A proper building and pest inspection is important for a building you are buying at an auction. Most often buyers believe that they’ll get a deal at an auction. But how can you be confident that the property you are bidding for doesn’t have major issues?
It becomes vital for this building to have a detailed report in order to help you make informed choices, thereby saving you potentially thousands of dollars in terms of miscellaneous costs that you may not be aware of.
Why is a Building Inspection Mandatory for a Building Bought at an Auction?
The building inspection is the basic proof of the state of the building before the purchase. Buying at an auction, does not make the property immune to structural hazards and deficiencies. Auctioned property will need to pass through a detailed step-by-step investigation.
The pest inspection report on the other hand brings out the various threats brought about by pests, especially ones which can go unnoticed if not detected on time. All lurking threats are brought to the surface by a proper inspection routine.
How It Can Be a Good Exercise for the Building and Pest Inspector
To start with, a building inspection almost always is a make-or-break exercise. If there are enough complications detected, the value of the property can go down by almost 15%. Substantial structural issues, together with any illegal works or renovations are highlighted by these inspections.
Next, a building inspection is not always just a detailed report. It brings forth important points determining whether or not the property should be invested in, and if invested, where the buyer should bring down the bidding price to.
Too Late to Look Back Once the Hammer Is Dropped
Auctions are an adventure. While they ensure that the building is sold, they do almost nothing to ensure that the property was worth its value to the new owners or not.
Once the hammer is dropped, the owner is only left with the option of incurring a few other costs to make the property live able. The owner at this point is out of options to back out of the deal if they find out there are structural and pest related issues later down the track.
How to Save Your Back Even When Such an Inspection is Not Mandatory?
- Find out if the seller has already had an inspection, so that you have less pressure on your hands associated with the bidding decision. It is a good option to have a reputable local independent inspector conduct the inspection and make the reports.
- Ask the agent if any other inspections have been conducted. Although an agent may not be honest in telling you what is potentially wrong with the property, you may be able to get some insights.
- Inviting a friend who is a builder and can help you make an informed decision and provide a quality report.
- The best option is to have your own inspection done before the auction by your own inspector so you know exactly what you are getting yourself into.
The cost of such an inspection will depend on the size, location and area of the property. Most people buying buildings at an auction make the mistake of a blindfold purchase. It’s the inspection report that reveals all the truths, thereby helping you get a great deal both financially and personally for your future.