The decision to buy property is not always as easy as one may think. There are many different factors that come into play, with one of the most important being price. If you’re currently looking to buy a piece of property, you’re going to want to do everything in your power to negotiate a better price, including using a building report.
Expert buyer’s agents use pre-purchase inspections to achieve better prices and you can too! The real art is in knowing how to leverage any key areas identified by the report in your price negotiation.
Building Report
The purpose behind obtaining a building report is to uncover any possible defects that may initially go unnoticed. A building inspection report will list the problems a particular property has so you’re able to understand the true condition of the property, which gives you the knowledge and power to negotiate a better price.
How to Negotiate a Better Price on Your Next Property
Let’s say you made an offer to buy a piece of property with the inclusion that a building report is to be done on said property. If the building report comes back stating that the walls in the bathroom need to be replaced due to mildew, then the cost of replacing these walls can be used to negotiate the price down so you’re not out more money for the cost of repairs.
If you didn’t have a building inspection report performed, then the money you’re going to need to correct any problems is going to be in addition to the actual purchase price of the property.
A Few Tips
Unless you’re planning on knocking down any structures, it’s in your best interest to get a building report performed on the property before making such a large purchase. Here’s some helpful tips on how to use this information when negotiating on a property purchase from Your Investment Property Magazine. Using a buyer’s agent is recommended for anyone looking to fully leverage the information in a building report – especially if you’re not sure where to start, as they work closely with building inspectors. If you have any questions once the report is completed, be sure to discuss them with the inspector as they can provide the best answers.