4 Things to Consider When Reviewing a Building & Pest Report in Newcastle

As Newcastle Buyers Agents, a big component of our process is to measure & assess the potential risks of purchasing a property. Obtaining a comprehensive building and pest inspection report is one key way to understand the structural risk you could be taking on, before purchasing. These reports provide valuable insights into the condition of the property and highlight potential issues that may need addressing.  

While nothing substitutes the written report and the property inspector’s verbal comments, we’ve found that there are four major risks, that if identified by the inspector, should be thoroughly investigated. The four key risks are the condition of the piers (if the property is built on piers), evidence of termite activity, leaking roofs or bathrooms, and rising damp. 

1. Condition of Piers 

The condition of a property's piers is a critical aspect that can significantly affect its structural integrity. Piers are the foundational support structures upon which the entire building stands. During a building inspection, the inspector will often comment on whether the piers are in sound condition and compare them to properties of a similar age. In Mayfield for instance, some original piers can be over 100 years old, so expecting them to be in perfect condition may not be realistic. It’s very common for some piers to have ‘dropped’ which can create undulation in the floor. This may not be a structural issue, instead a cosmetic concern. 

Replacing a pier can be cost-effective, depending on the access. The cost estimate will consider factors such as access (is there enough room under the house to easily utilise bulky equipment) and number of piers requiring replacement. 

2. Evidence of Termite Activity 

Newcastle's warm and humid climate makes it an attractive environment for termites. Termites can cause extensive damage to a property, often going unnoticed until it's too late. A thorough building and pest inspection will identify evidence of current or historical termite activity.  

If the activity is historical, its always smart to clarify what pest management activities the current owners have employed and how recent the latest treatment was completed. Managing a termite problem (not including replacing unsound structures) can be as little as $300 for an annual pest treatment. 

If the activity is current, this warrants further investigation. We strongly recommend our clients speak with the pest inspector and seek to understand how established the activity is. Exterminating and managing termite activity is not the issue, the cost is borne in identifying & rectifying the damage that has already been caused. 

Things your building & pest inspector will identify as a sign of termite activity: 

• Mud tunnels: Termites often build mud tunnels along walls and foundations. These are a clear sign of termite activity. 

• Wood damage: Check for any visible signs of wood damage, such as hollow-sounding timber or tiny holes in wooden structures. 

• Termite droppings: Termite droppings, often referred to as "frass," can accumulate near infested areas. 

3. Leaking Roofs, Bathrooms or Wet Areas 

Water damage can be an insidious cost, especially where leaks remain unidentified for a long period of time. Leaking roofs and bathrooms are common sources of water damage, so it's crucial that your inspector seeks to identify any issues in these areas during the inspection. 

Fixing roofs is not typically considered a strong ‘value-add’ expenditure on residential homes. In other words, spending $30,000 replacing the roof due to a leak is unlikely to add $30,000 worth of value to the home. That’s why identifying roof leaks is important upfront. 

Bathrooms & wet areas are waterproofed before any tiles & fixtures are laid. However a breach of the waterproofing membrane may cause a leak through the wall of a shower for instance. While there can be some short-term fixes, often fixing a leaking bathroom could involve starting from scratch. If the bathroom is relatively modern, renovating to fix a leak could again be a poor value-add return, so its best to understand this upfront and attempt to negotiate a more favourable purchase price. 

4. Rising Damp 

Rising damp occurs when moisture from the ground is drawn up through the walls or floors of a building. This is particularly common in houses built on piers, as water may naturally sit under the house. Consistently damp sub-floors can lead to structural problems and health concerns if left untreated. The building inspector will comment on things such as cross-ventilation (how much air flow the sub-floor is receiving to dry out damp areas), mould spots and drainage. Knowing that the risk of rising damp due to moist sub-floors is common in properties built on piers, its important to identify potential solutions and quantify their cost before considering a renegotiation or deciding not to purchase. 

Negotiating Tip: Understand & Quantify 

If you’ve already had an offer accepted before reviewing a building & pest report, its fundamentally important that you seek to understand any major problems raised and quantify the cost of a potential solution before going back to the negotiating table. We often procure quotes for remediating the issue or engage professionals to provide written cost estimates for potential solutions, which helps us have the hard conversation with the Agent & owner. This is far superior than requesting a price reduction without any concrete basis for the amount. 

In conclusion, when reviewing a building and pest report in Newcastle, it's essential to pay close attention to the condition of piers, evidence of termite activity, leaking roofs or bathrooms, and rising damp. These are key areas that can have a significant impact on the safety and value of your property. If any issues are identified during the inspection, it's strongly recommended that you speak with the inspector to fully understand the potential risks, and seek written cost estimates of potential solutions before attempting to renegotiate any further price reductions. By being diligent in your review, you can make informed decisions and enjoy peace of mind in your new Newcastle home. 

If assessing the risks when buying a property in Newcastle seems overwhelming, outsource it to us.