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Current at: 08 July 2008

Inspections a must for home buyers

After 12 consecutive interest rate rises [to March] no-one is looking for additional costs when buying a house, but the very fact that money is so tight could lead prospective buyers into making economies that will cost the m dearly down the track.

The worst economy that anyone can make is to do without a pre-purchase inspection. To try and do it yourself – unless you are a qualified professional – is the equivalent of kicking the tyres to judge whe the r a second-hand car is roadworthy.

The problem is magnified because many potential home buyers are being forced to look at the cheap end of the market and the odd ‘bargain’ on offer is often too tempting to pass up.

But beware of the “owner must sell” or “priced for a quick sale” lines in the advertising. Some not so scrupulous owners are putting properties on the market after ‘quickie’ makeovers designed to hide ra the r than fix faults.

These problems can range from damp caused by misplaced roof tiles to faulty electrical wiring or plumbing to whole structures that have been added without planning permission. Termites are a perennial problem in wooden homes and the drought has resulted in an upsurge in cracking as foundations dry out to unprecedented extents.

I can understand the complaints of some buyers who have paid for pre-purchase inspections on a number of homes but have still missed out on buying when the auction price went too high or someone else stepped in with a better offer.

S ome jurisdictions have moved to make pre-purchase reports compulsory and have put the onus on the seller to acquire one. This is not a perfect system – the re have been instances of sellers shopping around for a favourable report - but it is a step in the right direction.