Our latest newsletter gives a case study of a recent inspection. Some key points on other inspections are also noted and names have been changed to protect identities.

Sue’s first home

Sue was about to purchase her first property and after researching the market properties in her price range (> $200,000), she settled on a property which was negotiated down from $160,000 to $155,000.

Sue then discussed her proposed purchase with her Lawyer and was advised to sign conditional to a Builder’s report.

The house was inspected and reported on with-in the first of three days, which were allocated prior to going un-conditional.

The inspection identified an aged hot-water cylinder, inadequate heating, damaged basin, disconnected bath waste, borer issues in the sub-floor, substandard decoration, buckled framing timber giving un-straight walls, along with numerous minor repairable issues.

The main structural content of the house was found to be reasonably sound. Permit issues also arose with construction of decks and carport being illegal. In light of being informed of these issues, Sue was able to reduce her offer by $5,000 to cover major immediate concerns and put the onus on the vendor to cover the legality of the building work. This would save her $500 in Certificate of Acceptance fees and $200 in consent fees along with any costs in bringing this work up to standard. In this case an estimated $1,500.

For an investment of $320+ GST Sue had saved $7,200.

Some key points from other inspections typify the value of engaging an experienced Building surveyor.

• Ron( the vendor) had to cough up $1,200 to legalise work carried out by a “Cowboy” builder who carried out alterations with-out a consent. The new owners can now on-sell the property without delay.
• Brent and Gay from Brisbane were buying property off the net, sight unseen and relied on my detailed report with 58 photo’s. This is the third property they have purchased locally using my services.
• Bill from Wellington had me briefly check out three retirement project properties for him. Two did not meet his criteria. The third one looks to be a bargain with solid bones and rough decor. This one has had the full pre-purchase inspection treatment and Bill now can formulate a budget from the cost estimations for repairs that he has been given. He went unconditional after receiving this information.
• An Invercargill lawyer recently commissioned a pre-purchase report for an overseas investor. The house has turned out to be in good shape, but serious permitting issues are now being addressed.
• Brian and Jane from Cambridge recently purchased a riverside property armed with the knowledge that the lower garden is susceptible to flooding and access to the property can be cut off. An illegal stair access was also noted. A solid overall structure and high standard of maintenance and finish sealed the deal.
• Steve had signed subject to a pre-purchase inspection and pulled out of the deal when he was made aware of a serious borer problem in the floors of his intended purchase. No ventilation to the sub-floor was found to be the main contributing factor.
• Trevor and Jane bought their Queenstown holiday home with a clear picture of the standard of construction of the home and the flawed gib-stopping through-out the house.
• After finding that the house needed a new roof at an estimated $12,000, Sam re-negotiated his contract and saved himself a packet.
• We helped out Pete recently. He was sucked into signing a contract before he had enough time to collect his thoughts after some hard negotiating. A leaking roof was quoted out at a replacement cost of $22,000. He asked our advice about this and so we arranged contractors to carry out specific repairs to the badly detailed gable flashings and re-nail the roof for around $5,000, a good saving but this expense could have been avoided with a pre-purchase check.

The list could easily go on but by now you will have the picture. Ensure that you are not caught out. Your Property Advice pre-purchase inspection may be the cheapest insurance you have ever bought.

Yours Sincerely

Joe MacDonald