I got a phone call from a new client last week, they had just signed a contract on their first home and now they wanted to arrange their finance and the Building and Pest so they could lock in their new home.
The first step for me was to talk to the clients, get to know more about them and put an application into their lender of choice. We also talked about the Building and Pest and what they could expect, it went a little something like this:
“The building and Pest report is basically you, paying a third party to tell you everything negitive about the property. Will they find issues with the property? Yes, that’s what you are paying them for. The question is, what will the issues be, how bad are they and what will you do from there”.
I then got a phone call from the clients on Monday morning to talk about the Building and Pest report. This property had a white ant infestation, which has resulted in damage that will need to be fixed as well as treating the white ants to avoid any further damage.
My client wanted to know what his next step forward should be, and whilst no one can decide that but him, here is the list of options I provided;
- Get a quote on the repairs and treatment and provide that to your solicitor and ask for a reduction in price for that amount so you can pay for the repairs yourself post settlement.
- Ask the Vendor (seller) to repair the issues and treat the white ants prior to settlement.
- Get a quote for the repairs and treatment and ask for a reduction in price for that amount (and some), given the issues the Vendor may struggle to sell the home so it might help them to sell it to you at a reduced price and you can make the repairs post settlement.
- Cancel the contract and ask for your deposit back.
There are a few options here and to be honest I have seen them all at various times. It really depends on you and why you are buying the property. For my First home buyer, they wanted to move in, and not have to do anything so they, after a lot of thought, opted for option 4.
The good news is since Monday when the contract was cancelled they have found another property and signed a new contract. This property will allow them to move in with peace of mind.
If you want to know more about building and pest inspections or want to get a pre-approval in place to buy a home then contact me today, 0412862811 or book an appointment here