When it comes to houses for sale Auckland homes can be a
buyer's worst nightmare -- and here's why
Apart from taxes, your next greatest expense is almost
certainly the cost of actually buying a
house.
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With so much money at stake - YOUR MONEY - can you really
afford to be buying a house in the city of sails without knowing what sinister secrets might be
lurking behind those walls and floor-boards? |
Who knows what potential building problems might be brewing away, hidden from
unsuspecting eyes.
With this in mind, here are three frequently asked questions as to why a pre
purchase house inspection should be a "no-brainer" for anyone looking at houses for sale Auckland wide.
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Can a building inspection add leverage and
value to my bidding position?
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Yes! For example, if a vendor wants say, $500,000 for a house that is supported by a
registered valuation for around that amount, normally you wouldn't have much chance of buying a
house in Auckland like that for too much less.
However, if a subsequent pre purchase inspection reveals building problems and concerns that are likely to cost
thousands of dollars more to repair...guess what? You can go back to the vendor with proof of this and use
it to negotiate a purchase price below the asking price!
You won't be successful all the time, but it's definitely worth a shot!
Often, the vendor will agree to fix all the disclosed issues as a 'condition of settlement' instead of selling the
property to you for a lower price.
Hey, that's ok... as long as you're getting fair value for money, you can't lose.
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Should I rely ONLY on the Real Estate agent's
assessment of the property?In years gone by, you could'
ve. But today, given the revelations around poor building practises over the last decade, it
has become standard practise to have a building inspection carried out.
It should also be pointed out that a real estate agent is unlikely to be in a to know the full
extent of problems and defects within a given house without consulting a building inspector.
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Is the cost justified in the results it
can achieve?
Well, let's take a look at that: Say you want to buy a $460,000 house and a
building inspector uncovers $15,000 worth of major repairs that need to be done
urgently.
Now lets say that you were charged $300 for the building report. According to
my calculator, that "$300 fee" represents a mere 2% of the cost of the proposed repair
bill!
If you hadn't commissioned the inspection and had simply gone ahead and
purchased the house for around the $460,000 asking price, YOU would've then had to fork out for the
much-needed repairs yourself!
Oh, and don't think they would've only cost you $15,000 by the time YOU discovered something was
wrong. Chances are, you'd have ended up paying 'many thousands of dollars' more, because the
issues, defects and problems would've grown worse over time.
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