home fast, and maximise the price achieved. If you are considering an auction, then your agent has probably told you that your home is unique, and when marketed correctly, will attract lots of attention, and this will result in an excellent price being achieved.

This is all good and well if you can, in fact, attract the large number of potential bidders required, who through the natural auction process, will drive the price past the reserve and into the “up for sale” territory.

For many people, buying a house at auction is a huge gamble. In most cases there is little, or no property information on the condition of the building’s structure and termite situation. Potential bidders are often concerned that there may be underlying issues with the property. Buyers could find themselves in a difficult position, if the property has costly faults. A buyer who is successful under the hammer is making a non-negotiable commitment to purchase the property, i.e. there is no cooling off period.

 

Sellers who are looking to take their home to auction, and want to maximise the number of prospective buyers at their auction will arrange for a Structural Building and Timber Pest (Termite) report to be conducted prior to the Auction. The Structural Building, and Termite reports can be made available to all potential bidders giving them peace of mind that there are no underlying issues with the property.

In fact, when done right, the benefit of the Structural Building and Termite reports can be passed onto the buyer, giving them total peace of mind and confidence.

The best agents are creating a frenzy of confident bidders at auctions by making these Structural Building and Termite reports available.

So if you would like the best outcome for your auction, insist on a Structural Building and Termite report from Home Integrity. Click here to order yours now! Or phone Anne on 0420 803 292.