Advice regarding B&P and what is basis for 'negotiation'

Discussion in 'The Buying & Selling Process' started by Billiam, 11th Feb, 2020.

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  1. Billiam

    Billiam New Member

    Joined:
    11th Feb, 2020
    Posts:
    1
    Location:
    Brisbane
    Greetings All,

    My partner and I are purchasing our very first home (PPOR) in Brisbane. It is a townhouse which shares a wall with only one other townhouse and is approximately 20 years in age.

    However, B&P has come back and we have some concerns.

    Pest:
    I had an independent pest inspector come through. An active termite mound was found on common property within 10m of the structure, and a termite management system was in place (chemical barrier [drilled holes on exterior] and bait system). No evidence of live termite inspection was found (thermal and moisture sensing techniques used). There was no visible termite damage in the property, but an invasive inspection was recommended because the inspector rated the " 'overall assessment of the property' as being 'the degree of subterranean termite infestation to the overall property was considered, moderate to high' ". BC has termite inspections performed annually, the last inspection being 31 Jan 2020. The complex manager has given me the 2019 report which matches with the findings of my independent pest contractor re: risk. Access to the crawlspace betwen ground and upstairs is restricted because the owner installed laundry cupboards right below it [owner trying to hide damage or innocent oversight?]

    I have asked the complex manager for details of the termite management system, e.g.
    1) Do all of the townhouses in the complex have a management system in place (i.e. is the system preventative)?
    2) Was there an active termite infestation found and treated for in the past?
    3) How often are barriers maintained (e.g. chemical barrier is usually good for a few years, but bait systems need checking more frequently)?
    4) Asked for a copy of their 2020 report

    Is there anything else I should ask? I know termites are very common in Qld. Am I over-reacting?

    Building:
    The inspection came back with a conclusion that the 'incidence of major defects is LOW compared with similar buildings' and 'incidence of minor defects is TYPICAL compared with similar buildings'. Great!

    There's only one major defect: an external concrete pathway (nothing to do with slab) has a crack > 5 mm. We don't care (not structural), but should we?

    Of the minor defects, most are settlement cracks (although a few have been patched and painted already [owner hiding something?]) to be monitored. There's a creaky floorboard or two, the balcony deck needs painting/staining, and there's some cracked kitched tiles; most of which are cosmetic and don't bother us and we can fix ourselves.

    There's also a leaky downpipe (it services the gutter of both townhouses from second story) and a cracked roof tile which I believe are BC issues so I'll flag them with BC.

    Our only issues are two bedroom doors which have binding issues and a broken hot water tap. Is this worth trying to negotiate a fix before hand or small reduction in price ($400? $500? $1000? $2000?!) I'm not handy and thus would want a carpenter in to fix it) or just suck it up? From reading other threads I should just suck it up.

    Any advice greatly appreciated.
     
  2. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    10,119
    Location:
    Brisbane
    What you judge could be owners repairing and painting settlement cracks could also be just what any owner will do who doesn't want to look at a cracked join.

    It sounds to me that the termite checks have been thorough and match those done by an independent pest company last month. Termites are everywhere in Brisbane, and I'd rather have them 10 metres away in a stump than in my house.

    Honestly, your B&P report sounds pretty good. I'd not try to ask for any reduction in price for a broken hot water tap. How is it "broken"?

    I'd be more concerned about a leaky downpipes, but I still would not ask for a reduction, but that's just me I guess. I think anything visible or easily seen (cracked downpipe?) is taken into account when you make your offer.

    Others will disagree, and that's ok. I think you risk any goodwill by nitpicking.
     
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