Published:
December 13, 2022
by:
Elsja Hancock
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For the first home buyer, or even a seasoned investor or owner occupier, inspecting a property can be daunting and confusing. Confusing because you really may not know what you should be looking at, and daunting because most people spend more time inspecting electronics equipment prior to purchase than they do before spending hundreds of thousands or millions of dollars on a property. How do you make such a large purchasing decision in such a short amount of time?
Whether it be an isolated private inspection, or a Saturday full of opens, it's important to know the key items to look for and document during your inspection. Key features of the property will form part of the value assessment later, but also help you to decide whether it's the right property for you at all.
To make sure that you get the most out of your inspection, here are some tips on how to inspect a property before you commit to purchase.
Prepare - this is an important step to enable you to collate your thoughts and refer back later. Firstly, add inspection times to your organiser. The major real estate listing websites have an automatic feature that allows you to add inspection times straight to your phone calendar with the click of a tab, which is an incredibly useful function for a multi-inspection schedule.
Also, make sure you bring a checklist of features where you are able to add information e.g. type of window coverings, floor coverings, number of bedrooms - essentially anything that is either important to you or that you can used to ascertain key differences between properties later. These can be more 'metric' style items e.g. how many bathrooms it had, or more subjective e.g. your own notes on colours of carpets or the condition of the outside area.
The checklist should be constructed on a 'room-by-room' basis and there are many options available online that you can download for free. It is also a good idea to bring a tape measure. Are you sure your fridge is going to fit in that space? If you forget, most smart phones these days have an accurate measuring tool as part of the standard apps.
Be courteous - Arrive on time (if it’s a private inspection) and ask whether shoes need to be removed. Like everyone else, sales agents will want to work with people who are nice and treat them with respect. If you like the property and wish to offer, you will likely be dealing with the agent for a few weeks, so it's good to start out on the right foot. There are many questions you can ask the agent, but remember the agent is there to sell the property to you so they will generally be forthcoming with information that might be of interest to you. Of course, this doesn't replace your own due diligence later if you decide to proceed.
Inspect the street - Before you even enter the property itself, take a few photos and perhaps a video of the street. Street and kerb appeal is an important part of any property’s enjoyment and value; and, often not enough time is spent inspecting this part of the equation. Don't be afraid to knock on some neighbours' doors and ask them some friendly questions about how they like living on the street and in the neighbourhood. You will often find out more than you think!
Do a first walk through - Put the notepad or iPad away and take in the noise, smells, light, and general feel for the property based on your first impressions. Don't take any notes, photos, or videos at this stage. This may sound silly, but as a home buyer you need to know you will be comfortable living there, so don't pay too much attention to the detail on the first pass. Even for an investor, your tenant will be a home occupier, so this is important.
Do a second walk through – Go back to where you started and this time, document your inspection by taking notes, photos and video. A word of advice - make sure you ask the agent if they mind! Some vendors may have issued direct instructions that they do not want photos or videos taken of their private possessions (which can include personal photos on display) and regardless, as a matter of general courtesy you should ask the agent if this is ok. You can then refer back to these later to supplement the checklist. Take ‘walk-through’ videos with your own commentary and then take some photos of key items that are either on the checklist, or that may be of particular interest to you.
Consider recent maintenance items – This could include suspected damage or wear and tear. You should look for signs of damage, recent painting and patching, stained ceilings, uneven flooring, leaks under sinks, and mould. There is almost no end to the things you could note, and this obviously does not replace a building inspection, but if there are certain items you notice and you document them, you will be able to point them out to the building inspector later for a further and more in-depth investigation.
For example, mould might just be surface mould from lack of ventilation, or, it might indicate a deeper problem such as a water leak. In this example, the building inspector will be able to lift up carpets, do moisture checks and check for physical signs of leaks in specific areas if you had concerns.
If there is recent maintenance, consider whether this has been completed to cover up an issue, or is simply works by the vendor to help present the property in a more favourable light. Not all recent maintenance is a cover up or sinister, but keep in mind that it can be.
Look past the staging - If the property is staged, make sure you look under beds, rugs and behind furniture. This is just in case the furniture is covering up any items that might be of interest. Try to imagine the walls without the furniture and whether your furniture will suit. Staged properties also look bigger than vacant properties, so make sure you document the actual size of any rooms that are of particular interest or concern.
Thank the agent - They will likely call you for feedback after your inspection, so if you are interested in the property you should request a contract and start the process to offer. Even if you are not interested, it is common courtesy to advise them that you have no further interest, provide feedback and reasoning as to why, and ask if they have anything else suitable. If you are planning to offer, then the ways to do this are many and varied, but at the very least, requesting a contract will show interest in the property and start the process towards proceeding with an acquisition and make sure you are kept informed as the sale progresses.
Collate your notes and media files - When you have viewed a lot of property, they can start to blend into one. Make sure when you get home that you review the information and discuss with any relevant parties. Write down the macro positives and negatives, and perhaps plan a second inspection if you're unsure of anything that you would like to revisit. Almost all agents will be fine with this.
Inspecting a property is an important part of the buying process and requires careful consideration. Of course, using a buyer’s agent who is qualified and experienced will take all the hard work and stress away, and almost definitely get you a better result. We inspect hundreds of properties all year round, and know what to dismiss quickly, and what to pursue. In addition to the due diligence, appraisal, and negotiation, this will ensure you are acquiring the best property at the best possible price, without making all the common mistakes.
One last word of advice if you go it alone - don't hesitate to walk away if necessary. It’s always better to be safe than sorry, and the next ‘perfect property’ is always just around the corner.