As a prospective buyer of a new property, a pre purchase building inspection report can provide valuable insight into the condition of the property and give you a better understanding of what you are buying. The report may reveal defects in the property that you may not have noticed during your initial inspections, and this may impact your decision on whether or not you want to purchase the property.
When you receive a pre purchase building report, you essentially have three options: accept the condition of the property and purchase it at the asking price, walk away from the deal, or negotiate with the seller or real estate agent for a better price taking into account the defects mentioned in the report.
Let’s take a deeper look at each option
Option 1: Accept the condition of the property and buy at the asking price
The first option is to accept the condition of the property as outlined in the building report and purchase it at the asking price. This may be a viable option if the defects identified in the report are minor, and you consider them acceptable. Additionally, you may have fallen in love with the property, and it may tick all of the important boxes for you, such as location, size, and overall feel.
However, it is important to keep in mind that accepting the condition of the property as outlined in the report means accepting the financial responsibility of repairing or replacing any identified defects. Additionally, if the defects are quite significant, they may impact the property’s value, and it may be more challenging to sell in the future.
Option 2: Walk Away
The second option is to walk away from the deal altogether. This may be the best option if the defects identified in the report are too significant or too costly to repair. It may also be the best option if you don’t feel comfortable taking on the financial responsibility of repairing or replacing the identified defects.
While walking away from a property you had your heart set on can be disappointing, it is important to remember that making a decision based on a pre purchase building report can potentially save you a significant amount of money down the line.
Option 3: Negotiate with the seller or real estate agent for a better price
The third option is to negotiate with the seller or real estate agent for a better price based on the identified defects in the building report. This can be a viable option if you are still interested in the property but would like to get a better deal based on the identified defects.
When negotiating, it is important to have a clear understanding of the estimated cost to repair or replace the identified defects. This can help you make an informed decision when negotiating with the seller or real estate agent. For example, you may ask for a reduction in the asking price to cover the cost of repairs or replacements needed.
In addition, you may also negotiate for the seller or real estate agent to complete the repairs or replacements before the sale is finalized. This can save you time and money in the long run, as you won’t need to worry about making the repairs post-purchase.
Conclusion:
In conclusion, when you receive a pre purchase building report, you have three options: accept the condition of the property and purchase at the asking price, walk away from the deal altogether, or negotiate with the seller or real estate agent for a better price based on the identified defects. Each option has its own pros and cons, and it is important to weigh them carefully before making any final decisions.
If you’re in the process of purchasing a property and are in need of a pre-purchase building inspection in Sydney, the experts at our pre purchase home inspection business are here to help. We provide thorough and comprehensive inspections that can help you make informed decisions about your potential property purchase. Contact us today to schedule your inspection.