Also known as a property inspection or house inspection – is designed to give you independent and objective advice about the physical state of a building. This advice enables you to make an informed decision, usually about whether to purchase a property or not.

Inspection reports are a snapshot in time; therefore, you should always ensure you refer to a current inspection report.

Building inspections are also carried out for the purpose of risk management, new construction management, dispute resolution, insurance claims, compliance with legislation and regulations and to inform renovation and extension decisions.

Inspections are generally ordered in the process of buying or selling a home. An inspection may also be required if you discover that your home has developed a building defect over time or as a consequence of an incident.

As such, Jim’s have a broad client group including:

1. Home buyers and sellers
2. Residential property investors
3. Commercial property owners and investors
4. Property managers including body corporates and strata title managers
5. Owners of property including government and private agencies and businesses
6. Building and construction contractors

Commercial building inspections for builders who are concerned about the impact of construction works on neighbouring properties are also common.

Jim’s Building Inspections team provides these services NZ wide. You can select your region at the top of the site.

An inspection acts as a snapshot in time which identifies safety hazards and any major or minor defects. Therefore, inspection reports have a number of purposes and benefits.

The primary reason to have an inspection is to ensure that the home you are buying, or occupying is safe and doesn’t pose a health risk to occupants.

The major reasons to have a building inspection are outlined below:

1. Without expert knowledge of construction methods and materials, many defects are concealed and difficult to detect.
2. Most people won’t get onto the roof, into the roof and under the floor of a home during their own inspections of a property which may mean potentially significant and costly defects would be missed.
3. Many individuals don’t have the expertise or time to assess the potential cost and works implications of the defects that are easily identified or obvious
4. Interstate investors may buy property ‘online’ and a building inspection allows them to get independent advice and information about a property rather than relying on the advice of agents who have a vested interest in the sale proceeding
5. You can rely on the findings of a building inspection as they are backed by Professional Indemnity insurance provisions, the advice of a ‘mate’ or ‘friend’ in the building trade doesn’t have the same assurances
6. Prevent financial loss which may occur if you find major defects and safety hazards
7. Assist you to plan for repairs and renovation and their likely cost
8. Determine the rate of return on potential investments given the likely maintenance requirements
9. Aid in negotiations for the sale or purchase of a property
10. Document the condition of an adjoining property prior to major works which may create unintended damage

Building inspections are particularly critical when considering that a home or building may have Asbestos or other potential contaminants present including mould or lead products which are known health hazards.

When purchasing a building many people will plan to spend up to their maximum financial capacity to acquire the property.  Without a building inspection, these investors and homeowners may then find themselves unable to meet the costs of repair works required to address defects.

The timing depends on your situation and mostly the method of sale. As the findings of a building inspection report may cause you to withdraw an offer you should always ensure that you are informed of your rights and options.  Engage a conveyancer or settlement agent as early as possible.

AUCTIONS

Organize the inspection prior to the auction date and as early as you can. You may then also be in a position to make a confident and informed offer prior to the auction itself. Many buyers will consider a ‘bird in the hand to be worth two in the bush’.

You should also check out websites like BuySmart and contact the agent to ask if a builder’s inspection has already been completed on the property. Jim’s Building Inspectors often conduct what we refer to as ‘on spec’ building inspections on properties which are going to auction and that they expect to be popular. We conduct a building inspection on the property but may make the report available to multiple interested parties, often at a more competitive price.

The general risk with ordering a building inspection prior to auction is that you may not be the successful bidder. If this is the case, contact your local Jim’s Building Inspector directly as many offer discounts to assist you were further building inspections on other properties are needed.

However, the bigger risk is bidding at auction and winning a property which has not had a building inspection completed may mean your best-laid renovation plans and savings go out the door. With up to 1 in 5 homes being subject to termite damage at some point in their life cycle and approximately 1/3 of all homes being sold with a major defect of some type it is not worth skipping the building inspections.

We are obviously biased in this matter, but we have also seen too many examples where people have purchased a property and come to us after the auction when they discover that their budget for their new kitchen is now going to go on simply making the property watertight, addressing rising damp or dodgy repair jobs.

PRIVATE OR FIXED DATE SALES and EXPRESSIONS OF INTEREST

If you are planning to buy a home or any property, to occupy or as an investment, you should make any verbal or written offer conditional on a building and termite inspection at least.  You can download our suggested wording options for your offers below.

Generally, any wording should indicate that you retain the right to withdraw from the sale without financial penalty should safety hazards or major defects be identified.  Also, consult your Conveyancer about any local state-based requirements for settlement processes and your options.

Again, the earlier you place an offer, conditional on your building inspection report, the earlier you can place an offer. In a rebounding market there is often a high degree of competition, and many people use Jim’s Building Inspections, as with many inspectors in each city, we can get your inspection done quickly and when you need it.

It is important to understand what is generally included and excluded in a building inspection service. Jim’s Building Inspections work hard to understand what type of property you are purchasing. Factors that influence which building inspections we would recommend include:

1. The location of the property
2. It’s age
3. General condition (well or poorly maintained)
4. Your plans (in terms of renovation or rebuilding)
5. The type and condition of essential utilities like electrical, plumbing and gas
6. Additional features such as pools
7. Any particular concerns you have from your preliminary inspection

Your inspection options then include services like:

1. General Building Inspection
2. Pre Purchase Inspection
3. Building and Pest Inspections
4. Asbestos Inspections
5. Meth Inspection
6. Electrical Inspections
7. Plumbing and Gas Inspections

Jim’s offer comprehensive packages that will help to ensure you have all the information you need to make a decision.

Increasingly property buyers are aware of their responsibility to discover building defects before sale – this is known as the Latin principal Caveat Emptor or ‘buyer beware’.

The full quotation is ‘caveat emptor, qui ignorare no debuit quod jus alienum emit’ – ‘let a purchaser, who ought not to be ignorant of the amount and nature of the interest which he is about to buy, exercise proper caution.’

Under this common law, the purchaser must make their own investigations of a property as there is no legal obligation for the current owner to disclose anything relating to the quality of the property or the land it is built on.

As a result, home or property buyers that subsequently attempt to seek compensation for defects discovered after purchase will find themselves at a significant legal disadvantage. There is little recourse to compensation for purchasing a property with defects.

The worst-case scenario is that you find yourself with property (and a related mortgage) that is worth significantly less than you bought it for.

A building inspection is consequently a prudent risk reduction strategy in what is likely to be one of the most significant purchases of a lifetime.