Get Own Building and Pest or Use Agent Provided

• 

  Quantumcat on 23/02/2021 - 09:59

  +3

  Get your own. In Canberra the seller has to provide the report with the buyer to pay for it if they proceed with the purchase (so it is normal and building inspectors do their job without trying to be biased to the seller) but not in Sydney. That's not normal. Feels dodgy to me.

  If they weren't being dodgy there's no reason for you to have to pay upfront for it (even if only partially) when you haven't committed to buying

  • 

    Seraphin7 on 23/02/2021 - 10:51

    +4

    It's becoming increasingly common in Sydney.

    For years people have been getting frustrated with dropping $400 or $500 on a report, only to get outbid at auction (or via the pre-auction auction shenanigans that go on).

    There are massive question marks on their value in any case. While they don't tell you much, there's a "safety blanket" feel to them that someone at least has some process they follow to prepare them.

    But it's ultimately about what makes you feel better as a potential buyer. If you like the property, but end up not buying it, you'll be happy with the vendor-supplied one. If you end up buying the property, you won't feel so bad about dropping the $500. The problem of course is you don't know what outcome you're going to get, until you drop your hard earned.

    • 

      geoffs87 on 23/02/2021 - 11:35

      interesting take. ive paid for many MANY strata reports over the years, i've found some bad stuff in them and avoided properties that i otherwise would have bought. Obviously with houses things could be much more serious - but i really wonder if there was say termites… would the vendor potentially instruct the reporter to 'ignore' that issue?

      Dunno, im not sure we will end up buying, and i certainly wouldnt be concerned about spending $500 if i bought, or $99 if i didnt buy… but $400+ on this and potentially several other properties starts getting tiresome!

      Maybe i'll just rely on the vendor report

      • 

        Seraphin7 on 23/02/2021 - 13:03

        +1

        Yeah, strata is another game again and I won't go into that one.

        Part of the question also turns on what you're buying. You don't want to be cavalier, but there are fairly obviously differences between a new build, something 20-odd years old, and something 50+ years old.

        In your particular case, the inspector's details should be on the report and they should be happy to answer any specific questions you may have.

        Regarding termites, the report will basically say something along the lines of, "no termite activity was noted in areas observable, however a specialist termite/pest inspection and report is recommended".

        • 

          geoffs87 on 23/02/2021 - 13:18

          @Seraphin7: Yeah fair point, property is 50+ years old, and not without its faults - many of which i can identify and estimate on rectification costs… Would just be concern financially if something obvious was omitted that will result in $10k + in repairs that may have fundamentally changed my position on the purchase.

          In reality, the house is 50yrs old, I assume if anything serious was to occur it probably would have by now. I will eventually tear her down, but for now have to live in it! even the concept of 10-20k in repairs isnt horrible given its <10% of the purchase cost

          • 

            Seraphin7 on 23/02/2021 - 13:29

            @geoffs87: In all honesty, if you're buying a freestanding house on the northern beaches, $10k to $20k worth of unforeseen costs is the least of your worries. With some knowledge of that area, those sorts of costs would be lucky to make up 1% of your purchase price, let alone 10%!

            • 

              geoffs87 on 23/02/2021 - 13:39

              @Seraphin7: correct haha… yeah my maths there was terrible… its less than 1% of purchase price…

              which is why it also seems ironic complaining about a few lots of $400 also…

              • 

                Seraphin7 on 23/02/2021 - 14:24

                @geoffs87: Mate, you're spot on. I think this is actually the crucial point.

                On one hand, you almost need to accept that you could be up for $20k worth of "remedial work" over the first year or two of home ownership, regardless of what's in a pre-purchase inspection.

                On the other, you want to avoid is massive costs like a new roof basically on day one because of some structural issue that wasn't spotted.

                Whether or not spending $500 (on what can very easily be a $1m purchase) puts the prospective purchaser in a more informed position is the key question, keeping in mind the above.

                To expect any inspection to give you an "iron clad guarantee" is probably a bridge too far, but you need to satisfy yourself that you haven't just bought a money pit that's going to genuinely affect your financial position during the period of your ownership.

• 

  one man clan on 23/02/2021 - 10:20

  +1

  Just use their one. Most reports say the same thing anyway.

  Do you really want to pay $400 every time you intend to buy a house? I think the before you bid system is much fairer, building inspection reports at $400 a pop are the biggest racket going

  • 

    pharkurnell on 23/02/2021 - 12:45

    In a stupid rush to get a place, a friend bought a house with no inspection, the owners had placed paintings in specific places to hide wall cracks since the stumps had failed…
    In his case 400 would be much cheaper than 10k in repairs… but it wont always be the case to find all issues.

    • 

      Seraphin7 on 23/02/2021 - 13:08

      +1

      Interesting case study, although my recollection is that the inspector can only report on "what's visible".

      Which basically means they are not allowed to move paintings, rugs, etc. to conduct their inspection.

      Now, the inspector may have picked up the stump failure (assuming this was visible, etc.), but vendors can effectively do whatever they like to "hide" the problems and there's basically nothing you can do and there's no recourse after sale. While it's getting off topic, I see this whole purchase as is/no warranty situation as a fundamental problem in property buying in Australia.

      • 

        Bargain-er on 24/02/2021 - 07:14

        Yes, this is very correct. Inspector only report what is visible. They don't bother to try to see what's behind the painting, or boxes in garage. There's a disclaimer in the report. I followed a building inspector working. Only knocking here and there, commented abt some cracks and that's it. The only things i couldn't do myself are checking the roof and using termites detector (dun have the tool off course).

        Also, they dodgily selling the report for other potential buyers for $100 (REA told me) while i paid $250 share cost with another buyer. Dunno if it's common practice but quite disgusting really.

  • 

    Chandler on 23/02/2021 - 13:48

    +1

    Do you really want to pay $400 every time you intend to buy a house?

    I wouldn't think they'd be subject to the fee for the inspection unless their bid/offer was successful. Every purchase I've made there's been a clause for "subject to building & pest inspection" on the contracts, so that if we're not satisfied with the inspection we've got an out.

    • 

      one man clan on 23/02/2021 - 13:58

      +2

      It still costs you $400 every time. That clause also doesn't exist on places going to auction. There's no way a vendor would accept a contract amendment in that regard

• 

  Bisah1342 on 23/02/2021 - 10:20

  use www.beforeyoubid.com.au

  far cheaper - as cheap as 49 bucks for the buyer

  • 

    MrHyde on 23/02/2021 - 10:47

    +1

    Hmm - that depends on how many buyers are interested in the property and know about beforeyoubid to be able to order independently from them as well.

    For VIC, saw 1 buyer - $499
    4 buyers - price comes down to $149

    • 

      Bisah1342 on 23/02/2021 - 11:36

      hey guys - sorry for not updating.

      You guys are using the consumer model.

      I know someone who works for them - essentially, you can ask the vendor to see if they have an agent on board with this…

      then there is two Vendor Models - one where buyers can get the report for 49 and one where they can get it free (vendor fronts most of the cost.)

      edited original post.

      • 

        geoffs87 on 23/02/2021 - 14:21

        yeah theres a few models like this… really relies on the agents having a relationship with them - i think most agents probably already have a 'trusted' supplier… as is the case of the one im looking at!

        • 

          Bisah1342 on 26/02/2021 - 12:50

          @geoffs87: Before You Bid can use their trusted suppliers. Also their panel is fully qualified in an industry where up to 70% may not be. Get in touch with customer service if you have further queries but I can assure you it is a much better model & having it upfront is far better than at a later stage!

  • 

    Unorthodox on 23/02/2021 - 11:07

    Very dependent on others knowing of this service.

    Had a quick play around on a few popular listed properties… All were still at 1 buyer prices

    • 

      Bisah1342 on 26/02/2021 - 12:50

      go through agent - see my other comments

  • 

    geoffs87 on 23/02/2021 - 11:20

    yeah, showing $499 for me… guess no-one else knew about this one - maybe everyone's used the agent provided report!

    • 

      one man clan on 23/02/2021 - 13:59

      Currently in the process of selling and my agent is using this model. It's fairer for everyone.

      • 

        Bisah1342 on 26/02/2021 - 12:49

        definitely is.

        Please contact agent to use to get cheaper……

• 

  ImpulseMan on 23/02/2021 - 10:45

  +1

  If your anything like us you will make a lot of offers that get knocked back or are not the highest. These costs rack up quickly.

  After making this early mistake with property hunting we rely on any existing reports as much as we can.

  Our strategy is to get our own building and pest report done during cooling off period.

  If you going to auctions, i would suggest to do your own where you have reason to believe there may be an issue - for example; the age of the property, any inconstant or incomplete reporting in the provided pest/build reports.

• 

  djkelly69 on 23/02/2021 - 11:02

  +2

  Key thing to find out is if the building inspector will be generating a report specifically for you/in your name, or the agent is just passing on a report already prepared for the vendor.

  The difference is that if the report is generated for you, you have (or should have) a contract with the inspector and can legally rely on it if there are any issues later on. If the report is for the vendor, the inspector's contract is with the vendor not you, so you can't take any action against the inspector if there are issues.

  • 

    geoffs87 on 23/02/2021 - 11:36

    Yeah thats a very good point! I imagine its in the vendors name… but thats an interesting take if you end up paying the full freight for the report, do they update it to be in your name!?

    • 

      geoffs87 on 23/02/2021 - 11:39

      +1

      oops i lie, the inspection certificate states: In the event you're the successful purchaser, an additional fee of $299 will be payable - your names and details will be added to the reports at that point.

      Maybe the vendor report could be ok!

      Interestingly, the property is for sale under the instructions of the NSW trustee and guardian for a deceased estate… so you'd assume they aren't dodgy… and i used this agent to sell my apartment recently, and i went through a similar path, the $39 and $150 on succesful buyer, there was no involvement from me, and the report actually omitted things that would have otherwise been beneficial to me, so was actually in favour of the buyer!

      Might just trust this bad boy… thanks for the input!

    • 

      pharkurnell on 23/02/2021 - 12:46

      if you end up paying the full freight for the report, do they update it to be in your name!?

      You wouldnt touch it if they didnt.

      • 

        geoffs87 on 23/02/2021 - 13:15

        Yup makes sense!

        • 

          pharkurnell on 23/02/2021 - 13:18

          @geoffs87: watchin this as will be going through this myself soon..
          shame theres so many little pitfalls out there these days.

• 

  MontyMacaw on 24/02/2021 - 07:56

  Always and I can’t stress it enough, ALWAYS do your own. Agents who supply them are doing you no favours.

• 

  colossus on 24/02/2021 - 10:07

  Assuming an offer has been accepted and contracts signed with conditions of building and pest inspection, get your own. I suspect inspectors used by agents look only for the biggest of problems. The agents are their revenue source so will likely be influenced by the agents' interests.

  A private inspector will be solely looking with your interests in mind.

  On pest inspections, I was recently advised once a contract is signed, there needs to be a serious infestation for you to withdraw from a purchase.

• 

  HeWhoKnows on 24/02/2021 - 19:26

  The seller is paying for the report not writing it
  Just as long as it's current and not an old report.
  It's all about disclosure. So don't waste your money on another report
  OMG

• 

  Joe78 on 04/05/2023 - 14:28

  Always get your own! Agents work for the seller not the buyer, so you never know if they've removed something from the report or are concealing information about the property in order to make the commission off the sale. Most agents are alright but some are pretty dodgy, so best to get your own to be on the safe side.