Home Inspection News – Issue 32

Congratulations to Aaron McDonald from Hamilton for achieving the prestigious Gold international award for inspections!

There is little doubt now that Auckland house prices are on the rise and joining the vast majority of regions in New Zealand. Yet another new record high for the national median price of $630,000 up 8.6% from $580,000 in November 2018.

Ten of the regions set new record highs. Manawatu / Wanganui equalled its record high. Only two regions – Northland and Tasman saw falls in median price compared to November 2018. All 4 major cities show median price increases for the last 12 months. Dunedin 14.4%, Christchurch 5.2%, Wellington 12.1% and Auckland 2.9%.

Auckland has had price increases now for 3 months in a row. Prices increased by 2.5% in the last month. Apart from increased confidence in the property market without capital gains tax and low interest rates, it is the shortage of houses for sale that is driving the increases.

The number of properties for sale nationally was down by 19.4% compared to November 2018. The days to sell fell by 2 days to 33 days nationally and by 2 days to 35 days in Auckland compared to 12 months ago.

Vendor Pre-Sale Inspections 

When selling a dwelling it is very prudent to get a pre-sale building report before the property goes to market. Most sellers say it is up to the buyer to obtain and pay for a home inspection.

There are however big advantages to the seller in getting a pre-sale inspection. A pre-inspected property helps to facilitate a faster sale for more money.

More buyers are likely to look at a property if there is a pre-inspected builders report which provides the purchaser with an unbiased third party opinion. A pre-sale inspection helps to eliminate agreements falling through.

The buyer know what they are buying and it gives them confidence to make an offer.

The vendor having their property pre-inspected is made aware of any existing issues, given time to correct and attend to maintenance. It protects the vendor from inflated buyer estimates for any repair work needed.

From a sales agents point of view it is an advantage not to have to try to re-negotiate the selling price when a purchaser obtains a building inspection and wants to lower the already agreed price to compensate for the items reported as needing attention.

The purchaser sees it as an advantage too as they don’t have to pay for a home inspection. A Buyer’s Choice Home Inspections Pre-Inspected report conducted for the vendor can be transferred to the buyer. They will be covered by extensive professional indemnity insurance.

Beware many inspection companies stipulate the report is only valid and insured for the person who obtained the report – the vendor.

Transferring the report to anyone else means no insurance cover. A Buyer’s Choice Home Inspections reports are transferrable and the buyer is covered by our insurance.