How a property building report could save you thousands

You’ve found the home of your dreams, but you might want to consider a building inspection before you sign on the dotted line of the contract.

Not only can a property inspection report let you know what costs you may be up for after purchasing a property, it could help you avoid a lemon, or potentially even knock some money off the asking price.

“I know many people use my report to negotiate on the sale,” said building and pest inspector Phil Hayes, of Jim’s Building Inspections.

A building and pest inspection report is an important consideration before purchasing a property because it gives you expert advice on the property’s overall condition.

It is a written account of the property’s condition. It should include any significant building defects or problems such as rising damp or water leaks, but it generally focusses on structural problems, not issues such as the electrical wiring or working appliances.

There is an Australian Standard, produced by Standards Australia, that pre-purchase building inspection reports must comply with, but this does not include style or content.

It’s worth considering a building check when purchasing a property. Imagine if your dream home didn’t comply with building codes and required major works, or if termites had eaten out an underfloor and started on the windows and doors.

“Many banks and financiers may also request one before lending you the money,” said Mr Hayes. “That’s because they want to ensure their investment is sound.”

He adds that DIY television shows may have increased the amount of work people try to do themselves on a home that may not necessarily have a permit, or may not be up to a good standard.

As well as non-compliant renovations, a building and pest inspector will take a microscope to the whole house. At an average cost of around $400 - $600 depending on the property, according to Rapid Building Inspectors, it may turn out to be money well spent.

Of course, a property inspection report can also allow you to plan for repairs that may need to be done after you buy the property. For example, a qualified building inspector may let you know that the wet areas need resealing, the retaining walls require some remedial work, or that the roof needs painting.

Being warned in advance means you may be able to adjust the amount of money you are borrowing.

A qualified building inspector can provide you with an easy-to-understand report on the condition of parts of the home, such as:

• Interior and exterior walls
• Roof space and the roof exterior
• Floor and subfloor space
• Bathrooms including showers and toilets
• Laundry
• Garage, carport and shed
• Driveways
• Stairs and steps
• Fencing
• Surface water drainage
• Storm water run-off
• Anything else you ask them specifically to check, if it is in their range of expertise.

“Your building inspector can look for water leaks, and water damage, as well as pointing out dangerous wiring,” Mr Hayes said.

“They can identify whether a building contains asbestos, something that Australian standards dictate has to be mentioned, along with mold.

“I try to paint home buyers a picture of the quality of the house, rather than advise them about investment.

“If something is not right, I highlight it with photos and a description and, often, recommend the potential purchaser follows up with a specialist such as an electrician or a plumber if there is a problem.”

Mr Hayes said building inspectors would usually be armed with a couple of nifty gadgets, such as a moisture meter and a thermal camera, that everyday builders will not – in case you are thinking of getting a builder mate to inspect a home for you.

Infrared thermography is the easiest and quickest way to detect moisture and electrical issues in buildings.

“I also keep binoculars in my kit and regularly stand back and look at higher areas, and a ‘knocker’ to test for drummy floor tiles,” said Mr Hayes.

A building inspector focusses on the structural condition of the house or unit, according to Mr Hayes. Generally, they won’t check:

• Anything inside the walls or ceiling that can’t be seen, like electrical wiring or even gas fittings.
• Home appliances, although an inspector will check for leaks caused by a dishwasher, for example, said Mr Hayes. It’s smart, then, to turn on appliances including extractor fans or elements and check they are working when you do a home inspection pre-offer yourself.
• Home accessories such as the television reception or smoke detectors. However, an inspector will check there are the required number of detectors.
• The operation of fireplaces or swimming pools.
• Septic systems, unless you hire someone who is a septic system specialist.

If you want someone to check for the presence of home destroyers like wood borers or termites, you either need a building inspector who is also a qualified pest inspector, or a pest inspector in addition to a property inspector.

Again, buying a property without a pest inspection might be a bit like putting your fist into a nestful of hornets. And, literally, that could be just the case, hidden well beneath the eaves.

You could take a recommendation from a real estate agent for a building and pest inspector. But you could also do some research online to find a well-reviewed and qualified inspector in your area. Word of mouth recommendations can be a good idea too.

“Ask your mortgage broker or conveyancer for a recommendation,” Mr Hayes suggested.

Most consultants need a minimum of two to three days’ notice to do an inspection, so it’s worth keeping that in mind for tight home-buying deadlines.

Make sure you have the vendor’s permission to do the building check and consider trying to get this done as early as possible in sale negotiations to save spending more money, such as legal fees, on a potentially dud property.