What’s involved in a building and pest inspection, how much does it cost, and is it really that important to get one done when you buy a property?
 
Buying a home or investment property is likely to be one of the biggest investments most of us will ever make.
 
And yet, some people are willing to let it all come crumbling down because of an invader that’s only a few millimeters tall!
 
Termites are nasty little pests that can carry on undetected for months or even years, wreaking havoc with the foundations of your building before you figure out they’re even there. The average repair cost for termite damage to a house is $7,000, although we’ve all heard horror stories when homeowners have been forced to part out with tens of thousands of dollars to rectify a termite problem.
 
Similarly, structural issues can cause huge financial headaches – and building issues can be present in both new and old homes.
 
So, when you’re in the market to buy, it makes total sense to have a building and pest inspections by the experts as an essential part of your due diligence process. A building and pest inspection is something that can really help both parties when it comes to negotiating.
 
The seller can use it as a really good tool to give you as the buyer some serious peace of mind, especially if it was carried out by a reputable company. 
 
If you’re the buyer, it can give you some understanding of whether it’s a good buy or whether there are a few risks. It’s like buying a used car; you would have a mechanic take a look at the car before you make your purchase.
 
For an investment of a few hundred dollars – depending on where you are, a combined building and pest inspection will cost roughly $400-$600 ­– you’ll not only gain peace of mind, but you may also uncover valuable information to help you negotiate the purchase price.
 
This was precisely the case for first-time property investor Rebecca from Kensington, who bought a four-bedroom house earlier this year.
 
“I made an offer and it was accepted, but the building and pest inspection revealed evidence of current termite damage in a tree stump, and previous termite damage in the garage ceiling,” Rebecca says.
 
“The building report also noted some evidence of water leaking in one of the bathrooms.”
 
A quick phone conversation with the building and pest inspectors confirmed that the issues weren’t too much of a concern, and were in fact quite common of buildings of that age.
 
As a result of the reports, however, Rebecca was able to negotiate a full termite treatment plan, removal of the infected tree stump and repairs to the bathroom, including a brand new toilet and cistern.
 
In total, work to the valueof $4,000 was carried out on the property, with the bill picked up by the vendor!
 
“Getting a building and pest inspection was the best decision I made,” Rebecca says. “In my opinion it’s completely worth the money. At first, I only did it because my solicitor suggested it, but now I’m convinced – they’re worth their weight in gold!”

I was recently reading the ancient Greek story of Troy and the Trojan Horse and this reminded me that the Trojan Horse was also new… and it to should have been inspected.
 

It’s interesting that most people make false assumptions that can lead to significant losses. For example when buying a brand new home many people just assume it must be ok.  The consequence of this belief is that most new homes are purchased without any pre-purchase inspection or even an adequate pre-settlement inspection or final handover walkthrough inspection. Defects are not discovered until it is too late.
 

If a safety problem or a functional defect becomes apparent after you move in, hopefully your builder will honour any builders warranty if he has one.
 

There are three main Myths that I think lead buyers to forego the benefits of a pre-purchase building inspection:

      * The home was inspected and approved by the local shire or council inspector or a private building surveyor.
      * The builder has a great reputation in town for building quality homes and is ethical and competent
      * The home is fully covers by the builders warranty
 
Lets examine these assumptions in more detail.
 

The local council inspector or private building surveyor: These inspections are carried out by various regulatory agencies throughout every state, and can be (but not usually) as thorough and exacting as you would hope and reasonably expect. These inspections do not consider quality of materials or quality of workmanship. These agencies are usually run on a shoestring budget and are understaffed. Where as an independent property inspector would spend up to a few hours or more to inspect and detail his report on a single residence, the council inspector may have 15 to 20 homes to inspect in any one day and often only spend as little as 10 to 15 minutes at any property and this only amounts to a quick spot check.
 

Worse still! in large subdivisions sample inspections are typically conducted on a representative number of homes leaving many properties entirely uninspected. The result of this incomplete process is that many defects and building code violations escape detection and slip through the building inspection process.
 

Leaving only your expert independent property inspector as your last line of defence!
 

The Builder: The most ethical and highly qualified and reputed builder may construct an excellent home, but no one can build the perfect house. To put it bluntly, the best builder is human and so are all the contractors, installers, and tradespeople who work on the house. The newly finished home can be of the highest quality, but with thousands of components, innumerable details and various people performing numerous jobs, the poor person charged with overseeing all the work has neither the time to scrutinise every aspect nor the infallibility to get it all right every time.
 

We are all human and as such regardless of how qualified or reputable the builder is, some defects will inevitably slip through the process.
 

Leaving only your expert independent property inspector as your last line of defence!
 

Builders Warranty: Builders insurance, builder’s warranties and defects or maintenance periods are all wonderful if they are backed by an ethical builder. Those with reputations for quality work and a genuine concern for the satisfaction and financial well being of their clients. Unfortunately, not all builders fit this admirable description. In too many cases the integrity of the builder can render any warranty completely worthless, leaving the home buyer with costly defects, lawyer’s bills, years of aggravation and in some cases a home that is very difficult to resell.
 

The horror stories that fit this category are endless. The best time to claim on the warranty or a defect/maintenance period is before the settlement or the before the final handover of the property. When the builder wants to get the money – this is the motivating factor that will encourage him to repair any defects found.
 

Again leaving only your expert independent property inspector as your last line of defence!
 

A quick word of warning; many builders will welcome an independent inspection as an added quality control service that provides a final confirmation at the end of a project. However some builders can be very uncooperative and employ various degrees of resistance to prevent any inspector from entering the building site. These unfortunate practices range from unmistakable unfriendliness to outright teeth-clenching refusal to admit an inspector onto the property. Please remember you do have the right to a professional inspection before you hand over your hard earned money. Builders like this only make us wonder ‘what are they trying to hide from me?’ and most in cases it becomes very obvious when we finally get to do our inspection.
 

Again leaving only your expert independent property inspector as your last line of defence!
 

The previous paragraphs further underscore the importance of pre-purchase inspections on brand new homes, of course this is also true for near new homes as all the same scenarios still apply. Perhaps even more important as a home a few years old has had a chance to settle and defects become much more obvious and more expensive to repair.
 

Some common defects we often find in new homes are
 

Water leaks, taps, pipes and shower screens
Incomplete work
Substandard workmanship
Numerous roofing defects
Incorrect surface drainage around the dwelling
Inadequate subfloor ventilation
Improperly installed insulation
Get an expert on your side before you finalise any new property purchase. Just because everything is shiny and new doesn’t automatically mean it is right.

 That’s why you will need an independent property inspection before you buy.

Most people would not know that polished timber stairs are injury risk because a person could easily slip and get seriously hurt. This is why BCA has requirement that the treads must be finished in non slip materials. Guess what? Many people don’t know or don’t care   and many building inspectors are not much better. We have inspected dozens of homes passed whilst defective and risky to occupants.

Nothing ever happens but when something does everyone runs for cover. It wasn’t me!

If falling and breaking your hip is not bad enough, imagine a visitor doing that and then suing you for damages. You could lose everything you have plus the shirt on your back.

So if you think you are saving money by skipping competent building inspection or by paying cheaper price to someone with suspect expertise, then you could be gambling with a lot more than you think.