When you’re about to put down money for a new home, it’s essential to get an inspection done and out of the way first. Why? Because without a building defects inspection on your side, you can end up paying for an expensive fixer-upper without even realising it. But you knew all of this before, and you knew there was a chance that the inspection could flag up a few faults. And now that a building inspector has conducted a building and pest inspection, they’ve come back to you with an identified fault. What you’re really unsure about is what to do next; once a defect is identified, what should you do to save your money and retain your rights? Check out our guide below.
What It Means for You When The Inspector Finds Building Defects
Once a building inspector has carried out an inspection, uncovering one or two (or even many) house defects, now’s your chance to redefine how the sale is going to go. First of all, decide whether you’re still interested in the property. As long as no contracts have changed hands, if you’re keen to back out now thanks to the nature of the defects found, you can instantly move on to another home on the market.
But suppose you want to proceed with the sale because you still like the property and feel like the defects don’t detract from its character and suitability. In that case, there are quite a few steps you can take next.
What’s the next step?
When dealing with common building defects, such as plumbing or a wiring problem, it’s a matter of waiting for the inspector to decide what needs to be done. Some building inspectors will go out of their way to fix minor problems for you, but some jobs are out of their reach, and you will need to contact a specialist.
After a plumber or electrician investigates the defects, they will provide a quote outlining a solution with a price.
Can you negotiate a better price?
Simple answer: yes! The quote provided to repair the defects could wield some buying power. You could either negotiate the purchase price down to cater to the repairs, ensuring you’ve received enough quotes to make sure you’re not going to end up short-changed.
Can you negotiate if the defect is repaired?
You can ask the seller to fix the defects before you agree to buy. This way, the property will be worth the asking price the seller has put on the market, and you’ll feel much more secure moving in and making it a home. Before signing any contracts, be sure to demand proof that the issues identified in the survey have been worked on and fixed to a standard you’re satisfied with.
How effective will your negotiations be?
You’ve got the buying power here, and the seller knows it. However, you also need to be aware of the market you’re buying in. Is this a popular area that you’re trying to move into? Is there a lot of market interest in the property? Does the seller have other potential buyers lined up? Before you consider negotiating for any of the above, you’ll need to factor in these questions as well.
After all, if the property has other interested parties, it might be worth it to cut your losses here and move on. It may pay to find time to source another property that’s perfect for your needs. But if the real estate market you’re in has a high turnover, you can be sure another home won’t be far around the corner.
Alternatively, if the seller decides not to budge and the house sits on the market for a while, they may be trying to call your bluff. They may be pushing you to a decision, and you’ll need to consider whether you’re ready to accept the property in its current condition. Are the identified defects easy to fix, or are they more complicated?
Dealing with house defects can be a tricky game. Make sure you’re aware of your buyer’s rights before entering into a contract. Always entail the services of a building inspector before you sign any money over. Identifying a defect can score you a significant discount. It can help you avoid a red flag in the market and move on to greener pastures.
