What’s the Difference Between a Pre-Purchase and Pre-Sale Building Inspection?
If you are purchasing or selling in the property market, then one of the most significant aspects to keep in mind is a building inspection. But the type of inspection that you will need may differ, depending on whether you are a buyer or a seller in the transaction. Whether you’re on the buy side or the sell side of a transaction can make a difference in the kind of inspection you want. At Pro Building Inspection, we offer both pre-purchase and pre-sale inspections. Although they both are supposed to assess the condition of a property, they are used for other purposes and possess other advantages and disadvantages based on your side of the deal.
Pre-purchase building reports are usually undertaken as part of a property purchase. This examination is an important stage in the buying procedure, which gives you an impartial, professional opinion about the condition of the property and its value. The pre-purchase inspection is going to find out what else was missed from the last visit.
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What Does a Pre-Purchase Building Inspection Include?
Structural Integrity
The inspector will also examine the walls, foundation, roof, and flooring for any structural issues or damage, among other places. Cracks, moisture, or lumpy floors are all the red flags that need attention.
Pest and Termite Damage
As pests, particularly termites, can produce extensive damage to a home, the inspection ought to seek evidence of pest infestation or damage.
Plumbing and Electrical Systems
The plumbing and electrical systems of the property will be inspected to ensure that they are all in working order, and meets building codes. Leaky pipes, faulty wires and obsolete systems can all be hazards.
Water Damage and Dampness
The inspector will also search for evidence of water damage within walls, ceilings, and floors that can lead to mould or rot. Wet areas could be a result of poor drainage or even roof leaks.
General Safety Hazards
Anything that’s potentially hazardous to the occupants will be noted – this could be something as simple as a broken handrail, a suspicious staircase, or a non-compliant fire safety system.
Why is a Pre-Purchase Inspection Important?
Uncover Hidden Issues
Many property problems, like latent structural issues or pests, aren’t readily apparent in a casual walk-through. A pre-purchase inspection helps in pinpointing hidden issues before you decide to make a purchase.
Avoid Unexpected Costs
If any problems are discovered, you can negotiate a lower price or ask the seller to make repairs. This could easily save you from spending a few thousand dollars on an unexpected repair later on.
Ensure Safety and Livability
You desire not to move into a property only to find it seriously compromises your health. Pre-buy inspections assure your family and yourself of a secure residence.
What is a Pre-Sale Building Inspection?
Pre-sale building inspections are those carried out by the seller before listing for sale. This inspection is intended to help locate and resolve any problems with the property before it is listed. Just as a buyer is well served by a pre-purchase inspection, a seller can take advantage of a pre-sale inspection to ensure the property is in good selling order.
What Does a Pre-Sale Building Inspection Include?
A pre-sale inspection is similar to a pre-purchase inspection, but it addresses the condition of the property relating to:
Structural Issues
The inspector will be inspecting the integrity of the structure of the property, such as the foundation, walls, roof, and floors, to see if they are sound and safe.
Cosmetic Damage
A pre-sale inspection would typically include visual problems such as chipped paint, cracked tiles, or scratched and scuffed floorboards. These might not have a practical impact on the way the property works, but the impression the buyer gets about the property.
Plumbing and Electrical Systems
The home’s plumbing and wiring will be inspected. Repairs can be completed, if needed, before the property goes on the market, possibly avoiding any delays later in the sales process.
Pest Problems
Should pests be found during the inspection process, the seller can treat any pest infestation before potential buyers seeing and inspecting the property. This way, there are no adverse perceptions that could affect the sale.
Safety Concerns
Concerns about safety — i.e., broken handrails, exposed wiring, or gas leaks — must be highlighted so they can be fixed prior to taking the property to market.
Why is a Pre-Sale Inspection Important?
For sellers, a pre-sale inspection offers several advantages:
- Sell Faster and for a Better Price: Properly maintained houses that have also been repaired from time to time will sell quicker and for a higher price.
- Avoid Surprises During Negotiations: By identifying issues beforehand, sellers can prevent eleventh-hour rejections or having buyers back out due to unannounced issues.
- Transparency with Buyers: A pre-sale inspection is transparent, as the seller can now share the inspection report with any potential buyers. This suggests that the seller is honest about the shape of the property, and that can lead to a smoother transaction as trust is built.
Key Differences Between Pre-Purchase and Pre-Sale Inspections
Though both pre-sale and pre-purchase inspections have a deep understanding of a property, the following are a couple of their notable differences:
Purpose
- Pre-Purchase Inspection:That is to aid the buyer for them to comprehend the state of the property so as to guide them to sidestep some unexpected expenditure on completion or in terms of security and provide an informed choice to make when carrying on.
- Pre-Sale Inspection:This enables sellers to be aware of any issues that could cause the property not to sell or result in a sale delay.
Timing
- Pre-Purchase Inspection: An inspection that takes place before the buyer signs on the dotted line. It usually happens after an offer has been made by a buyer but before signing a contract.
- Pre-Sale Inspection: This is an inspection that occurs prior to a seller listing the house for sale, allowing them to correct any issues beforehand.
Focus
- Pre-Purchase Inspection: The objective is to identify any issues that might influence the buyer’s willingness to make the purchase, such as safety issues, faulty structures, or a pest problem.
- Pre-Sale Inspection: As much as the focus is on getting the house in saleable condition, the goal here is to ensure that there are no physical or structural issues with the house that can devalue the house and reduce its appeal to potential buyers.
Outcome
- Pre-Purchase Inspection: If problems are discovered, the buyer may have options to negotiate the purchase price, ask for repairs, or walk away from the deal.
- Pre-Sale Inspection: If any issues are found, the seller can fix them before putting the house on the market to open up their chances of it selling more quickly and easily.
Which Inspection Should You Choose?
For Buyers
If you’re purchasing property, then you’ll need a pre-purchase building inspection. It lets you know of possible threats, like structural damage or pests, so you can make a smart decision. This examination shields you from unanticipated expenses and confirms the property is safe and sound.
For Sellers
For sellers, a pre-sale building inspection is a way to identify and repair the issues before listing, so they can set the price accordingly. When a property is fixed up and in good shape for the market overall, you end up in a much better position to sell, get a better offer, and sell quickly.
Conclusion
Regardless of whether you are selling or purchasing one, building inspections can be a critical way to make sure the transaction goes well. For buyers, pre-purchase inspection is a useful tool to not getting stuck with a bill of hundreds for unforeseen repairs. On the flip side, a pre-sale inspection allows sellers to check for issues that need to be repaired before selling, which in turn can lead to a quicker sale at a higher price.