How to read B&P

Hi all,

I have got the Building and Pest report for the property we got and overall it seems very good. With just a few points:

•No ant caps on stamps. Need to put to reduce risk of termite demage.
•Borer demage to some floor areas. Not major.
• Some termite demage underneath. Doesn’t seem major either. No active termites seen.
• A bit of leak under wet area.

Otherwise it’s pretty good. Is this worth trying to negotiate the price slightly down? The B&P guy indicate cost of fixing a rectifying is in ballpark 10-15K. Also nothing needs to be done right now.

Feedback would be appreciated.

 

I would talk to the guy who did the BnP and get his sense of it all. All BnPs I've ever seen look scary, some very scary. Its often done to cover the BnP inspector. Just have a chat to the guy.

With regards to reduction, different people have their own opinions on this. I don't know the overall feeling of the deal and I have no sense of the sellers. It is very likely I would be conveying my extreme worry to the agent to let them know you will need to do this work and request a price reduction so you can fix what needs to be done. You can even meet half way if you play your negotiating right. Also depends how many days you have left in your BnP clause. Currently you are in the strong position. They can't pull out until the time ends and you have the prerogative to pull out (even if your not really going to, they have no idea of your mindset). Its basically a bluff and hoping they don't call it. If they do, you can still purchase with no reduction if you like. Pretty much a win-win for you if you still think its a good deal regardless.

You can play it any way you like.

Note: Do NOT let the agent know you think its trivial etc etc. It is very common and likely your agent could convey this sentiment to the buyers in some casual way (even subconsciously) which immediately weakens your position significantly. No one is 100% on your side except you.

Me 2 cents.

 

Quite a few few B&P inspections make not of termite evidence on the property. Our home in Melbourne clearly indicated this in the garden, but that's quite common in Melbourne.

That there is evidence the bugs are either in the house or were in the house is significant cause for concern. If they were detected and treated, no problem. If there's any chance that they are in the property, I'd be walking away from the deal.

Talk to the inspect to get the information they may be reluctant to put in writing.

 

The things mentioned are fairly trivial.
Even the report says nothing has to be done right now, simply notes a couple of issues.
As a vendor, I would not reduce the price on those minor issues, probably typical of a house of that era.
Marg

 

No ant caps on the stumps would be a worry,but for a house in this age range ,I would be more worried if they found nothing and everything was well hidden..

 

Thank you all. Yes it is a 1950s house so I talked with the vendors agent and they as @Leo2413 mentioned indicated it is trivial and apparently nothing to worry about. So I don’t belive that.

We agreed to request an invasive inspection by a third party. Party not provided by the agent but selected by my conveyancer. I’m happy to pay extra for either peace of mind or reduction of price so will be paying for this invasive inspection.

I’ll update based on the outcome. I don’t think it’s trivial that there is no ant caps. As it seems one of the beams underneath has been demaged by the termites. Though again no recent activity noticed. The invasive should tell what is the exact extent of the demage.

 

If there is real work you need to carry out, then I would not be hesitating to seriously request a reduction in price.

 

I'm flummoxed by people's comments about termites being normal for a fifties house. I grew up in a house of this vintage or slightly earlier (late 1940s) weatherboard with none of these problems when it sold in the nineties. Known of plenty of family and friends living in houses of this vintage without these issues. Older houses can cost more as things need to be repaired over time but I would not expect anything much other than occasional issues with vermin/ ants and you can get that in new houses.

 

An alarm bell on this point:

Sounds like the bathroom may require major works shortly - budget for waterproofing and bathroom upgrade/repairs.

If nothing else, termites love moisture, no ant caps and darkness.

 

I just re read this. And it’s such a relief to know we are in a position of strength. I do like the property and while I promised myself I will not get attached to property into it settles, I can’t help but imagine myself in this one. I think I’m just fed up with renting.

The main purpose for me with the invasive inspection is to make sure that there is nothing horrible happening inside. If it is just one demaged beam under the house and antcaps, I’ll probably go ahead regardless of ability to negotiate a lower price or not.

I still will try to negotiate. But it is relief that I’ll not lose the place unless I walk away from it myself now. Thank you again for a very informative response.

It’s not major leak. I think it’s just some pipes need fixing. The B&P guy was really good and climbed under the house to check it out. He said around $500 fix needed. He did say that if it’s not fixed I’ll be just welcoming termites though.

 

Yep. I think getting invasive inspection is good. They usually have a camera they put through a hole and can look inside the walls. They also have infrared or whatever readers that help them see through the walls. This should help you be less “nervous” and gives you peace of mind really.

 

At this stage you are the only one who can crash the contract.

However, always remember you don’t hold ALL the cards, especially if you intend to quibble over a few hundred dollars (major problems are quite different).

The vendor does not have to negotiate on signed contract price. They can tell you to go jump.

Nor does the vendor have to grant any contract extensions you may need or want.
Marg

 

If this is in inner Brisbane on a block over 812 sqm's ,then the value is maybe more in the land content then the house so you may not be able to negotiate as the title holders would already know the rateable x street land undeveloped value..

You can always ask the question ,units apartments they will drop 10-15% ,House on a large already split on the title is a whole different ball game ..imho..

 

Hi @Marg4000 Im not trying to squabble over a few dollars. The wet are leak was indicated as $500 dollar job. I’m happy to pay for that. But I want to make sure that we are getting fair price for the termite demage. The B&P guy indicated he did will be around 10K if there is no active termites (including ant caps). So invasive should give me the answer (I hope). I do like the property and hope the sale proceeds.

@willair not sure how to get the land value. Other than the valuer. It’s 500m2 and I’m paying low $400K for it. In Bald Bills.... I think that is a very fair price for the vendor.

 

If you grew up in Tasmania I would not be surprised. TAS does not have termites.

Additionally, termite poison was much more lethal in the 40’s and earlier than the so-called environmentally friendly stuff they use these days.

 

An invasive inspection will not drill into every beam so you’ll never know . Also antcaps do not prevent termite entry, they just make it easier for an inspector to see their mud tunnels being built on the antcaps as an entry point to the timber bearers.

 

Yes. In any case I still have till 5PM Wednesday to let them know if we proceed or not. I’ll wait for the invasive inspection that is supposed to happen Tuesday, hopefully. If all good we will just go ahead as is and notify them that the B&P clause has been fulfilled.

As mentioned before. We are in a good position at this stage. It’s a very large purchase and I don’t really understand why there is such an issue with double checking. I’m not trying to rip the seller off. I’m just trying to make sure I am not paying almost half a million for a dud house.

 

Thank you. Well after the call he indicated that a few floorboards would need replacement eventually (due to borer demage and so if there is bored inside they don’t spread ).

One beam might need to be replaced or two support beam run along side.

I little bit of uneven floor at the back.

It’s just so hard to gauge if that is really major or not. They are not straightforward these B&P guys. A lot of maybe and possible.... so hard to figure out if I just go ahead as is or it’s major issue.

And then after all that he wraps up with “Let’s assume you might not need to do anything in next 2-5 years subject to no live termites”. So I don’t need to do anything and everything is sweet or do I have to do something to check for termites.

To be honest I’m more confused after the call then before.

I talked with my conveyancer and she will get the invasive report on my behalf. She said she will explain it in a more “layman” term for me.... so if nothing to be done it’s fine.

I’m also confused about the $10K. Talked to a trader and he said replacing a beam is 4-5K max.