When you’re looking to purchase a property at auction, it’s easy to get caught up in the excitement of bidding, but it’s crucial to conduct a thorough pre-auction building inspection. Auctions are binding, meaning once the hammer falls, you can’t back out of the deal without significant financial and legal consequences.
A building inspection helps to ensure you’re aware of any potential issues before committing to the property.In this guide, we will cover everything you need to check during your pre-auction building inspection in Australia, helping you avoid expensive surprises down the track.
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Things To Check During Pre-Auction Building Inspection
Hire A Qualified Inspector
Before diving into the specifics of what to look for, it’s essential to start with the right professional. A licensed and qualified building inspector can provide you with a detailed report about the property. Ensure that your inspector has experience in the area and an understanding of local building codes and regulations.
In Australia, building inspectors are often trained and accredited through organisations such as the Housing Industry Association (HIA) or Master Builders Australia. Hiring someone with the right credentials can give you peace of mind and ensure that no significant issues are overlooked.
Exterior Inspection
The exterior of a property is the first line of defence against the elements and can indicate the overall condition of the building. During your inspection, make sure to check the following:
A. Foundation
Check for any signs of structural issues with the foundation. Uneven floors, cracks in walls, and doors that don’t close properly can be signs of foundation problems. It’s also worth checking the external areas for any major cracks in the brickwork or masonry that might indicate subsidence.
B. Roof And Gutters
The roof is one of the most important parts of any building. It protects the interior of the property from the elements. Look for missing tiles, cracks, or signs of water damage. Check the condition of the gutters and downpipes to ensure they are not blocked, rusted, or cracked. Water leakage and poor drainage systems can lead to significant issues inside the property.
C. Drainage
Ensure that the drainage system works well. Poor drainage can lead to flooding, dampness, and even structural damage over time. Check for any signs of pooling water or issues with the grading around the house that could cause water to accumulate around the foundation.
D. Windows And Doors
Inspect the windows and doors to see if they are in good working condition. Make sure they open and close properly, and check for any signs of rot or water damage around the frames. Old or damaged windows can lead to poor insulation and higher energy bills.
Interior Inspection
Once you’ve checked the outside of the building, it’s time to inspect the interior. This is where you’ll uncover potential problems that could require expensive repairs.
A. Walls And Ceilings
Examine the walls and ceilings for any cracks, sagging, or signs of water damage. Small cracks might not be concerning, but larger cracks, especially those that appear near windows or doors, could indicate underlying structural issues. Water stains on ceilings or walls could be signs of a leaking roof or plumbing issues.
B. Floors
Walk around the property and pay close attention to the floors. Look for any uneven or sagging areas that could indicate foundation problems. Also, check the type of flooring and its condition. Hardwood floors, tiles, or carpets can be expensive to replace, so it’s important to know if they need work.
C. Plumbing And Electrical Systems
Ensure that plumbing and electrical systems are in good condition. Test all taps and showers to ensure they’re functioning correctly, and check for any signs of water leakage. Inspect the pipes for corrosion or signs of wear and tear.
Similarly, check the electrical systems. Are the switches, outlets, and lights all functioning? Make sure the property is compliant with Australian safety standards, particularly when it comes to the electrical wiring. If you notice exposed wires or faulty circuits, this could indicate costly issues.
D. Insulation And Ventilation
Poor insulation and ventilation can result in increased energy costs. Check that the property is adequately insulated, especially in the roof space, walls, and floors. A lack of insulation can lead to a hot house in summer and a cold one in winter, which can significantly affect your comfort and energy bills.
Also, check the ventilation system, particularly in areas like the kitchen, bathrooms, and laundry. Poor ventilation can result in mould, dampness, and poor indoor air quality.
Pest Inspection
In Australia, termites (white ants) are a major concern, and it’s essential to inspect the property for any signs of pest activity. Termites can cause significant damage to timber structures, and the cost of repairs can be astronomical. Look for any signs of wood damage or holes in timber, especially in the roof and basement areas.
It’s a good idea to have a pest inspector assess the property before the auction. A qualified pest inspector will be able to identify signs of active infestations and the presence of termites, which can save you from buying a property with hidden damage.
Asbestos And Other Hazardous Materials
Asbestos is a serious issue in many older properties, particularly those built before the 1980s. If the property you’re considering was built in that era, you should be aware of the potential presence of asbestos.
A qualified inspector will be able to identify potential asbestos-containing materials and advise you on the necessary steps to take if any are found. In addition, check for lead paint, which was commonly used before it was banned in the 1970s. If present, it can be hazardous, particularly for children.
Compliance With Local Laws
In Australia, buildings must comply with local building codes and regulations. Check that the property has been constructed or renovated according to these standards. Look for any unapproved modifications or extensions that could cause issues down the track.
Make sure that all necessary permits were obtained for any significant renovations, including electrical, plumbing, or structural work. Properties that don’t comply with local council regulations can become a major headache and may even affect your ability to resell in the future.
Survey The Surrounding Area
Beyond the building itself, it’s important to assess the surrounding area. Consider the following:
A. Noise And Neighbourhood Issues
Check for noise disturbances in the area, especially if the property is located near major roads, train stations, or commercial zones. High levels of noise can negatively affect your living experience.
B. Flood Risk
In certain areas of Australia, properties may be at risk of flooding. Check if the property is located in a flood-prone zone. A building located in such an area may require additional insurance or flood mitigation measures.
C. Local Amenities And Services
Take note of the local amenities, including schools, shops, transport links, and parks. Proximity to these services can greatly enhance the livability of the property and its future resale value.
Legal Considerations
Before the auction, it’s essential to verify that the property title is free from any legal encumbrances, such as easements, caveats, or unresolved disputes. These could affect your ability to use or modify the property as you see fit.
Ensure you get a copy of Section 32 (Vendor’s Statement) in Victoria or the equivalent in other states, which discloses important legal details about the property. If anything seems unclear or problematic, consider consulting a property lawyer before the auction.
Budget For Potential Repairs And Renovations
Even if the building inspection doesn’t uncover any major issues, it’s important to account for potential repairs or renovations. The cost of fixing up a property can quickly add up, so make sure you have a clear understanding of any work that may need to be done, such as painting, replacing worn-out fixtures, or upgrading appliances.
Conclusion
A pre-auction building inspection is an essential part of the property-buying process. It helps you identify potential issues that could affect your decision to bid and ensures that you are fully aware of the property’s condition before making any commitments.
Remember to engage a professional inspector who is qualified to provide a thorough report. By checking the property’s exterior, interior, plumbing, electrical systems, and surrounding environment, you can make an informed decision and avoid costly surprises after the auction.
Frequently Ask Question
Can I Use The Pre-Auction Inspection Report To Negotiate With The Seller?
In many cases, a pre-auction inspection report can be useful for negotiation, but it depends on the auction terms. Some sellers may be willing to adjust the price if major issues are uncovered, though many auction properties are sold without the possibility of negotiation. It’s important to remember that auction conditions often mean properties are sold “as is,” so your ability to negotiate may be limited.
How Long Does A Pre-Auction Building Inspection Take?
A pre-auction building inspection typically takes between 1 and 2 hours, depending on the size and complexity of the property. Larger homes or those with more extensive features, such as multiple floors, additional structures, or large gardens, may take longer. The inspector will examine all areas of the property, including the roof, exterior, interior, and any other structures on the land.
Can a pre-auction inspection guarantee that there are no hidden problems?
While a pre-auction building inspection provides a thorough assessment of the property, it cannot guarantee that all problems will be uncovered. Some issues, such as hidden water damage or electrical faults within walls, may not be visible during the inspection.
However, a professional building inspector will use their expertise to detect common problems and offer a detailed report, helping you make an informed decision before bidding.