Weird behaviour of Seller's agent - Seeking advise with similar experience, please

Thanks @Wyli yes I have a solicitor. Shall I tell her that they haven't started repairs or that agent is not allowing my PM to inspect before unconditional. Agent is not obliged to do both as per contract. Contract just says repairs should be completed 2 days prior to settlement and agent has to allow my PM one inspection per week after unconditional.

Its just agent's actions which make me suspect things are going wrong somewhere and he is trying to hide some issues

 

Just get the building inspector who found the issues to do a post- repair inspection to ensure the works are done correctly.

I think you are worrying too much about the issue of access for the PM. It's not like the PM will know anything about the quality of the building repairs.

Just stick to the agreement and have your building inspector ready to do the inspection before you settle.

 

Thanks @Joynz , may be, may be not
Just got off phone from the agent now though. He said that they are going to start repairs from Monday. Yes, I have booked the same building inspector for post-repair inspection. Fingers crossed...

 

Thanks @The Y-man , the inspection will be carried by same inspector who did B&P. The contract says that works will be done by a proper tradesman-lime manner by a qualified and licensed tradesperson. Buyer or representative can inspect to ensure works are satisfactory , acting reasonable at all the times.

 

Just send the PM in there and act dumb. What's the wost that can happen, the tradies tell the PM to go away. I'm not an expert on contracts but you don't want to be forced to buy the place if it's had sub standard repairs done or major problems covered up. The agent might be doing the right thing by you but it's doesn't sound good if they will not let your PM view it.

 

The RE agent is legally bound to abide by the terms of the contract.

If there is no provision for the PM to enter at this time, then the agent is acting legally by denying entry.
Marg

 

I am sure this case will help you becoming an experienced investor one day

 

I thought the property was 10% cheaper (or at least 50k + cheaper) comparing against the surrounding similar ones.

If you look at long term, 5-7k is really nothing. Should have be more patient on keep searching for one with less things (less major) to be fixed. That’S why it takes time and effort to build up a good portfolio. There is no quick and buy, then set and forget.
Lets look at this way, 5-7k equals to 1-1.4K in your deposit (if you are borrowing 80%).

By saving this small amount 5-7k, you are now going through this. (Unless the vendor is selling 10-20% less than the similar one in the market). Otherwise, you could have do your due diligence to get quotes of fixing all these issues, and then negotiate the selling price before signing the contract, or putting it in the conditions etc. Hence, the selling price could be negotiate down somewhere between 370k - 390k (depending on what the actual quotes comes back with + justifying to the vendor that it can save them heaps of time and effort).
This has happened to me before, when B&P comes back was not that great on one deal, and I was successfully negotiated down the agreed price even further (with a bit on my favor)

Anyhow, like other people have said, do not settle the property unless your b&p inspector gives you all the ticks after the repairs.
Just delay it until it is all ready. You really need to discuss this arrangement with your solicitor.

 

Thanks @Marg4000 @Antoni0 and @Chattyboy
Well, I understand that I might have pushed this away after B&P and not recontract.
The only thing that pushed me was that even after looking for 2-3 months, i wasn't getting a property ticking max of my boxes and found it to be better than I was seeing in market. Also, B&P report was very comprehensive (as they are), so after talking to the inspector, I found these things are to be done prominently. But it is quite possible, I and inspector would have missed some things during final discussion which are must fixed and now seller might be trying to hide. In any case, once it goes unconditional in 3 days, my PM will inspect and if there is anything else, I would have to fix from my own pocket. But yes, a couple of lessons learnt :
1) Don't buy anything totally unseen. Either yourself or some engaged PM or professional should visit even if it is interstate.
2) Do clarify with B&P inspector on anything in report which you do not understand.
3) Stay clear of properties with visible issues. Cost of missing the opportunity might be way less than cost of getting trapped in to a bad one.

Now just having my fingers crossed that there are not any more big issues with the property

Thanks again to all for support...

 

What are the actual repairs required. Just trying to get a scope for issues you are concerned about.

 

Hi @Handyandy , thanks for your reply. Following major issues are included in contract to be repaired:
a. Current termite and pest treatment at the property and installation of the termite barrier using Termidor with warranty conditioned to yearly inspections.
b. Full fence to be replaced.
c. Roof restoration to an Australian Standard.
(B&P report stated Dislodged capping mortar, Dislodged capping tiles, Deterioration to tile glazing, Repairs required, Roof renovation recommended)

d. Repair and make good water damage and cracking to ceiling sheets in house including eradication of mould and water staining repairs.
e. Improve drainage by installing surface drainage to ground

I suspect there could be further moisture related or any other issues in property.

 

OP - Good advice from the previous posters.

My gut says that the vendor does not have ready cash to do these repairs......you mentioned she is elderly? Maybe on a pension?
These repairs could easily be 10k or more - depending on the hidden water damage.
If the place is mouldy then you have other issues anyway....

So you are looking at having to extend settlement until repairs are completed (to the B&P checkers satisfaction).....have you talked with them (B&P) and got a guesstimate of the cost and how long to complete?
Any other observations from them? Their overall appreciation of the place?
How does it compare to what you see/feel on the internet site?
That will give you more answers to your questions....
Buyer beware.....I think you should always check the place in person....get a feel for it.

But you are very right to be wary.....hope it all works out for you - good luck.

 

Unfortunately elderly owners do take their time and the REA might not have taken that into account when agreeing that the original settlement date could be kept.
I don't think anything untoward is happening. You have agreed to take it once those things are fixed to your satisfaction so if anything else is found/missed by original B&P then it is not their fault. It's unlikely they are hiding anything but if those major things need fixing then there is likely to be some other related stuff that was also in the report that can be fixed under the discounted price you negotiated.

 

Thanks @robboat This is her IP. She stays in a separate home. but cash may be an issue not sure.
Yes, this is a take away experience not to buy unseen when not buying via a buyers agent. Will apply this in future
B&P mentioned a lot of other issues as well. But normally these reports are comprehensive and they have to suggest every minor issue and it could look big. As I was keen to buy in the location being closer to transport and shops, hence thought could get those minor things fixed. Anyhow, thought a 30 year old property could not be compared to a newer or 5-7 years older one. Just wary now of any big issues turning up later costing me hell lot of money as I was reading somewhere yesterday that sometimes moisture issues need a fixture arrangement which costs almost similar to rebuilding the property....Just fingers crossed, no such issue appears later on

 

Thanks @Westminster . Yes there might be something in report which could be fixed with this but report was full of technical jargons hard to understand. So discussed with inspector and agent as per my full ability by reading and searching online
Now relying on inspector at least to get these things fixed up to perfection and just expect that rest of the issues are not very big...

 

Not sure about this, maybe others can confirm, if big issues were found many years later wouldn't your insurance cover the costs of repair? Assuming you'll have insurance of course

 

Hi All,

A further update. My Property Manager finally had an inspection today and most of my fears have turned true. There are many apparent issues with property and could be some more hidden ones as well. Looks like a decision gone wrong. Some of the comments from my PM:
1. Original kitchen, well worn, several of the cabinets/hinges require replacing.
2. The carpet is original,30 years old, very faded and brittle.
3. Bedroom 1 : Carpet is well worn and faded, inside the robe has had a water leak, moisture in the corner, carpet is dry however looks as though is has been wet for some time. Internal sliding door requires new rollers.
4. Marks on the walls all over property, paint and material chippings throughout, doors have stickers and one wall has a hole against door knob.

I think property seems to have more moisture other than the ceilings which owner is fixing. Overall pictures do not look good and very different from ones in the selling advertisement.
Looks like it wont be rented in this condition at all. As a new investor, I don't have idea on solution to this problem or renovation process or costs, what work is minimum required etc. Looking for some help now on how to move ahead in this situation.
Ideas please @Richard Williams @Chattyboy @Scott No Mates @MTR @TMNT @Antoni0 @wylie @The Y-man @Westminster @wombat777 @Taku Ekanayake, thanks guys. Appreciate your help!!

 

Easy fix by getting a handy man to replace the hinges. As long as they are functional that's all that matters.

A house will still rent with old carpet as long as It's not torn because it becomes a trip hazard. You might be able to spruce it up with a shampoo clean or make the house look a little more presentable by only replacing it in main living areas with 2nd hand carpet.
Rollers for internal doors are relatively cheap to replace, another one for the handy man

Get a cleaner in to give the walls a scrub with some sugar soap. If it's really bad get a painter in to give the main living areas a quick one coat pain job. The handy man might even do this for you.

This is something you want to sort before handing over any money. In all honesty, unless the house is really cheap I would've long walked away.

Once the house brings in some income from renting you might want to spend it on replacing some of the patched up items.

 

If you have a good PM they should be able to advise on the best tradespeople to quote on the works required to give the best return on your dollar.

Did you have a building and pest inspection on the property?