Jump to content

Building report and major structural damage...
Renegotiate the price for repairs?


  • Please log in to reply
17 replies to this topic

#1 paula1

Posted 20 November 2012 - 08:15 PM

I just had a building report done today for a property that i bought subject to building inspection.
It's come back as having major structural damage in one corner, it's been suggested that it will need underpinning.
I will be getting a proper quote very soon but it's been indicated that it would probably be under $10,000 as it's just one corner. Might even be closer to 5-6,000.
Obviously i'm going to try to renegotiate the price according to the quote.
If they won't then i'll walk away.

Has anyone ever done some major work after a building inspection recommendation?
I know many people will automatically just say walk away but i really love the house and area.

WDYT?

#2 Escapin

Posted 20 November 2012 - 08:21 PM

If you've already agreed a price then I'm not sure how you can just 'walk away'. That part of your post aside, we have done about $40k worth of structural work to our place. It's an 1890s terrace and we knew that we'd be up for a fair bit of work.

#3 paula1

Posted 20 November 2012 - 08:24 PM

It's subject to building inspection which was done today.
They noticed some major structural damage so that is my "out" if they don't renegotiate the price.
The building inspection was not satisfactory.

#4 LambChop

Posted 20 November 2012 - 08:24 PM

Course you can walk away, thats what 'subject to building inspection' means....

The last house I bought we fount guttering and restumping to the tune of $14k, we renegotiated to pay half each with the vendor.

#5 Escapin

Posted 20 November 2012 - 08:28 PM

Oh sorry, didn't read your OP properly!! In that case, to tell you what we did - the building report said $50k worth of work so we just offered what they wanted minus $50k. There was quite a bit of squealing from them but they agreed in the end. wink.gif

#6 cinderellainsydney

Posted 20 November 2012 - 08:30 PM

It may turn out that the building has other issues down the track. It will be worthwhile to get a few opinions.

Ive known of one contractor who writes a report and underestimates work-scope on purpose to get the job, and during the work, they can call you over and say: you can see X is now a new problem. We didn't pick up on it earlier because of Y. If you don't fix it now, it will become a nightmare, and the cost is $zz,zzz. In some cases, it will be a genuine oversight. In some cases, the new problem is caused by the renovation work itself. Either way, it can end up being only the beginning....

#7 paula1

Posted 20 November 2012 - 08:30 PM

Lambchop, I couldn't afford the hosue if she would only pay half of it. It MAY only cost 5-6,000 and if it does i'm going to ask for that much to be reduced.


#8 Fanny McPhail

Posted 20 November 2012 - 08:38 PM

The estimate may only come in at $5-6000 but I would add a contingency of at least 10% for "unknowns" especially when dealing with foundations...actually i would always add for contingencies because I work in the building industry and am married to a quantity surveyor

You don't have to tell them the actual cost and you may want to pad it a little so that you have some negiotation room. I'm not saying rip them off but make sure you are covered.

I would also get a couple of builders around to look at it and if you have a mate who is a builder get them to look at it too.

Good luck and I hope you don't have to walk away but i'm glad to see you are prepared to.

#9 bluedragon

Posted 20 November 2012 - 08:38 PM

We recently walked away from a house because of a building report. We had an offer accepted and it was subject to a building and pest inspection which found a major structural defect. In our case there were other issues and the total estimated amount to rectify was $40-45k.

When we were deciding what to do our options were explained as:
1. Walk away
2. Renegotiate the price
3. Ask for the issues to be repaired before settlement at the vendors cost.
4. A combination of 2 and 3 if only getting them to repair the major defect for example.

If you renegotiate the price you an leave the settlement price as is and the vendor can reimburse you the difference just after settlement or you can redo the contract to reflect the new price agreed.



#10 paula1

Posted 20 November 2012 - 09:01 PM

Bluedragon why did you walk away? Was it the cost?
Were the owners open to lowering the price or fixing the issues?



#11 emnut

Posted 20 November 2012 - 09:08 PM

with finances tight enough that you can only afford the house if the price is lowered to make the repairs I would be walking away.  From experience, the type of repairs you are talking of nearly always lead to further repairs being needed - such as replastering leading to repainting, flooring also ending up damaged from the repair etc.  You also don't know what impact the movement from the work will have on the rest of the house.  It will likely end up being a lot more costly than just what has been suggested to rectify the initial issue.

#12 tel2

Posted 20 November 2012 - 09:23 PM

Around 6 years ago DH & I bought a run down house on a decent lot in a half decent suburb for an excellent price. We knew it was run down and was planning to renovate it. We got the builders report back and the repairs that needed to be done to the home were close to 80K !!!! Way and truely past pur budget  sad.gif

My brother is a tradie and he told me you guys bought a lemon of a house  sad.gif He said the best thing for you to do is to live in the house and pay off your mortgage in the next few years (our mortage was really small) then knock the house down and build a new home on the old lot....and that's basically what we did.

Lots of tears and stress initially....but now we couldn't be happier  original.gif

#13 bluedragon

Posted 20 November 2012 - 09:24 PM

QUOTE (paula1 @ 20/11/2012, 10:01 PM) <{POST_SNAPBACK}>
Bluedragon why did you walk away? Was it the cost?
Were the owners open to lowering the price or fixing the issues?


In the end we decided not to even try negotiation. The most expensive part of the problems was to do with aluminium cladding over weatherboards and there was no way of telling until it was all stripped off how bad the rotting would be. My FIL is a painter and he said he's never seen a house with cladding not have major issues and the thought of the unknown was too much for us.

The agent did try to convince us to ask the vendors to fix the structural defect which was not quite as expensive to fix so I'm assuming they would have negotiated on that.

In the end it was just all too stressful, it wasn't a forever house we were madly in love with (about a 5 year house we were estimating), we weren't in a major rush to find something. Our plan was it was a smallish place that would do while DS was little and a potential second child was little too that we could pay well over the normal repayments to build up as much equity ASAP. We were concerned all the extra money we would need to pay out would offset trying to pay off extra. Not to mention the hassle of having to do major work.

So I gues the short answer is, yes, it was the money.

If it had just been to structural defect then we would have negotiated, it was going to cost around 7k to fix.

#14 The Old Feral

Posted 20 November 2012 - 09:25 PM

QUOTE (emnut @ 20/11/2012, 10:08 PM) <{POST_SNAPBACK}>
with finances tight enough that you can only afford the house if the price is lowered to make the repairs I would be walking away.  From experience, the type of repairs you are talking of nearly always lead to further repairs being needed - such as replastering leading to repainting, flooring also ending up damaged from the repair etc.  You also don't know what impact the movement from the work will have on the rest of the house.  It will likely end up being a lot more costly than just what has been suggested to rectify the initial issue.


Yes! Underpinning causes a lot of movement and usually leads to replastering, retiling, repainting, gap filling, rehanging doors....on and on it goes.

If you are not confident doing much of that repair work yourself and the budget is very tight, I'd be suggesting this is not the house for you. Sorry sad.gif

#15 libbylu

Posted 20 November 2012 - 09:36 PM

If you buy an older house you can almost expect there will need to be some structural work.  We didn't need a building inspection to see our house would need re-blocking at some point.....the floor is all over the place.  But that's what happens when it's 80+ years old.  We have lived with it but will need to re-do it eventually when we do a bigger reno.


#16 ~*hiptobesquare~*

Posted 20 November 2012 - 10:11 PM

When selling our house a few years ago the Building Inspection showed Major structural damage. Something in the range of $70,000 + for repairs.

Considering we purchased the property 2 years before and nothing of the sort came up when we got a building inspection done. We decided to get a second opinion from a Structural Engineer who came out inspected the property throughly and did a report up for us.


Luckily for us the Structural Engineer could not find any indication what so ever on Major Structural damage. And had a 13 page report to back up his findings.

It was well worth the $1,200 to pay a proper professional to come and inspect the property for us, who did not work for the Real Estate agency.

#17 paula1

Posted 20 November 2012 - 10:30 PM

I just received the formal report.

There are galvanised pipes, dirty gutters, some broken roof tiles, rotting floor in outdoor room (not sure what you'd call it), drainage issues, and the movement issue.

I think I'll keep looking! What a nightmare!

#18 bluedragon

Posted 20 November 2012 - 10:48 PM

Our structural issues were caused by drainage issues. Once the drainage issues were fixed the inspector said there shouldn't be any more issues but couldn't be 100% about it.

Again the worry of the unknown of what decades of damp soil under the house etc. might have done was too much for me.

Just beware of the agent when you withdraw from the contract. The one selling the house we withdrew from turned very nasty and threatening as soon as he worked out he couldn't convince us to negotiate. Just do everything through your solicitor/conveyancer. I had to stop taking his calls after the first two.

EFS

Edited by bluedragon, 20 November 2012 - 10:50 PM.





1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

 

What you need to know about ovulation tests

Most people who are trying to get pregnant know that the best time to conceive is in the few days after ovulation.

Surviving a miscarriage at sea

A cruise with your family is among the most absurd settings for a miscarriage, but it is certainly not the worst.

Mum of three denied tubal ligation because she's 'too young'

A 22-year-old woman who is pregnant with her third child has had her requests for a tubal ligation denied because doctors believe she is too young.

Slapped cheek syndrome a danger for pregnant women

When a pregnant woman is infected, the likelihood that her foetus will be infected is about 50 per cent.

The signs and symptoms of ovulation

If you're hoping to conceive, one of the most important things you need to know about is ovulation.

We all know 'mum guilt' - but what about 'dad guilt'?

I remember the first time I felt mum guilt, within days of having my first child. The feeling was so intense I rang my own mum to debrief, hoping she'd tell me I wouldn't feel this way very often.

Kristen Bell urges mums to be their own superhero

When it comes to motherhood, actress Kristen Bell is her own superhero and she thinks other mums should be too.

Pram review: GB Pockit travel stroller

In a world of ever-shrinking gadgets, it's no surprise prams are getting smaller. We put the record-holding GB Pockit through its paces.

The beautiful Bombol Bouncer is back

The gorgeous Bombol Bouncer is back - and boasts two chic new colours to boot.

Gadgets and accessories for wine lovers

Looking for a gift for the wine lover in your life - or just something for yourself?

Free ticket offer

Pinky Mckay joins us again at the Essential Baby & Toddler Show presented by Blackmores with her expert baby settling advice. Register now for your free ticket.

The adventure doesn't have to stop: here's how to travel with baby

The best part about our outdoor adventures? It makes my husband and I better parents, since we're happier while adventuring.

Woman crashes car to save mum and baby's life

A good samaritan saved a mother and baby from being seriously injured by crashing her own car into theirs.

Should you tell your boss about your postnatal depression?

Returning to work after having a baby can be daunting, and when you're experiencing postnatal depression or anxiety it can seem even more overwhelming.

TV noise can slow toddler word learning, study finds

Background noise from the radio or TV might be making it harder for your toddler to learn learn new words.

Teresa Palmer on her molar pregnancy and 'unsexy' conception

Teresa Palmer is basking in pregnancy glow as she awaits the arrival of her new baby.

 
Advertisement
 

Top 5 Articles

Advertisement
 
 
 

What's hot on EB

Why drinking water can be deadly for babies

H2O is one of the necessities of life, but for babies a seemingly harmless amount of water can be fatal.

5 ways having a baby is different when you have older children

So much parenting advice is geared towards having your first baby, but what's it like having a baby when you already have children?

You can now make your own plush Falkor

Fans of The NeverEnding Story – of which there are certainly plenty – went crazy for these plush Falkors when they first went on sale last year.

Baby steps

10 things that will actually happen after having a baby

I thought I had prepared myself for motherhood. Then my baby girl arrived and knocked everything flat.

Having a baby: expectations vs reality

People love to warn you about what to expect when having a baby, but they can be way off when it comes to the reality.

Are we having fun yet? Thinking positively as a parent

Motherhood is wonderful ... except when it sucks.

The adorable smile of a baby seeing his mum clearly for the first time

There is no doubt seeing their child smile for the first time is an unforgettable moment for parents everywhere.

When breastfeeding doesn't go with the flow

Breast is best, except when it's not. And in our case, it most definitely wasn't.

'If you don't vaccinate your kids you're a bloody idiot'

The photos are heartbreaking and almost too difficult to look at, but Kayley Burke is begging other parents to take notice.

Why pregnant women should eat chocolate

In news that will make expectant mums jump for joy - and reach for a block of Cadbury - scientists have revealed chocolate could provide health benefits during pregnancy.

The baby born with an incredible head of hair

If you're in any way challenged in the follicle department, prepare to feel a jolt of envy - at a two-month-old baby.

The push for Medicare to fund lactation consultants

While meeting with a lactation consultant can make an enormous difference to a new mother, it's not a service that is available through the public health system.

Parents, this is how to cut grapes to avoid choking

One mum has learnt a harrowing lesson about the best way to cut grapes to make it safe for toddlers and little kids to eat.

Three truths about C-section mums

Lately I've been thinking about the caesarean stories and the brave women who birth their children with strength and beauty.

Help! My baby will only sleep in my arms

It's stressful to be the one who is holding your baby most of the day, but it's even more stressful to wonder, 'am I doing something wrong? Or am I creating bad habits?'

 

ENTER NOW

Essential Baby & Toddler Show - Sydney

The Essential Baby & Toddler Show, presented by Blackmores, will be held in Sydney on 23-25 September. Register for your free ticket now to save $20!

 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.