What To Do When A Pre-Purchase Inspection Bears Bad News
Posted on: 22 July 2015
Pre-purchase home inspections are a vital step for anyone planning on buying a property. Once the inspection is done, you will receive a report detailing the findings. At this stage, you should be ready to expect good news, bad news or a mixture of both in varying ratios. This is because you can never tell about a property's real condition just by looking at the outer structures and paintwork.
In some cases, your pre-purchase inspection will indeed bear bad news. What should you do next? Read on to find out:
Understand the property faults and the recommended repairs
Once you get your pre-purchase inspection report, study it carefully and note any red flags that have been raised. It is important that you do not dismiss a property you were eyeing just because of negative reports in a pre-purchase report. Instead, you should weigh the good versus the bad. Note the recommendations provided like what needs to be done to correct the faults. If you don't understand the faults pointed out, seek to talk to the inspector directly.
Some minor faults such as leaking faucets or poor painting can be managed with ease. On the other hand, watch out for bigger problems such as damp, settling floors or termite damage. These are costly faults that may not be economical to take on. Depending on the scale and nature of the faults, make a decision on whether to proceed or pull out of the purchase.
Get repair cost estimates from a builder
You can never really weigh the pros and cons of a property's faults until you know the financial figure needed to carry out the needed repairs. To do so, talk to a builder or housing contractor about the property's faults. Let them explain to you what repairs are needed, how long that will take and the cost estimates. Once you understand the cost implications of the faults, you'll have your second opportunity to decide whether to drop the listing or to proceed.
Talk to the property seller
In the third stage of the process, talk to your property seller. Show them the inspection report and explain to them the faults. If you plan to drop your interest in the property, you should get your deposit back, if you had paid any.
If you plan to proceed with the purchase, re-negotiate with the seller to cater for the repair costs. Use the builder's cost estimate as leverage. If the seller agrees to bear the brunt of the repairs, you may proceed to exchange contracts with that understanding written in paper. Alternatively, you may agree that the repairs be carried out first. If the repairs are minor and the seller insists you handle the costs, you may decide to take the short end of the stick and still proceed with the purchase.
Bottom-line, don't bite more than you can chew. If the property's faults are major, it's best to keep looking for another property. Don't let your attachment to the property lead you into making poor financial decisions. However, if the repairs can be managed without much fuss, or if the seller agrees to pay for them, you may proceed to buy the property without much worry. Of course, keep your solicitor in the loop and get legal advice on whatever you decide.
Contact a company like Safe House Property Consultants to learn more.
Share