Step 1: Essential Inspections Before You Buy

Thorough pre-purchase property inspections not only reveal hidden issues but also provide vital negotiation leverage, helping you make informed decisions and avoid unexpected costs after purchase. In Sydney’s competitive property market, these inspections are particularly important given the age and varying condition of properties across NSW.

Building Inspections in NSW

Building inspections form the backbone of any responsible house purchase in NSW. While less critical when buying an apartment in smaller blocks, they can still prove valuable. Qualified building inspectors in Sydney examine the property’s physical condition and construction quality, highlighting potential defects you might otherwise miss. A comprehensive property inspection report provides documentation that can be crucial for both negotiation and future reference.

Key inspection areas include:

• Foundations, walls, roofs, ceilings, and accessible flooring
• Signs of moisture intrusion, water damage, or leaks
• Structural stability and compliance with building codes

TIP: For older buildings, ask the inspector to check specifically for signs of asbestos.

Detecting these issues early allows you to negotiate necessary repairs or a price reduction, significantly reducing potential future expenses. A good solicitor will help you review the report and ensure the contract provides for repairs or appropriate price adjustments.

Generally, we prefer to have repairs completed and certified before settlement. However, in many cases, receiving a discount and choosing your own repairer can be advantageous.

Remember, a report is only as good as the inspector preparing it—choose your building inspector carefully.

Real-Life Example: In a recent matter, our client obtained only a verbal report from their building inspector, who claimed everything was clear. Later, significant water penetration issues emerged that will cost nearly $1 million to repair. Because our client paid for a formal report, they can now claim against the building inspector. Had the building inspector properly advised them, they could have negotiated a price reduction or simply avoided purchasing the property. Without any report, they would have been left with $1 million in repair costs and no recourse.

Pest Inspections

A separate pest inspection is essential to identify potential infestations, particularly termites, which can severely impact structural integrity. Pest inspections examine:

• Evidence of pests such as termites, rodents, or other insects
• Signs of existing or previous pest-related damage
• Recommendations for treatment or preventive measures

Strata Reports for Apartments and Townhouses

If you’re considering an apartment or townhouse that’s part of a strata scheme, a thorough strata report is crucial. This report offers vital insights into:

• Financial stability and reserve funds of the strata corporation
• Scheduled maintenance, renovations, or significant upcoming expenditures
• History of legal disputes or issues within the strata community
• Trends and potential future increases in strata levies

Careful analysis of this information helps avoid surprise costs and can sometimes flag problematic neighbours or building management issues.

Real-Life Example: A client recently sold her property at a significant discount after buyers identified special strata levies in the strata report. We’re currently investigating a claim against her former solicitor, who failed to properly advise her about these levies when she initially purchased the property.

Step 2: Maximising the Value of Your Inspection

Once you’ve decided to get an inspection and arranged an inspector, taking a few extra steps can significantly improve the quality and outcome of the report.

Preparing Effectively for Your Property Inspection

While you don’t have to do anything to prepare, these simple steps can enhance the building and pest inspection process in Sydney and across NSW:

• Ask the agent to ensure complete access to all property areas, including locked or restricted spaces such as attics, basements, garages, or external sheds
• Develop a list of specific questions and concerns to address directly with inspectors
• Schedule the inspection when you or a knowledgeable representative can attend to ensure clear, direct communication
• Conduct your own preliminary inspection (see our downloadable Property Self-Inspection Checklist to help guide you through this process)

Effective preparation prevents overlooked issues and helps avoid future unexpected expenses.

Clear and Direct Communication with Inspectors

Effective communication with your inspectors increases the usefulness of the inspections. Critical questions to ask include:

• Which issues require immediate attention, and which can be addressed later?
• Can the inspector estimate repair costs for identified problems? (Many inspectors won’t provide this, but it doesn’t hurt to ask)
• Do identified issues suggest deeper systemic or structural concerns?

Being present during the inspection allows for real-time answers and improves your understanding of the property’s condition. Often, asking questions can prompt the inspector to conduct additional checks they wouldn’t normally perform.

Clear conversations ensure you fully grasp inspection results and their implications, leaving no room for misunderstandings.

Leveraging Inspection Reports for Long-term Planning

Inspection reports provide insights beyond the immediate purchase, serving as valuable tools for future property management and maintenance. Use these reports to:

• Create a structured maintenance and repair timeline
• Accurately budget for anticipated property-related expenses, such as roof replacements, plumbing updates, or structural repairs
• Plan property enhancements to boost value, safety, and comfort
• Estimate the cost and time needed to address any issues uncovered

This proactive approach puts you in the best position to understand what problems you’re buying and how best to address them. No property is without issues, but some are definitely more challenging to solve than others.

TIP: Water damage and penetration through walls is notoriously difficult to identify and repair. If water damage is present, do thorough research and make sure this is a problem you’re willing to tackle.