A real estate investor can learn to detect more obvious significant flaws in order to filter out undesirable properties before bearing the cost of a building and pest inspection, which can range from $ 440 to $ 990 for a home of standard size.
Ideally, buildings should be well designed and built to standards so that they are consistent and durable. Then a property needs maintenance to keep it in good condition. Any deficiency in these areas can lead to additional costs and risks, such as health and safety risks. So, how do you know if the building is well designed, well built and well maintained? You must check it yourself or call a professional to check it.
Checklist for the exterior
Review the property yourself before calling a professional because you may find problems and decide to find a property in better condition before spending money on professional inspection.
Start with the street. Look for trees near the building that could cause damage and check that surface water can drain away from the house or into large surface drainage pits after heavy rains. Look for retaining walls and check their condition. Sloped or cracked retaining walls can cost huge amounts to replace. What about fences? The absence of fence can affect the privacy and safety of tenants with pets and young children.
Look at the sheds and other outbuildings. Small structures of less than 10 m² usually do not require formal council approval. Check concrete, paved and tiled areas such as walkways, paths and patios to detect cracks and sagging that may pose a fall hazard.
Check decks, balconies, patios and stairs. They require little maintenance when they consist of durable materials like concrete and aluminum that are usually found in apartment buildings. Wooden structures require relatively little maintenance, and annual painting and repairs should be budgeted. Check that the handrails are solid and at a safe height and look for signs of rotting or loose wood. Rusty bolts and fixings are very common around pools because of the effect of nearby chlorinated water.
Check the floors. If the house has a wooden floor and you can cover it quite easily, look below if access is safe. Use your flashlight to light up and check the status of the messages. Cracked or rusty posts are expensive to replace. A musty smell or moist soil can be a sign of insufficient drainage and surface ventilation, likely to attract mildew, rot and termites.
Check the exterior walls. Some capillary cracks are not normally a problem, but larger cracks may indicate structural damage, especially if floors are not level and doors and windows are stuck. Peeling paint and rotten boards in a wooden house can be a big expense. Refer cracks to an expert for evaluation, these can be a cause for concern.
Check the windows. Aluminum windows require little maintenance. They might need a service after 20 years. Wooden windows in older buildings require more maintenance and may require major repairs. It is common for glazing in old buildings not to be safety glass, which can be a security risk – check with a glazier. Are mosquito nets and security screens installed on windows and doors? These can be expensive to install and become the norm in many properties.
Look at the roof if you can see it from the ground. Old homes may have rusty roofs and gutters or downspouts not connected to the stormwater drainage system. Tiled roofs can often have cracked and pointing bedding that needs repair. Look for a slump in the roofline that could indicate a structural problem.
Is there a swimming pool or spa? They allow you to live well, but they cost thousands of dollars a year in electricity and maintenance. Cracks in the pool shell should sound the alarm and the old filtration equipment will soon have to be replaced. The pool fence must be strictly compliant with safety standards. Ask the seller for proof of compliance with the pool safety barrier.
Do not forget to also check the housing of your car. And you are ready to start indoors.
Checklist for the Interior
It starts with easy things, like opening and closing windows and doors. Look to see if the frames are square, level and plumb. Soils should be level too. In each room, you should check the ceilings and walls for water spots, cracks, or sagging. Some capillary cracks may be acceptable, but many cracks may be a structural problem.
Window leaks can be expensive to repair, so look for spots around windows. Are window coverings installed and the cords secure? Hanging cords can pose a strangulation hazard for young children.
Do not forget to also make sure that the stairs have handrails and sufficient clearance for the head. Then start your in-depth inspections, piece by piece.
Bathrooms, Kitchens and Laundry Services
Wet areas such as bathrooms, kitchens and laundries must be given special attention to plumbing fixtures in order to detect any signs of water damage and damage. moisture may indicate a leak.
Shower leaks in particular can be expensive to correct, as it is often necessary to replace the shower when the waterproof membrane fails. It could cost more than $ 5,000.
Also check cracked and loose tiles and damaged fittings. Get the agreement from the agent and test the included kitchen appliances if you are on site.
Remember to run the faucets to check if the hot water is working and to test the water pressure.
The Old Houses
Old houses have character but also more defects. If the house is over 30 years old, the risk of lead paint, asbestos, rusty plumbing and flood-damaged or unauthorized construction is higher, and these problems could cost you money to to be corrected. None of these issues are covered by a standard building inspection. You must know what your responsibility is.
It's a good idea to pay for a separate inspection of plumbing and electricity when buying an older property. This ensures that essential items such as an electrical safety switch and smoke detectors are installed and function properly.
Ask your inspector what additional surveys he recommends.
Renovations and new constructions
New and recently renovated properties look great, but their appearance can be misleading. Verify that all work has been done by qualified workers and that the necessary approvals have been obtained and that inspections have been completed.
Ask the sales agent or your lawyer for the necessary evidence, such as a Form 21 certificate issued by a building certifier.
New homes must also be thoroughly inspected by the buyer. Known as pre-transfer inspection, practical completion or settlement, it is important to ensure that the quality of the finish is up to standard and that the inclusions meet the specifications.
Use masking tape for quality painter. Detach a square and place it next to the defects you can reach.
What inspectors do not cover – so you should
Once your inspection is complete, you can also hire a professional. When choosing an inspector, make sure that it is licensed and insured according to the requirements of your state. It's also a good idea to check out Google reviews. It is difficult to qualify for the Inspector Compensation Insurance because they have a large number of waivers and exclusions, so it is best to choose an inspector who has a lot of experience and enjoys an excellent reputation. Do not select an inspector based on price; the $ 100 you save today can cost you tens of thousands later.
The inspectors verify that a property complies with AS4349.1 and AS4349.3 to detect major construction defects, safety hazards and wood pests. They will inspect all reasonably accessible areas.
However, inspectors do not have to comment on compliance, unauthorized construction, electrical installations, concealed plumbing, appliances, cable television, asbestos, lead paint or defects hidden.
For example, if the interior of the property is chipped, there are two car bodies in the backyard, the opening device of the garage door is broken, the air conditioning system does not work, the house is under a flight path, there is no cable connection, and there is a gas leak, none of this will be covered by the l & # 39; standard inspection of the building.
It could cost several thousand dollars in rectification, or not be repairable at all. That's why you should use your own checklist and consult the property yourself. If you can attend the building inspection, ask the agent if it is correct to check that the appliances are working, especially the essential items such as air conditioning and the cooktop. If you can not get there, ask your agent or property manager to check these things for you.
Final Note on Units and Flats
When buying a unit, apartment or townhouse in a complex, take the time to look carefully at the rest of the property.
Is it well maintained or in poor condition? Look in particular at the state of the alleys, paths, retaining walls and gardens. Are the retaining walls cracked and tilted? Is there adequate parking for visitors? Does the exterior need to be repainted?
Poorly maintained condominiums can be a bad investment because they do not attract quality tenants. In addition, lack of maintenance reduces rental income and resale value – and increases the risk of loss.
Most dwellings, such as units, townhouses and apartments, are part of a corporation and are subject to its rules. Ask your lawyer or mediator to do a detailed search in the archives of the company on which you plan to invest. The low levels of a company's maintenance fund, ongoing litigation or construction defects are alarm signals that require further investigation so make sure you will not be surprised by a significant increase in levies to cover these expenses. The results of this research may affect the fact that you are buying the property, so ask for research at an early stage.
Andrew Mackie-Smith
is your investment property
Award-winning Inspector of Buildings and Pests and
Vivid Real Estate Investor of BuildingPro
Warning: The advice given in this article is for guidance only. No one should rely solely on the content of this article without also having obtained the advice of a building inspector and a pest and / or a qualified notary.
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