Building reports are money well spent
DEB TAPP
When it comes to buying a home don’t skimp on the pre-purchase building report.
Those words of wisdom come from Registered Master Builder Ivan Stanicich, who owns the Fowler Homes franchise in Christchurch and is a director of branches in Queenstown, Wanaka and Taranaki.
Having been in the building industry for almost 40 years, he knows all too well just how important building reports are in the house buying process.
‘‘Some potential home buyers may not really be able to afford the extra cost of a building report, but it really is something you don’t want to pinch pennies on,’’ says Ivan.
‘‘Buying a house is the single biggest investment you will make, so you want to get the right answers and advice before going ahead with that purchase.’’
If the home in question already has a building report available, there’s usually no need to obtain another, says Ivan.
‘‘That document is legitimate, it belongs to that property - you can look into the integrity of the author but it can be taken seriously.’’
It’s not vital to get a building report on a new build or spec home either, as councils are thorough in their inspection processes, but for older properties, it’s a must, says Ivan.
Pre-purchase building reports offer peace of mind, he says.
They cover off everything from the home’s foundations to its weather tightness and overall condition.
‘‘You want to know what’s underneath the house, is the structure sound, then you want to know about the weather tightness, the condition of the roof, the downpipes, is the cladding in good order or does it need a repaint…’’ says Ivan.
‘‘Are there any physical cracks where water is getting in or out – you have to be very careful with weather tightness, it’s a vital part of the building code.’’
The issue has been heightened by the fact that many homes face problems around rising damp, particularly in low-lying areas around New Zealand.
‘‘It’s bad enough dealing with moisture from inside your home, such as bathroom steam, cooking moisture and personal moisture we all emit, let alone external conditions,’’ says Ivan.
While the detail of a prepurchase building report is important, so too is employing the right person to undertake the task.
Those who choose on price only should proceed with caution, says Ivan.
‘‘Part of the challenge is understanding what the building report entails - one for $400 and another for $700 is a big gap so you need to understand the difference.’’
To do that, ask for a sample of a report.
‘‘The difference might be a short overview report which may skim over details, compared to an indepth report that covers off all that vital information, and includes a conclusion.
‘‘Conclusions in a report are vital, it tells you if that property is in a sound condition - as a qualified carpenter I look at every conclusion before I read anything else.’’
Insist the report is written in plain English as well.
‘‘Often these reports are written in industry jargon or legal terms, and the client has no understanding of what they’re reading, yet most are too embarrassed to ask.
‘‘All they want to know is does this house pass or fail, and this is where the conclusion is helpful.’’
Wording aside, choosing the right person to conduct the report also comes down to reputation and look for longevity.
‘‘Look for a referral from someone, look at their time in business, look at their track record,’’ says Ivan.
‘‘Do a Google search of their name, look into their past - if we use technology and delve into people’s backgrounds we will stamp out any cowboys out there.’’
Most real estate agents have lists of reputable people who conduct building reports, but it’s still worth doing your homework, says Ivan.
If you contact a company or person to do the job, and they don’t respond reasonably quickly, look elsewhere, he advises.
‘‘Take heed of the warning signs - if they don’t come back to you within a reasonable timeframe I’d be concerned about their processes.
‘‘The interaction with that person or business is usually a fair reflection of them and how they operate.’’
At the end of the day Ivan says cheapest isn’t always best and even those with very little spare cash should take the building report process seriously.
‘‘It’s vital when buying a house to get all the information you need to make an informed decision, especially when it’s such a huge investment.
In many areas you need to look and ask if there is any EQC claims on the property - you may be surprised what will find, we live in two very active islands after all.
‘‘You don’t want to get your mate who’s a builder to have a quick look over it, you want to do things right so that nothing can come back and bite you later on, after all, this will likely be your largest purchase ever.’’