Total Home Inspections News

1 January 2023

Building Inspections: Benefits for Buyers and Sellers

Building Inspections are usually completed before a property is sold or bought to determine its fair and accurate market value. The Building Inspection report can influence the Real Estate appraisals and can be a significant contributing factor for whether a client seals the deal or not. In most cases, the more structurally-sound a property is, the more its worth. If you want to get a more accurate assessment of what a property is worth, a Building Inspection is essential.

Building inspections: what to expect

It is recommended to have a Building Inspection carried out before you commit to purchasing a new home. You should also ensure that the Inspector is a qualified Building Inspector who is also a registered builder. Building Inspections and the inspection reports must comply with Australian Standard (AS 4349.1).

A standard Building Inspection report is a visual inspection only. The only items required to be reported in the report are faults within the building which have lost their designed structural integrity. This includes:

  • The structural components of the property – including foundation
  • Roof Structure – including struts, battens, and purlins
  • Subfloor structure
  • Exterior and interior walls of the property

If you require a more in depth report you could instead request a Premium – Combined Termite and Building Inspection Reports  which also covers pest inspections, electrical, plumbing, skylights, smoke detectors, driveways and much more.

Building Inspections could make or break the sale

A Building Inspection report is a comprehensive account of a property’s general condition, providing critical information for both the seller and the buyer. The information contained within the Building Inspection report can potentially make or break the sale!

Any significant issues detected during the Building Inspection can slow down the buying process and potentially result in lengthy negotiations and a lower than expected settlement price. 

As a seller, organising your own Pre-Sale Building Inspection provides you with a complete understanding of your properties condition. If any issues or faults are detected with the property, you have the option to remedy the issues prior to going to market or prepare for the potential negotiation on a price reduction.

Other benefits for the Seller:

  • Building Inspections help you understand the value of the property in its present state. This helps define the correct property value and give an idea on pricing
  • It can streamline the settlement process by enabling you to either have any issues repaired or to disclose it to the buyer. This way, there will be fewer setbacks and delays will be avoided
  • A property that passes a quality Building Inspection before sale is less likely to be the subject of any future liability for the seller should any problems arise once the property sells
  • It can provide you with negotiating leverage. With a Building Inspection report in hand, you have tangible proof to back up your claims as to the condition of the property which will be an advantage during any negotiation process
  • It can protects you from a legal standpoint. By having full disclosure of the property, you have the peace of mind knowing that the buyer is fully informed before making the transaction

A recent study done by ME Bank showed that 55% of Australians spend less than one hour inspecting a property before they buy it. The lack of inspection time led to around 61% of Australian home buyers discovering issues with their property after moving in.

Around 40% of this group said they missed picking these issues up because they ‘lacked the skill or experience in inspecting the property’ while 33% simply ‘fell in love with the property and overlooked them’, and 18% were ‘impatient and concerned by rising prices’.

This shows that buyers may not always be fully aware of what to look for when inspecting a property and they are likely to be more focused on the aesthetics rather than the structural aspect of the property which can be a very dangerous approach. This is an important reason, among many others, of why it’s crucial to complete a Professional Building Inspection before purchasing any new property.

Other benefits for the Buyer:

  • It provides you with the knowledge of the property’s ‘true value’ in the real estate market and thus ensures that you get value for your money
  • As the buyer, you can be confident to make an intelligent and informed decision. You won’t need to second-guess your decision to purchase a property when you have the data to back it up
  • The report could be instrumental for price negotiation if the property turns out to have some issues that will require repairs and cost you money. It ensures that you get the property at a reasonable price

Having a Building Inspection completed is crucial for both the buyer and the seller to strike a fair deal. At Total Home Inspections, we understand your need for a thorough, objective, and Professional Building Inspection that’s why we offer our comprehensive range of Building Inspection services to suit your needs. Contact us today!