What's a pre-purchase property inspection and why it's important

A pre-purchase inspection is essential for every home purchase – whether it’s your next home or an investment property. 

If you’re about to sign on the dotted line for your dream home, stop and think: “How can I be sure the property I’m buying is in good shape?” You can also ask a similar question of your mortgage, is it giving you value, take our mortgage shredder challenge and find discover how much you can save using loansHub as your personal mortgage manager.

Just like our smart technology, a pre-purchase property inspection could save you thousands of dollars in the long run. Not only will it help identify any serious problems with your new property purchase, it can be a valuable bargaining tool for driving down the asking price.

An inspection will reveal any significant building problems or hazards, and help you decide if the property is really what you are looking for after all.

The person who inspects the property – typically a licensed builder – will check the condition of the interior, roof and roof space as well as the under-floor space of the home you intend to purchase.

They’ll then provide a detailed summary, usually in a checklist format, once they have completed their report. 

The price of a pre-purchase inspection depends on the property and the time taken to make the evaluation but as a rule of thumb the cost for a standard report on a typical residential property is usually ranges between $500 - $1000, depending on property location.

Just remember, you’ll need the vendor’s permission to have the property inspected – so be sure to give plenty of notice. If you’re not sure how to arrange a pre-purchase inspection give us a call – we’ll be able to point you in the direction of a well-respected organisation.

Noticeable exemptions

A property inspection could mean all the difference between a good or bad investment, however there are some things that it may not cover – so ensure you’re aware of the scope of the inspection before you give the green light to commence.

Some exemptions may include:

• Footings

• Concealed damp-proofing

• Electrical wiring 

• Plumbing

• Drainage

• Watering systems

• Gas fittings

• Fireplaces or chimneys 

• Television reception

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This article via WHICH Investment Property does not constitute financial advice; readers should seek independent and personalised counsel from a financial adviser that specialises in property or a tax accountant.