Building inspection prior to auction, does it make the vendor think you’d spend more?

When doing a building and pest inspection prior to an auction for a PPOR that you’re interested in, does it make the REA & vendor think that you’re going to spend higher than the advertised price just became you’re willing to do your due diligence and pay for a B&P?

Do you speak to the agent first to ask whether it’s even worth your while spending that money on the inspection? How do you even do this without getting them excited or thinking that you’re going to spend a **** load more than asking price? (which I’m not)

Interested in your thoughts.

 

Getting the buyers agent to mention all these things at the auction is a great idea!!

 

As the property is going to be auctioned, you either get the reports done beforehand or don't bother with them - you can't negotiate the price if faults are found anyway. If the property is for sale by private treaty then my answer (as the seller) would be that if you don't get the B&P reports before finalising your offer and issues show up then I am not going to negotiate with you on a price reduction.

This is why I like the ACT approach where a B&P report is attached to the contract - organised by the seller and ultimately paid for by the purchaser on settlement. Saves multiple B&P reports being prepared.

 

I wouldn’t trust a report that was organised by a seller though.
I’m in Melbourne.
If I bought privately then I’d put in ‘subject to building inspection’.
Most are auctions here unfortunately.

 

This!

I've bought a few at auction. Never once have we done a B&P. Now I'm not going to recommend anyone else to follow suite. Mind you, the kind of properties we buy are usually going to get a thorough reno & Hubby is a skilled tradesman.

 

Because the market is so unpredictable and underquoting is rampant here, I don’t want to spend thousands doing B&P inspections on multiple properties selling at auction. One or 2 ok.

 

In the ACT the inspections are done by a licenced operator and I understand there is legislation that allows the buyer to rely on the report.

 

B&P reports have conditions to their inspection ie visible inspection only. I would not be relying on a report like its ironclad.

Very handy to negotiate a final offer and it does indicate commitment but agents dont care if you love it lots or just a little as long as your offer is the highest. Some agents will try to push you towards making a "subject to"offer but its illogical to offer a high number then change your mind. They may hurry you along to make it a bidding war. Offers subject to inspection have limits on what is accepted as serious defects. An inspector may find a tonne of minor things which can be costly but not grounds to end the offer. Better to have a report that indicates these issues so you can negotiate down from a position of strength. That said a vendor may not concede on price too. They may admit the house has some defects and its not their concern.

 

It’s an auction and they won’t accept prior offers. The B&P inspection is for my own peace of mind. I know it’s a waste of money if I don’t win the auction but it’s not a risk I’m willing to take especially on an older property that looks like it needs lots of work.

 

Prior to auction? Makes no difference, auction means you are bidding against other buyers. Unless the one vendor bid is higher due to this.

 

Isn’t this what everyone does?
Oh look at the size of this tiny room.
Oh this kitchen needs to be ripped out.
Oh honey, this bathroom is from the 1970s.
Hey the gutters are rusted.
I can see into the neighbours bathroom.

 

Some might find this appealing.