Don’t Let a Building Report Kill Your Sale!

This Week’s Tip: Don’t Let a Building Report Kill Your Sale

Here’s a number that may surprise you.

From our own data in the first half of this year, around 30% of conditional offers fell over.

That means the buyer and seller had already agreed on the price, but almost one in three of those deals still didn’t make it to settlement. One of the most common reasons we saw was the building inspection report.

Unlike some areas of the property industry, building inspections in New Zealand can vary considerably depending on the inspector, their experience, and how they assess and present risk. One inspector may consider something relatively minor, while another may recommend further investigation.

This becomes particularly important in a buyer’s market. Buyers are naturally more cautious, and a report prepared for a purchaser will generally take a conservative, risk-focused approach.

So, what can a homeowner do?

If you’re preparing to sell, it’s worth discussing with your agent whether having a pre-market building inspection makes sense for your property. An experienced agent will often be able to identify areas that buyers or inspectors are likely to question before the home goes to market. This gives you time to investigate and, where appropriate, repair those issues.

I pay particular attention to moisture readings. Opinions about some building issues can differ, but elevated moisture readings are much harder to ignore and can also create problems with a buyer’s finance. Different testing methods and equipment are available, including moisture meters and thermal imaging, depending on the property.

My advice: don’t wait until you’ve already found your buyer to discover what a building inspector might find.

Talk to your agent and, where appropriate, a qualified building professional before going to market.

A little preparation beforehand can potentially save a sale later.