PROPERTY NEWS - Buying a house, especially if you are a first-time buyer, is both nerve-wracking and extremely expensive. It may prove to be the biggest and most expensive investment of your lifetime.
One might feel comfortable in assuming that it is a good buy and yes you and your family 'love' the house, after all you looked at it quite a couple of times and all involved in the sale told you what a bargain it is.
This assumption might prove wrong as many home buyers have experienced that their 'Dream Home' turned out to be a 'House of Horrors'.
It is sad but true, most home buyers get so caught up in the pressure of negotiating the price of the home, securing a deposit and a bond that they don't even stop to think about the benefits of getting an independent home inspection done. A bank inspection is not a home inspection, a bank inspector assesses whether the home as an asset justifies the bond amount requested.
Purchasing a property is a large investment. In fact, for many it's the largest financial investment they will ever make. For this reason it is important that buyers take their time and give their decision the necessary consideration that it requires.
As many as 99% of buyers of pre-owned homes sold in South Africa buy without professional independent third party advice about the physical condition of the buildings.
The house looks amazing – but what about the things you can't see? What are the hidden costs? What if you buy someone else's problem?
Few would risk buying a pre-used car without an independent inspection so why risk your life savings on a property that you can't be sure about?
Very often distraught home buyers moved in and only then discovered problems that was not visible to the naked eye. At this point however, it is usually too late for most practical purposes to sort out the problem without incurring huge costs.
Most buyers, sellers and rental property owners are not even aware of home inspection services. Property inspection is a relatively new service in South Africa.
Buyers are often financially stretched and the prospect of saving the home inspection fee is tempting.
Usually assurances are given to the buyer that the property is basically sound and the buyer, after a walk-through of the house, agrees. The house looks well-maintained – how much could possibly be wrong with it?
An average home inspection and report will cost the buyer between R2 500 to R4 000, depending on size, but the peace of mind and potential monetary savings are invaluable. A dangerously installed geyser; a leaking roof (hard to detect in the dry season); drainage and damp issues hidden from the naked eye, electrical and plumbing concerns – a certified home inspector will pick up on all of these and raise a "red flag".
- Peace of mind.
- An unbiased opinion on the condition of the property.
- A written report backed by a photographic report.
- Protection from unscrupulous sellers.
- Maintaining ethical and technical standards.
- Protection of buyers and estate agents from unethical practices.
While aesthetic appeal will play a role in the decision, other more crucial elements need to be considered – such as the structural components of the property.
Rectifying severe structural defects, that could turn out to be safety hazards, will be a costly affair that impacts on the home's potential return on investment as well. Often purchasers have minimal equity in the purchase of a house, which places undue reliance on the house, requiring little or no repair work or maintenance to be carried out following the purchase. This places the new property owner, along with the financial institution, in a vulnerable position which can result in either financial or property loss.
Consider including in their offer to purchase a clause that "the deal is subject to the buyer being satisfied with the inspection report of the property, which is to be done within seven days of acceptance of the offer.
Use a company like ipi, which is an independent third party to the sale, with inspectors that are internationally trained, accredited and experienced professionals.
Set aside a few thousand rand to pay for the inspection. Get a quote before or as soon as your offer is accepted.
Home inspections require a further financial outlay, but when you consider that you might be spending millions on your purchase - and that you might find that you may have to spend even more soon after you take occupation – you could end up saving yourself thousands of rands in repairs, dispute time and possible litigation. Thus, spending a few thousand rand on a professional independent inspection seems to be a sound investment.
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