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The Cost Of False Economy

Some home buyers are tempted to save money by doing without recommended pest and building reports, even on near-new properties.

No matter how new a house if there is any chance that it has been subject to careless workmanship, termites may have already entered the building. Termites have been known to enter via formwork that has been left around concrete steps, for example. Reports that cost a few hundred dollars could save tens of thousands even hundreds of thousands of dollars if the damage turns out to be extensive.

As long as the reports are done by licensed pest and building inspectors that have professional indemnity insurance, there should be no question of the buyer being out of pocket even if a tradesperson fails to analyse building faults that later become apparent.

If your building and pest report does uncover problems, that doesn’t automatically mean you should pull out of the sale. One way to approach the issue is to re-negotiate the sale price to allow for repairs. Prudent vendors usually see the wisdom of making adjustments to retain their purchaser. Another option is to negotiate for the vendor to arrange for a tradesman to carry out the work before settlement takes place.
 Even a termite infestation doesn’t necessarily mean purchasers should write the property off. A surprising number of homes has had termites at some stage and few infestations actually cause structural problems. Purchasers should quantify the damage before making a decision. If there is serious structural damage which is unquantifiable, it is usually safer to give up the idea of purchase no matter how much you like the property.

While building and pest reports are done to prevent the stress of disappointment and financial loss, in fact, in most cases they enable purchasers to reinforce the feeling that they have made the right choice.

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