Paul's Property Buying Blog

Hello! Welcome to my blog. My name is Paul and this is blog is going to let you in on some of the best tips which will make buying a property a piece of cake. I am not a professional estate agent but I do have a few years experience of buying and selling property across several Australian cities. I started developing and selling properties when I inherited a large house which used to belong to my grandmother. I didn't have a clue how the real estate market worked so I called in a friend who works in the industry. He taught me everything I need to know.

How to Avoid Spending Money Unnecessarily on Building Reports

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Throughout much of Australia, many aspiring home buyers are unnecessarily buying building reports for homes that they simply can't afford. By the time buyers find out that the home is out of their budget, they've already spent $500 to $1,000 on the building report. To avoid wasting money in this kind of situation, there are key steps you should take.

1. Do Your Own Price Investigations

The above scenario usually happens when buyers are looking at a property that is going up for auction. Eager to sell, real estate agents often tell buyers that the home is likely to sell for a lot less than it does. Excited by the potential, buyers spend money on building reports to check the home for pests and structural issues.

Then, however, they find out at the auction that they can't afford the home, and all that money was spent in vain. To avoid this situation, do a bit of research on the real estate agent, but more importantly, to gauge prices in the area, look at what similar homes or buildings have sold for. If it seems out of your price range, move on to the next property.

2. Pass the Report Costs to the Buyer

If you're not buying at auction, you don't have to do the buildings reports upfront. Instead, you can wait until you've made an offer. Then, you can require the buyer to pay for the reports. That usually happens in what's referred to as 'the cooling off' period.

3. Work With the Same Inspector

If waiting until the cooling off period isn't feasible, talk with the inspector and see if he or she is willing to give you a reduced rate in exchange for ordering multiple building reports. In most cases, you are going to consider more than one home, and this strategy can help you save.

4. Be Aware of Local Laws

When it comes to building reports, the laws vary from area to area. It's important to stay abreast of the law so you know when sellers or others are legally required to provide you with building reports for free. For instance, in Australian Capital Territory, building reports must be added to the sale of contract.

If you didn't have this information going into the transaction, you may have accidentally bought a building report even if you didn't need one.

To learn more about building reports and when you need them, contact an appraisals company near you.

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17 May 2017