There are currently generic building and pest reports being provided to home buyers and first home buyers at a reduced prices. These are supplied by the vendor & middlemen companies. The risks involved in using these reports to base your decision to purchase the property include:
- If the report is in the name of a vendor, then there is no insurance warranty available if a claim arises from a termite or building issue in the future.
- The agents that sign up to use these middle men companies actually get given the choice of who they want to use to carry out the inspection … conflict of interest.
- The buyers haven’t had the chance to meet the inspector on site and follow him through the property (most buyers want the opportunity to do this) and we strongly recommend this.
- Also I think we should mention that their spending hundreds of thousands of dollars on the new home.. what’s a few hundred dollars for some piece of mind
When considering buying a home, particularly if you’re a first home buyer, you don’t have the experience to know what warning signs to look for before buying, and an inexperienced inspector could miss the warning signs for these problems, reporting to you that there is nothing wrong with the home like:
- structural damage
- termite infestations
- water damage; and
- other defects
can end up costing thousands in repairs. This is a cost that falls on the buyer if their inspector is not licensed.
To be able to do the job, building and pest inspectors need to have an experienced understanding of all building trades. It’s from a position of experience and training that an inspector knows the warning signs to look for when it comes to potentially costly defects in a home, or signs of pest infestations and likely termite activity.
In the event that something is missed, a fully licensed building inspector is covered by professional indemnity insurance, protecting both the buyer and the inspector.
Having a house checked by an experienced, licensed, insured building and pest inspector can provide you with the peace of mind that you know what you’re getting into, before you invest hundreds of thousands of dollars in one of the biggest purchases of your life.
Warning Signs When Engaging A Pre-Purchase Inspector
- Research the internet for any bad feedback, including the inspector’s own website for positive feedback & testimonials
Visit your state government website and do a license check on the company
- The pre-purchase industry does not have any regulated or standard fees; rule of thumb is the cheaper the report the less inspection/reporting is carried out. The minimum report should be at $400 to maximum $1,000 depending on the experience of the inspector and size of the property
- Stay away from reports already to purchase. It is safer to hire your own independent inspector.
You Should Also Consider
- How long did the inspection take to be carried out (usually around 2 hours)?
- Did the inspector assess the roof cavity and external roof?
- Were all areas of the subfloor checked properly, unfortunately the buyer of the report wasn’t in attendance during the inspection to witness this.
- Does the vendor have any connection with the inspector (eg a friend, colleague, relation)?
- Does the agent have any connection with the inspector (eg a friend, colleague, relation)?
- What if the report exceeds the 30-day warranty period from the date when the inspection was carried out (applies to pest inspections only). Then warranty and protections may have expired.
Benefits Of Using An A Totally Independent Building And Pest Company
It is possible that a real estate agent or conveyancing company may ask you to consider using certain building or pest inspectors. You seek out your own building and pest inspection company as they should be totally independent and must be working for you and you only.
Auspect is not linked to or affiliated with any builders or agents and are therefore totally independent in offering our straight forward, jargon free, honest advice to our clients
Using Auspect, you have the confidence in knowing the company is fully independent, with no financial gain on your decision to purchase the property.
Auspect always recommends attending all inspections so the purchaser can witness how we carry out these inspections, how we look and what we look for.
We can also discuss any defects found in more detail and what rectifications works is required to rectify the issues.
It also gives the buyers chance to have a good second look around the property, maybe they missed certain aspects of the property on the first inspection.
Once the inspection has been carried out, the inspector can summarize on his findings and clearly identify areas that need immediate attention