Why Building pest Inspection is crucial:
Finally, it’s time to buy your dream house that you want to live in for years, you might know that 1 out of 3 homes in Australia infested with pests that cause them $15000 annually for pest control measures.
Our professional team carried out a complete inspection & then will give you the full report of the status of the building so you can purchase it with peace of mind. In Pest Guru, we provide all type of inspection from general pest inspections to termite control.
Our Inspection Services
Combined Building and Pest Inspections
Pre-Purchase Building Inspections
Pre-Purchase Pest Inspections
Pre-Auction Building & Pest Inspection
Pre-Sale Building & Pest Inspections
Handover inspections – new homes
What we use for our Inspection:
Termatrac & Moist metre
“How to negotiate a house sale contract when termites or building issues are found on a property” by Dave Maddison
At the current time of writing, although Gold Coast properties are still considered hot on the market, many people do not realise the hidden dangers of their new potential purchase and wont go after Pre-Purchase Building Pest Inspection, seeing it only as an attractive, well located property. That is until they get a building and pest inspection for the house.
The team at Pest Guru offer some advice to home buyers and sellers, by using a case study of a client seller located on the Gold Coast.
The Importance of Building and Pest Pre-purchase Building Pest Inspection on the Gold Coast
When buying property on the Gold Coast and in Australia, most purchase contracts for real estate & conveyancers state that the conditions of sale be subject to the results of a Pre-Purchase Building Pest Inspection. This can also include the final buying price.
Knowing that the building and pest inspection is a means to negotiate the terms of the sale, this can serve as a real nightmare for real estate agents and the owners themselves who are trying to sell. Many sellers do not realise that termites can severely affect the final buying price of a Gold Coast house in at least 5 possible ways, as recalled by Pest Guru technician Dave Maddison
A primary example relevant is from one of our customers from last week, who commissioned us to complete a pre-purchase house inspection for a property that she was purchasing in the north of the Gold Coast. Whilst completing the inspection for Jan (not her real name), our technician found evidence that termites had attacked the architraves and internally within a wall near the kitchen area. Just to note: It is extremely common for us to find termites otherwise known as ‘white ants’ at a pre-purchase building and pest inspection.
As the seller did not have a pre-sale termite inspection before she put the property onto the market, she not only was surprised about termites being found, but she also severely lost any negotiating power when the purchaser wished to proceed with the sale. When the seller knew she was selling a property with damage, as familiar with most purchases, not only will most buyers stay away from a property with active termites or recent termite damage, but the costs in this case, and in the majority of cases, can be astronomical.
5 Ways a Property Seller can lose money if termites or termite damage is found.
As the example of the case study above, when selling a property, after a final price is reached, but before the final contract is finalised, 5 things have to be done for a buyer when termites are found in the inspection.
Depending on the desperation in the market, any problems with a property will always end up an advantage for a purchaser if they still wish to proceed, and always costly to the seller.
The ways that reduced the selling price are:
Immediate termite treatments to remove the infestation
Termite repairs fixing the termite damage to the property
Ongoing termite protection around the property (for buyer peace of mind)
Reduction in final negotiated selling Price for being a defect property
Reduction in final sale price for property potentially becoming error in future
The case of buyer Jan ended up costing her approximately $15,000 by outlaying for repairs, eradication and ongoing protection. But in this case, the cost to the seller was in excess of $22,000 when she had to renegotiate the conditions of sale when the termites were found.
Advice For Sellers
Luckily, each potential purchaser generally has to get their own pre-purchase building and pest advice every time a sales contract is signed but is not mandatory. A purchaser is advised by their solicitor to get the Building Pest Inspection, so if a buyers contract falls through, future rectification and repairs of the property can occur, and sometimes afterward you may not have to adjust your selling price dramatically.
“You may not need to reduce the price dramatically if termites are found in an inspection. At a minimum, you may not have to adjust your price if you get the termites removed, damage repaired and ongoing protection is in place, to assure buyers that the property has some form of protection and will not be affected in the future.”
It is also essential that a property owner keeps up-to-date with regular termite inspections (as per Australian Standard 3660.2 for ‘existing dwellings’).
Advice for Home Buyers
Please when considering purchasing a property, please be aware that you are well within your rights to renegotiate the price on the contract once structural defects or termites are found. This does not mean that the contract ends here if you really like the property. Termites do not have to ruin a property contract!
In the case of our client, that when you do decide on a Gold Coast pest control building and pest inspection company, that they offer good quality, thorough service, are cost effective, and always offer an Australian Standard Building Pest Inspection report.
Again, we at Pest Guru will always advocate for the client with our honest advice, but again real estate negotiations are subject to different conditions, different contract content, different sellers and purchasers.
If you need any assistance with termite quotes or proposals for a sale to proceed, please do not hesitate to call the expert pre-purchase building and pest report team on 1300819693
DISCLAIMER: Pest Guru and Pest Repair Guru offer their advice as a general guide as a tool to assist if potential building or termite issues are found on a property, but please note this is not to be taken without consulting a sound professional legal advisor. We are not a professionals legal experts in sales contracts for real estate and do not claim to do so, so please consult a specialist for more assistance.
You can Also read our Pre Purchase Pest Inspection Article.