Buying a home is likely to be one of the biggest financial decisions of your life. And for the cost of a few hundred bucks you could avoid the most common home buyer regret.

It’s an all-too common scenario: Home buyers weary of watching prices rise, make an offer on the first half-decent place they see, and end up proud owners.

But it can only be a matter of time before the rot – and regrets – set in.

Here’s how to avoid the nation’s number one cause of home buyer remorse.

Homes are often far from flawless

When it comes to buying a home – be it a house or apartment, it pays to remember the golden rule of ‘buyer beware’.

The seller wants to present the home in the best possible light.

And to be fair, the property owner may be blissfully unaware of any hidden nasties.

That doesn’t mean the buyer should be.

According to one government body, over 300 people every year are admitted to hospital as a result of electrical problems in their homes. Many old homes have never had their wiring upgraded¹.

But older homes aren’t the only potential source of problems.

Hidden nasties such as termites can be extremely difficult to detect – and potentially cost thousands of dollars to remove from a home.

This brings us to the leading regret among home buyers.

Research by Compare The Market (CTM) shows two in five (39%) Aussies have regrets about the home they bought².  

The biggest regret – by a country mile – reported by one in three people with buyer’s remorse, is not looking hard enough to find faults in the property.

How to avoid a bricks and mortar lemon

As CTM notes, home buyers can be under pressure to buy a place.

No surprises there especially in today’s environment of rising property values and tight housing supply.

But there is an easy way to be confident you’re not buying a bricks-and-mortar lemon – one that could leave you lumbered with unplanned expenses.

Lots of gain for not much extra cost

The key is to arrange an independent pre-purchase pest and building inspection and to ask plenty of questions.

In some markets, such as the ACT, sellers are legally required to provide prospective buyers with a building and pest inspection report before offering a property for sale³. But this is not the case in NSW and other parts of Australia.

Whatever the case, a pre-purchase inspection makes sense as it can uncover any issues.  

According to tradie site HiPages⁴, the cost of a building inspection will depend on the size of the property, with the cost starting at around $200 for a smaller place and – rising to about $500 for an average-sized house.

Pest inspections can be done at the same time and usually cost an extra $100-$150.

Yes, it’s an additional upfront cost. But it could be an investment that saves you a mountain of hassle and plenty of money if problems are discovered later.

CTM’s Stephen Zeller says, “Usually inspectors are really good at finding issues with a building, particularly ones that could cause a lot of grief later on.”

Know what the report contains

Once you receive the building/pest report, set aside some time to discuss it with the provider. Ask about anything you don’t fully understand especially if the report is laced with industry jargon or technical terms.

For your own peace of mind, it is worth arranging an additional on-site inspection to look for defects as the building report may not pick up everything. Check that windows and doors can open easily without getting jammed, and note how long it takes for hot water to come through the taps. Check light switches and other outlets to be sure they are in working order.

What if a property gets a dodgy report?

If a property you love receives a poor pest/building report, it may not be the end of the road.

A bad report can be used as a tool in price negotiations.

Just be sure you have the cash available to meet the cost of any repairs.

To get into a place of your own sooner, talk to the team at Easy Street about a great value home loan. You’ll find a great rate without any hidden surprises.  

Sources: 

1 https://www.fairtrading.nsw.gov.au/housing-and-property/buying-and-selling-property/buying-a-property/property-inspections 

2 https://www.comparethemarket.com.au/news/the-biggest-regrets-of-australian-homebuyers-revealed/ 

3 https://canberrabuildinginspectionsact.com.au/#:~:text=The%20Legislated%20House%20Inspection%20Package,energy%20rating%20done%20in%20ACT. 

4 https://hipages.com.au/article/how_much_does_a_building_inspection_cost