Buying your first house is an exciting milestone. You will have made what, for most people, is the largest financial investment of your life. You’re no longer at the mercy of landlords and you’re free to turn your house into a home.
In all the excitement, it can be tempting to rush the purchase process and overlook some important steps, like properly inspecting the building. Look at it this way: You shouldn’t buy a used car without giving it a test drive and getting a qualified mechanic to give it a look over.
Well, a house is a much larger investment and if you buy a lemon it can be much more expensive to fix. That’s why it’s important to complete a thorough personal inspection, building inspection and pest inspection before making an offer.

Once settlement takes place, any problems with the property immediately become your responsibility. And that could mean tens of thousands of dollars in repair and maintenance work that you have to shell out on top of the purchase price.
To help out all the first home buyers out there, we have some useful information about how to get the most out of your inspection opportunities before buying your first home.

Personal inspection
Once you’re seriously considering buying a property, your personal inspection needs to reflect this. It’s a different process to the initial open inspection. While it’s important you still like the overall feel of the house, this is the time to take a serious and focused look at the potential trouble areas and money pits around the house. 

Some key things to look out for are:

• Water stains, dampness or mould on walls and ceilings
• Sagging ceilings or buckling and cracking walls
• Windows and doors opening and closing easily
• Light switches working
• Outside drainage areas
• Taps working
• Rotting floorboards that may be hidden under carpets
• Any obvious damage and issues, like exposed wiring or evidence of pests

Be critical about the place, as much as you may love it. Finding faults with a property before you buy can save you a lot of stress in the long run.

Building inspection
While it’s important to look the property over yourself, unless you’re an expert you won’t have a good idea what you’re looking for. What may look like a great house in perfect condition could be hiding a whole bunch of structural issues.  That’s why it’s vital to get a professional building inspection from a licensed building inspector.
A building inspector will thoroughly check the property inside and out. They will examine all accessible structural elements, outbuildings like sheds, and external structures like fences and retaining walls. Once the inspection is complete, they will provide a detailed report that highlights any major damage or essential repairs, as well as recommending other minor repairs and even documenting any potential repair or maintenance risks.
Your building inspector should always be a third-party professional – that is, someone not recommended by or affiliated with the seller or their agents. This way you can be assured of a completely independent and unbiased report.
Any major issues with the property should be presented to the seller before purchase. You can then negotiate to have these issues fixed before purchase or adjust the purchase price accordingly.

Don’t take the risk

If you think you’ve found your dream home, you can’t afford the risk of it turning into a nightmare. Hiring the professionals to carry out the building inspections and pest inspections can help you to make the most informed purchase and avoid the massive repair and maintenance costs that come with buying a shoddy property.

Call us now on 021 143 2995 - Savvy Houz Inspections , www.savvyhouz.co.nz

Major issues identified in the subfloor after the property had been purchased.

A homeowner who bought a house only to discover more than $100,000 worth of damage has warned property-hunters to pay closer attention to their pre-purchase inspection reports.
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A building and pest report, provided by the selling agent, did not highlight any significant issues, but noted that the building inspector had been unable to access parts of the property. A second report found significant termite damage, structural damage and borer damage.
“The report basically said most things were mostly fine, with the caveat that they hadn’t looked underneath the house,” he said. “Not being an experienced property buyer, I assumed they didn’t need to look under the house because there was no reason.”

The original report, which covered the “roof void, internal area, external area and extension”, warned that areas not inspected included “the entire subfloor” and “various areas of the roof void”.
“A subfloor void appears to be present however, we were unable to located (sic) an entry point and therefore no inspection of the subfloor area was carried out,” the report said.
“It is possible that an entry point may exist below floor coverings (if fitted). It is possible that building defects may be present below inaccessible areas however, no comment is made or opinion offered on any area where full access is not available.

“We strongly recommend that access be gained to all inaccessible areas. Access should be gained to enable a further inspection to be carried out prior to purchase.”
The second report was obtained by another potential buyer, who opted not to bid based on the damage uncovered. That report inspected the “building interior, building exterior, roof exterior, roof space, subfloor space, outbuildings and the site”. “Various areas have significant termite damage,” the report said.
“Previous attempts had been made to support the middle bearer under the second bedroom with brackets that have been bolted into the brick foundation walls. Despite this, the bedroom floor is not level.
“(The) timber bearer below the front area of the living/lounge room has been totally eaten by termites. The centre of the lounge room is no longer supported in some areas by this bearer. It needs replacing urgently.
“To help protect against financial loss, it is essential that the building owner immediately control or rectify any evidence of destructive timber pest activity or damage identified in this report.”
Under changes introduced in August 2016, real estate agents are required to inform potential buyers if a pre-purchase building and pest inspection report or strata and community scheme report has already been carried out.

Buyers may then opt to access an already available report, usually at a reduced cost, instead of commissioning their own report — giving building inspectors an extra incentive to get in first.
In an email to one real estate agent, the inspector who carried out the original report on the St Peters home urged the agent to put him on the list early, pointing out that “per the new legislation”, a report already carried out by “any other company, and there are some pedantic ones out there” must be listed “to your vendor’s detriment”.

He added that his inspectors “don’t put in any prices on repairs” and were “not pedantic or overly critical of the property”, as that was “such a headache for agents with some inspectors”.
The St Peters buyer admitted he should have been more careful.
“It’s at least partly my fault, I’m happy to admit that, but it’s crap that these types of inspection reports are allowed,” he said. He added that he didn’t bother seeking legal advice.
“Part of the problem with these reports is every second sentence is a caveat,” he said. “They limit liability as much as possible. I saw [legal action] as potentially a bit of a money pit that could go nowhere.”
The owner of the company which carried out the original inspection strongly defended his report. “There was no access to the subfloor ... and another inspection was recommended after access has been made available,” he said in an email.

“This is the first we have heard of it. If the purchaser actually read the report and followed our recommendations ... before purchase of the property as recommended ... then any termite or borer damage in the subfloor area would have come to light, and any legal advice that he would have had then (sic) made him aware of this fact.

“That’s why we have heard nothing about it and will be watching closely if any we take any action (sic) if defamed in any way as we stand fully by our report.”

Rhys Rogers, chief executive of sharing economy site Before You Bid, a platform where buyers can share costs and rate inspectors, said consumers should be very careful doing their research. “There are two things which can help consumers work out whether they’re getting a report that’s worthwhile,” he said.
“One is to check on Google to see the inspector’s rating. Two is to check if the inspector got under the house and into the roof, because that’s where most defects are, that’s where the hard work is crawling into these spaces.

“(If they don’t), it’s a pretty obvious sign that the inspector might just be ticking the box — there should be a good reason. Sometimes they’ve got quite a few disclaimers in these reports, they can argue that on the day there was no access to the subfloor because there was a piece of furniture in the way.”
If the report has gross omissions the buyer can make an insurance claim against the inspector, but Mr Rogers said underinsurance was also a big issue.
“There are estimates that 70 per cent of the industry aren’t properly insured,” he said.
A spokeswoman for Fair Trading/Consumer Law, any pre-purchase building and pest inspection reports must comply with “consumer guarantees in relation to the provision of services”.
“Services must be provided with acceptable care and skill or technical knowledge and taking all necessary steps to avoid loss and damage, fit for the purpose or give the results agreed to, (and) delivered within a reasonable time,” she said.

“Fair Trading strongly recommends that vendors only use consultants that have adequate insurance cover, particularly for professional indemnity.”
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Book a subfloor robot inspection today! 021 143 2995 - Call Savvy Houz – Inspect it to protect it! 

This blog post highlights some of the most important building issues and risks. We recommend you research further, before making an offer?

built before 1914:
Look out for:

• Some of these houses were built close together, so it can be difficult to access the side walls for maintenance and repairs.
• The piles and foundations under the house can deteriorate over time, so check they are still in good condition and are properly braced for earthquakes.
• Check for obvious structural issues, for example, sloping or sagging floors, cracks in the walls and buckling near windows and doors.
• Look at the gutters, as internal gutters can be prone to leaking.

• Is the building heritage listed? If so, this may affect what renovations you can carry out on the property.
• Does the building have the original wiring? It may need replacing and there may not be enough power outlets and light fittings.
• Borer can be found in building timber and can cause structural issues.
• Has the plumbing been updated? If new plumbing was added in the 1980s, look out for Dux Quest piping, which may cause problems.
• Does the house have insulation and, if so, is it up to current standards?
• Check the levels of natural light in the rooms.

Timber built villas were the most popular design style in this period. The bungalow style started to appear in New Zealand from 1910. A home built before 1914 will have plenty of history and character features, but it can also come with issues if it hasn’t been properly maintained over the years.

Timber:
Look out for:

• When was the cladding last painted or stained? Treatments last 10 to 20 years and can be costly to re-apply.
• Is the cladding constructed from sheets or weatherboards? What type of timber is it? Some types require more maintenance than others, for example, cedar.
• Can you see any rot, mould or mildew? Pay special attention to windows and door frames.
• Has the building had issues with borer in the past? Can you see any borer holes?
• If wooden cladding looks faded or has mould or moss growing on it, there could be damage to the cladding.
• Can you see any cladding that is splitting or warping?
• Can you see any bubbling in the paint? This can be a sign that the wood is rotting underneath.
• Check there is easy access to areas of the building exterior that need regular maintenance.
• Check that the cladding isn’t in contact with the ground or plants – moisture from these can cause damage.
• Consider getting a property inspection — this will help you identify any potential issues with the cladding and should give you a good indication of what maintenance you’ll need to do in the future.
• Talk to the real estate agent (or the seller, if it is a private sale) to see what information they can provide about the construction, maintenance and treatment of the cladding.

 
Timber — including treated plywood and engineered wood products. A wooden exterior or cladding needs ongoing maintenance, and there may be problems if it hasn’t been properly and regularly maintained.

Extensions and renovations:
Check that any extensions or renovations have building consent.
You can check by comparing the current layout with the floor plan on the property file held by the council. Any differences between the two should have the proper building consents. If the owner or a previous owner has added a deck, garage or sleepout, check that the consents are on file.
It may be possible to get building consent on an extension or renovation after you have purchased the property, but it is not certain and it could be expensive if extra work is needed to meet required standards.
Check the foundations of the extension. If the foundations are different from the rest of the house, they may move in different ways in an earthquake. Also check that the foundations and the connections between them are in good condition.

Work that should be consented:
Building work that may require consent includes:

• alterations, additions and many structural repairs
• demolition of buildings and structures
• the removal or relocation of buildings
• site work, for example, earthworks for a new extension
• fences over 2 metres high
• installing a swimming pool or spa pool.
• You can find information about any building consents for extensions and renovations in the LIM.

• The council will also hold more detail, including the plans, in the property file.
• If you have found work that has not been consented, check that the property can still be insured.

Roof material
Look out for:

• Waves or wrinkles in flat areas of metal roofing may have been caused by stress and buckling when the roof was installed.
• Nails or screws hold the roof and flashings in place. If they fail, the roof becomes vulnerable to damage — check that fastenings have been properly sealed. Nails, screws and washers may need to be tightened or replaced.
• Weather, debris from trees or walking on the roof can cause damage and reduce weathertightness — can you see any visible dents?
• Corrosion can occur from salt, dust or sand deposits catching under the ridge flashings — check the roof ridges.
• Check for blocked downpipes or guttering, which can lead to water damage to the roof and foundations.
• An old TV aerial that is no longer required may not be maintained and could break in a storm or cause damage to the roof.

• If you’re getting a property inspection from a qualified property inspector, you need to know if a roof assessment is included — most building reports don’t include the inspector climbing up on the roof to inspect it.
• Check the inspection includes the ceiling space.
• Some real estate agencies use drone photography — if you have aerial shots of the property, ask the property inspector to zoom in and look for problems.
• If the property is on a slope, try and get as high up as possible to see the top of the roof. In multi-storied properties look out of the window to check the roof below.
• Talk to the real estate agent (or the seller if it is a private sale) to see what information they have about the roof’s history, construction and any maintenance that has been carried out.

 
Iron and steel — including corrugated and long-run. These roofs last between 40 and 70 years, depending on what they’re made of, the environment and regular maintenance.
An iron or steel roof will need to be repainted or re-chipped every 10 years to ensure the roof remains watertight.

Hillside Slopes:

• Does the property suffer from surface flooding? When you walk around the property, is the soil spongy, soft or uneven underfoot?
• Are the floors level? You can test this by putting down a marble and seeing if it rolls across the floor, which may indicate the building is subsiding or was built out of tolerance.
• Can you see any cracks in the walls, ceilings or exterior from the building moving?
• Check if any of the neighbouring hills, buildings or trees affect the sun on the property.

If the property is near to hills, think about how that will affect how much sun the property gets at different times of the year. Check the orientation of the property with respect to the winter sun.
 
Earthquake Damage EQC and Liquefaction:
These features can make some buildings more susceptible to liquefaction-induced damage.

• Thin unreinforced concrete slab foundations — the slab can crack as liquefaction-induced holes or settlement form under the slab.
• Buildings with irregular design shapes or several split levels — the irregular shape can mean different parts of the building sway or shake at different rates during an earthquake causing stress and damage to the building.
• Sticking doors and windows and gaps around frames can indicate building movement.

Flooding Zones:
Look out for:

• Water stains on external wall cladding, fencing and foundations.
• Cracks in the walls and at stress points, for example, doorways and windows.
• Soggy skirting boards and crumbling interior linings.
• Sticking doors and windows and gaps around frames can indicate building movement.

 
Types of ownership:
Freehold Is also known as fee simple and is the most simple and common ownership type in New Zealand.
Freehold
If you have a freehold property, you own the land and (generally) anything built on the land unless there are any registered or unregistered interests. Examples of interests that might restrict the use of the property include:

• easements that give neighbouring property owners or utility providers the right to use part of your land to access or connect to services
• covenants that limit what type of building can be on the property
• restrictions under the Resource Management Act 1991
• whether the land is Māori freehold land.

Ask your lawyer or conveyancer to review the record of title (also known as the certificate of title), which contains the property’s legal description, details of its ownership and the rights and/or restrictions registered against it.

A cross-lease property, you own two interests in the property — a share of the freehold title in common with the other cross-leaseholders and a leasehold interest in the particular area and building that you occupy.
 
A cross-lease title may include a plan showing the footprint of the building you are entitled to occupy (sometimes called the flats plan). Check the plan to identify:

• the physical location and footprint of the property you are looking at
• areas that any cross-leaseholders have the exclusive right to use
• any common or shared areas.
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Cross-lease ownership usually means that any significant changes made to any area you are entitled to use exclusively (including the building you occupy or a separate garden) or to the shared areas must be agreed upon by all or a majority of the owners.

This means that, depending on the terms of the cross-lease, you may need to obtain the other owners’ consent before painting the exterior or making other non-structural changes to the building you occupy or before making structural changes, for example, building a deck or putting up a fence. There may be restrictions on what you can do with the property under the terms of the lease registered on your title.
Ask your lawyer or conveyancer to review the record of title (also known as the certificate of title), which contains the property’s legal description, details of its ownership and the rights and/or restrictions registered against it.

Have questions about a property?

• Ask the real estate agent (or the seller if it is a private sale).
• Review the relevant documents, for example, the LIM, property file and title.
• Ask your lawyer or conveyancer to review the documents — allow plenty of time for a thorough review.
• Ask the local council about anything you can’t find in the documents.
• Check the local council files, including the LIM report.
• Consider getting a property inspection by a qualified property inspector.
• Ask the real estate agent (or the seller if it is a private sale).
• The LIM will provide information on issues with the land, stormwater and sewage drainage.
• Check the property file at the council to look for information on where the drainage pipes are.
• Visit the property when it’s raining. This will give you a better idea of how/where the water drains to/from.

This is one of the biggest decisions that you will ever make. Get it right first time with a Savvy Houz Inspections Builders Report, we are totally committed to making sure that you understand the condition of the property and expert advice before you go unconditional.