Don’t go into an auction blindly. One of the most important areas that you should look into is the condition of the property. It is therefore imperative that you carry out a pre-purchase building inspections melbourne and pest inspection so you can get leverage when placing a bid in an auction. The pre-purchase property inspections might cost you a few hundred dollars but they are eventually going to save you thousands or tens of thousands more as they give you a clearer insight into the actual state of the property. This in turn lessens the risk of you overbidding on and losing money in the auction.
Here are a couple of reasons why you should consider hiring a professional pre-purchase building inspection service before you head out into an auction.
Inspect the Structural Issues with the Building
The building that you purchase must be structurally sound otherwise the cost of repairs could be quite exorbitant. Structural issues could also pose a safety risk; parts of the building may collapse and cause death or injuries. In some cases, you will need to carry out major construction work to fix a small structural issue. The building that you purchase must also adhere to the local Australian building codes otherwise you will be responsible for the costs of taking it up to the right standard.
Check the condition of the electrical wiring
Electrical wiring can be costly especially if you have to install new wiring all over again. In older Australian buildings, you may have to do that to bring them up to the latest standards. Failure to do so may put your new property at risk of house fires or circuit overloading. The older circuitry was not built for modern appliances or the modern automated lifestyle and may not handle all your appliances at once. Faulty wiring is also a safety hazard and may lead to electric shocks or electrocution.
Auction contracts are unconditional
This is probably one of the major reasons why you may need to carry out a thorough building inspections in Melbourne before placing a bid at an auction. You will not have room to carry out property inspections and re-negotiate the contracts once the hammer has gone down. Granted, carrying out a property inspection when you aren’t even sure that you are going to win the auction is risky. However, it is a risk that only costs a few hundred dollars and you can’t possibly square that against the risk of potentially losing thousands of dollars simply because you lacked the right information on the condition of the property and overbid your auction.
The building inspection serves as insurance
For these reasons, ordering a pre-auction property inspection is probably the best insurance against the risk of potentially overpaying for a piece of property. If you look at the bigger picture and factor in the value of the house you are buying that will probably cost you a few hundreds of thousands of dollars, it is a relatively small price to pay.