Whether you are purchasing a new home or an investment property, you are about to embark on one of the most important financial investments of your life. So it is essential to ensure that you are getting a fair deal. Yet, while buyers can be scrupulous about checking contracts and researching market prices, a surprising number of people tend to skip the property inspection. This means that you are taking ownership of any issues that could diminish the value of the house, even if the property looks perfect on the surface.
Here are five good reasons why you should invest in a property inspection before your purchase:
1. Detect Safety issues
Not all hazards are easy to see at first glance. Asbestos, mould or carbon monoxide are only some of the hidden threats that could be lurking in your new home. Identify them now and you could save yourself some costly damage control.
2. Identify Illegal Installations
Perhaps the previous owner was a DIY expert and the property looks impressively well maintained on the surface. But if any of these renovations were completed without proper approval, you are essentially buying something that does not exist. And if the unapproved renovations or installations need to be removed or fixed, you could be facing some expensive reparations.
3. Plan for future costs
A comprehensive inspection can provide helpful information about the structure, fixtures and fittings so you can budget wisely for future repair and maintenance costs. If you know exactly when the water heater will need to be serviced or replaced, you can plan efficiently. Your home inspector can also suggest maintenance strategies based on your specific property, saving you money in the long term.
4. Prepare for Insurance Approval
If there is an issue with the property that could impact your insurance coverage, it’s better to hear it sooner from the property inspector, rather than later, from the insurance company. Your property inspector can tell you what conditions could undermine your insurance coverage and whether you need any certifications to be eligible.
5. Renegotiate the Price
If you were previously thinking the property price was too good to be true, the property inspection has probably opened your eyes a little wider. This is a good time to reconsider whether you are happy with the proposed purchase price. If the property is in urgent need of repairs and maintenance based on what you have discovered, you can ask to renegotiate a lower price to cover the potential cost of the repairs needed. Alternately, you can explain to the seller that the property no longer suits your needs based on the work involved to bring it up to standard.
A property inspection might seem like one extra unnecessary expense as you prepare to settle your new purchase, but it can prove to be an extremely cost effective investment in the long term.
If you have any questions or concerns about your own plans to invest in real estate, contact us today.
Director, Simple Easy Finance Pty Ltd
Property & Finance Strategist