Recent housing price deterioration along with auction clearance rates dropping in major cities has brought some “would-be home buyers” back into the property market. It remains to be seen what the recent interest rate cut will achieve.
The risk for those entering a falling market is the temptation to consider that a bargain is being had – then doing without “Due Diligence” property assessments.
The temptation to buy “subject to” – pushed hard by many real estate agents – leaves purchasers in a predicament. Unless the property assessment occurs within the statutory “cooling off” period, it is very difficult to pull out of a Contract of Sale regardless whether a miriad of shortcomings are uncovered.
The alternative is to risk the cost of a property assessment (frequently combined with a timber pest inspection) well before an offer is made – thereby enhancing the opportunity to negotiate an improved sale price if a private sale is in play.
In cases of auctions, the cost of property assessments can mount up – but can still be handsomely justified by not being lulled into a sale that stretches the purchaser’s purse stings. A ‘Do-It-Yourself Guide’ is available on the Archicentre Australia website.
Dispassionate assessment is a vital component of the property acquisition process and it is important that intending purchasers make the most of the opportunity, according to Archicentre Australia.
Whether it be via an open house or an assessment arranged through the selling agent, effective use must be made of the available time, says Peter Georgiev, director of the national architect’s advisory service.
“With time generally restricted, it is important to know what you are looking for,” he said.
“In this regard professional advice can be obtained beforehand to comprehend what you should look for and professional assistance should be sought after assessment, paticularly if you have any areas of concern.”
As well as building defects, important matters to consider are the functional layout of a home and how well it is endowed with natural light – and moreover its solar orientation.
“Functionality can depend on the era of construction. Older properties tend to concentrate many of the services at the rear and this can block living spaces from whatever rear yard there may be.
“Look for reasonable separation between sleeping areas and living areas with service rooms between them.
“Architects can advise on these factors and others as a means of explaining opportunities,” Peter Georgiev says.
The Archicentre Australia website – www.archicentreaustralia.com.au – contains information about what to look for during a property assessment – see the ‘Resources’ section as well as the ‘Working with your Architect’ document.
For more information go to www.archicentreaustralia.com.au
This media release has been written and distributed by:
Peter Georgiev, Director
Level 1, 9 Strathalbyn Street,
Kew East, VICTORIA, 3102
Phone: 1300 13 45 13 | 03 9859 9950