For those that have read some of my previous blogs you would know that I keep referring purchasing real estate as a “Buyer Beware Market”. This isn’t the case in every state but it is in Victoria. Because of this we strongly recommend that home purchasers get their checks done and completed prior to committing to any purchase.
In this blog I am going to highlight some of the previous case study’s that help you understand why we recommend the above.
Case Study One
The first case study is a property that we inspected that our client had committed to the purchase.
The property was unoccupied. When we started reviewing the wet areas we soon discovered that the shower recesses to both the bathroom and ensuite were leaking. We also discovered high moisture readings to the surrounding areas including decay/water staining to woodwork skirtings and architraves and subfloor section of the property.
We gained access to the roof void. Insulation was NOT installed to the ceiling of the property and unfortunately, it was discovered that the terracotta roof tiles had severed fretting. Wow not a good start, things got worse as we went on…super 66 asbestos sheeting to garage roof…
Clay or earthenware drain pipes that have been infiltrated by tree roots and blocked the sewer system… etc.
Measures had been implemented to conceal or address some of the defects at the property in question, unfortunately, the measures undertaken were not suitable or to standard. The property was also vacant at the time of the inspection. We could not be completely sure but I had suspicions that the works undertaken and leaving the property vacant for the sale may well have been to conceal the issues at hand and sell to property. Thus eliminating the need to undertake the appropriate works and avoiding the costs involved. This relates to why we call it a “Buyer Beware Market”. Some of the issues that are directly related are the problem that the potential purchaser may not have the appropriate fund available to address the issues and may be forced to place the property back on the market at a reduced price.
The purchaser that had committed to the property in question wished to withdraw from the contract of sale once we had forwarded the report and had our debrief discussion in reference to the condition of the property.
We then received a phone call from the distressed purchaser stating that the agent had refused to withdraw the contract as it appeared that the property had no major structural defects and that the vendor was not willing to withdraw the contract.
Once however, the purchaser made it transparently clear that they were not willing to move forward and would be engaging a solicitor to assist in the process to withdrawing from the contract of sale, the vendor relented and withdrew the contract.