When the cost of buying a property is significant enough it begs the question: why spend more money than you need to? But perhaps the better question to ask is: can you afford to deal with hidden problems down the track?
I often have a discussion with clients about the merits of doing due diligence when buying a property. It’s a conversation that usually ends with the same response.
So, if you are contemplating such a significant step you might want to consider what’s at stake if you do or don’t know exactly what you are buying into.
The Cost of Doing Nothing
I have heard too many horror stories in my time about property buyers who have been caught out not doing their due diligence when buying a property and it comes back to haunt them later.
Most common are the tales of homes that look fine on the surface only to find out within months of moving in that there are major structural issues or extensive termite damage the owner wasn’t aware of.
When these problems emerge, I can assure you the repair bills are not cheap. Not to mention the emotional turmoil that ensues from the stress and worry of having to deal with the hidden issues and the aftermath. It can take a very heavy personal toll that is hard to quantify.
Peace of Mind
Given the significance of the decision to buy a property it makes sense that careful consideration should be had in the lead up process before you sign a binding contract.
The cost of doing your due diligence is usually only a few hundred dollars, so in the whole scheme of things it’s nothing. Don’t get caught out scrimping on something that could save you tens if not hundreds of thousands of dollars down the track in the way of a nasty surprise.
Getting good advice early on when you are interested in a property can help steer you in the right direction and will allow you to make an informed decision about whether you should buy or not.
You Get What You Pay For
Be careful not to fall victim to real estate agents who apply pressure, subtle or otherwise, to buy due diligence report’s that have been arranged by them.
Often these reports are watered down and don’t provide the warts and all coverage you should be getting as a prospective purchaser.
A completely independent report, ordered by you for you, from a qualified pest and building inspector will help identify any issues you need to know about as a prospective purchaser.
Once the full picture is known you can then make an educated decision on whether you want to proceed with purchasing or not and if so how much you are prepared to pay for the property.
Unless you plan to buy a property for the sole purpose of demolishing an existing home, I always recommend a prospective purchaser carry out a pest and building report when buying a property.
By doing your homework you will know exactly what you are buying into before you make an offer and sign a contract. Instead of asking why should I, ask yourself why wouldn’t you? After all it’s impossible to put a price on peace of mind.
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Shelley Horton is the founder of Sydney based exclusive buyers agency Albion Avenue. With a 20 year career honing her skills in every aspect of the property industry Shelley knows what makes a property worth buying and how to get the best deal.
