Why I encourage Homeowners to purchase Professional Inspection Reports.
Make a pre-emptive strike, and arrange a building, electrical and LIM (Land Information Memorandum) report. These days, most people will want to see as much information as possible before they purchase a property.
I encourage owners to arrange these reports for a number of reasons:
1. You are showing the buyer your home is an open book
This gives any potential buyer peace of mind and gives them positive feelings about your house from the start.
2. Sets you apart from other home owner’s
It shows that you have goodwill and trust your home.
3. It gives you control over the selling and negotiation process
If no issues are found, you will have peace of mind knowing the purchaser will not be able to use any issues in the report to negotiate the price down.
4. An inspection report empowers you – If an issue is found, you can resolve it before you list your home.
Some owners are worried that professionals may uncover some less-than-ideal truths about their property, which prevents them from arranging any reports.
Although your property may appear to be structurally sound, with no visible indications of structural defects, subsidence or mold, there could be something only a professional can identify. For example; in the foundations, roof, plumbing, wiring or walls.
Owners arranging for these reports can fix any issues which may put a buyer off, or bring the price down.
5. Transparency instills confidence in Purchasers
An owner organising the reports shows they have nothing to hide.
Many potential buyers will still insist on having their own pre-purchase inspections conducted, you can show them the reports you have prepared.
Purchasers like knowing Owners have nothing to hide about the condition of their property.
6. Investment of under $1000 of reports, could save you THOUSANDS on your sale price
If a purchaser finds defects, they will want to bring the price down so they can fix them.
If you go through and fix even only all the small things in the house, you will still protect your sale price. As a potential buyer walks around properties they are adding up all the small and large items in their heads.
7. A Building report may bring up things you overlook
Brace yourself for the reports – they are thorough, but this is good – it is highly likely it will bring up things you may overlook. For instance; a broken faceplate on a power socket, which you don’t see because you are used to it. Or a dripping tap out the back because you never see it.
Sometimes what comes up in the report might come as an unwelcome surprise. It is a complete list of defects, as seen by an objective observer – it is their job to note every possible flaw. This does not mean your home is unloved!
8. All your home’s assets will be detailed
The reports being thorough, although being considered just for defects, it is also a list of all the home’s assets. It will detail things that you may have not considered important or something the buyer would not have otherwise noticed. For instance, power points: having multiple power points in the bedrooms, 4 power points mounted in the lounge, or having USB chargers in the power points, would all be detailed in the report, attracting buyers.
9. Not every action point has to be actioned
Whether it be you want to sell in the current condition, as a renovation project, or as move-in ready, we can work together about which points would be best to action.
How we are marketing your home will dictate which points are best.
10. All houses require maintenance
Most reports are going to come back with something to action on it. In general, they have a list of action points, and what needs to be actioned now, in 5 years, or further down the track
For example, the report might say:
“The home is 24 years old and is in need of new roof tiles. Roof tiles last approximately 25 years and need replacing on every home of that age.”
The point to remember here is that all homes at one time or another require maintenance and that this is known as a capital improvement on the property. You would have to decide if you think that it is necessary to re-roof for sale.
11. Some things may scare off buyers, if it comes up in a report they get after putting an offer in
For some buyers, negotiating the cost repairs off the purchase price, and getting them fixed once purchased, is straight forward.
This is not the case for all and may prevent some qualified buyers from putting an offer in, or withdrawing their offer.
12. You have a higher chance of offers being presented with fewer conditions, or even Unconditional
A ‘cleaner’ house, which has all of its problems fixed will more than likely sell faster than it would have otherwise.
13. Buyers can not come back to you saying you didn’t tell them about a fault
A thorough report by a third party would give a buyer all the information you know (and maybe more).
It is important to get a qualified building inspector to do your report!
It only takes doing a quick google search to see there are a large number of building inspectors in Dunedin.
Make sure they are independent – you are best to avoid family friends or relatives as they may be less inclined to want to give you a thorough report. The emotional connection between you both will subconsciously alter their judgment.
Are they providing a comprehensive report? – Any inspector who offers a comprehensive report will need the LIM.
I have seen reports of the following inspectors, and along with detailed information, they also have photos that go along with their reports, which makes repairs handy.
Andrew Innes www.propertyinspectionsotago.com/
Jono Daley prosperbuild.com
Better Inspect it www.bettainspectit.co.nz
Property Inspections Otago www.propertyinspectionsotago.com/