A pre-auction building inspection and pre-purchase building inspection are pretty much the same. If you are seriously considering purchasing a property that’s being auctioned, you should do your due diligence and have the property inspected prior to placing your bid.

A pre-auction building inspection is completely your call. While it is not standard procedure, it would be a wise safety measure on your part. A properly carried-out pre-auction building inspection will help you make a more informed decision whether or not you’ll still place a bid, and how much you’ll be willing to bid.

What are the benefits of a thorough building inspection?

A building inspection will include the following:

  • Building’s foundation
  • Interior walls, floors, under-floor areas, and ceilings
  • If present, the pool, outbuildings, and fences
  • If present, the pool, outbuildings, and fences
  • If specifically requested, inspection can also include ac units, gas fittings, paint coatings, carpets, appliances, and alarm systems.

Forewarned is forearmed. The inspection report will inform you of minor and major damages and other potential problems that the building has. Having this information will put you in a better position to determine the maximum amount you’ll be willing to bid.

The pre-auction building inspection report will also detail all the repairs that will need to be done immediately, as well as recommendations for measures that will help prevent future problems.

In the case of an investment property, information about necessary repairs will also affect existing tenants, and this is something you will also have to deal with if you place and win the bid.

Depending on the extent of the repairs that will need to be done, you may also decide not to participate in the auction. If you do decide to go ahead, you can allocate your funds accordingly to include expenses for repairs and renovations.

Take advantage of expert advice. If possible, it would be ideal to also be present at the site on the day of the inspection. That will be an opportunity for you to directly ask the inspector any questions you might have. Especially when certain issues are discovered, you can get a clearer understanding of the extent of the problem and the different options you have to resolve it. In case you’ll need a different expert, such as for a pest infestation or electrical issues, the inspector can help you get in touch with one immediately.

You can make sure you are covered. By insurance, that is. The pre-auction inspection report will prove useful when you’ll need to make a claim on the building’s existing insurance coverage. The report will provide proof of the condition of the building prior to your purchase.

Is a pre-auction building inspection worth the extra expense?

When making a substantial investment such as on a property up for auction, it is never a bad idea to have all your bases covered before shelling out a huge chunk of your hard-earned money. The cost of a pre-auction building inspection is a lot less than what you could end up spending on repairs for damages that you were not aware of when bidding – especially when you’re completely unprepared for the added costs.

When you make a bid knowing exactly what you’re gonna get, you can make the necessary budgetary adjustments to make room for the additional repair costs.

Contact Hire an Inspector now and we’ll help ensure that you’ll make a worthwhile investment.