A question that often comes up from a potential home buyer is “do I need to get a building report done?”
In most cases, it’s not a requirement of the Bank. However, if they have concerns about the property (from seeing the online listing photos or other disclosures provided) they reserve the right to ask for one.
Regardless of whether the bank requires or not, it’s highly recommended that you get a building report when buying a house in New Zealand. It can help you make an informed decision about whether to buy the property or not and provide peace of mind.
When buying a new property, a purchaser can make their offer “conditional upon a satisfactory building report”. Usually, this condition lasts 15 days, and is there to protect the buyer from houses that are not up to building standards.
Depending on the size of the property, you can usually expect to pay between $400 and $900 for a building report. During the inspection, the builder will look for any defects or issues with the property, including cracks in walls or foundations, water damage, rot, and pests. They will also check for compliance with building codes and regulations.
Once this is completed, and the results of the report presented to you as the buyer. You can then make a call on whether or not to proceed with the sale. For example, in the event that the report uncovers some issues with the property, you could use this to renegotiate the purchase price, add conditions to the sale and purchase agreement, or in extreme cases, choose not to proceed with the purchase. And if it comes back clean, you can move into your new home with confidence and peace of mind.
So while it may seem like another annoying due diligence cost when buying a property, it could save you from major financial problems down the track so is totally worth it!