For most people, buying a house is the single largest investment they will ever make. With that much money on the line, the last thing you want to do is sink your money into a dud. Finding out after settlement that the property needs major repairs or renovations can add tens of thousands of dollars onto the purchase price and turn your dream home into a nightmare.
On the other hand, selling a house can also be a difficult process. You want to make sure you do everything in your power to get the best possible price for your home.
Whether you’re buying or selling, it’s important to have the property independently inspected by a registered builder. A pre-purchase or pre-sale property inspection can save you time, money and hassle if you’re looking to buy or sell a home. So let’s have a look at what’s involved in a pre-sale or pre-purchase property inspection and how they can benefit you.
The only difference between pre-sale and pre-purchase property inspections is who organises them. A pre-sale inspection is organised by the seller or vendor, while a pre-purchase inspection is organised by interested buyers.
Both inspections involve a third-party property inspector, usually a registered builder, assessing the condition of the property. During this inspection, the inspector will note any obvious faults or problems and provide information on what will need to be done to fix them. In the case of combined pest and building inspections, they may also check for pest infestations.
While these inspections aren’t required, they are highly recommended for a number of reasons.
Advantages of a pre-sale property inspection
- Avoid unexpected surprises at valuation
When it comes time to agree on a price for selling your home, being aware of your home’s current condition, including flaws, is vital. When setting the price, you can take into consideration any repairs or maintenance requirements and ensure that the valuation is not too low or too high. A correct valuation will help sell your home as quickly as possible while getting you the best possible price.
- A smoother settlement process
If your home has already been inspected by a qualified property inspector, it can mean an easier settlement process. Typically, interested buyers will conduct an inspection of their own to be sure they know exactly what they’re buying. However, if you already have a recent inspection report ready, they may be able to skip this step. If the buyer does want to go ahead with their own inspection (which is always recommended), it means that you’ll be ready for anything that their inspector finds.
- Get a better market price for your property
While there’s lots you can do to get your home ready for sale and to get a good price, having a pre-sale inspection is one of the best. With the information provided from the inspection, you can get on top of any issues, like repairs or maintenance, and correct these before going to market. Therefore, you won’t have to worry about negotiating down because of faults with your home.
- Inspire confidence in buyers
Arranging a pre-sale inspection and following its advice can instil confidence in your buyers. Buyers will be able to see that you are not trying to hide anything or take advantage of them. Confident buyers will also more likely mean a smoother settlement process and they will be less likely to negotiate the price down.
Advantages of a pre-purchase property inspection
- Save money by avoiding flawed properties
A pre-purchase inspection can save you from buying a dud that needs tens of thousands of dollars worth of repairs. An inspector can advise you if work needs to be done on the home and you can decide from there if you want to commit your time and money to the property. If not, you can move on and look at other homes.
- Save money by negotiating with sellers
Along with saving money by avoiding homes that need costly repairs, you can also save money on the price of the home you intend to buy. Use the information from the inspection report to fairly negotiate down the price of the home. Explain that the sale price should take into account the work that needs to be done and the cost of this work.
This can be a way to get a cheaper home, although you will need to be prepared to handle these repairs and maintenance or live in a home that has flaws. Some homes, however, may need substantial work before they are deemed liveable, so be careful when trying this strategy.
- Get specialist advice about problems
Ask the property inspector a range of questions to ensure you have a full understanding of the property you’re considering purchasing. Take advantage of their knowledge to be sure you make an informed decision.
There are a number of advantages for either party if they have the property inspected. Whether it’s saving money or getting the full market value for your home, a property inspection makes a big difference whether you’re buying or selling a home.