{"id":11425,"date":"2017-04-27T03:00:06","date_gmt":"2017-04-26T17:00:06","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=11425"},"modified":"2017-04-27T03:00:06","modified_gmt":"2017-04-26T17:00:06","slug":"building-inspections-should-be-part-of-the-listing-process-andrew-mackie-smith","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/building-inspections-should-be-part-of-the-listing-process-andrew-mackie-smith\/","title":{"rendered":"Building inspections should be part of the listing process &#8211; Andrew Mackie Smith"},"content":{"rendered":"<p>It is a mystery, but many property buyers do not bother to get a building inspection done before committing to a purchase.\u00a0\u00a0 At least one building inspector is prepared to share his reports to help buyers make better decisions.\u00a0\u00a0 <strong>Andrew Mackie-Smith<\/strong> explains why he does that and why he thinks it should be law in all States and Territories to have one done before a property is listed.<br \/>\n<strong>Transcript:<\/strong><br \/>\n<b>Kevin:<\/b>\u00a0 More on building inspections, this time with a professional building inspector. Andrew Mackie-Smith has written a book called <i>Building<\/i> <i>Success<\/i>, largely on the back of the fact that he\u2019s seen a lot of people go wrong with their building inspections. It\u2019s a pleasure to have him in the show.<br \/>\nGood morning, Andrew. Thanks for giving us your time today.<br \/>\n<b>Andrew:<\/b>\u00a0 Thanks, Kevin.<br \/>\n<b>Kevin:<\/b>\u00a0 Over the years that I\u2019ve been doing this show \u2013 10 or 11 years \u2013 it\u2019s probably one of the areas I get most questions about \u2013 not so much about real estate agents or how to sell a house, but what goes wrong with building inspections, what should a buyer be looking for in a building? Hence, I guess, the reason why you\u2019ve written this book, <i>Building<\/i> <i>Success<\/i>.<br \/>\nWhat\u2019s behind that, Andrew? Is this a compilation of your experiences over the years?<br \/>\n<b>Andrew:<\/b>\u00a0 Exactly, Kevin. I\u2019ve been an inspector for over 30 years, and in that time, I\u2019ve just developed a lot of insights. Just seeing people making the same mistakes and asking the same questions prompted me to write a book to just put that information out there and make it easier for people.<br \/>\n<b>Kevin:<\/b>\u00a0 The book is called <i>Building Success: Why Property Investors Need Building Inspections<\/i>. And that\u2019s a fairly obvious thing, but I\u2019m still amazed at how many people either don\u2019t get one or don\u2019t take any notice of it and find the problems emerging years down the track.<br \/>\n<b>Andrew:<\/b>\u00a0 I\u2019m flabbergasted as to why someone could buy a property, invest so much money, and not bother with an inspection. And then a lot of people will get an inspection and not read it or heed the advice.<br \/>\nYes, I\u2019m a big advocate for having an inspection, and I\u2019d like to see it become a national requirement.<br \/>\n<b>Kevin:<\/b>\u00a0 There is a debate at present about building inspections \u2013 a lot of grief for some buyers down south, particularly in the Sydney and Melbourne markets where they need to get a building inspection done before they go to an auction. You\u2019d be crazy to go and bid at an auction if you didn\u2019t have a building inspection done.<br \/>\nBut then on top of that, the layer of agents beating down prices, lowballing to get buyers in, they then go and get a building inspection done and then find out that the bidding goes way past them and they\u2019ve actually wasted their investment in getting that building inspection done.<br \/>\nIn the ACT, building inspections are part of the listing process. It\u2019s supplied by the seller. That surely would be a good move eventually for that to be around Australia.<br \/>\n<b>Andrew:<\/b>\u00a0 Yes. I\u2019d love to see that happen \u2013 that ACT legislation of the seller disclosure, where the seller provides the building, pest report, energy report, asbestos report, and compliance report. It costs the seller about $1000. They pay for it up front. They\u2019re reimbursed at settlement by the eventual purchaser.<br \/>\nBuyers can look at that suite of reports at no cost to them. So as a first-home buyer, it\u2019s a big saving. They can go and look at a number of properties and compare them reasonably and formulate their offers based on an informed decision knowing the condition of the property<br \/>\nI think it\u2019s a much fairer system. I\u2019d love to see it come in.<br \/>\n<b>Kevin:<\/b>\u00a0 It\u2019s a system that I think government should be pushing, especially if they\u2019re out for consumer protection because it does actually protect the buyer. I guess in a sense, too, it also helps the seller make sure they don\u2019t actually come up with a contract that\u2019s going to crash eventually. It\u2019s a win-win all around in my view.<br \/>\n<b>Andrew:<\/b>\u00a0 I couldn\u2019t agree more. Sellers do have that option at the moment now \u2013 they call it a pre-sale inspection \u2013 and a lot of sellers are getting building and pest reports done and providing them to potential purchasers, especially as part of an auction campaign. I\u2019m seeing that more.<br \/>\n<b>Kevin:<\/b>\u00a0 Another good reason why a seller would want to do that is to make sure that they do understand if there are any problems that are going to emerge if they do get a contract, that gives them the chance to sort them out or adjust their price accordingly.<br \/>\n<b>Andrew:<\/b>\u00a0 Exactly. Many times, I\u2019ve done inspections for sellers and uncovered issues they were unaware of, and it does give them the opportunity if there\u2019s time, they can get some tradesmen in, repair some termite damage, treat it, and then they can disclose that to buyers and get a better price and a quicker sale.<br \/>\n<b>Kevin:<\/b>\u00a0 Are there already agents working in that area, in other words, getting sellers to get an inspection done? Are you noticing that?<br \/>\n<b>Andrew:<\/b>\u00a0 It\u2019s been a growing trend. There are agents I\u2019ve been working with for 12 years or more who have been doing that with every property.<br \/>\nI would suggest on an older property or an auction property. it\u2019s a very good idea.<br \/>\n<b>Kevin:<\/b>\u00a0 Andrew, how would you feel if every seller actually had a building inspection done at the time of listing, which is probably going to do you out of business because there\u2019s a possibility that you may end up doing two or three inspections on one property, or a number of building inspectors might?<br \/>\n<b>Andrew:<\/b>\u00a0 That\u2019s a good question. I did an inspection only yesterday and there had been about four inspections on that property. It was a popular auction property. However, Kevin, there are many properties that don\u2019t get inspected. If you consider all the apartments, units, townhouses, and the like across, say, Queensland, a lot of those just simply aren\u2019t inspected. And so all those, under that ACT legislation, would all need an inspection. So there would be a greater number of inspections.<br \/>\n<b>Kevin:<\/b>\u00a0 When you do that report, who owns it? In other words, can the person who pays for the report then give it to whoever they would choose? Hypothetically, could a real estate agent pay for you to do an inspection and then give it to every buyer?<br \/>\n<b>Andrew:<\/b>\u00a0 Yes, they can. When we do a report for a seller or for an agent to provide it to a prospective purchaser, we do allow the transfer of that report, and we will put that report into the eventual purchaser\u2019s name at no cost to them, provided they accept our terms and conditions. But generally in the industry, you\u2019ll see a big, bold disclaimer on the report saying \u201cThis report is not for the use of third parties.\u201d<br \/>\n<b>Kevin:<\/b>\u00a0 Why would they do that? Is it something to do with litigation or potential litigation?<br \/>\n<b>Andrew:<\/b>\u00a0 I think they\u2019re trying to limit their liability, and also it\u2019s a requirement of their insurer that third parties can\u2019t rely on the report. So if you\u2019re looking at a report prepared by a seller and it does have that disclaimer, be aware that you still may have a claim but you\u2019re going to have to go through a few more legal hurdles and hoops to be able to prove your right to rely on that report.<br \/>\nMy advice is to always have the report in your name if you\u2019re purchasing a property. And if you think you can\u2019t afford the $500, $1000, whatever it is, for the building and pest report, you certainly won\u2019t be able to afford the $50,000 or $100,000 repair bill that you get later on. So you really should get a report.<br \/>\nEven though the seller is providing you with the report, I would suggest read it, use it as a heads up, talk to the inspector if you\u2019re able to, but I would still advise you to get your own report in your name.<br \/>\n<b>Kevin:<\/b>\u00a0 Okay. So you\u2019ve done a report. Your insurance company obviously allows you to send that out to multiple players.<br \/>\n<b>Andrew:<\/b>\u00a0 They will.\u00a0 You can do it, it is legal, it\u2019s allowed to send it out, but those disclaimers muddy the waters. I would just suggest if you\u2019re going to get a report provided by a seller, do ensure that you can have it transferred to your name.<br \/>\n<b>Kevin:<\/b>\u00a0 Thanks, Andrew. We\u2019ll have to leave it there.<br \/>\nThat book is called <i>Building Success<\/i> \u2013 Andrew Mackie-Smith. Look for it in all good bookstores.<br \/>\nThanks for your time, Andrew.<br \/>\n&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It is a mystery, but many property buyers do not bother to get a building inspection done before committing to a purchase.\u00a0\u00a0 At least one building inspector is prepared to share his reports to help buyers make better decisions.\u00a0\u00a0 Andrew Mackie-Smith explains why he does&#8230;<\/p>\n","protected":false},"author":176692471,"featured_media":11433,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32,10,11,13,21,22,25],"tags":[101],"class_list":["post-11425","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-property-topic","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-renovation-topic","category-research-topic","category-sponsored-channels","tag-podcast"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Building inspections should be part of the listing process - Andrew Mackie Smith - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/building-inspections-should-be-part-of-the-listing-process-andrew-mackie-smith\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Building inspections should be part of the listing process - Andrew Mackie Smith - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"It is a mystery, but many property buyers do not bother to get a building inspection done before committing to a purchase.\u00a0\u00a0 At least one building inspector is prepared to share his reports to help buyers make better decisions.\u00a0\u00a0 Andrew Mackie-Smith explains why he does...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/building-inspections-should-be-part-of-the-listing-process-andrew-mackie-smith\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2017-04-26T17:00:06+00:00\" \/>\n<meta name=\"author\" content=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/building-inspections-should-be-part-of-the-listing-process-andrew-mackie-smith\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/building-inspections-should-be-part-of-the-listing-process-andrew-mackie-smith\\\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"headline\":\"Building inspections should be part of the listing process &#8211; 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