Case Study: First Home Buyers
The client contacted us and advised that they had been referred by a friend who had used our services before and advised that we came highly recommended as a very thorough inspection service.
Client advised that as a first homebuyer they were keen to be present at the inspection so that they could hear the findings directly from us and also to have another look at the property.
The client advised that the seller had the property on the market for over 6 months and that two previous contracts had fallen through ‘on finance’ and now the sellers had drastically reduced the price of the property. The client described the property as a 10-year-old single storey brick veneer home that had been extensively renovated.
Freshly painted in the latest colour scheme the Garage had been converted to a Master bedroom, laundry had been converted to an Ensuite. A new carport had been built. A large patio had also been added to the rear. A new kitchen and main bathroom has also been installed.
Real estate sale photography taken at twilight made the property look very attractive and the seller had ‘dressed’ the house in the latest furniture, paintings and soft furnishings.
Here are just some of the findings of our reports:
- Owner Builder – Means no warranty from the QBCC for any of the work. This was not disclosed in the REIQ Contract of Sale, as it should have been.
- No Building Approval for any of the recent works.
- No Plumbing Approval for the additional bathroom to the converted garage.
- No Engineering design for removal of internal load bearing walls.
- Quality of painting, tiling, plasterwork and carpentry was all below standard. With many minor defects noted. Probably DIY.
- No Termite protection system in place.
- DIY termite damage repairs.
- Cracked lead roof flashings, cracked pointing could lead to roof leaks. Peeling paint to the roof tiles due to an inferior paint job.
- Carport beams undersized and insufficient bracing.
- Shower base installed without 1 in 60 fall and water ponding to one corner.
- Property more likely to be 30 years old not old as advised by client.
The estimated rectification costs and uncertainty about the ability to gain approval for the improvements caused the client to decide not to proceed with the purchase of the property. Unfortunately this scenario is one that we see repeated often. The quality of a renovation can vary from Master Builder Perfection to DIY nightmare and everything in between. Always ensure your Solicitor checks for Approvals for Improvements to the property and that you have a professional Building and Pest inspection before going unconditional on a property.