Buying a home is considered one of the most stressful experiences you may experience during your lifetime. The sleepless nights, last-minute scares, and stresses about finances all lead to an intense experience. In South Australia, we are lucky enough to have two common ways of buying a house – Private Treaty, and Auction. In this article, we will compare the key differences between the two methods of sale, explore how the Building Inspection Report fits into the sales process, and finally wrap up with a short discussion on the detail of what a regular building inspection report includes.
What is the difference between a Private Treaty Sale and Auction?
Private Treaty means a private sale where you make an offer, if the seller is amenable to said offer, they will accept it, and you will start to finalise contracts, perform inspections, and arrange funding. It is not unheard of for these trials and tribulations to carry on for weeks. Luckily, for those who want to get it over with quickly, there is another method – Auction!
This method of property sale has the advantage of being quite quick. Although the disappointment can be hard if you lose after setting your heart on a particular property. In both methods, most of the same steps apply, just in a different order and speed.
The following Gantt charts summarise the typical steps and durations for both a Private Treaty Sale and an Auction:
Sale by Private Treaty
Typical Steps for Sale by Private Treaty
Week 2 and 3
Week 10 to 13
Sale by Auction
Typical Steps for Sale by Auction
Go to Auction. The biggest difference from a private treaty – you must sign the contract and pay the 10% deposit immediately. No “Subject to..” clauses or get-outs.
Week 5 to 8
We can see that the Auction process takes around 2/3 of the duration that a Private Treaty Sale will take. Note – figures used above are typical times for the standard method to be followed. In real life, there are likely to be twists and turns that delay things further.
The process and rules of bidding at Auction give us the most crucial reason for commissioning a building inspection before auction day. Access will typically not be provided again until after settlement is complete and the home is yours. If you decide not to commission the Building Inspection Report up-front before the Auction, you are taking a significant gamble. You may be purchasing a house that has significant issues.
What Is a Building Inspection Report?
We have made plenty of mention of a Building Inspection Report, but what exactly is it?
Australian Standard AS4349.1 – 2007 – “Inspection of buildings. Part 1: Pre-purchase inspections – Residential buildings” defines the requirements for a Pre-Purchase Building Inspection Report. This standard sets out three core deliverables/tasks that make up the building inspection:
- The Report – this will highlight the following items (AS4349.1 – 2007 2.3.5):
- Major defects
- A general impression regarding the extent of minor defects.
- Any major defect that is an urgent and serious safety hazard.
It is also essential to check on the property from a pest control perspective. We work in conjunction with Adelaide Pest Control, one of Adelaide’s biggest pest control companies. You can be sure that you are getting the very best advice on buying your next home,termite, and pest free.
What Will Be Checked by The Building Inspectors?
Why is a Building Inspection Important?
We are lucky to have two methods of property purchase available to us in South Australia. Like personalities, some people like a quiet, measured process when buying a house, while others love the atmosphere and adrenaline rush of the Auction. Whichever method of purchase you choose for your next home, ensure you commission a Building Inspection Report. It will make the auction experience that little less stressful and allow you to bid safe in the knowledge the home is in the condition you expect it to be. Remember unlike a Sale by Private Treaty, you cannot have a “Subject to Building Inspection” clause in the Auction contract. It is therefore essential to perform a Pre-Sale Building Inspection before Auction day for all the houses you plan to bid on.
Contact us today to arrange your pre-auction building inspection. Our experienced team of inspectors is here to protect your interests and ensure your exciting new home is all the auction guide describes it to be.
Please feel free to contact us and get a quote now.