B&P report for Auction

All,
I am looking to participate in my first auction. I am looking to purchase as PPOR and later change it to investment in 5 years. I am thinking the property may go beyond what I am looking to pay for it. It is 2007 built property. Should I get B&P report just in case I end up winning it?

Any other tips for my first auction?

 

Its always a risk at auction and a frustration for many who fork out B&P reports at every auction they attend.

Many will argue the cost of a B&P is insignificant towards the cost of buying a property but if you are losing out each time, it will not be insignificant for long!

I attend auctions on behalf of my clients almost every week and whilst I do not condone bypassing a B&P report, a lot of the risk can be mitigated by sending in the right professionals to do pre-inspections. In fact if you contact a local B&P inspector or licensed tradie, most are happy to do a detailed walkthrough with you on the phone to address any major concerns for a fraction of the cost of a full B&P report

The risk of purchasing a house can also be mitigated with the price you pay when the hammer falls. Do your due diligence on the value of the property and set a price where you have a conservative buffer for cosmetic/teething issues, for example, if a house has a market value of $500k and you've sent someone through to make sure there isn't any major/structural damage, then maybe set a limit of $480k instead - just in case.

Good luck!

 

Thanks for your feedback.

 

It may seem a waste of money until there is an issue.

We recently bought a place (not from auction) however we did miss out on a property prior to purchase and did a B&P on the property and we also did one for another property that was going for auction but we went unconditional on Thursday with the auction being on Saturday. So there was two 'wasted' B&P, however I had gone to contract on another house which we pulled out to B&P (about 50k repair work needed) this house was built about 15 years ago. Further the house we ended up with we also did a B&P and it also had issues so from one house purchase I did four B&P and two of them had issues which neither myself or my parents who had been investing for over 40 years were able to see the issues.

I would hate to buy a property and then find I need to spend another 50k on top just to remove the issues.

Just like insurance I don't enjoy paying it but if I ever needed it I will be glad I have forked out the x0,000 p.a. each year to cover my wife and I but I can tell you know I will not be glad I am claiming on it.

For me B&P are non neg, you either do it before or after (w/ condition) going to contract.

 

Verbal P&B reports are not worth the paper they've written on. Try making a claim if you need to.

If you don't think spending $500 on a written P&B report is worth it when you could possibly be the unconditional buyer at auction and then go onto borrowing $500K as a 25-30 year mortgage.........then you need to get your head examined.

Tips for buying at auction: Survey reveals ‘overpaying’ is the number one fear buyers have at auctions: REBAA - realestate.com.au

 

I agree o

I agree on getting property inspected prior to purchase and signing contract but thinking if it is worth if I don't have much chance of winning in auction.

 

Thanks, I am leaning towards gettingit inspected. I am thinking about getting structure inspected rather than full report.

 

Will it be better option if I get building inspections only considering it is 10 years old?