Take a Look

• Make notes,

• Review the Vendor's Statement and Contract of Sale,

• Perform a Do-It-Yourself inspection, or

• Arrange a professional inspection.

 Make notes

Because you are likely to see many properties, it is a good idea to record your impressions of each house you visit. This will help you to compare houses easily and assist your recollection of property features.

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Review the Vendor's Statement and Contract of Sale

The vendor is the person offering their property for sale. By law the vendor is required to make a declaration which identifies pertinent facts that consumers should be aware of when looking to buy the vendor's property.

This declaration is applicable in all states of Australia. In Victoria it is called the Vendor's Statement (or Section 32).

The declaration must be made available for you to read over upon request from the vendor's real estate agent. It should contain:

• A copy of the title, showing the boundary measurements of the land, location from the nearest street and any easements or convenants registered on the title.

• Planning information, defining what the land can be used/developed for (e.g. residential or commercial purposes)

• Details of any existing mortgage on the property, in case you agree to take that mortgage over.

• Outgoings, e.g. Council rates, water rates, body corporate contributions.

• Building restrictions.

• Building permits for any building or renovation work carried out in the past seven years. This work will be covered under the Housing Guarantee Fund. Therefore, beware of structural alterations made to a house without a building approval.

• Any other agreements which the vendor has entered into with others in relation to the property (e.g. regarding fencing or building over easements).

It is in both the vendor's and the real estate agent's best interests to provide correct and sufficient information in this statement. If they do not, a purchaser may be able to get out of a contract or sue the vendor.

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 Perform a Do-It-Yourself inspection

It is difficult to imagine buying a car without checking the motor and taking it for a test drive. Unfortunately many people do just this when buying a house, which costs so much more!

It is imperative that you properly inspect any house you intend to purchase so that you know the exact condition of the property. This way you will not be surprised by costly repairs found to be necessary after you take possession.

Read over the following lists to find out some of the aspects you should consider when inspecting a property.

INSIDE THE HOUSE

• Check that all the floors are level and that there are not gaps between the floor and skirting boards.

• Jump lightly on wood floorboards to assess their stability.

• Look for signs of rising damp, including rotting carpet, mould on the walls or ceiling and musty odours.

• Check the walls and ceiling for warping and cracks. Fresh paint or wallpaper may be hiding problem areas.

• Assess whether doors and windows are square. Jamming may indicate structural subsidence.

• Make sure all light switches work. Also check each power point by using a power point tester (these are relatively inexpensive and can be purchased from hardware and electrical stores).

• Test the water pressure in both hot and cold taps. Ideally, turn on several taps simultaneously.

• Partially fill the bath or sink and observe the drainage of this water. Sluggish flow could indicate damaged or blocked sewer drains.

OUTSIDE THE HOUSE

• Inspect fences and gates for stability and rot.

• Are there any large trees near the house? The root systems of trees can cause structural subsidence if they are close to the home.

• Check that the land's water runoff drains away from the house.

• Inspect all outside walls. Are they straight, cracked or rotten?

• The condition of the mortar between the bricks must also be assessed.

• Make sure there is adequate sub-floor ventilation.

• Check the condition of the eaves. Water staining may be an indication of damaged gutters.

• Look at the line of the roof to make sure it is straight. Are there any broken tiles?

• Check the stumps for subsidence, rot, borer or termite attack.

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If you feel you do not have the practical and technical knowledge required to perform an inspection yourself, engage a professional inspector. An inspection costs little relative to what you stand to save.

Professional inspectors will examine every accessible part of the home, including the roof space and sub-floor. They will check for poor structure, leaking roofing and guttering, subsiding footings, faulty wiring and plumbing, dampness, rot and many other faults. Comprehensive inspections will take 2 to 4 hours.

Inspections are not designed to disclose cosmetic deficiencies (e.g. paint chipping in the kitchen). You will need to decide for yourself whether these types of items need attention.

You should be provided a written Inspection Report following the inspection. This will inform you of any property faults, how bad these are and give you a guide to probable repair costs. Inspectors may also be able to give you qualified advice on any home improvement ideas you may have.

Armed with this information you can decide whether you wish to purchase the property. And if you do decide to make an offer on the property, you will be in a far better position to negotiate.

Building inspectors can be found by:

• Asking for referrals from your local Master Builder's Association, Housing Industry Association, Architects' Advisory Service or Institute of Building Consultants,

• Looking in the Yellow Pages telephone directory under Building Inspections and Building Consultants,

• Asking solicitors for names of recognised experts they normally use, and

• Asking friends to refer you to professional inspectors who have performed acceptable inspections for them.

Inspectors should be able to complete inspections within a day or two of you making the booking. If you cannot afford this time, you may still be able to make an offer to buy if you make it clear in the contract that your offer is made on the condition that a whole house inspection results in a satisfactory report.

The next step is to negotiate a deal for your dream home.

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