Discover The Secret To Saving Thousands When Buying or Selling Property …

It’s Simple.

 It’s the New Economy. Everyone has to be smarter about their choices. And throwing thousands of dollars away because you didn’t know you had a choice doesn’t cut it anymore. At IPI (Independent Property Inspections) we have helped buyers and sellers alike put real money back in their pockets by simply following one rule:

 “Always have your property examined by a professional inspector before you buy or sell.”

It really is that simple. With so much at stake when purchasing or selling property, why do so many people ignore this vital step in the process? Some think it’s too expensive. Some think the truth will hurt them in some way, and others still, rely on the advice of well-meaning mates who don’t know all that is involved in the inspections process these days. 

 Buyers

Hundreds of savvy buyers who have used the services if IPI have been able to take the report to vendors and re-negotiate sales prices, to a fairer level, saving buyers thousands of dollars.  There have been scores of testimonials testifying to the amazing savings that have resulted from using IPI. This is just one of them: ‘I saved $7,643 using my report from IPI. That’s amazing.’

 Vendors

Time is money, and the longer you have your property languishing on the market, the more money you are losing. If you want a smooth, quick and expedited sale, then being armed with a professional property inspection from IPI will not only make your selling price more solid, but will give the buyer more confidence in their purchase.

 IPI Services

Don’t stay in the ranks of those who are deliberately losing thousands of dollars. Open your eyes to the many advantages that can be coming your way simply by engaging a budget-friendly professional.

• Same day Property Report or it’s FREE
• The only inspectors to offer ‘The 5 Star Condition Rating’
• Superior reporting processes ensure compliance with Australian Standards (AS 4349.1)
• 3 report levels:

1. Basic Structural Inspection Only
2. Standard Pre-Purchase Inspection
3. Premium Inspection – includes photo protection package

• Tax Depreciation Schedules
• Asbestos Audits and Testing
• Walkthrough DVD report – a favourite with interstate and overseas purchasers.

 ‘Over 70% of buyers and sellers continue to lose money by not taking advantage of inspection services!’

That exasperation is expressed by Leon Cupit, founder and director of IPI. ‘I can’t understand why people keep short changing themselves when they can save thousands!’ 

Leon goes on to say. ‘We love helping people and we love it when they realise that they have not only made an informed and intelligent purchase, but they have been able to save themselves some serious money. It’s a great feeling.’ 

Think smart. Be the winner. Enjoy the confidence in your decision. Always use your local independent property inspector; he is your local expert.

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Why Should I Inspect Brand New Homes

I was recently reading the ancient Greek story of Troy and the Trojan Horse and this reminded me that the Trojan Horse was also new… and it to should have been inspected.

It’s interesting that most people make false assumptions that can lead to significant losses. For example when buying a brand new home many people just assume it must be ok.  The consequence of this belief is that most new homes are purchased without any pre-purchase inspection or even an adequate pre-settlement inspection or final handover walkthrough inspection. Defects are not discovered until it is too late.

 If a safety problem or a functional defect becomes apparent after you move in, hopefully your builder will honour any builders warranty if he has one.

 There are three main Myths that I think lead buyers to forego the benefits of a pre-purchase building inspection:

1. The home was inspected and approved by the local shire or council inspector or a private building surveyor.
2. The builder has a great reputation in town for building quality homes and is ethical and competent
3. The home is fully covers by the builders warranty

Lets examine these assumptions in more detail.

The local council inspector or private building surveyor: These inspections are carried out by various regulatory agencies throughout every state, and can be (but not usually) as thorough and exacting as you would hope and reasonably expect. These inspections do not consider quality of materials or quality of workmanship. These agencies are usually run on a shoestring budget and are understaffed. Where as an independent property inspector would spend up to a few hours or more to inspect and detail his report on a single residence, the council inspector may have 15 to 20 homes to inspect in any one day and often only spend as little as 10 to 15 minutes at any property and this only amounts to a quick spot check.

Worse still! in large subdivisions sample inspections are typically conducted on a representative number of homes leaving many properties entirely uninspected. The result of this incomplete process is that many defects and building code violations escape detection and slip through the building inspection process.

Leaving only your expert independent property inspector as your last line of defence!

The Builder: The most ethical and highly qualified and reputed builder may construct an excellent home, but no one can build the perfect house. To put it bluntly, the best builder is human and so are all the contractors, installers, and tradespeople who work on the house. The newly finished home can be of the highest quality, but with thousands of components, innumerable details and various people performing numerous jobs, the poor person charged with overseeing all the work has neither the time to scrutinise every aspect nor the infallibility to get it all right every time.

We are all human and as such regardless of how qualified or reputable the builder is, some defects will inevitably slip through the process.

Leaving only your expert independent property inspector as your last line of defence!

Builders Warranty: Builders insurance, builder’s warranties and defects or maintenance periods are all wonderful if they are backed by an ethical builder. Those with reputations for quality work and a genuine concern for the satisfaction and financial well being of their clients. Unfortunately, not all builders fit this admirable description. In too many cases the integrity of the builder can render any warranty completely worthless, leaving the home buyer with costly defects, lawyer’s bills, years of aggravation and in some cases a home that is very difficult to resell.

The horror stories that fit this category are endless. The best time to claim on the warranty or a defect/maintenance period is before the settlement or the before the final handover of the property. When the builder wants to get the money – this is the motivating factor that will encourage him to repair any defects found.

Again leaving only your expert independent property inspector as your last line of defence!

A quick word of warning; many builders will welcome an independent inspection as an added quality control service that provides a final confirmation at the end of a project. However some builders can be very uncooperative and employ various degrees of resistance to prevent any inspector from entering the building site. These unfortunate practices range from unmistakable unfriendliness to outright teeth-clenching refusal to admit an inspector onto the property. Please remember you do have the right to a professional inspection before you hand over your hard earned money. Builders like this only make us wonder ‘what are they trying to hide from me?’ and most in cases it becomes very obvious when we finally get to do our inspection.

Again leaving only your expert independent property inspector as your last line of defence!

The previous paragraphs further underscore the importance of pre-purchase inspections on brand new homes, of course this is also true for near new homes as all the same scenarios still apply. Perhaps even more important as a home a few years old has had a chance to settle and defects become much more obvious and more expensive to repair.

Some common defects we often find in new homes are

• Water leaks, taps, pipes and shower screens
• Incomplete work
• Substandard workmanship
• Numerous roofing defects
• Incorrect surface drainage around the dwelling
• Inadequate subfloor ventilation
• Improperly installed insulation

Get an expert on your side before you finalise any new property purchase. Just because everything is shiny and new doesn’t automatically mean it is right.

 That’s why you will need an independent property inspection before you buy.

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How to Survive Your Home Inspection

Simply following the steps provided in this article will help you survive having a Home Inspection. Your Home Inspection is just one more stressful event to add to a growing list of events unfolding before you. What with open homes, strange people stopping in the street and looking in, keeping your home and yards clean and tidy for potential buyers, the last thing you want is some stranger tramping through your home, looking in all those dark corners. Well, take a deep breath, sit down a moment and read further.

I hope this will help prepare you for what is going to happen and how to make it easier for everyone. It’s like nothing else you have ever seen, a stranger will arrive at your front door armed with a torch, step ladder, moisture meter, camera, and some other fancy tools you don’t even know the names of. This stranger introduces himself and then starts to dive into every nook and cranny of your home. It seems like ages as he turns on every tap, opens and closes every door and window, cupboard and drawer, he goes through the wardrobes, flushes the toilets and even runs the bath and the showers. Just as you think he must be finished, he brings in the ladder and torch and climbs up in your roof, then he wanders through the under floor area (who knows what he’ll find down there) then he’s wandering around every part of the yard checking the paths, the driveway, the garage, the garden shed, the fences, even the clothesline.

Your challenge is to present your home as best you can, as the pay off can be huge. It can be a windfall of hundreds or even thousands of dollars from the sale of your home. For sellers, understanding the inspection process and preparing your home for the inspection, not only helps the sale go through but can often translates into getting top dollar for your home

Once the sale agreement is signed the inspection will happen quickly so it’s important you are prepared. I’ve prepared the following tips as a guide to help you achieve the best results for you.

1. Please have a clean home. Inspectors are accustomed to dealing with "OPD" (Other Peoples Dirt), however it is always preferable to have a clean home to work in. Don't worry about a little mess or disorganized clutter. Packing boxes and a little dirt are OK. We do not inspect for cleanliness. Even though you are likely tired of keeping things spotless for open houses and potential buyers coming through, please don't drop the ball on cleaning completely. If I encounter an extremely dirty home, I may be holding my breath until I can make an exit; however I am also looking harder for defects and maintenance items in such homes, and often find them.
2. Windows and doors should all be operable and accessible. It is a great help to have all the windows and doors accessible so I can easily check the condition of the windows and doors and also the operation of them. If you have locked windows and have removed the keys, please have them available at windows. Open all blinds and curtains for easier access, and if possible move furniture to allow for access. Any breakable or valuable items on window sills should be removed (Inspector will not move them or move furniture).
3. Access to all areas. Please remove any stored items that will obstruct access to any items or areas of your home.
4. Remove or control your pets. Please be prepared to have your animals gone during the inspection. I like dogs, cats, lizards and most critters, but during an inspection they can be in the way or a nuisance (try doing an inspection with a dog barking every time you move). The Inspector also does not want to be responsible for having animals escape from the home and then retrieve them. Seriously, I’m not very good at finding missing animals in a suburb I don’t know.
5. Inform the Inspector if you are to have visitors, sleeping or sick occupants at the home. Inform the Inspector of any expected visitors (if you will not be there). Also be prepared if the buyer (and other family members) should elect to attend the Inspection. Ask your Realtor or the buyer's Realtor to attend if this occurs (the Inspector is not be responsible for others and will not give then access to your home).
6. Provide access to electrical box. Please have access provided to your main electrical box (fuse box or circuit breaker box).
7. Be punctual. If you are meeting the Inspector at the home, please be on time we do appreciate punctuality. In the unlikely event I am going to be late I will call you with plenty of notice.
8. Please have all utilities on, including gas, water and power as necessary. Having pilot lights lit will help, since most Inspectors will not light pilot lights.
9. Provide access to roof space openings and manholes. Please make certain access is clear and unencumbered to all roof space openings.
10. All doors should be accessible. Ensure all interior and exterior doors are accessible, and if there are any locked closets or utility type sheds, gates and garages, please provide keys as necessary, this does include the cellar door or under floor space openings. Your inspector will need access to every area of the home and property to avoid repeat or second inspections.
11. Should I stay or should I go? This is a good question people often ask me. Usually I like to meet with the owners to ask a few questions. Once I have asked the various questions that help me do my job better, feel free to leave or stay. I do prefer you to stay if possible.
12. Alert the Inspector to any safety concerns. If you know of any safety concerns in your home, please let the Inspector know. Items such as attic pull down stairs that have a tendency to fall on your head (yes this does happen), or window sashes that drop down when the catch is released, crushing unwary fingers.
13. Do not ask what defects the Inspector has found. Most Inspectors will politely tell you that the home purchaser (who is paying for the report) is the only person he can share that information with. However the Inspector should inform you of any known safety concerns that may impact you. You should wait until you have a requested list of repairs from the buyer, before repairing any items.

Whats Good For The Goose Is Good For The Gander

1. Have your own Inspection performed. Consider having your own inspection (Pre-sale Inspection) before you put the home on the market. You get to choose the Home Inspector, and there are other benefits. A Pre-listing Inspection allows you to find out early what repairs might be needed, and to get the repairs done early. This usually is a cost savings, since you can take your time and shop for the best price for the repairs. Having the Pre-Sale Inspection also eliminates a lot of anxiety and stress. It also allows for the home to be more realistically priced in some instances. For example, if you find out the home needs a new roof, but you do not want to invest in a new roof, it is likely you will want to adjust your price accordingly, or at least be prepared for a price reduction. Full disclosure will help limit your liability and dramatically reduce the buyers negotiating power of using defects found as negotiating tools to reduce the price. Also on the plus side it conveys a positive attitude to the buyer when you have your own independent inspection report available. Presenting a list of the repaired items is also positive. Simply put, having a Pre-Sale Inspection can reduce anxiety, save money, and make for a smoother and quicker home sale.
2. Treat your Home Inspector as a guest in your home. I do my best to leave each home as I found it, and treat the home and occupants with respect. I know that I am a guest you may not welcome with open arms. I also understand you do not need any additional stress.

Simply performing some or all of the above steps will help you remove a lot of the stress associated with a property inspection.

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A Recent Renovation Horror Story.

Warning:- Asbestos can be found in many materials around a home. 

I received a call from a renovator (we’ll call him John) who had found cement sheeting in a wall he wanted to remove during the renovation. To John’s credit he had enough knowledge to call us in to identify if it was dangerous or not and seek advice on what to do if there was asbestos found.

We made arrangements to meet at the property the following morning and possibly take a sample of the suspect sheeting for testing. 

To my absolute horror, I arrived at 10:30 AM to find John using a spade to chip off the old vinyl floor tiles on the kitchen and dining room floors, with his 5 year old son using his toy wheel barrow to load the broken tile pieces, wheel them across the dining room and throw them out the window on the rubbish pile below. John and his son had already completed the removal of the same tiles from the bathroom, toilet and laundry floors the previous day. 

John obviously had no idea the floor tiles may contain high levels of asbestos fibres. 

            Sorry, but the story gets worse. On the other side of the dining room his wife sat feeding their seven month old baby. Both had been present in the room all morning and the previous day. In his haste to get the renovation work underway John may have unknowingly exposed his whole family to high levels of asbestos fibres. 

            I immediately told them of the possible danger and we evacuated the house. Using proper protective clothing and a breathing mask I re-entered the house and took samples of all the various materials I suspected may contain asbestos. The list included the Tilux shower linings, laundry wall and ceiling linings and cover strips, the vinyl floor tiles and cement sheet backing, the cement sheet that lined the wall oven cabinet, and the old carpet underlay. All the samples were submitted for testing by 11:30 AM and the laboratory results email to me by 4:15 that afternoon. 

            Although from experience I thought all samples tested would come back with a positive reading, it was definitely not the news I was keen to deliver.

In fact most samples did test positive for Chrysotile (white asbestos) and some also had a small content of Amosite (brown asbestos). But the really disturbing fact was the floor tiles tested very high 50 to 75% of Crocidolite which is the blue asbestos (widely recognised as the most dangerous asbestos of them all). 

            I called John to confirm the test results, understandably he was devastated to the point that he was physically sick. 

            In his haste to get the renovation work underway so he could move his family into their new home, John had unknowingly exposed his whole family to high levels of asbestos fibres. And now he has to wait for up to 40 or 50 years to see if he in fact has condemned his family to a slow horrible death from an asbestos related disease. 

If there is a moral to this story, it must be to get a professional Asbestos Audit completed before you renovate.

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Finally The Truth About Asbestos In Your Home 

You are about to discover the truth about asbestos in your home, and this report reveals the typical findings of a property inspector with over ten years and 12,137 inspections worth of experience in your area. 

Asbestos and the need for asbestos removal in homes has been in the news again recently and misinformation is causing unnecessary problems for Home Buyers and Sellers and the real estate industry as a whole. So I thought it was time you should all understand the truth about asbestos in your home. 

Let me calm your fears with some facts… 

        The Truth is in Australia most homes built between the 1930’s and the late 1980’s will most likely have some materials that will contain some level of Asbestos. Albeit a small percentage in most cases.        As a property inspector who also regularly conducts Asbestos Audits and testing, I get numerous hysterical comments like “I’m not going to buy the house if you find any asbestos at all” or “I know the eaves lining is asbestos, do I have to remove it” 

        This hysteria is caused by a lack of knowledge and misinformation about the facts. For example in the first quote above “I’m not going to buy the house if you find any asbestos at all”. However after a detailed inspection and an Asbestos Audit of the property for my client. I found the eaves lining were cement sheeting and it was all in a safe sealed, undisturbed condition. I did take a sample of the eaves lining for testing that come back positive and containing only between 1 to 10% Chrysotile and cellulose fibres. 

• The fact is the eaves lining is not made of asbestos, only a small percentage of asbestos fibres. Asbestos was used as a bonding material to reinforce the cement sheet. The eaves linings were painted and sealed with no cracks, chips or breaks so it is absolutely safe if it is left undisturbed. If left in a safe sealed condition and properly maintained then this will never pose a health risk to anyone.
 
• Another fact you should be aware of :- Any material containing asbestos fibres is safe until you disturb it. The danger only lies in the instant you break it, cut it, drill it, sand it or damage it in any way, it may release some dangerous fibres that if breathed in (far enough to reach the very last minute cells of your lungs) can be dangerous to your health in the future. This is why it is so important to take proper precautions when working with these materials, or simply call in the professionals.
 
• Did you know for an asbestos fibre to reach the very minute cells of your lungs it must be 50 to 200 times thinner than the average human hair so you can’t see it with the naked eye or just by looking at the material.
 
• Did you know, some believe you are more exposed to breathing asbestos fibres walking down the street every day from the fibres released by the old car and truck brake pads!
 

Asbestos is a naturally occurring mineral found in the surface of the earth. It contains strong fibres that have excellent durability, fire resistance and insulating properties. Asbestos fibres are 50 to 200 times thinner than a human hair, it is invisible to the naked eye, can float in the air for long periods and can be breathed into the lungs. 

        In Australia asbestos was commonly used in the manufacture of many building materials used in the residential building industry between 1930s and the late 1980s before production was stopped.        The use of all forms of asbestos has been banned in Australia since December 31^st 2003. However this ban does not apply to asbestos materials installed prior to this date (e.g. asbestos materials in homes) 

What Are The Possible Health Effects Of Asbestos?

        Asbestos can cause health problems if breathed into the lungs. Most fibres are removed from your lungs by your body’s natural defences, however some fibres can remain in the lungs. 

The possible health effects are;

• Asbestosis (progressive scarring of the lung tissue that impairs breathing)
• Lung Cancer
• Mesothelioma is a cancer of the linings around the lungs and abdomen.
• Non-cancerous diseases that effect the linings around the lungs and abdomen (commonly called “benign pleural diseases”)

These diseases can sometimes take up to 50 years to develop. There may be treatments for asbestos related diseases but currently no cures. 

Is It Dangerous?

Current scientific and medical evidence supports the fact that simply living or working in a building that contains asbestos in not dangerous so long as the materials containing asbestos are in good condition (i.e. sealed, undamaged, undisturbed) 

If the asbestos material is in good condition leave it alone! 

        To minimise the chance of anyone being exposed to asbestos it is important to first understand if you even have it in your home and there are a few basic steps to follow.

1. Get an asbestos audit on your property by your local Independent Property Inspector. This will identify materials suspected of containing asbestos fibres and document its condition as undamaged and stable, or damaged and unstable.
2. Sample testing is the only way to confirm if asbestos fibres are present in the material. Testing will also identify a percentage margin in the sample and the type of asbestos
3. Only when you are armed with this information can you make any informed decision whether to leave it alone, seal it, or remove it.
4. If you elect to remove it, you must check with the local laws in your state as the laws for safety procedures and removal may vary from state to state.
5. Do you know there are alternatives to removing the material containing asbestos (e.g. painting or sealing, covering with a non-asbestos material)?
6. If in any doubt, consult your local independent property inspector.
 

          There are three main types of asbestos used in building materials. (The concentration varies greatly in different materials)

• Chrysotile or white asbestos
• Amosite or brown asbestos
• Crocidolite or blue asbestos

Examples Of Materials Suspected Of Containing Asbestos

Cement sheet products, historically contained up to 15% asbestos fibres. This is not an exhaustive list but intended as a guide only.

• Flat or corrugated wall and roof sheeting (“fibro”)
• Roof shingles
• Flexible building boards (e.g. Villaboard, Hardiflex, Wundaboard, Flexiboard)
• Floor sheeting
• Vinyl floor tiles and sheeting
• Asbestos-backed vinyl and millboard underlay
• Water, drainage and flue pipes
• Backing for imitation brickboard cladding
• Backing panels in switchboards or meter boards
• Some Mastics and bitumen paints and materials
• Heat shields around wall ovens
• Some wall and ceiling insulation products.
• Sprayed insulation for acoustic walls and ceiling
• Tilux sheeting in place of ceramic tiles in bathrooms.
• Broken cement sheeting was commonly used as a packing material under bearers and joists
• Heat blocks in electric heat banks
• Asbestos felt type underlays
• Heat resistant laminates (e.g. Formica)
• Asbestos gaskets and rope in wood heater and oven doors also pipe lagging

            Identifying materials suspected of containing asbestos is a specialised field and takes considerable experience, education and training. If you are in any doubt at all please call us before you touch it. 

            We recommend you contact your local Independent Property Inspector

Just a quick note to summarise. 

            After ten years of inspecting over 12,137 homes in this area, I can tell you the vast majority (my best guess is 98%) of homes that have materials suspected of containing asbestos are all in a safe and undisturbed condition, and if left that way will pose absolutely no threat to the occupant’s health, whether they are a tenant or the property owner. 

The simple truth is, yes, most homes built between the 1930’s and the late 1980’s will have some materials that may contain some small level of asbestos fibres…

…but remain in a safe sealed condition and should not be a deterrent to buying a home. 

            We all live with asbestos and many other dangers around us every day, (for example; we all know electricity will kill you instantly but we don’t remove it from our homes, we simply treat it with the respect it demands) and if we continue to treat asbestos with due respect and take any appropriate action when needed I believe we can all live long and fruitful lives. 

            If, however, asbestos is still concern for you after reading this article, there are many professionals who can identify it and safely remove it so you can still own the house of your dreams.

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After Your Pre-Purchase Building Inspection

Your Pre-Purchase building inspection is complete, your inspector went over the report with you explaining the defects and his recommendations….now what do you do?

• You have entered into the agreement to buy the house assuming there are no major hidden defects. The inspection has now uncovered defects. What can I do?
• The first thing you need to do is sit down and read the entire home inspection report for yourself.  When your building inspector is reviewing your report with you it can get a little overwhelming if there are many defects or things you don’t fully understand.  I always recommend you take the time to read the inspection report in it’s entirety for yourself.  Your report could potentially save you hundreds possibly even thousands of dollars, so it’s probably worth your time to read it completely.
• Your inspector is your expert on your side and he knows your new home intimately now, if there is anything in the report you don’t understand, talk to your inspector. Ask all the questions you need to until you fully understand. Let me assure you there is no such thing as a silly question. A good inspector prides himself on being able to help his client understand his report findings.
• Now you should decide what defects you are concerned about, prioritize them. This is a very personal thing as everyone has different priorities. But you should also review your list and decide which ones are typical for a property of that age. Which ones are fair wear and tear. It is unreasonable to ask for some defects to be repaired. (For example; scuff marks and small chips on the passage wall in a 50 year old home that had 4 children raised in it would be typical, however the same defects in a new home would be considered in a different light) You must be realistic and consider the age of the home in relation to the defects found. (another example would be the corrugated galvanized short sheet roofing on same 50 year old home may show signs of rust or corrosion. This is typical for a property of this age, however this would be considered a major defects if found in a 5 year old home) Again this is where you need to talk to your expert, the inspector. You need to prioritize the defects into things you will accept and ones you need to get quoted for repair and renegotiate your offer. You need to decide if the scope of this project is more than you bargained for after you became aware of the condition.  Are there some major defects or safety items that are cause for immediate concern?
• Since a home inspector is a generalist and not a specialist, you will most likely see recommendations for further evaluation on certain items.  Recommendations from specialists that fall outside his field of expertise. (For example, if a home inspector notes some significant movement and cracking in the foundations, he should recommend you consult a structural engineer for further detail).  These specialists will bring in specialized tools and testing equipment to further troubleshoot these problems and let you know the cost associated with repair.  If your home inspector recommends a further investigation, I strongly recommend you get this done prior to confirming the sale.

To Repair Or Not To Repair  

• Your ability to re-negotiate may be limited by the exact wording of your building inspection contingency clause. It is common to see clauses restricting you to structural or safety items only. Some clauses document repairs over a certain dollar amount. This can dramatically limit your ability to re-negotiate. And this is why we strongly recommend you use a much broader building inspection clause. In my opinion the simpler the better, something like “subject to a satisfactory building report” Your legal advisor determine the exact wording for you before you sign the agreement. This type of clause includes all the systems and components of the property and does not restrict you to structural or safety issues only. However all that said, I believe you should always ask anyway.
• Using your priority list of defects and written quotes for the repairs. You are now in a strong position to renegotiate. Before you go into any re-negotiations you must decide if you want the seller to make the repairs before settlement, or if you want to seek a reduction in the contract price to allow you to undertake the repairs yourself after settlement. Everyone has different thoughts on this but here’s mine. I recommend you negotiate a reduction in the price using written quotes as the basis to verify the costs. My reason for this is due to past experience I’ve inspected the repair work completed by many sellers and in most cases these have been completed on the cheap, in hast and by unqualified contractors. In some cases they have had to be re-done again to reach a satisfactory outcome and delayed the settlement date.
• However if you negotiate a satisfactory price reduction to allow you to manage the repairs after settlement, you have time to choose your contractors, the time frame is not squeezed into the contract period and you have full control over the project and the time frame to suit you.
• At this point you should sit down with the Realtor and/or your Buyers agent and put your case forward. Weather you ask the seller to complete the repairs or the you ask for a reduction in the agreed price, the realtor and/or your buyers agent will negotiate to keep the agreement alive. I must also fore warn you to be prepared for a flat out NO. Some sellers will not re-negotiate at all and are willing to risk loosing your sale to prove it.
• Be prepared to be more creative in your re-negotiations, (for example; I once saw a buyer re-negotiate to include a ride-on lawn mower in the settlement valued at $2500 in stead of replacing the broken leaking skylights also valued at $2500) another example I saw the other day was the seller agreed to pay the buyers furniture Removalist costs in lue of repainting the bedrooms. The seller then went on to get a better two for one deal with the Removalist. Some times you have to look outside the square for other ways to get a better deal done.

The key points I would like to stress from the point of a home inspector are:

1. Read the entire report!
2. Follow up on the home inspectors recommendations for further evaluation
3. Read the entire report! (Ok…I know I got this one already but it’s very important.)
4. Get all the experts on your side, lawyers, inspectors, buyers advocates

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Why You Need An Inspection When Buying A New Home Why should I get an inspection if the house is new? I hear you ask. The plans have been approved, the engineers designed the structural parts, the works have been inspected at each stage and you have the final certificate of approval from the building surveyor. Isn't that enough?

The short answer is NO. It's not enough, although it might appear self serving for a property inspector to say you need the services of a professional property inspector when you buy a new home. I can only say that my 30 years of experience have repeatedly justified that advice.

Even new homes need an inspection before you sign off and hand over your hard earned cash (or the banks money) the dreaded Mortgage. By the way did you know that a rough translation of the word mortgage is "agreement till death?" Agreement till death! Then you best make sure it's built right!

Not all contractors, sub-contractors and suppliers working for builders are the same, there work or there materials are not always supervised or checked for quality. Not all the inspections by the authorities and the local councils etc are carried out with the proper due diligence. I've seen building surveyors sign off on foundation inspections, concrete slab pre-inspections, framing inspections and lockup inspections without even getting out of the car. Because it was raining and the inspector didn't want to get his shoes muddy, or they were late for their lunch break.

The fact is, unless you know and trust everybody personally, then you can't be sure what your buying is in fact what you agreed to. I've seen $20,000 kitchens installed in the wrong home, I've seen many examples of houses not complete and leaking because no one checked to see if the roof flashing's have been installed. I've seen homes with no window flashing's installed, ventilation openings completely rendered over, construction joints missed out completely, painting not finished, plumbing leaks, electrical problems, I could go on and on and trust me this list is long.

Unless you are a building professional you can't know everything you need to look for, and I know it is an exciting time for you and everything looks and smells new, and you can't wait to move in. I also know from experience that you may still have your "Rose Coloured Glasses" on.

You should be very suspicious of a builder who resists or flatly refuses to give you permission to have your own inspector run his eye over it or to do a final walk-through inspection with you before you pay him the final payment. A builder who has something to hide may prevent you from performing an inspection of your new home

Another reason why you should hire your own inspector is because most of the building works are subcontracted to lowest quote to maximise the builder's profits. This means that speed and not quality is the only consideration of the home builder. With all my years of experience, I've never found a new home that didn't need some items either completed or repaired before settlement, some worse than others. Having an independent professional inspector can also help your and your builder decide what is a defect that must be completed before settlement? And what is a maintenance item that can easily be repaired after settlement? It is always an advantage to have a copy of the approved plans, the building contract and specifications, and the purchase agreement available at the inspection.

Hiring an independent inspector for your new home may mean additional costs for you, but it will give you peace of mind and ensure you're getting what you signed up for. Builders are notoriously difficult to get back once they have your money in their pocket.

Articles By Leon Cupit. Independent Property Inspections

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Mandatory Home Inspections?

Today, a number of factors are forcing banks and financial services firms to take a closer look at the property appraisal process before approving a mortgage. These factors include a rising number of foreclosures, many applicants applying to extend mortgages to include unforeseen repairs, and a rise in bankruptcies due to being over extended as a direct consequence of unforeseen repair costs.

Unfortunately, the standard lender's appraisal often fails to reveal the true condition of a home or the applicant's ability to pay for required repairs on the property. This is where a home inspection conducted by a qualified independent home inspector - perhaps commissioned or required by the mortgage lender or the mortgage insurer could serve as a valuable adjunct to the appraisal.

While only a small number of buyers today commission a home inspection for their own protection, they are not obligated to share the results with the lender - even though the report may reveal serious defects with the property. Despite these facts, home inspectors are not routinely hired by lenders, and are typically called in only when a bank appraiser or a valuer raises a specific concern. In fact, Independent Property Inspections (IPI) has found that less than one out of a hundred inspections conducted by its independent inspectors are done on behalf of a lender or as a requirement of the mortgage application. The inspector is only called in when the appraiser notes an obvious structural problem, such as springy uneven floors or a leaking roof. There are many other serious problems that are not as obvious and that would normally go unnoticed during an appraisal by an untrained eye. Some examples are failed framing systems, unsafe defective electrical wiring, blocked underground drainage systems, old roofing not yet leaking but in very poor condition, and subtle cracks in walls that may be symptomatic of more serious foundation failure.

Another concern is that the inspector who is called in at an appraiser's request is usually asked to perform only a partial inspection, in order to investigate one or two items, raising the possibility that other serious problems may still be overlooked. Even though such limited inspections may seem simpler and even adequate at the time, it represents short-sighted thinking. Ultimately, it is in everyone's best interest to inspect the property thoroughly and make sure the buyer doesn't take on more home repair bills than he or she bargained for.

Horror Story - Julie, a single mum with two kids, a 9 year old Oliver and his 6 year old brother Ben, Julie has a full time executive job and works 50 hours a week, some from home. Julie downsized last year when she lost he husband to illness. Julie needed to be closer to work and the school and she could not manage the mortgage on her single wage. Julie found the perfect home, it was ten minutes walk to school and a further fifteen to her office, it had the three bedrooms, the en suite she so desperately wanted, secure backyard, it even had a lockup garage.

On auction day Julie was beside herself with nerves, so she got her brother to do the bidding for her, she was pre approved for $380K. Julie's brother won the final bid with $384,500. The extra $4,500 just maxed out the credit card. The day Julie and the kids moved in was the day their world fell apart. The house sure looked different without the furniture, floor coverings and all those wonderful paintings on the walls. She immediately found termite damage in the floor boards where the king size bed was, she found the bathroom floor was rotten around the shower from years of leaking, the ceiling inside the bedroom 2 robe had collapsed under the weight of the water soaked insulation, and the timber stumps under bedroom 3 and the hallway were also rotted out from the water ponding under the house.

The total repair bill was in excess of $17,000 and the lender refused to advance Julie any more. She had reached her limit. The banks valuer didn't raise any concerns by saying he is not qualified to comment on property defects, the lender said Julie had demonstrated her ability to pay the mortgage and ticked all the other boxes, so all the numbers stacked up.

The word got out about the house and Julie couldn't resell it. Julie ended up declaring bankruptcy and she lost the house, She is now living back with her retired parents and catching an hour and a half hour train ride to and from work six days a week, Oliver and Ben were forced to change schools and friends.

The bank was forced to sell the house for $290,000 12 months after Julie left. Taking a loss of $90,000.

It seems incredible that a simple $350 building inspection could have avoided all this.

Wake Up Australia; Now that;s a case for "Mandatory Home Inspections" To continue without them is simply "Un Australian".

Articles by Leon Cupit. Independent Property Inspections

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Drawing on over 30 years experience as a builder and property inspector I have no doubt that failing to have the property professionally inspected before you buy is the most expensive mistake I have seen smart people make when buying property. This something I still see happening daily, conservative estimates show that more than 70% of people buying property fail the get a professional independent inspection done. Whether this is due to lack of knowledge that this service is available, submitting to undue sales pressure to sign a contract without a building inspection clause just to make it a more attractive offer. I just don't know.

• If you do any basic research into buying property. Getting the house professionally inspected before you buy is always in the top two or three of the absolutely must do’s on every list. Simply because the consequences of failing to get one can mean financial devastation not for you but for your family and you will suffer for years to come, as it has for so many already who made this mistake. "This is another one of those ones that nobody admits to because of the embarrassment of having to admit to such a fundamental mistake".

• If you consider the minimal cost of the inspection. The modest cost far outweighs the consequences. And the property report also delivers "Peace of Mind" and eliminates "Buyers Remorse". Even the top of the range Rolls Royce inspection reports normally work out to be less than 00.1% (that's zero zero point one percent) of your contract price

• If you consider the inconvenience of arranging an inspection, it only takes one phone call and three minutes. Or you can go online and arrange it without even talking to someone. Your independent inspector will take care of it all for you

• If you consider the value of the professional inspection report it is regarded by those that use them regularly as absolutely invaluable. You'll never see a real estate agent or a lawyer buying a property without one because they have seen the disasters first hand.

As professional inspectors we often get called in to look at a property a couple of months after the settlement when the buyer has moved in and starts to notice strange things happening. “No I’m not referring to ghost sighting”. But these jobs often make up another chapter in my "Book of Horror Stories"

The first question we ask is "what did your inspection report say?"

We regularly hear comments like

• "I didn' think I need an inspection because it's not very old" However when we inspected the home we found the tap penetrations in all the showers had never been sealed and all showers had leaked and caused over $3,800 in repair cost, The external doors had not been correctly painted and now needed replacing, another $1,200 and the site drainage had never been installed as per the plans and now caused flooding of the rumpus room another $7,300 for new carpets and painting after the clean up and $6,000 to install the site drainage and replace the garden and paving.

• "I didn't get an inspection because its been standing for 60 years now, I thought it must be ok" Upon close inspection we found inadequate under floor ventilation, no rising damp protection, and poor drainage had combined to cause rot and fungal attack in timber floor framing, subsidence of numerous internal piers that also caused the uneven floors and plaster cracking throughout the walls, leaving a total repair bill of $18,270

• Or, and this is one of my favourites "I got my dad's mate who is a painter to check it out and he said it looked ok to him" As it turned out dad's mate was also the brother in-law of the person selling the house, sure the painting was ok, but he failed to tell them the wiring was old, damaged and needed replacing, and the roofing was rusted out and will need replacing (a new coat of paint on top doesn't hide the rust on the inside) New wiring $7,800 and New Roof $8,370

• And Another Classic Is...

• "I didn't think I need an inspection because I couldn't see anything wrong when I look at it" Sure it presented very well, but our professional eye for detail noted the back bedroom window was jammed shut and cracked, plaster and brick cracking under the window confirmed the foundations had failed and repairs cost $15,200

• "I didn't get an inspection because the agent said they wouldn't accept a contract with a building clause in it" This should have rang alarm bells but on inspection of the under floor area we found signs of past flooding, rising damp throughout the lower room walls and rotten carpets. Cost of repair $9,770

• "I didn't get an inspection because I was told the vendor had one done when they brought it" As it turns out the vendor brought the property 7 years ago and had ignored the advice of the previous building report to get a timber pest inspection. The house was condemned due to termite damage and had to be demolished at a total loss of $385,000.

I could easily go on and fill pages with more excuses but that doesn’t change the fact that these people got caught and are now up for the repair costs when one simple phone call could have avoided all the grief and expense

It Only Takes One Phone Call And Three Minutes, And Can Save You Thousands of Dollars.

Articles by Leon Cupit. Independent Property Inspections

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Having a pre-purchase inspection report completed before you buy or even as a contingency in your contract is widely regarded as the single most powerful negotiating tool you can use when buying a property.

There are hundreds of examples where buyers have used the findings in the report to negotiate reductions amounting to thousands of dollars off the sale price of properties. Or re-negotiate existing contracts due to the report findings.

Example: Karen, a single mum with two kids made a successful offer on a three bedroom brick veneer home close to her work and schools. Perfect scenario for the whole family, Karen was smart enough to include a building clause in the contract. The property was listed for $380,000 and Karen managed to negotiate down to $377,000 for a quick settlement as this suited the couple that owned it as they were moving interstate. Karen was very pleased with herself and didn’t think she needed the inspection because the house looked like it had been well looked after, the garden and yards are neat and tidy, the roof has just been painted, they had just put new gutters all around, the timber windows had just been painted, the inside was as neat as a pin, family photos all over the walls and down the hallway. Karen got the impression this was a good family home.

The inspection report revealed the old corrugated roofing was rusting out and numerous signs of leaks and will need replacing, (Replacement cost was $7,680). The timber fascia boards are rotting at the joints and the timber windows are rotten in many areas, poorly patched with body filler and had been fixed and pained shut. (Repair cost was quoted $4,800). The shower base was cracked and leaking and needed to be replaced (replacement cost $1,565).

The inspection report also contained digital photos as evidence of these defects and Karen was able the go back and re-negotiate a total of $13,000 off the original contract price to allow her to make the repairs. Karen’s Pre-purchase inspection cost $350 and because of the report she saved herself $13,000 in repair costs. Put another way that's a 3,714% return on her investment and it only took one phone call and three minutes to arrange.

This is a secret many in the industry don't want you to know about. This scenario is repeated over and over every day and astute buyers are saving thousands with every inspection report.

Armed with a completed pre-purchase inspection report you have the most powerful negotiating tool in your hands. You can use it to negotiate the repairs to be completed by the owner before settlement or you can negotiate a price reduction to allow you to carry out the repairs when you move in. Either way it is by far the best bargaining chip you can have for the negotiating table and the power of the negotiation remains with the person with the evidence (The independent report)

Make sure before you sign anything. No place is perfect and will always have surprises. You have to ask can you afford not to have one done. We don't want your story to become another chapter in our "Book of Horror Stories"

Articles by Leon Cupit. Independent Property Inspections

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7 Incredibly Dumb And Stupid Mistakes Smart People Make When Buying A Home And How To Avoid Them. Mistake No. 1

1) Failing to get a Professional Building Inspection done. Although it might appear self serving for a property inspector to say you need the services of a professional property inspector when you buy your home. I can only say that many years of experience have repeatedly justified that advice. (To the extent that I am now writing a "Book of Horror Stories"). I really believe that this one piece of advice is the best and most valuable bit of advice in this entire report.

No one else in the home buying process (apart from your lawyer) has the comprehensive training and experience necessary for the protection of your interests. No one else in the process has the true independence and lack of conflict that are required to protect your interests than an independent property inspector.

Gone are the days of getting your home inspected by a well meaning friend of relative, this process demands professionalism and expertise that can only be delivered by an experienced independent property inspector. Not getting a professional pre-purchase inspection done to discover hidden defects before you buy a home is one of the most expensive mistakes you can make, and is the easiest to avoid.

If you are not a professional home inspector, hire one. You should make your contract subject to receiving a satisfactory building report from a professional independent inspector. Whether the house is new or used, any home can have a wide variety of defects that go way beyond the obvious cosmetic ones and it will take a skilled inspector to uncover these defects that will only prove very costly to repair after you buy the property then it's to late. In addition you can also make the contract contingent on more specific systems in the property like Plumbing, Electrical, heating, air-conditioning etc. Alternatively a well written contract can also require the seller to warrant that these systems are all in proper operating condition. If you're buying in a Termite prone area a timber pest inspection should also be included.

If you're buy at auction the building inspection must be done before the property is auctioned We have seen to many buyers dreams shattered by not having a professional pre-purchase inspection carried out before they brought the home. Not getting a professional pre-purchase inspection done to discover hidden defects before you buy a home is one of the most expensive mistakes you can make, and is the easiest one to avoid. It seems incredible that all this can be avoided with just one phone call, yet so many still make the same mistake.

Horror Story - Take Jim for example, Jim had just been through a really rough part in his life, his children all lived over seas, his wife of 47 years past away six months ago after he lovingly nursed her through the cancer treatments for three years. Now Jim just wanted a new start, so with what little savings he still had plus the money from the sale of the family home Jim could afford a nice two bedroom unit closer to town, something he could potter around the garden in and live out his days.

Jim went to his first open home, a nice little unit and it had a garden just like he wanted, there was lots of furniture and all sorts of rugs and mats throughout, Jim said it looked a bit cluttered but his furniture would fit right in. Jim went to the auction (His first time ever)with a pocket full of cash. It was the happiest day for years when he won the final bid and brought his own little piece of paradise.

Jim called me the day he got the keys. The unit was settled that morning and Jim went straight out there to start moving in. Now with all the furniture and rugs removed Jim new he was in serious trouble. When i inspected the unit the next morning I found the concrete floor had completely failed and sunk by up to 150mm or 6 inches, None of the doors would close, some had even been removed completely, the tiled roof was supported through the walls onto the floor slab and had also sunk. Jim had a major structural failure and was looking at a possible complete demolition and rebuild. When I gave him the bad news he just slumped in the middle of the empty lounge and sobbed. He kept repeating "why didn't I take the advice and get it inspected first"

I must admit It still upsets me now when I recall this one.

Buying a property is a complex transaction; You will need a dependable team around you like a Lawyer, Lender, Inspector, Insurer as well as all you own due diligence and advice from friends and family. You should enlist the help of all these experts early in the buying process.

Articles by Leon Cupit. Independent Property Inspections

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7 Incredibly Dumb And Stupid Mistakes Smart People Make When Buying A Home And How To Avoid Them. Mistake No. 2

2) Not Getting Proper Legal Advice Before Signing Anything.

The first thing you must realise is when you sign a contract, you are now obligated not only to buy the property but also to do it exactly in accordance with the terms and conditions of that contract. Even very minor and almost unnoticeable changes in the wording of the contract can have a huge effect in shifting the risks and costs between the buyer and the seller. If you sign a contract without fully understanding every word in that contract then you will be making one of the biggest mistakes in buying real estate.

Not knowing or understanding all your legal rights and obligations when signing a contract can be disastrous as real estate law can be confusing and complex. The contract you will sign when buying a home is legally binding. Most standard contract forms used by most firms are heavily weighted in favour of the sellers (this maybe why they are often referred to as "sellers" contracts and not "purchase" contracts)

When the negotiating is done, all is agreed, and everyone's temperature is high, the contract document is prepared and handed to you for signing. This is the time you must stop!, take the contract away to get some trusted advice from a legal adviser who is experienced in real estate law. Good advice at this stage, even if it is just changing a few words in a contract can save you many times the cost of the advice and can protect you from making a mistake that will cost you thousands.

Horror Story - Nigel and Lisa, in their early twenties, baby on the way, after months of looking finally found a house they could afford. Nigel and Lisa borrowed all they could from family and friends to raise the $35,000 deposit. The contract was signed that included a building inspection clause that was subject to receiving a satisfactory structural inspection report and a finance clause

Nigel and Lisa where on cloud nine, they applied for their home loan the next day then arranged the building inspection. Upon receipt of the building inspection it was confirmed the home was structurally sound. However the building report also revealed the electrical system was substandard, dangerous and would need to be replaced. (Cost to rewire is $8,730) The old galvanised plumbing was rusted out and leaking and would also need replacing (Cost of re-plumbing $6,810). The corrugated roofing was rusting out and also leaking and would need replacing immediately. (Replacement cost 9,370) The valuation was OK and the home loan was approved.

Nigel and Lisa were devastated; due to the wording in the building clause they could not cancel the contract because the home was in fact found to be "structurally sound" Yet they were now up for an extra $24,910 just to make the house livable. Money they just don't have.

If Nigel and Lisa had gotten some sage advice and simply deleted the word "structural" from their building clause. They would have avoided this situation completely. Sadly there are many example like this but you don't get to hear about them because the people involved are just to embarrassed to admit they made such a simple mistake that resulted in such a devastating loss. Some research shows that as little as 5% of buyers actually get the contract checked before signing. Remember the saying "Caveat Emptor" or "Let the buyer beware"

Articles by Leon Cupit. Independent Property Inspections

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7 Incredibly Dumb And Stupid Mistakes Smart People Make When Buying A Home And How To Avoid Them. Mistake No. 3

3) Not Using a Buyers Agent. Trying to negotiate without professional help or advice.

Sadly this is a mistake most smart buyers make every day and it can cost you literally thousands of dollars. When trying to negotiate to buy a property you are forced to deal with the sellers agent who is a seasoned professional negotiator, who knows all the intricacies of the property market and real estate negotiating because that's what they do every day to put food on their table. The sellers agent has been contracted to negotiate the very best deal for the seller, that's how they earn their living.

Many buyers make the mistake of thinking they are just the person in the middle who passes on the offers for both parties. Wrong, make no mistake, the selling agent is working for the seller to negotiate as much money out of your pocket as humanly possible.

This is why. If you really think you can out negotiate an experienced seasoned trained professional like a real estate agent, then you must be really on your game, or it most definitely will cost you thousands more to buy the property. How to avoid loosing thousands? Hire a Buyers Agent or a Buyers Advocate who can more than match it with their negotiating skills with the sellers agent. For the modest cost involved it really can be a great investment and save you thousands.

Articles by Leon Cupit. Independent Property Inspections

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7 Incredibly Dumb And Stupid Mistakes Smart People Make When Buying A Home And How To Avoid Them. Mistake No. 4

4) Failing to take out adequate insurance after signing the contract.

This is a much neglected area that does need your attention. When you sign a contract to purchase a property you are deemed to have an interest in the property.

At this point you have no idea if the seller has adequate insurance or if they have any insurance at all. I strongly recommend you get professional advice to confirm the replacement cost of the house and this should be your starting point. It is not wise to insure for the purchase price only as this will often leave you under insured.

Horror Story -  Peter brought his dream home subject to receiving finance within 21 days, Peter was advised to take out insurance immediately but he decided to wait until his finance was approved and the contract was unconditional.

Unbeknown to Peter the seller had not renewed his house insurance that ran out last month, thinking that why should he renew the insurance if he was selling it.

7 days after Peters offer was accepted the heavens opened up and it rained heavily for three days.

Peters dream home suffered massive water damage not only from the flooding but also from leaking roofing. Peters finance has since been approved and the contract is now unconditional. Peter was not told about the water damage until after the finance approval. The water damage repair and cleanup bill is estimated to be over $35,000. Now the argument is "who's going to pay" and the lawyers are fighting it out.

A simple $250 insurance policy is all that was needed to avoid this disaster. (by the way, the lawyers charge upwards of $285 per hour)

Articles by Leon Cupit. Independent Property Inspections

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7 Incredibly Dumb And Stupid Mistakes Smart People Make When Buying A Home And How To Avoid Them. Mistake No. 5

5) Failing to get a check survey to confirm the property boundaries and the house location.

This is a very simple check carried out by a land surveyor to make sure firstly that you are buying the correct property and secondly to confirm the boundary's and the house are actually situated on your property.

You only get one chance at this and if at a later stage something is found to be incorrect. The consequences can be significant and devastating this step should never be taken lightly, just measuring the fence lines is not enough.

Horror Stories - I've heard of reported cases where people actually brought and lived in a property for years before somebody did a check survey only to find they had been living in the wrong house. In another case a check survey ordered by the people purchasing the house next door found that half of the brand new double garage and workshop from next door is actually on their land. The neighbour was forced to pull it down and remove it or buy the land that it was standing on.

Not a great start to developing a friendly relationship with your new neighbour.

Articles by Leon Cupit. Independent Property Inspections

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7 Incredibly Dumb And Stupid Mistakes Smart People Make When Buying A Home And How To Avoid Them. Mistake No. 6

6) Not doing proper and thorough research and preparation.

It is often said that "Knowledge is Power" and this has never been truer when you are looking to buy a property.

It's absolutely critical that you research the neighbourhood before you buy. Check out the area, facilities and the schools, transport systems etc. Also it's a good idea to attend a community meeting, if possible. You're not just buying a house; you're buying a piece of that community and the land around it. Do what ever you need to do to get to know the area. Also research the property values and recent sales in the area. You can find a lot of FREE information on the internet also.

This decision to buy can be a life changing experience or disaster not only for you but it also effects your family.

Articles by Leon Cupit. Independent Property Inspections

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7 Incredibly Dumb And Stupid Mistakes Smart People Make When Buying A Home And How To Avoid Them. Mistake No. 7

7) Not knowing how much you can afford before making and offer.

The Easiest way to avoid this it to get Pre-Approved finance first, this is very different to just getting pre-qualified for finance and even with pre-approval, you should not sign an unconditional contract because if the valuation doesn't come up, even though you can afford it the lender can still withdraw the offer to finance it. Then you can be left in default and risk forfeiting your deposit.

To avoid this I recommend you always sign a contract with at least two contingencies

• Mortgage Finance; you're pre-approved, but is the house pre-approved? Before a lender will give you the money they will want an appraisal of the property to confirm that there is enough equity in it to justify the loan. If the property appraises too low then the loan may be declined. To avoid this make your contract subject to finance approval. Your lawyer can advise you on the correct wording to use.

• Inspection; never buy anything, existing or new without a thorough independent professional inspection. If termites are active in your area I strongly recommend you make the contingency,"subject to receiving a satisfactory building and pest inspection from appropriate experts" Again your lawyer can advise you on the correct wording to use.

• Insurance; You will also need to confirm you can get adequate insurance coverage. In some areas it can be difficult to get hazard insurance for flooding or storm damage.

Articles by Leon Cupit. Independent Property Inspections

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It seems incredible that many people in their haste to buy that elusive "Dream Home" that they fail to prepare properly and it inevitably costs them.

Although there are many, many aspects you should consider, in this article I will attempt to raise your awareness to some of the most neglected areas that can have the largest impact on the final outcome of your purchase

1. You need to do your research first, make a list of all the reasons why you want to buy, make a list of what you want in a house in order of priority. You need to have a clear understanding of what you need to look for before you start looking. All to often people fall in love with a home because it has the rumpus room for the kids, or the kitchen is just what we've always wanted, or it's already got the double garage and workshop. So many people get trapped into buying for the wrong reasons. Sure its great if you can find a home that has the rumpus room for the kids, but what if its not near any schools, or public transport to get the kids to school every day. You must look at the whole deal not just a small part of it. You are making a huge commitment and it's very costly if you get wrong.

2. For the sake of some basic planning and research you will minimise your chances of failure dramatically. I recommend doing your research on the internet first, here you can find out a huge amount of information about the area, the neighbourhood or community, it helps to visit the area at different time of the week and during the day, even at night, simple things like taking your dog for a walk around the streets, spending a day with you kids in the local parks etc, talk to the locals, the shop keeper etc, find out where the buses or trains run from. All this will give you a much better feel and understanding of where you want to live. Talk to the local council, if there is vacant land nearby, find out what is planned for the site. Would it make a difference to you if it were to be a Hotel and night club or a parking lot.

Negotiating; - You are going to be negotiating possibly the biggest deal of your life, get this wrong and it will cost you thousands, or worse still you could even miss out on the property. Are prepared for this? Can you confidently match your negotiating skills with a seasoned trained and experienced professional like the sellers agent? If you're not confident then I suggest you consider using a Buyer's Advocate to negotiate on your behalf. The cost savings they negotiate for you will far outweigh their modest fee. You must also be aware the Realtor is working for the seller at all times

Profiting From The Mistakes Of Others. If you are aware of some facts you can use this information to profit from their mistakes, buy asking questions and doing your research this can give you a huge advantage. I'll give you some examples.

1) The Home is being sold at Auction; This along can be an advantage to you. Did you know that studies have been reported to show that in many instances the successful purchaser when questioned after the sale would have in fact paid more than they did if needed to secure the property. For example; a property went to auction and sold for $232,100. The Reserve price was $225,000. On the face of it this looks like a fantastic deal for the seller. However on questioning the successful buyer, she simply grinned and confirmed she was willing to pay $245,000 to secure this property.

The difference between Appearance and Reality is significant. While the seller was finally willing to settle for $225,000 (the reserve) but actually got $232,100 On appearance this would seem to be a successful sale. But in Reality the property could have sold for $12,900 more. This is a common occurrence with most auctions. And the fact is the highest bidder only has to go a little higher than the next bidder to win the property. The purchaser in the example above just saved herself $12,900. If this property was for sale by any other method the Seller would most certainly have achieved a much better result.

2) During your due diligence (in talking to the neighbours) you found out the seller has committed themselves to another property and desperate to sell quickly. As the buyer you can use this knowledge to you advantage and with some aggressive negotiations you could find yourself picking up a bargain (again profiting from the mistakes of others, the seller should not have disclosed their situation to the neighbour)

3) The Seller doesn't have a current condition report to disclose any defects to you. This is your opportunity to get a condition report done and you can then negotiate a reduction in the price to allow for the repair of the defects found. It is very difficult to argue against the independent expert evidence contained in a condition report.

4) The Seller doesn't understand the true value of the home and the property is "For Sale By Owner". Selling privately;- there is a perception that you will save on agents commission fees, however this is often incorrect as a skilled agent will achieve a higher price. Another difficulty the seller must face is not being a skill negotiator they are often forced to sell at a much lower price. As the buyer you can take advantage of this and profit from the sellers mistakes.

Articles by Leon Cupit. Independent Property Inspections

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I wanted to use the opportunity to tell about the advantages of using Independent Property Inspections. But I thought it would be better coming from our clients so I've included just some of the typical comments we receive regularly.

Hi Leon, Just a note to say thank you for a great effort, both Liz and I really appreciated your detailed explanations at the property, but we are overwhelmed by the detail in the report and you were right, the photo protection package was well worth it. We managed to renegotiate $5,800 off the price to allow for us to make the repairs you highlighted in the report. Thank you again and good luck with your business, you offer a great service.

Don & Liz Fox, Hobart. Hello James, RE; Old Monbulk Road, Belgrave.

Thank you again for your work. The report is great!! I'm seriously impressed with the speed in which you took to complete the report - including the design and layout of the document. The report - I feel - is also very thorough and we thank you for that. It's been great to work with you and I trust the job has been completed more than satisfactorily

Thanks, Tamara Desiatov & Rodney W Cheuk.

Dear IPI,

WOW, what a fantastic service, I only rang to order the inspection yesterday and not only have you done the job but I've already got the completed report. I've just watched the DVD and it really does everything, I've inspected the unit three times but the DVD showed me stuff I hadn't noticed before. We managed to get them to agree on getting the new roof put on before settlement so that saved us about eight grand and we don't have anything else to worry about. Rob was fantastic to talk to and made it easy for us to understand everything. I still can't get over how quick you made it happen. I only made one phone call. I have to say it again, WOW what a great service.

Jimmy Stephens, Huonville Tasmania Dear Dayle.

I had to thank you for your advice. Using the report you did on Tuesday I used it to renegotiate the contract price by $13,300. Although I tried for $15,000 I still think I got a good deal. I will take you up on the half price pre-settlement inspection offer, I'll let you know when.

Thanks again for attention to detail and the promptness. I was amazed to get the full report with the photo protection package on Tuesday afternoon, I reckon you blokes have got the inspection business sown up. I will be telling every one I know about you.

Cheers, Robert Johnston. Brighton Tasmania.

Leon,

I must say the inspection was a real eye opener for me, I'm really glad I took your advice and come with you on the inspection, I had no idea it would be so thorough and I learnt so much about the house. I know I would never go into all the places we did ever again. You know the best part was knowing a lot more about the house is was able to explain all the problems we found and get them to fix them all before we move in. I would have had to get contractors in to do the repairs and we all know how expensive and unreliable they are. I wanted to thank you and tell you I will be recommending you to everybody I know.

Sam Taskounis, Brent St. Glenorchy.

Hi Pete. Well what a disaster. Just goes to show I'm no judge when it comes to picking a house. If you hadn't found the problem under the house before it was too late. That would have cost me an absolute fortune, I know the bank would not have given me any more money to have it all fixed. The engineers quoted over $45,000 to underpin the foundations and replace the damaged sections of brickwork. I owe you big time Pete, you just saved me from financial ruin. I'll be getting you to inspect the next one I find even before I make the offer. I still can't believe how thorough your inspection and report is. I'll be in touch soon.

Regards Geoff Longman, East Kew Victoria.

G'day Ross, You were first recommended to me by the agent, then my bank manager gave me your business card, then is was talking to the tea lady at the office and she told me you did a report for her son last week. Now after seeing what you do first hand I have to agree with them all. Excellent service, the best building report I've ever seen, the verbal report was also great but it was the report detail and the advice you gave me that really saved me thousands and the 5 Star Rating really confirmed it in my own mind. I know we have got a great deal. Thank you very much and sorry for all the phone calls to get your advice.

Bill & Sonya McGregor, Deer Park. Victoria.

Hi Leon, again! Thank you for doing our inspection at such short notice, I know you went out of your way to make it happen for us and both Rob and I are really grateful. You'll be pleased to know we got the house at the Auction and paid much less than we were prepared to pay. However we would not have even put a bid in unless we had your report first. We got caught badly the last time by not having an inspection done and it cost us over twenty thousand in repairs. Anyway I just wanted to thank you we are both fans of Independent Property Inspections and we will be recommending your services when ever we can.

Forever grateful, Rob & Joan Rawlins. Churchill Ave. Sandy Bay.

Dear Leon. The service I received from your company was exceptionally professional, I was astounded at the level of detail in the report and the prompt service was just amazing. The inspection was done after lunch on Wednesday and I got a full verbal report at 3:15 then I received the written report with 50 something photos by 4:30. I managed to get a reduction in the price by $4,800 so I can get the items you found repaired after I move in next month. If everybody delivered their services like Independent Property Inspections then the world would be a much better place. Thank you.

Prof. John P McManus. Taroona.

Hello Dayle. I wanted to thank you for delivering a fantastic report yesterday, we didn't expect it so soon. We knew the house was a bit of a renovators delight but we had now idea about the rusted out roofing and the old lead wiring. We can do the painting and cleanup but we had to negotiate the cost of the rewire and the new roof. They didn't want to budge but when I showed them your report they stopped arguing and we got what we wanted. Thank you for all your advice and using the report to negotiate the price really did the trick. It saved us nearly $18,000 on the deal.

Yours sincerely Phyllis & Roger James. Derwent Terrace. New Norfolk.

Hi Leon, I'm so glad I took your advice, the building report proved to be the most powerful negotiating tool I had, even though it only cost me $350 I was able to highlight the defects you found and I was able to negotiate for the owners to fix some of them and they agreed to reduce the price by $7,500 to allow for me to get the site drainage system installed and have the new vents installed. And thank you for your referral to the drainer he was very prompt with his quote too, without your advice and detailed report I would have been left paying full price and then paying for all the repairs on top. I now know how valuable your service really is you have saved me a small fortune thank you so much.

Satisfied Buyer Jill Hamilton-Smith. Moonah

As you can see the power of using a professional inspector and a detailed condition report cannot be denied.

Articles by Leon Cupit. Independent Property Inspections

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It never ceases to amaze my how many people actually buy houses with out even getting the most basic pre purchase property inspection done before handing over their life savings as a deposit and committing themselves to a 20 to 30 year mortgage. It's like buying a used car without looking under hood to see if it has an engine. Or not taking it for a test drive. In some states you can't sell a used car without a roadworthy check but you can still sell a home without having it inspected.

As a property inspector specializing in pre-purchase inspections I often get call out to inspect a home after the purchaser has moved in only to find significant defects that will cost a small fortune to repair, turning what was to be the dream home into a nightmare. This occurs with such alarming regularity that I have started a "Book of Horror Stories" Some of these are featured at www.ipi.net.au I've already got enough stories to now begin a second volume.

My Question is. What can be done to protect unwitting home buyers from making one of the most incredibly dumb mistakes that could condemn them to a life time of debt? Do we need to legislate so the home is inspected before it can be sold? (Full disclosure has its merits) Should the home loan lenders do more due diligence and actually find out what the condition of the property really is instead of just seeing if the numbers stack up? (Some astute lending institutions are now doing this) After all they do hold the title until the last dollar on the mortgage is paid. Or do we just leave it as it is and keep running with the old Caveat Emptor theory of let the buyer beware. A conservative estimate is only 30% of purchasers get pre purchase inspection done leaving 70% playing Russian roulette with financial devastation. Many of these are carried out by a well meaning relative or a mate of a mate and have no regard for the minimum requirements of the Australian Standards for pre purchase inspections for residential buildings yet they use the opinions of their relative or mate to void a purchase agreement. Shouldn't this at least be an opinion of a professional experienced property inspector?

When you consider the average pre purchase inspection cost is about 0.1% (that's zero point one percent) of the purchase price, most fair minded people would consider that is an insignificant cost to safe guard your financial future. Are buyers not getting a pre purchase inspection because of the cost? Are buyers not getting a pre purchase inspection due to sales pressure? Are buyers not getting a pre purchase inspection simply because they are not aware the service is available?

I've raised many questions here I would like your opinion on so please feel free to add your comments.

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