hi all
just wondering if it’s worth it to do a building inspection and pest inspection for unit/apartment/townhouse…i’ll definitely do it if i’m about to purchase a house, but just not sure if it’s worthwhile for unit/apartment/townhouse. and by the way, if the answer is yes, what about public areas?
any feedback would be greatly appreciated
aoIt is up to you.
I believe that a building inspection and a valuation is a very cheap investment. For about $250 each you get peace of mind and more importantly avoid real lemons. If you only avoid one $5,000.00 mistake in every 10 houses you are ahead.
The other advantage is that you have some real bargaining power. with a known fault or a low valuation you may negotiate on price with authority. Do not be afraid to show it to the vendor/agent to explain why you are offering less.
Not doing it is saving at the wrong place. I am not sure about the pest inspection. They are a lot more expensive and look for only one specific problem. A good building inspector will often be able to tell you certain telltale signs and he also knows the area. Besides they come with so many exclusions.
I normally make my own inspection, get a valuer in before I make my offer and then send the building inspector in after acceptance of the contract (this also allows me a get out clause)
Hi AO.
I would also drop the coin on the inspections – it’s good regret insurance if nothing else.
More importantly I would closely examine the minutes from Body Corporate meetings (if applicable). If there is a known problem with the structure and/or public areas it should be noted there. If you feel there is a potential problem then look at building a clause into your contract exempting you from contributing to any applicable special levies should they arise.
Cheers,
Art‘Great spirits have always encountered violent opposition from mediocre minds.’ – Albert Einstein
Hi AO,
I would think it’s a must. A good building inspector will turn up any faults in the building including the internals of the unit in question but also the common areas that affect the body corporate – and if something like dodgy roof trusses or wall ties are found and the age of the building is under whatever the age needs to be for the building insurance to still kick in, you can go to the Department of Fair Trading to get the things fixed by the original builder.
Get the experts to tell you everything they can about what you’re about to get yourself into – then make the appropriate decisions.
Cheers
Hi AO,
My experience as a real estate agent in Sydney is that 99% of people when purchasing a unit or townhouse will rely soley on the strata report to determine if there are any problems. THIS IS A BAD MOVE! I exchanged contracts on a unit with NO KNOWN problems (therefore the strata search report would have showed nothing!), but my purchasers went ahead and got a P & B done anyway. The result: CONCRETE CANCER. No one who owned in the building knew it was there because they didn’t know what they were looking for and unless someone in the building brings it to the attention of the strata management company to investigate, nothing will be done. My purchaser pulled out (it was worth it to lose .25%) and 10 months later, after all the repairs have been completed, my vendors are ready to put it back onto the market. It didn’t cost all that much to fix (about $1,000 per unit), but the time delay caused huge problems). Advice from a real estate agent – ALWAYS get a pest and building inspection!
LindaHi ao
The inspections are definitely worth. At the end of the day, they are there to protect your investments and if there are any issues, it gives you an opportunity to renegotiate or pull out of the deal.
Sanjiv“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
I agree with Linda. A friend of mine got burnt big time by not doing any inspections for P & B. It is a small cost that can save you heaps in the long term.
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