In recent years, we’re witnessing an intriguing shift in the property market here in Western Australia, particularly from the perspective of building inspections.
Traditionally, a building inspection has been an integral component of the home buying process – a safety net to catch any potential issues before the sale is finalised. However, the current competitive market has led to a significant change in how buyers are approaching this step, with more and more opting to conduct building inspections after purchasing a property instead of before.
But why the unusual shift? The simple answer lies in the appeal of an offer.
Making Offers More Appealing
In the fiercely competitive Western Australian property market, buyers are always looking for ways to make their offers stand out. One strategy that is becoming increasingly popular is to forgo the stipulation of a building inspection within the offer to purchase. At first glance, this move might seem counterintuitive. Why would anyone take the risk of buying a property without ensuring it’s in good condition first?
The logic is straightforward: In a seller’s market, where multiple offers are the norm, sellers are more likely to favour transactions that promise a quick and hassle-free closing. By not including a building inspection clause, buyers aim to make their offer more enticing, gaining a competitive edge by presenting a smoother path to sale completion.
The Post-Purchase Inspection Trend
As a result of this strategy, we, as building inspectors, are observing an increasing trend of property buyers opting for post-purchase building inspections. This approach allows buyers to maintain competitiveness in their offers while still ensuring they eventually conduct due diligence on their new property. However, this trend is not without its risks and potential pitfalls.
- Discovering Issues After Purchase: The primary risk of postponing the building inspection is uncovering significant defects or issues after the sale has been completed. This leaves the new homeowners with limited recourse to negotiate repairs or a price reduction, often resulting in unexpected and sometimes substantial extra costs.2
- Financial Planning Challenges: Knowing the condition of a property before purchasing allows buyers to budget for any necessary repairs or renovations. By shifting the inspection to post-purchase, homeowners may find themselves financially unprepared for the reality of their property’s condition.
Tips for Navigating This Shift
If you’re considering going down this route, here are a few suggestions to help navigate this evolving landscape safely:
- Understand the Risks: Be fully aware of the potential for post-purchase surprises and ensure you have a financial buffer to handle any unforeseen repairs.
- Hire a Qualified Inspector: Whether it’s pre- or post-purchase, hiring a highly qualified and experienced building inspector is crucial. They can provide a detailed report that will illuminate any issues, giving you a clear picture of what you’re dealing with.
- Consider a Preliminary Verbal Inspection: Some buyers opt for a verbal pre-purchase inspection, which is less invasive and can be more palatable to sellers, followed by a detailed inspection after purchase.
- Legal and Financial Advice: Before deciding to skip the pre-purchase inspection, consult with a legal adviser and a financial planner. They can offer personalized advice based on your situation.
In Closing
The strategic decision to delay building inspections is a testament to the dynamic nature of the Western Australian real estate market. While this approach can make an offer more appealing to sellers, it’s essential for buyers to proceed with caution and full awareness of the potential repercussions.
Remember, while the goal is to secure your dream home, ensuring that your investment is sound remains paramount. Navigating this new trend with careful consideration and professional guidance can lead to a successful outcome, making your home buying journey both savvy and secure.
Unlock peace of mind for your home today! Dive into our post-purchase building inspections and ensure your sanctuary is everything you dream it to be.
