Do not accept free reports from a seller or estate agent,
courtesy of Peter Weddell, owner operator of Qld Home Buyers Inspection Service.
BE WARNED, ignore the following advice at YOUR PERIL or you are likely to suffer the consequences!
Just a few photos of problems omitted from a “free” vendors report, supplied by the agent!
Flooring damaged by borers was not mentioned by the combined building-pest inspector in his reports, this flooring was in plain sight, not covered!
Borer damage can cause serious injury to anyone that puts their foot through it, therefore it must be replaced urgently.
Rotting lower veranda railings, potentially dangerous safety hazard.
Rot to veranda sub-floor timber.
Insufficient securing and support to bearer joints, the lower vertical joint must bear on the supporting column.
Bolts missing where the veranda posts and beams are attached. This can allow for lifting of the roof in a severe storm.
Both inaccurate building/pest reports, full of omissions, were handed out before auctioning of the house. Who do you think their inspectors were working for!
- Never accept a building and/or pest report given to you by a real estate or seller
- Be realistic, do you think an agent is going give you an unbiased accurate report that may cost them a sale!
- Free reports cannot be unbiased and don’t be fooled by the fact they are licensed
- If you do not pay for a building or pest report how can you expect them to be legally liable to you!
Facts about the industry:
- The great majority of building and pest control companies/individuals source of income is from real estate agents and their referrals.
- A claim against a company or individual through their insurer does not necessarily guarantee you compensation.
- Government authorities are highly unlikely to help you if the inspector omits any major costly items in their report. They are likely to recommend considering taking legal action against the inspector, at your expense with no guarantees that you will be compensated for legal and/or rectification costs.
- Associations have no power to direct companies or individual to compensate you for any omissions in their reports.
Are their any benefits of free vendor reports?
- Only to the agent and seller, due to their control of the report outcome, from their referral.
- Free! No IMMEDIATE cost to you, that comes later, when the problems that you have to pay for to rectify become yours!
- Convenient, not having to arrange inspections
Pitfalls of free vendor reports:
- Biased to whoever pays them and/or recommends them
- Not liable or covered by insurance to whoever has not employed them and paid their bill
- You miss out renegotiating the purchase price on unknown major issues not mentioned in the “free report”
- Your out of pocket expenses to rectify the problems, understated or not identified in the report
- Having to discount the selling price when a future buyers inspector identifies problems not found in the “free report”. The buyer renegotiates the selling price, down.
A few tips:
- Employ an inspector that is independent of the agent and seller.
- Speak to the inspector and ask questions before employing any company or individual
- Do not pay for the report before the inspection is carried out.
- Employ two separate building and pest companies or individuals, that have actually operated a business in their particular field.
- Ask agents who they recommend, so you know who is working for them, not you, the paying client!
- Don’t employ a friend to carry out inspections for you. Unless they are fully qualified and can accept responsibility for anything they may not have identified in their report.
- Avoid using any legal or conveyancing firms or individuals suggested to you by an agent.
Do not accept free reports from a seller or estate agent.
In all the years (since 1978) of me personally carrying out INDEPENDENT inspections.
- I have NEVER seen an ACCURATE INDEPENDENT REPORT that has been passed onto my client from the agent or seller.
- Far too many have cost many home owners (that have UNFORTUNATELY accepted a free report) a considerable sum of money.
- Faults don’t go away without a cost, they can affect you when reselling (judgement day) !
Don’t be conned and become a victim of the real estate industry by thinking all inspector’s are working in your best interest. Especially when they are referred to you by agents!