Building Inspections – how do they also benefit property sellers?

Building inspections are a necessary evil from a sellers point of view. This is because most buyers will have one done before they buy a house.

Building inspections and pest inspections are often, but not always, done by the same person though they need licensing for both activities. They are paid by the prospective buyer to look at the property and report on its condition, including defects.

It is important to remember this with building inspections and pest inspections. In effect, they are paid to find out what is wrong with the property, not what is right. But in so doing, they often neglect to put the condition in perspective and can needlessly frighten off the buyer. The problem is that there is no objective measure of what constitutes a defect. However in their defence, building and pest inspectors are terrified of being sued for missing a defect and mostly try to cover themselves against any possible liability.

In practical terms, you never know how a buyer will react when they receive their report. Some look at the many pages of ‘defects’ and turn pale. They’re of the list. Others try to use it as a bargaining tool to reduce the price. The remainder, especially in a tight market, are sensible and experienced buyers. They realise that unless the defects are serious, such as structural faults, they need to move forward to avoid losing the property. So how people react to building inspections reports comes down to three things: the demand for the particular property; the personality of the buyer together with their desire to buy; and the pacifying skills of the selling agent.

You may be unaware that building and pest inspectors get paid for every inspection, come what may. They actually do better if their client does not buy and goes on to commission other reports on other properties.

Having said that, building inspections and pest inspection’s reports do fill a need. A good building inspections and pest inspection’s report will not only identify the defect but provide a rectification method or advice on engaging appropriate consultants to investigate further. A building and pest inspector has a duty to warn the consumer on all major, minor defects & safety hazards. Remember, your property may have building defects that are not immediately obvious. However, if you know about them, you should always tell the real estate agent up front. There is no point hiding them because more than likely you will be found out. It is infinitely better for your real estate agent to alert the buyer about the problems before the inspection, and preferably before price negotiations, so they can be taken into account by the buyer.

This is why pre-sale building inspections and pest inspections are becoming more and more popular as they can be included as supporting evidence with a vendors statement (Section 32). This also assists the real estate agent put a positive spin on the disclosure.

Vendor Marketing – Melbourne’s most qualified vendor advocates, specialises in both property marketing and real estate agent selection for property sellers within Melbourne, therefore we can recommend a building and pest inspector for your property.