Building inspection – make an offer before or after your house inspection?
We all know how important a building inspection is. Before settling in at a new home you want to make sure that there are no issues regarding the integrity of the building. So the question is: do you make an offer before or after completing a building inspection?
There has been great debate surrounding this question. This is due to many who have been burned by taking this decision too lightly. So let’s weigh the options now so you can decide for yourself when the inspection should occur!
Inspecting before
Pros:
- You may come across issues that will stop you from moving forward with purchasing that particular property before investing a large sum of money.
- Not all offers have to contain a contingency agreement in respect to the inspection. By doing a building inspection beforehand you ensure that you won’t end up in a house with multiple and costly issues.
- You’ll have all the facts before placing an offer on the property. While the seller may have conducted a house inspection previously, it never hurts to have your own inspection done. This ensures you have the correct information before making a big decision. Having a second opinion can be the make or break in your decision making process.
- If you choose to forego making an offer, you may avoid other costs elicited in the contract. Shelling out a few extra hundred dollars is a valuable investment and as my mum has taught me, it’s better to be be safe than sorry!
Cons:
- With no contract in place, there is a chance the seller may go with another buyer while you are in the process of the inspection. Of course this depends upon whether or not the house is in high demand or if it’s in a popular location.
- After placing an offer you still may not be able to come to terms with the seller. This means if there are possible issues, they may choose not to do anything about it. In turn, this will result in another expense for you as the buyer.
Inspecting after
Pros:
- Oftentimes when purchasing a house, you’re able to make an offer contingent upon a house inspection. In this case you won’t be losing any money upfront.
- If there is a contingency agreement regarding the inspection, then you’re able to negotiate the terms of the contract or back out of the house altogether – depending on the agreement of course.
Cons:
- With no contingency agreement in place you may be stuck with the house you purchase! This is inclusive of roofing issues, mold, termites and any other problems you may have not been aware of at the time of purchase.
- If the issues found within the property are outrageous and you decide to terminate the purchasing contract you will have to pay your way out. In Victoria you have a three business day ‘cooling off period’ from the date of the signed contract to back out at 0.2% of the purchasing price. This could be quite a hefty fee to pay for simply foregoing a house inspection prior to placing an offer!
The verdict
Purchasing a house is a big decision. It really comes down to the conditions surrounding the contract when choosing the best time to do a house inspection. With this being said, the pros greatly outweigh the cons in most cases with a pre-purchase inspection. Making the decision to get your house inspected before making an offer will usually be your best bet!
No matter if you decide to make an offer before or after you complete a house inspection, it’s important to remember that they are a vital part of the house purchasing experience. I promise it will be of use to you in the long run! Contact us today and call Geoff on 0422228716 for FREE advice and click here to Book your Building and Pest Inspection Today.
