What To Do After A Building Inspection?

A building inspection is a critical step in the process of purchasing or maintaining property in Australia. Whether you’re buying a new home or assessing your current property for potential issues, understanding what steps to take after the inspection can make all the difference.

The inspection itself may uncover a variety of issues, from minor cosmetic flaws to serious structural problems. After the inspection report is handed over, it’s crucial to make informed decisions based on the findings. This article will guide you through the process of what to do after a building inspection in Australia, ensuring you navigate the next steps confidently and appropriately.

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Things To Do After Building Inspection

Understand The Inspection Report

The first and most important step after a building inspection is to thoroughly review the inspection report. Building inspectors in Australia typically provide a detailed document outlining their findings. These reports can vary depending on the inspector, but generally, they will include:

Summary of Findings: An overview of any major issues or concerns.
Detailed Assessment: A more in-depth description of any defects, including photographs and an assessment of their severity.
Recommendations: Suggestions for repairs, ongoing maintenance, or further investigations if required.
Risk Assessment: The potential risk posed by certain defects, especially those that could impact safety or structural integrity.

It is essential that you carefully review this report to understand the scope of work required, especially if the building inspector has raised concerns about specific elements of the property, such as the roof, plumbing, or foundation. If you have any doubts or do not fully understand certain parts of the report, don’t hesitate to contact the inspector for clarification.

Prioritise Major Issues

After reviewing the report, it’s time to prioritise the issues based on their severity. While some defects may be relatively easy to fix, others could be more costly or require more urgent attention. The key to managing this is to categorise the issues as follows:

High Priority Issues: These are typically structural problems or health and safety risks, such as problems with the foundation, roof stability, electrical systems, or mould growth. If the inspector flags any of these as critical, it is important to act immediately.

Medium Priority Issues: These may include minor damage to walls, plumbing concerns, or issues that don’t pose an immediate risk but still require attention soon. For instance, a slightly leaky pipe might not cause immediate harm but can lead to larger problems over time if left unaddressed.

Low Priority Issues: These are typically cosmetic or minor issues, such as cracks in plaster, wear and tear, or minor dampness that may not immediately compromise the integrity of the property.

Take note of the urgency associated with each issue to make well-informed decisions. For instance, if the inspection identifies a faulty roof that could cause water leakage, this would require immediate attention compared to a small crack in the paint.

Consult With Experts For Further Evaluation

If the building inspector has raised concerns about particular aspects of the property that require further evaluation, such as significant structural damage or pest infestations, you may need to consult with specialists for additional assessments. For example:

Structural Engineers: If the report suggests potential issues with the foundation or structural integrity of the property, you may need a structural engineer to evaluate the situation further. They can provide expert advice on the extent of the damage and recommend solutions.
Pest Control Experts: In the case of termite or pest infestations, it is essential to engage a pest control specialist to identify the type of pest, the level of infestation, and how to treat the issue effectively.
Electricians/Plumbers: If the building inspection highlights concerns with the electrical or plumbing systems, it’s prudent to hire licensed tradespeople to carry out more in-depth inspections and provide quotes for necessary repairs.

By consulting with these specialists, you ensure that you have a comprehensive understanding of any critical issues and the associated costs, helping you make informed decisions moving forward.

Negotiate With The Seller (For Buyers)

For homebuyers, the building inspection report is a powerful tool during the negotiation process. If significant defects have been identified, you may be in a position to negotiate with the seller for a reduction in the sale price or request that they undertake repairs before the transaction is finalised. Here’s how to approach this:

Request Repairs: Depending on the severity of the issues, you can ask the seller to fix specific problems before settlement. This may be particularly relevant for major issues that impact the safety, structural integrity, or liveability of the property.

Price Reduction: If you’re not comfortable with the repairs being undertaken by the seller, you could negotiate for a reduction in the sale price to cover the cost of the necessary repairs. Be sure to get quotes for repairs from licensed contractors to support your request.

Walk Away: In some cases, the defects may be so severe that the property no longer meets your expectations or budget. If you feel that the necessary repairs would be too costly or that the property’s value has diminished, you have the option to walk away from the deal, depending on the conditions of the contract.

Negotiation is key after receiving a building inspection report, and understanding the scope of work and the costs involved will strengthen your position.

Get Quotes For Repairs

Once you’ve identified the issues that need to be addressed, the next step is to gather quotes from professionals for the required repairs. Whether you need a roofing contractor, an electrician, a plumber, or any other tradesperson, getting multiple quotes ensures that you’re paying a fair price for the work. It also gives you the chance to evaluate the quality of the contractors based on their experience and professionalism.

When obtaining quotes, it’s important to:

Be Specific: Make sure to provide the contractors with a detailed list of the issues identified in the inspection report so they can provide accurate quotes.

Check References: It’s essential to verify the credibility of contractors by checking references or online reviews to ensure they have a good track record.

Understand the Work Scope: Get a detailed breakdown of what each quote includes to avoid surprises later on. For example, does the quote include the cost of materials, labour, and any necessary permits?

Consider the Timeline: Ask contractors for estimated timelines for completing the work. This will help you plan for when the property will be ready to move into or when the repairs can be scheduled.

Re-Evaluate Your Budget

Whether you’re buying a property or making repairs to an existing one, you may need to re-evaluate your budget after receiving the inspection report. If the issues identified require significant repairs, this could impact your overall budget for the purchase or renovation. Consider the following:

Cost of Repairs: Add up the total cost of necessary repairs and factor this into your budget. Be prepared for unexpected costs that may arise as you address the issues identified in the report.
Potential for Value Increase: Consider whether addressing these issues will increase the property’s value. If the repairs significantly improve the property’s condition, they may add more value than they cost to fix.
Renegotiate Your Financing: If the cost of repairs is high, you might need to adjust your financing. This could mean revisiting your mortgage lender or rethinking your financing options if you’re purchasing the property.

Stay On Top Of Maintenance

After taking care of any major issues raised in the inspection, ongoing maintenance is key to preserving the condition of the property. Regularly inspect and maintain the property to avoid future problems and protect your investment. Establish a maintenance plan that covers things like roof inspections, plumbing checks, pest control, and appliance servicing.

If you’ve just purchased the property, it’s a good idea to mark important dates on your calendar for regular follow-ups. For example, schedule an annual building inspection or maintenance check to ensure that any emerging issues are dealt with promptly.

Understand Legal Obligations And Warranties

After receiving the inspection report and deciding on the next steps, it’s crucial to understand any legal obligations that may come with repairing or maintaining the property. For instance, some states in Australia require certain types of repairs to be carried out by licensed professionals, and there may be specific building codes or safety standards that must be adhered to.

In addition, warranties provided by contractors may protect you in case the repairs don’t hold up over time. Ensure that you understand the terms of any warranties and keep records of the work carried out, including invoices and certificates of completion.

Conclusion

The steps you take after a building inspection can significantly influence your experience as a homebuyer or property owner. Whether you are negotiating with a seller, repairing issues, or ensuring ongoing maintenance, following the right process will ensure that the property remains safe, sound, and valuable.

By understanding the report, consulting with experts, negotiating effectively, and planning for repairs and maintenance, you can address the findings of a building inspection with confidence and foresight.

Frequently Ask Question

How Do I Know Which Building Issues Are Most Urgent?

Building issues related to safety or structural integrity should always be your top priority. Problems such as foundation damage, roof leaks, or electrical hazards can pose immediate risks. After addressing these, other issues like plumbing, pest infestations, or cosmetic defects can be dealt with based on their severity.

Consult your inspector or a professional to help prioritise repairs and determine what requires urgent attention.

Should I try to fix any issues After the building inspection?

While some minor issues may be fixable through DIY methods, it’s generally not advisable to tackle major problems yourself. Structural repairs, electrical work, and plumbing fixes often require professional expertise and compliance with local regulations.

If you’re unsure about how to proceed, it’s best to get quotes from licensed professionals who can properly address the issues and ensure the work is done safely and to code.

What If The Seller Refuses To Fix Issues Identified In The Building Inspection?

If the seller refuses to fix the issues identified in the building inspection, you have a few options. You can either negotiate a lower purchase price to account for the repairs, ask for a credit at settlement to cover the cost of fixing the issues, or walk away from the deal entirely.

If you are still interested in the property, consult your solicitor or real estate agent to explore your options and ensure you’re making an informed decision.