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B&P done on property under contract interstate. Need advice?

Discussion in 'The Buying & Selling Process' started by JK200SX, 24th Aug, 2015.

  1. JK200SX

    JK200SX Well-Known Member

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    Just had a B&P done on a property in Brisbane. Its an old Post war home and the report came back that the property was in very good condition. Two items of concern were a downpipe that had been disconnected/ldislodged from its drainage point and a termite nest at the far back chainmesh fence adjoining the neighbours property (note, there was no evidence of active termites, or past activity/damage to the property.

    The property will go unconditional pending finance (&B&P) this Thursday. My conveyancing solicitors sent a letter to the vendors/conveyancers, asking them to rectify the 2 issues. The RE agent email back today saying the following:


    "Have seen your request come through for a couple of minor things you want repaired on the house.

    I’m pretty surprised, given that its obviously an older home so it wouldn’t be flawless, and the inspector was really positive about it being a good buy.

    The owner isn’t particularly happy about the requests, given he has already come down a long way in price. If I go and push this harder with him, are you willing to walk away if he says no? I need to know exactly where you stand before I push any harder for a response. Figured you may have wanted to try and get them done, but given that they aren’t big things, I’m actually hoping you will let them go, as I anticipate the Seller to say no.
    Can you let me know asap"


    What would you guys do in this position? (BTW, irrespective of whether they get repaired, I will still proceed with the purchase)
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    What are your concerns?
     
  3. JK200SX

    JK200SX Well-Known Member

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    Have the termite nest eradicated and downpipe fixed.
     
  4. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    I'd get the RE to ask regardless. If they say no, they say no.
     
    Esh likes this.
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Whats it going to cost?

    Sounds very minor to me.
     
  6. JK200SX

    JK200SX Well-Known Member

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    Probably just a few hundred each (at the most)?
     
  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Then what is the worry?
     
  8. Azazel

    Azazel Well-Known Member

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    I've had a stump with termites treated by the seller before. They weren't happy, but if I was buying a car and I had an NRMA inspection done and it came up with a hole in the muffler, I'd expect them to fix it. For the sake of $200, you need to decide if it's reasonable or you just want 'the win'.
    Note: my example was in a low market, I'd reconsider in BNE for anything less than a few thousand myself.
     
  9. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    If I were the vendor, I'd see a request like this as a penny-pinching irritant and if I was in a strong market, I'd have no hesitation in saying no, go away.

    It really is chump change for a purchase of many $100K's.
     
    Esh likes this.
  10. larrylarry

    larrylarry Well-Known Member

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    Don't lose the deal for few hundred dollars unless the deal is not that fantastic.
     
    legallyblonde likes this.
  11. Simon L

    Simon L Investment Property Buyers Agent Business Member

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    You probably don't need to respond to the agent at this stage as you've gone through your solicitor. Worst case scenario is they say no and you choose whether you go ahead or not (if its still within b&p period)

    Sounds to me the agent is fishing for your reaction - remember, they work for the vendor not you. Everyone is saying its not a big deal which is true - so why would a vendor walk if it comes down to a couple hundred dollars and hope there's another buyer in tow - not to mention probably at least another 14 days for another b&p report for the new buyer etc which could = more holding costs for them. It's pretty clear the agent will tell the vendor to not give you anything if you tell the agent you'll still buy the property.

    As an aside, whenever I get a B&P done, I always ask for a discount regardless of big or small. I get a quick quote on each individual item and the total amount, lets say, $3000. I will then request to have most items fixed or a reduction of $2000 off with a note saying I accept a property of this age will have some wear and tear etc. Vendor will often read that you have made a compromise here and may be more likely to accept your request. This is why I love using overly pessimistic b&p guys and anything short of a brand new turnkey product is a major disaster :D
     
    Leo2413 likes this.
  12. Leo2413

    Leo2413 Well-Known Member Premium Member

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    I like your style and I think your approach is spot on, imo.
     
    Last edited: 24th Aug, 2015
  13. JK200SX

    JK200SX Well-Known Member

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    Thanks for your advice. Spoke with my solicitor, and they said they will look after this.

    I know overall its not a huge some of money, and will not forego the deal if they don't fix the items. ( I suppose money better in my pocket than theirs...)