Why Property Inspections are Essential for Real Estate Appraisals
Increase the value of your house and avoid or limit future liability.
A property inspection is usually done before selling or buying a property to determine its fair and accurate market worth. The property inspection report can significantly influence the real estate appraisals and is a major contributing factor for the client whether or not to seal the deal. As a general rule, the more structurally-sound a property is, the more is its worth. If you want to know a property’s worth, a property inspection will surely help.
Property inspections: what to expect
It is advisable to have a property inspection carried out by a qualified surveyor before you make a purchase. Once done, you will receive a property inspection report.
Property inspections must comply with Australian Standard (AS 4349.1). A qualified inspector visits the property and conducts a visual inspection of the following areas:
- The structural components of the property – including the foundation and framing.
- Exterior and interior parts of the property – including the rooms, flooring and ceiling, walls, door and window trims for signs of shifting or shrinkage, stairs, railings, eaves, siding, porches, balconies, walkways, and driveways.
- Roof system – including the space in it, shingles, flashing, and skylights.
- Under-floor space
- Detached structures like carport, garage, shed, and separate laundry
- Retaining walls
- Other surrounding features like steps, fencing, paths and driveways
You can request for other inspections, too. Have potential termite or pest problems, health and environmental hazards like asbestos and lead, electrical switches and smoke alarms inspected.
Property inspections could make or break the sale
A property inspection report is a comprehensive account of a property’s general condition. It allows you to know the ‘physical health’ of a property. It informs both the seller and the buyer of any problems that are present. Likewise, it states conditions that may cause a problem in the long run. It is in this way that property inspections directly affect a real estate appraisal; they have the potential to make or break the sale! An inspection benefits both the buyer and seller in the following ways:
For the Seller
- It helps you understand the current condition of the property. Any issues found, even seemingly minor ones, may become significant problems later on. An inspection could reveal structural problems indicated by small flaws; a fine crack, for example, could signify movements in the wall. This movement may be due to the root growth of a nearby tree. Faulty drainage, if not corrected, can cause ground shifting. Property inspections give you the chance to attend to concerns like these as soon as possible before you offer the property to buyers.
- It helps you understand the value of the property in its present state. For the sellers, it is essential to discover the current condition of the property through proper inspection and evaluation. It helps define the correct property value and give an idea on pricing.
- It helps accelerate the deal process. Having an inspection done beforehand and procuring a report enables you to either have any issues repaired or to disclose it to the buyer. This way, there will be fewer setbacks, delays will be avoided, and the deal hastened.
- A property that passes a quality inspection before sale is less likely to be the subject of any future liability for the seller should any problems arise once the property sells.
- It adds to your negotiating leverage. With an inspection report in hand, you have tangible proof to back up your claims as to the condition of the property. It is advantageous for you during the negotiation process.
- It protects you from a legal standpoint. By having full disclosure of the property, you have the peace of mind knowing that the buyer is fully informed before making the transaction. Should the buyer find anything that will dissatisfy them in the future, they cannot just go and file a lawsuit, since full disclosure of the property was provided for them at the beginning.
For the Buyer
- According to the research done by ME Bank, 58% of Australians spend less than one hour inspecting a property before they buy it. As a result, more than a quarter of them discover issues on their newly-acquired property later on, after buying the property. Moreover, buyers may not always be fully aware of what to look for when inspecting a property as they are likely to be more focused on the aesthetics rather than the structural aspect of the property. For this reason, it is wise to have the property inspected by a well-trained surveyor for any red flags to avoid inconveniences later on.
- It equips you with the knowledge of the property’s worth in the real estate market and thus ensures that you get value for your money. With a property inspection report, there is more transparency, and you will know full well what you are buying.
- As a buyer, you can be confident to make an intelligent choice. You don’t have to second-guess your decision to purchase a property if you’re well-informed.
- The report could be instrumental for price negotiation if the property turns out to have some issues that will require repairs and cost you money. It ensures that you get the property at a reasonable price.
Exceptional Building Inspections can help you with your inspection needs
Having a property inspection done is crucial for both the buyer and seller to strike a fair deal. That is why we understand your need for a thorough, objective, and quality property assessment. At Exceptional Building Inspections, we provide:
- A detailed inspection report with our comprehensive and unique checklist that’s tailored specifically to mirror your property. We make sure that all defects are identified and noted and that all information is pertinent to your property
- Photos to supplement the report
- Descriptive information to help you make an informed decision whether or not to make the purchase.
We strictly adhere to the Australian Standard AS 4349.1-2007. Contact us today for your property inspection concerns, and we will respond right away!