Literal meaning of Due diligence is doing a comprehensive appraisal of any buying task undertaken by a prospective buyer, especially to establish its assets and liabilities and evaluate its potential.
It is utmost important to do your due diligence when buying a new home, especially for first home buyers as this will be your most single expensive lifetime purchase.
Doing your ‘homework’ and covering all your bases well before you buy a home is the best way to fully protect yourself by getting a Building Inspection by your local Building Inspector.
Some tips when buying a new home whether it’s your first home, if your upsizing or downsizing:
- Make sure you carefully check the Vendor Statement of the contract, which provides all pertinent information about the property. While a Vendor Statement may show you where potential easements are located and list any possible encumbrances, it will not give you a personal history of the house.
- Ask if there is an EQC Scope of works and if the works have been completed our if there was a payout.
- Ask the real estate agent prior to purchase about the history of the property. The agent is obligated to disclose any information they may have if you ask. But only if you ask.
- Caveat emptor (home buyers, beware!)-Pre-purchase building inspections are a critical investment in any home. Representing just a tiny fraction of the cost of your purchase a pre-purchase inspection they ensure you get what you pay for. Our reports identify Safety hazards, Major structural defects, and Minor defects. So structural problems can be identified before you sign on the dotted line. Make sure you make on offer ‘Subject to a building inspection.’ If we do find any Major structural problems you can pull out of the sale or renegotiate and get a better price. The reports are also fully insured so you are covered and have that peace of mind.
- If the house was built before 1985, it is highly likely that Asbestos is present in the home. For the houses built between 1985-2000, these houses also have a high probability of finding asbestos. Our inspectors will report on any suspected Asbestos found on the property.
The Building inspection is critical to your Due diligence making you fully informed on the condition of the home and preventing you from buying a lemon.
Buying a new home is an exciting time and the process can be fun if you do the right preparation. Contact your local Jims Building Inspector on 0800 454 654 and they can help you through the process.