What reports?

What reports should I order on a property before purchasing? And who are the right people to help me? 

I go to auctions all the time and I often see people bidding on a property when they are seeing it for the very first time. They simply register and put their hand up to bid without doing any due diligence. Given the cost of property these days, this to me is crazy! 

So, what documents do you need to arm yourself with before putting in a bid? And are they worth the paper they’re written on? 

How to avoid a bodged building and pest inspection

It’s all very nice that agents are providing free or cheap reports on the house you’re interested in but think carefully before you hit download. The trades who provide these reports are chosen for a reason; their reports are easy on the eye. The reports are not dodgy perse, but the reports are usually skimpy, with more disclaimers than actual information about the property, and they simply don’t highlight any potential issues enough. 

When buying a property, and looking at any potential issues, having visual reports makes a lot of sense, particularly when it’s your first home and you are not all that familiar with the building industry jargon. For example, one of the experts I use includes pictures and videos. He literally takes the client on a walkthrough and shows them the problems he sees. He even flies a drone over the property to give you a bird’s eye view of the roof and surrounds. That’s a hell of a lot better than a wall of text on a page! 

When you’re looking for someone to inspect the house check Google reviews and also ask to see a sample report. If it looks like a generic template, then go elsewhere. For that reason, I’d avoid franchise companies as they tend to want to fit everything into a neat little box. 

Lastly, make sure they are available to discuss the report as many times as you need once it is complete. If this is the first time you’ve seen a report, you will probably have lots of questions and should be able to ask as many as you like. 

What should I look for in a conveyancer or property lawyer? 

OK, so these guys are pretty important as they look after the contract of sale, make necessary changes in your interest and manage the transfer of documents to ensure the property is rightfully and legally transferred to or from your name. 

Now, a contract is never perfect and needing no changes, so you need someone who knows what they are doing. Here are some things to look out for: 

• Don’t go cheap. It’s often all about turnover and they may not take the time to read the contract properly. That can have serious implications if a clause has been missed and then something goes wrong. E.g., If a delay in settlement incurs a penalty and the percentage hasn’t been negotiated down it can cost thousands.

• Hire a property lawyer as opposed to a conveyancer if the transaction looks complicated or out of the norm. They can be worth their weight in gold if things get tricky. 

• Investigate their commitment to your cause. Have they been responsive to your early messages or calls? Do they work weekends? What hours do they work? What red flags come up in the Google reviews? Communication is key and you don’t want to worry that they might leave you in the dark. This is particularly important in a hot market when you have to move quickly.

Do I really have to read that massive strata report? 

Yes, I’m afraid so. Or at least get someone to read it for you who knows what they’re looking for. I scrutinise them for my clients looking out for any issues and a good conveyancer or solicitor will do the same. 

The main things to remember about a strata is that you’re buying into the whole building and the community and there are plenty of pitfalls if you’re not careful. 

An immediate consideration is how engaged your potential new neighbours are in the welfare of this community. The committee is only required to have one meeting a year, which could mean nobody knows what’s going on for 11 months of the year. Look for a meeting at least quarterly, and it’s a big tick if many residents show up to these meetings. 

Skim through the recent minutes to see what the problems are, and then get onto the question of how they fund maintenance. Do they have a special levy? Have there been any major works recently or are there any coming up? A wrong move here could cost you thousands. There are also a bunch of legal considerations in relation to fire certificates and window safety that need to be cross-referenced against current legislation. 

Phew,  these strata reports can end up like War and Peace... I had to read through once recently which was over 600 pages long and I learnt all about Janice and her illegal third cat...but the devil is in the detail, so make sure you’re happy before taking the plunge. 

As always, please get in touch if we can help with your search.