Building Inspection - What would you do

Agree the agent would not be able to say there are no issues known because if this was discovered they would be in breach with the estate agents act and would face severe penalties of 200 penalty units/$151.67 per unit or $30,000 fine... I wouldn't want to take that risk to try and get a 10k commission (assuming 2% on 500k).

I would prefer for us to do the work so it is to our standard (they might be happy doing a cheaper fix) and reduce the price accordingly, either that or walk away.

 

If this was my first IP, I would probably walk away as I could not handle the risk. There is a better IP just around the corner.

If this was my, say 10th IP, and all my previous IPs were well tenanted (and maybe +c/f ), my appetite for risk is greater, then I would ask for a $100k reduction, giving all the evidence supporting my reduction and see where it goes from there.

 

Ask for a reduction of 75+.

Some rich famous guy once said "there's always more than one cockroach under the fridge". Ok, 50k to fix it up + irritating surprises + lost rent + some extra miscellaneous currently unknown variables = 75k+.

If the vendor is still keen then you might have snagged a Chef's Surprise, hoping it's not made from a Fukushima Flathead, and if the vendor is not keen, you might have possibly dodged a bullet.

Then you can decide whether to roll the dice or move on to the next buy of the year...

 

Hi Everyone,

Do you know any reliable Building and Pest firm in Ballarat

 

@bala I have answered this question in two other threads.

 

Hi All,

Just an update, we requested a $60,000 price adjustment and the vendors came back at $20,000 and we allowed them to reconsider as we are not negotiable on the $60,000 price.

How I came up with $60,000 was the cost of the estimates I had received (50k) plus a contingency for $10,000.

The contract has now been terminated and I would like to thank you all for your input and @Leo2413 for our PM conversation.

 

@Big Will good on you for sticking to your guns and letting the numbers/risk guide you and being able to walk away. The next deal is always just around the corner buddy.

 

I am sure they are aware but I wont be waiting around for this to happen. Always another one around the corner .

 

I know of agents that take the attitude of "its up to the buyer to do their DD to discover any issues"

Hopefully they got caught out and delisted but somehow doubt it!

 

Issue with contract, Apt due to settle on Friday

 

I also find it funny in this thread there was another comment saying they are having issues with the OTP purchase.

In this thread there has only been one

Buying something that you can see is a lot less risk than buying something you cannot see.

 

Low ceilings - it's not very good, but that's a minor problem and if it's an IP - no problem at all.

 

Ok.

 

Agree. The price may already reflect the condition.

BTW - underpins cost approx 2k each. Its labour intensive hence high cost. It's very common for older homes to need restumping and or pinning of footings. In the old days they were only 400mm deep. In some areas 250mm (Melton comes to mind) with no reo. Bit that's another story.

 

which suburb is this? i find even in melbourne crappy houses which need lots of repairs go for auction and get sold unconditional so it is rare that the house is for private sale unless there really is something wrong with it. etc.

this was common 5 years ago nowadays with markets in melbourne so hot, not many vendors would be willing to have a conditional B&P contract.

 

House was in QLD, private sale.

 

Ok that make sense now.

 

Some people take huge risks on here. If a house needs underpinning there's nothing to say that it will not reoccur at a later date to another section of the house. Propping the house back up is fixing the end result but not always the initial cause. Depending on what type of home it is it can be rather costly.

 

They know about a " claim " being made by a potential buyer who wants to drive the price down ? I bet agents get all sorts of spurious claims.