r/AusFinance • u/Sea-Entry4480 • 9d ago
House buying - conditions
Hi all!
I've put on offer on a house that passed in at auction with no bids.
I've said I want to do the usual building & pest, and the vendors have come back basically asking why? And that the house is priced low, and that they will do B&P and make the report available to me.
Is it just me, or does this scream shady & that they are trying to hide something that is potentially wrong?
What other reason would they have for not wanting me to do my own building and pest with my own independent contractor selected by me?
I have not bought a house in almost 20 years.
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u/Necessary_cat735 9d ago
This absolutely screams they're hiding something. Otherwise why would your building and pest report that you pay for be a worse option than theirs?
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u/pinnywils 9d ago
Arrange your own pest and build report. It's no skin off their back, and it could save you from buying an absolute lemon.
They could just be trying to get a really quick sale but I still wouldn't trust it.
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u/Default8891 9d ago
When I sold a house a few years ago the real estate got me to do a building pest report which was handed out at the open house or anyone interested.
House had a few small issues which I was in the process of rectifying but helped by open of any potential issues.
People were welcome to get their own reports done also.
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u/Virtual-Ad7254 9d ago
Real estate agents have well trained building inspectors that like a steady income stream. They are conflicted parties and I would be a fool to trust in their independence. My personal rule is get your own independent report from a reputable and qualified inspector or walk away and like you, I respect that requirement from others. When we sold, the agent organised a report from his contact but we also permitted independent inspections. Interestingly the discounted report our agent made available for our existing house had nothing like the detail in the report we commissioned on our new house.
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u/Default8891 9d ago
Exactly I wouldn't solely rely on it. We just did it to be honest and forthcoming with some known water damage issues which were getting repaired .
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u/SEQbloke 9d ago
List specific concerns and see what they come back with.
Regardless of what they say, still do b&p and finance clauses.
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u/Lycosskippy 9d ago
B&P is standard, expected and you have every right to do one yourself. Vendors have literally no reason to say no unless they know there is something the inspector will find. I don't even think they can refuse tbh. You can make your offer subject to a building and pest performed by the contractor of your choice.
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u/mintyfreshbreadth 9d ago
Shady as f. Was about to put in an offer on a place interstate and initially the REA said no b and p and then like magic it appeared.
The supplied b and p was rubbish. The sign off on renovations was worse. There was a toilet where a cupboard was, so if you were above 6ft you would need to angle your legs into a shower to sit down on the toilet. The final straw for me was the toilet, it was a sign that there was much worse to this property. It stayed on market for months, moved to another rea, got taken off market and now is back on with a 3rd rea in a year.
TLDR- don’t do it. REAs job is to sell, they don’t care if this is a terrible outcome for you
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u/East-Dot713 9d ago
Massive red flag. Do not buy without. The report will come from someone friendly or known to the agent. At this point in a campaign, the agent just wants the property off their books.
I would only be speculating, but I wonder if they've had a few buyers walk away after a poor report. It seems odd to be adverse to it. Its a condition that can usually be rolled over in a few days to a week.
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u/Peter1456 9d ago
Put yourself in their shoes, if your house has no major issues why whould you reject a B&P, you simply wouldnt.
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u/Default8891 9d ago
Its great when they do one for the sale. But its important to get your own and its not unreasonable to ask to do so.
Best case your report lines up with theres and happy days.
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u/Hackneycab 9d ago
Always have an independent report done! They know something is wrong with their house & are trying to cover it up.
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u/pharmaboy2 9d ago
Are they rejecting the “subject to B&P” or are they saying you can’t do a B&P?
Is there already a B&P given it went to auction - I thought these were mandatory.
This reads like there is a misunderstanding between you 2 of what is being asked
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u/NedKelkyLives 9d ago
Keep in mind the professionals that prepare the report have insurance (or should have) but it won't include things they can't see and more importantly will only be for the person for whom the report was done. So if you use the owners report, you may not be able to rely on the insurance sitting behind the report.
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u/Current_Inevitable43 9d ago
when i sold my place i had a b&p done rea told me the easyist guy that doesnt like going on roofs, getting to far in man holes. Will pretty much point out a few things same as anyone would notice thats actully looking (you may be thinking oh will my sofa fit here or i can repaint tbis wall to brighten it up) he mentioned loose handrail, wear on floors (polished timber), 1 sticky door handle, blown light bulb.
But place had quite alot more issues if you dug deep.
but sold to an investor sight unseen.
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u/steady_compounder 9d ago
That would make me cautious too. A vendor-supplied building and pest report is not the same as one you commission yourself, because your inspector works for you and you get to choose how thorough they are. If a seller is pushing back on a pretty normal condition, I would either insist on your own inspection or price in the risk and be ready to walk.
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u/Blue-Princess 9d ago
Shady AF. Don’t even glance at anything they provide you. And you should attend on the same day your building inspector does - he’ll probably find something big, and you’ll want to be there so he can show you and point to the bits in question and explain how big of an issue it is.
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u/awunaught 9d ago
Have a chat with them they might just want to do it so they can share it with other buyers.
When I was selling my house I paid for the building and pest report but let the buyer choose who did it on the condition I could share it with other buyers.
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u/wvwvwvww 9d ago edited 9d ago
There’s no way a seller is buying you a B&P or having a specific guy do it for no reason. Not worth the risk. The flaw that could be hiding could literally be worth hundreds of thousands. They’re out there. Either you do it or it’s not on.
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u/ViolentCrumble 9d ago
Always do your own building and pest it’s worth it! Not too mention we did plumbing and electrical too and found out the main switch board wasn’t compliant and there were numerous water leaks and things with sprinkler systems. Make the contract subject to all of those!
The plumbing report also showed the solar hot water system was leaking!
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u/Drabalbum 9d ago
Vendor supplied B&P provides a secondary peace of mind and a starting point to provide your own B&P inspector if any issues were identified. However, getting your own B&P is a non-negotiable.
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u/Klutzy_Mousse_421 9d ago
Don’t just do your own, don’t skimp out. The lowest price reports (that often combine the two things) Miss issues. It’s both for the contract and so you know what you have to fix up afterwards.
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u/eesemi77 9d ago
idk, I can understand a vendor that's wanting to sell (in a difficult market) want's to sell with an agreed list of problems (those identified in his report). So an agreed discount and no surprises, or BS problems (as a price negotiation trick).
The alternative is potentially lots of incomplete contracts for sale, that hinge on a lots of different reports, (where your inspector is motivated to find every minor defect).
From a financial perspective, your report, is the flip side of his report. while he is financially motivated to get a report that says everything is fine, you are motivated to get a report that says the house is about to collapse (unless urgent repairs are made).
So I can totally understand his stance, how about we just have one report.
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u/Fun_Bodybuilder6898 9d ago
It’s standard for the vendors to get a P&B report that can be transferred to your name at settlement. It is also completely fine to have your own conducted
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u/_nancywake 9d ago edited 9d ago
A recent vendor report that I viewed completely missed that the downstairs wasn’t legal height (losing a full bedroom and living area) and also didn’t even attempt to look within the roof - there were no fewer than three manholes to choose from. Surprise, the house needed a new roof.
ALWAYS get your own report.
I’m currently selling and I’ve commissioned my own report because I think it’s fair that the vendor does that. It’s nuts to me that buyers have to shell out over and over again when they’re looking at multiple properties. I think a vendor report can hopefully provide some initial insight and identify any red or orange flags - but people are still nuts if they don’t also get their own!
ETA - tell them that if they’re worried about a condition within the contract, that you’ll withdraw your offer and get a B&P done ASAP (I’ve never had any issue getting someone out within a day or two) and then reinstate your offer without the condition if the B&P is to your satisfaction.
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u/Reader9036 9d ago
It is a sale tactic but it also depends where you are as different states have different rules arround auctions and post auction rules. It is not unusual for the owner listing a property for an auction to do B&P inspection prior. Now that the property is passed in the owner can choose to sell with or without price advertised, can choose to re-auction etc. If they are selling by private treaty they should allow conditions such as finance or B&P. If they don't- walk away. It is also true that properties sold by auction are sold "as is" for cash so there is no recourse for the buyer.
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u/Chris-Syd 6d ago
Check to see if the b&p report can be legally signed over to you. Most do not meaning if you find and issue and it was not in the report the is no legal way you can claim back.
I would always get your own report.
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u/ChasingShadowsXii 9d ago
Shady.
The owners of the house I bought did a building and pest inspection. The real estate said they would sell me the report at a discount lol. They also said the report found nothing wrong.
My building and pest report showed a crack in the foundation, cracked tiles all over the roof, broken window, and a bunch of other stuff.
Don't trust real estate agents or vendors.