The short answer is yes, a building & pest inspection report can be used to negotiate with a seller about either repairing the property or reducing the sale price.
Commission an inspection as soon as possible
When buying a property, a building and pest inspection is an essential part of the property purchasing process – you should just about always have a building and pest inspection condition in your contract.
The inspection report provides a clear picture of the property’s condition, helping you make informed decisions.
This knowledge can also be a powerful tool for negotiating a better deal with the seller, either by lowering the price or ensuring repairs are conducted before settlement.
We carry out all building and pest inspections around the Townsville region in accordance with Australian Standards 4349.3 & 4349.1. Call us now on (07) 4723 2770 or send us a message.
Understanding the Value of Your Inspection Report
It’s easy to get swept up in the excitement of buying a home, but an independent building and pest inspection report helps you see the full picture.
This report highlights any major issues, common defects, safety concerns, or timber pest issues that might not be obvious at first glance.
By understanding the report, you can avoid unexpected costs and headaches. The insights provided may allow you to:
- Obtain quotes for necessary repairs;
- Help you decide whether to proceed with the purchase;
- Ask for a lower total price;
- Request that repairs be completed to the property before settlement.
Reviewing the Inspection Report
Take the time to carefully review your inspection report.
Look for structural damage, timber pest infestations, or signs of water damage that may need attention.
Consider the age of the property and whether outdated systems might require updates.
Get in contact with your building and pest inspector with any questions or clarifications you need so that you can fully understand the report
Identifying these issues early equips you to negotiate effectively with the seller or plan for any necessary repairs.
Think about how you want to negotiate
Once you’ve reviewed the report, it’s time to plan your negotiation strategy.
Start by listing the key issues identified in the report, and prioritising them by importance. This will help you focus on the most critical aspects during negotiations.
Figure out what you really want from this negotiation:
- Are you looking for a price reduction?
- Do you want the seller to make specific repairs?
It is also handy to know both the risk factor and total value of the work that needs to be completed to bring the property up to standard.
So, if you have the time available you should call around for quotes or estimates from local trades so you can get an indication of the total costs. Be sure to get the real estate agent’s permission before showing up at the property with tradesmen to inspect and quote.
Understanding your objectives, the extent of the damage and the costs of the repairs will guide your negotiation tactics. Also, consider your budget and whether you’re willing to take on any repairs yourself after the sale.
Using your inspection report to get a better price
Your inspection report is one of the most valuable bargaining tools to re-negotiate your original offer price.
You can use it to justify a lower offer based on the cost of necessary repairs, or you can request that the seller complete the repairs before settlement.
A well-documented report can help the seller see the importance of addressing the issues, increasing your chances of a favourable outcome.
When creating your counteroffer, be clear and reasonable. You aren’t trying to take advantage of the seller, you are here to ensure that you get a fair price for the property now that you are more aware of the condition.
If you did get quotes or estimates on the cost of the repairs, keep this in your back pocket as well so it can be presented to the seller to help strengthen your case.
It is considered best practice to instruct your conveyancer to negotiate on your behalf so make sure you provide all of your evidence to your legal representative so they have all of the facts.
Handling the Seller’s Response
Be prepared for various responses from the seller, whether it’s a counteroffer, rejection, or acceptance.
If the seller counters, carefully evaluate their proposal and be ready to compromise if necessary.
If your request is rejected, decide whether you’re willing to walk away or if there’s room for further negotiation.
If the seller accepts your proposal, ensure the agreed-upon repairs are completed before settlement. This will be something you’ll need to work on with your conveyancer.
Keep in close communication to confirm timelines and address any issues that arise.
Finalising the Contract
Figure out what you really want from this negotiation:
Work with your solicitor and/or conveyancer to document everything in writing, either as an addendum to the sales contract or a separate agreement, specifying who is responsible for the repairs.
As settlement approaches, confirm that all repairs are completed as agreed. Ask for receipts from the seller and go to inspect the work for yourself prior to settlement.
Consider hiring a professional to come with you to look over the repairs if necessary. Stay in regular contact with the seller and their real estate agent to ensure everything stays on track for a smooth settlement.
Get the most out of your building and pest report
Successfully negotiating using your building and pest inspection report can save you money and prevent costly surprises from arising in the near future.
Our reports are thorough and straightforward, with expert advice from our licensed inspectors. All of our reports are delivered to you within 48 hours.
Need more information or want to make a booking? Call us now on (07) 4723 2770 or send us a message.
