When buying a property, most people tend to focus on the obvious factors like location, property value, and neighbourhood. But there’s another critical piece of information buyers should consider before making an offer: the pre purchase building reports. You’ll want to know about maintenance issues, defects and what needs to be done to address them.
Okay, so maybe defects and maintenance aren’t the sexiest of topics. But trust us, it’s a lot more important than you might think. Let’s look at why pre-purchase building reports are so powerful and how you can use them to get the upper hand when it comes to buying a property.
Negotiating Power
The aim when buying a home should always be to get an owner to sell at the floor. This means the lowest possible price that they will sell the home for. Homeowners want to get as much money as possible for their property. This is true, even if they know the house has issues and needs repairs. A homeowner isn’t obligated to provide any information about their property unless you ask specific questions. A pre purchase inspection will provide you with negotiating power because you will know the state of the home. This will help you find the floor asking price.
Knowledge
Buying a home that has seen better days can be a smart investment decision. You can purchase the house for a low amount and potentially fix it up before selling it. However, you need to know what repairs are required and, more importantly, how much they will cost. This will ensure that you understand how much time and money you will need to bring the build up to the correct standard. A pre-purchase building report will provide you with this knowledge. You will know exactly what repairs are required, and this will allow you to make an informed decision before committing to a purchase.
Risk Reduction
Buying property always comes with significant levels of risk. It is the most expensive investment you will make in your life. You need to make sure that you are not taking on too much risk. There are numerous ways that a home can be financially risky. If a home requires a lot of expensive repairs, it will become a money pit. Even if you purchase the property for a low price, you could spend a fortune in attempts to bring the building up to code. Structural problems and issues with the plumbing or electrical systems are all expensive repairs and require the work of professional contractors.
Alternatively, if you buy a home with issues that you cannot fix, you may struggle to sell it. This could mean you are left with a home that isn’t suitable for you but that you have to keep as a dead financial weight. With a pre-purchase building report, you can avoid this disaster scenario altogether.
Pest Problems
A home you are considering purchasing may have a pest problem. The property owner may not reveal an issue like this, and you may not see any signs when viewing the home yourself. Even if the pest issue was dealt with, it could still mean it’s more likely that the building will have similar problems in the future.
Using a pre-purchase building report, it is possible to identify any current issues with pests or problems the building had with pests in the past. A builders report can even provide recommendations about the measures and changes required to prevent the issues in the future.
Money-Saving
Finally, arranging a building inspection pre purchase can save you money. You will save money when you buy the home because the knowledge it provides will ensure that a lower offer is more likely to be accepted. However, it can also save you money on your home insurance. After purchasing a property, you must show that your building is in excellent condition to secure a lower premium when you apply for home insurance. A pre-purchase building inspection proves that your home has no issues that would impact the cost of insurance.
Ultimately, a pre-purchase building report is an invaluable tool for any homebuyer. It provides tremendous power during purchasing a property and will ensure that you do not buy a home that could damage your financial situation. Without a pre-purchase building report, you make a significant investment that will change your life with no real knowledge of what you are buying.