Everything You Need to Know About Property Inspections

Why Property Inspections Matter for First Home Buyers

Buying your first home is one of the most significant financial decisions you'll ever make. While sorting out your first home loan application and understanding your home loan options is crucial, ensuring the property itself is sound is equally important. A thorough property inspection can save you thousands of dollars in unexpected repairs and give you peace of mind about your investment.

For first home buyers in Vermont South, where properties range from classic family homes to modern townhouses, knowing what to look for during an inspection is essential. This knowledge helps you make informed decisions and potentially negotiate a better price based on any issues you discover.

Preparing Your First Home Buyer Checklist

Before you even step foot in a property, make sure you've got your finances sorted. Understanding your first home buyer eligibility, exploring first home buyer grants, and securing pre-approval for your first home loan will put you in a strong position. This preparation shows sellers you're serious and helps you move quickly when you find the right property.

Your first home buyer budget should also account for inspection costs. While building inspections typically range from $400 to $600, they're a worthwhile investment that could save you from purchasing a property with major structural issues.

What to Look for During Your First Walk-Through

When you first visit a property, come prepared with a notepad or your phone to take notes and photos. Here's what to examine:

Structural Elements:

• Check for cracks in walls, ceilings, and foundations
• Look at the condition of the roof from ground level
• Examine the floors for uneven surfaces or soft spots
• Inspect door frames and windows for proper alignment

Water Damage Signs:

• Stains on ceilings or walls
• Musty odours that might indicate mould
• Dampness in bathrooms, kitchens, or laundry areas
• Check under sinks and around plumbing fixtures

External Areas:

• Inspect gutters and downpipes for damage or blockages
• Check the condition of fences and retaining walls
• Look at driveways and pathways for significant cracks
• Assess drainage around the property

Understanding Building and Pest Inspections

While your own observations are valuable, professional building and pest inspections are non-negotiable for first home buyers. These qualified inspectors have the training and equipment to identify issues you might miss.

A building inspection examines the structural integrity of the property, including the foundation, walls, roof, plumbing, and electrical systems. The inspector will provide a detailed report highlighting any defects or safety concerns.

Pest inspections focus on identifying termites and other wood-destroying insects that can cause significant damage. In areas around Vermont South, termite activity is a genuine concern, making this inspection particularly important.

Making the Most of Your Inspection Period

When you make an offer on a property, include a building and pest inspection clause. This clause gives you a specified period (usually 7-14 days) to conduct inspections and review the reports before the contract becomes unconditional.

During this time:

1. Book your inspections promptly
2. Attend the inspections if possible to ask questions
3. Review the reports carefully with your mortgage broker
4. Obtain quotes for any necessary repairs
5. Decide whether to proceed, renegotiate, or withdraw your offer

Questions to Ask During Inspections

Don't be shy about asking questions during your property visits or professional inspections. Here are some important ones:

• How old is the property, and when were major systems (roof, hot water, etc.) last replaced?
• Have there been any renovations or additions? Were permits obtained?
• Are there any known issues with water drainage or flooding?
• What type of insulation does the property have?
• When was the property last treated for pests?

Red Flags That Should Concern You

Some issues are minor and cosmetic, while others are serious deal-breakers. Major concerns include:

• Significant structural cracks or foundation problems
• Active termite infestations
• Evidence of serious water damage or poor drainage
• Illegal building work or unpermitted renovations
• Outdated or unsafe electrical wiring
• Asbestos in poor condition

If your inspection reveals major problems, discuss your options with your mortgage broker. Sometimes the costs of repairs can affect your borrowing capacity or make the property unviable even with low deposit options like a 5% deposit or 10% deposit through the First Home Loan Deposit Scheme.

Considering the Neighbourhood and Location

Property inspections aren't just about the building itself. Take time to inspect the neighbourhood at different times of day. Visit on weekdays and weekends to get a feel for traffic patterns, noise levels, and the general atmosphere.

Check the proximity to amenities like schools, shops, public transport, and parks. These factors affect not just your lifestyle but also the property's future resale value.

Making Your Decision After Inspections

Once you've received your inspection reports, take time to consider all the information. Calculate the costs of any necessary repairs and factor these into your first home buyer budget. Remember to account for both immediate repairs and potential future maintenance.

If the inspection reveals issues, you have several options:

• Proceed with the purchase as planned
• Negotiate a lower price to account for repair costs
• Request the vendor complete specific repairs before settlement
• Withdraw your offer if problems are too significant

Your mortgage broker can help you understand how repair costs might impact your home loan application or affect your access to first home buyer stamp duty concessions and other benefits like first home owner grants (FHOG).

Understanding Your Finance Options

While you're focused on inspections, keep your home loan options in mind. Whether you're considering a fixed interest rate for certainty or a variable interest rate for flexibility, understanding products with features like an offset account or redraw facility can help you manage your mortgage more effectively.

If you're using the Regional First Home Buyer Guarantee or accessing the first home super saver scheme, ensure any repairs needed won't exceed your approved loan amount. Your broker can help you explore interest rate discounts and determine if Lenders Mortgage Insurance (LMI) applies to your situation, particularly if you're using a gift deposit or low deposit options.

Property inspections are your opportunity to truly understand what you're buying before you commit. Taking the time to thoroughly inspect properties and engage professionals gives you confidence in your purchase decision and helps you avoid costly surprises after settlement.

If you're ready to apply for a home loan or want to discuss your first home loan application, the team at Mobile Mortgage Solutions is here to help. Call one of our team or book an appointment at a time that works for you.