Property Investment

How Inspection Is Necessary For Property Buyers

With a slew of options available in the real estate market, you need a lot of time and patience to choose the best property that meets your requirements. Since you are about to splurge massive amounts of your resources, it’s always wise to be cautious.

Sure you may know all the basic rules of buying a house. But as a first-time buyer, there’s more information to learn and fully understand. You can start by ensuring that the property you’re about to buy has undergone proper and thorough inspection.

Doing this will enable you to pinpoint and rectify all issues. Also, this will make the selection process easier as you can pick a property that adds up to your financial (and lifestyle) success.

It’s important to do this before proceeding to the contract agreement and settlement process. Remember that this is a crucial stage. Failure to fulfil the process may lead to significant financial losses. So, whether you’re investing in a new home or an existing property, it’s best to have the structure completely inspected.

How Pre-Purchase and Pre-Settlement Inspection Work

House inspection on newly built properties – whether for personal use or business purposes – is necessary. While most prospective buyers ignore the pre-purchase inspection for some conflicting reasons on schedule or added cost, it’s still wise to perform a rigorous check for your safety.

New homes may have a few issues on functionality (structural foundation, ceilings) or cosmetic (paint applications) aspects. Reasons are some builders or development companies carry out the construction with no or little experience. Time constraint could also be a challenge. That being said, it’s practical to have these defects identified first before taking out your money and make abrupt decisions.

Existing homes, on another note, demand greater efforts on your part. Since they [might] have been occupied for years, signs of damage on walls, ceilings or other features are evident. Sagging roofs, damaged windows, chipped paint and cracked floorboards require fixing. These areas may influence the overall house price so you need to be strict about it.

Pre-settlement inspections, on the other hand, are done to ensure that the issues during the pre-purchase process are correctly addressed. The process is conducted one week (or at least, 3-5 days) before the settlement period.

In this stage, you can run another batch of inspection. If in case, some of the initial problems weren’t carefully dealt with, you can raise your concern during this time. Make sure you identify all the necessary fixes before the official transfer of documents.

You may request for a few adjustments on the schedule so you can have complete confidence as the new property owner. Also, it helps reduce the possibility of shouldering all the expenses for property repairs.

Once the buyer or investor is fully satisfied with the results, the settlement process will push through afterward.

Making A Checklist

As you do the inspection with a professional building inspector, it’s important that you create a checklist. Not only does it help you detail out the specifics but also serve as your guide in checking what’s done and what’s not.

Home Inspection

Photo Courtesy of via flickr

When creating a checklist for a pre-purchase inspection, you may start focusing on the external aspects and move toward the internal.
You can also specify your negotiables and non-negotiables. Remember, renovation can take place whenever you want to.

Consider these aspects during the inspection:

  • Are there infrastructure developments and establishments (hospitals, food chains) nearby?
  • Is the location too crowded or private? Noisy or peaceful?
  • Are there usual crime cases happening around the area?
  • Is the area flood-prone? If so, how does it being addressed by the local authority?
  • Are there construction projects nearby that can hamper your routine?

For potential landlords, do you think your future tenants would choose your place over the others?

It’s always effective to categorise each item (e.g. appliances, plumbing) according to its function. For indoor areas, look for signs of structural and aesthetic problems. Are the plumbing and electrical connections in good working condition? Are there signs of leaks, faulty wiring and loose power points?

  • Does the house receive sufficient natural light?
  • Are the floorboards creaking when stepped on or when there is pressure?
  • Does the roof in every room around the house have water leaks, signs of sagging or ripped off parts?
  • Are the doors and windows secured? Do they have irregularities on their locks or other mechanisms?
  • Do the appliances, air conditioners, heating systems and light fixtures work properly?

Note: Some factors to include may change depending on the type of property that you are looking to buy.

Your pre-settlement inspection checklist should include all the same details brought up before the drafting of the contract (pre-purchase inspection).

Inspect Now or Regret Later

If the seller has decided not to settle the remaining issues, the overall cost of the property may have high chances to decline. When all these are accomplished, be sure to get in touch with a legal expert to finalise ownership legalities.

Another aspect to consider is pest inspection. Having the best inspection professionals is necessary to ensure that your desired property is free from infestation.

Buying a house doesn’t have to be burdensome as long as you hire a qualified building inspector in your area.

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Featured Photo Courtesy of Amanda Bicknell via Wikimedia Commons

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