20 May 2008

Vendors Pay for Home Certification in Hunt for Buyers

With the property market changing from a sellers market to a buyers market, some vendors are starting to market their properties with structural and termite guarantees.

An architect inspecting a property for a vendor

Historically buyers looking to bid at auction paid for reports, however, in a changing market, many vendors are paying between $400 to $800 for pre-purchase housing inspections to make them available to prospective buyers. Robert Caulfield, Managing Director of Archicentre, the building advisory service of the Royal Australian Institute of Architects and the largest supplier of pre-purchase home inspections and renovation designs in Australia said, "in an industry first, the First National Group of Real Estate Agents is now offering their client's the opportunity to sell their home with an independent Archicentre Report and guarantee. 'The independent inspection report certifies the condition of the property and allows the vendor to offer the home for sale with a $15,000 structural guarantee and a $15,000 termite guarantee to provide buyers with added confidence to purchase." Mr. Caulfield said that it is unique for the marketplace, and it offers both vendors and buyers the opportunity to be fully aware of the actual condition of the house prior to an auction campaign. For the vendor it provides a major marketing advantage to give prospective buyers confidence to purchase the property.

Archicentre is constantly called by people who have purchased a home only to find problems when they take possession. They often face tens of thousands of dollars in unbudgeted repairs, placing them under financial stress.

Buying a house is a major financial commitment and we believe a future trend will see consumers demanding a property inspection report before committing to purchase a property, Mr. Caulfield said.

"With rising interest rates and many buyers on the knife edge of being able to afford a home, more buyers are increasingly demanding and getting their contracts signed subject to a satisfactory independent inspection.

"The state of Australia's property market and the increased consumer awareness of buyers to protect their financial position with conditional purchase contracts will drive the use of pre-purchase inspection reports in property marketing campaigns, Mr Caulfield said.

"Buying a home is everybody's biggest lifetime investment. People get a roadworthy certificate done for a $10,000 car. Buyers in today's housing market certainly want to ensure their investment of several hundred thousand dollars is protected by a thorough independent inspection."

Last year Archicentre provided pre-purchase home inspections and renovation designs on property valued at $7.5 billion.

www.archicentre.com.au
Commercial Inspections; Building Status Reports; House Inspections; New Homes Design Reports; New Housing Reports;
Pest Inspections; Pre-Purchase Inspections; Building Progress Reports; House Cracking