Having a pre-purchase inspection report completed before you buy or even as a contingency in your contract is widely regarded as the single most powerful negotiating tool you can use when buying a property.
There are hundreds of examples where buyers have used the findings in the report to negotiate reductions amounting to thousands of dollars off the sale price of properties. Or re-negotiate existing contracts due to the report findings.
Example: Karen, a single mum with two kids made a successful offer on a three bedroom brick veneer home close to her work and schools. Perfect scenario for the whole family, Karen was smart enough to include a building clause in the contract. The property was listed for $380,000 and Karen managed to negotiate down to $377,000 for a quick settlement as this suited the couple that owned it as they were moving interstate. Karen was very pleased with herself and didn’t think she needed the inspection because the house looked like it had been well looked after, the garden and yards are neat and tidy, the roof has just been painted, they had just put new gutters all around, the timber windows had just been painted, the inside was as neat as a pin, family photos all over the walls and down the hallway. Karen got the impression this was a good family home.
The inspection report revealed the old corrugated roofing was rusting out and numerous signs of leaks and will need replacing, (Replacement cost was $7,680). The timber fascia boards are rotting at the joints and the timber windows are rotten in many areas, poorly patched with body filler and had been fixed and pained shut. (Repair cost was quoted $4,800). The shower base was cracked and leaking and needed to be replaced (replacement cost $1,565).
The inspection report also contained digital photos as evidence of these defects and Karen was able the go back and re-negotiate a total of $13,000 off the original contract price to allow her to make the repairs. Karen’s Pre-purchase inspection cost $350 and because of the report she saved herself $13,000 in repair costs. Put another way that’s a 3,714% return on her investment and it only took one phone call and three minutes to arrange.
This is a secret many in the industry don’t want you to know about. This scenario is repeated over and over every day and astute buyers are saving thousands with every inspection report.
Armed with a completed pre-purchase inspection report you have the most powerful negotiating tool in your hands. You can use it to negotiate the repairs to be completed by the owner before settlement or you can negotiate a price reduction to allow you to carry out the repairs when you move in. Either way it is by far the best bargaining chip you can have for the negotiating table and the power of the negotiation remains with the person with the evidence (The independent report)
Make sure before you sign anything. No place is perfect and will always have surprises. You have to ask can you afford not to have one done. We don’t want your story to become another chapter in our “Book of Horror Stories”