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

 

Share the little things that make you smile

We're giving away a Mountain Buggy nano, the ultimate travel stroller - and here are some of the great entries so far.

Toddler pleads for return of "stolen" nose

A two-year-old's reaction to a game of "got your nose" shows it doesn't take much to make a toddler cry.

The 15 photos new parents share (and five they don't)

From the first scan photo to the baby covered in cake at their first birthday party, there are 15 photos most parents seem to share - and some they don't.

Doctor sings first Happy Birthday to newborns

His job is to deliver babies, but this US obstetrician also has a unique way of celebrating the miracle of life.

Breastfeeding friendly café goes viral

A photo of a breastfeeding-friendly sign in a cafe has been posted to Facebook and shared by hundreds of mums around the world.

First look at the Bugaboo Bee3

The newest Bugaboo Bee ? the Bee3 ? offers a variety of improved features, including a much asked-for bassinet and a rainbow of colour combinations.

Childcare costs, not paid leave, the real issue for parents

Given the choice between maintaining their wage for six months to have a child, or having a reduced rate of pay for a time but a better deal on childcare when returning to work, there are no odds on what most working parents would choose.

Win a Mountain Buggy nano

We?re giving away the new Mountain Buggy Nano - the lightweight travel buggy! So show us the little things that make you smile for your chance to win.

We lost three babies in two years

Our first pregnancy ended the way we all expected it to - with a healthy, happy baby in our arms. What a true blessing he was, for we were not to know the heartache we were about endure.

Family turned back from doomed flight MH17

'There must have been someone watching over us and saying, 'You must not get on that flight,' says mother who narrowly avoided boarding the Malaysian Airlines flight which exploded in mid-air over the Ukraine last night.

The myths and facts about "normal" breastfeeding

When it comes to successful breastfeeding, there is a wide variety to what is "normal", according to new research.

Adorable Skeanie loafers for kids

Your little toddler or preschooler can now get their nautical on with a new range of classic loafers by Australian show brand Skeanie.

My baby is hypermobile

For months, I have been telling myself not to worry that Jasmin isn't crawling or walking. This week I heard the term hypermobile for the first time.

When you don?t bond with your baby

They say that there is no bond greater than the bond between a mother and her child. But for some women, the mother-baby bond takes more time and effort to develop.

Yumi Stynes: Having a baby after a 10-year break

After a long break, Yumi Stynes gets a reminder of the pain - and the pleasure - of giving birth.

Grieving father asks for help to Photoshop his daughter's image

When Nathan Steffel's daughter Sophia died from a liver condition at just 6 weeks old, he reached out for someone to create a beautiful image of his little girl.

Raising kids in a 'low media' home

Can you imagine a life without TV or computers? Some parents are opting for a low-tech, screen-free life for their kids.

Download now: Essential Kids Activity Finder app

Got bored kids? Quickly find the best activities for kids wherever you are in Australia with the Essential Kids app.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Win a Mountain Buggy nano

We?re giving away the new Mountain Buggy Nano - the lightweight travel buggy! So show us the little things that make you smile for your chance to win.

Be careful what you say, your baby is listening

The importance of speaking to your baby even if they are not old enough to answer back has been highlighted by new research.

The beautiful moment a baby was born at the side of a road

It's not where she expected to give birth, but mum Corrine Cinatl is delighted that her daughter's roadside arrival was captured in a series of beautiful photos.

Doctor sings first Happy Birthday to newborns

His job is to deliver babies, but this US obstetrician also has a unique way of celebrating the miracle of life.

The Nappy Collective starts new drive

It's that time of year when the dedicated volunteers at The Nappy Collective do their bit to help out mums and children in need - and they need your help.

Baby shower cake wrecks

From misshapen cake babies to questionable text, from odd colour choices to internal organ recreation, these are the baby shower cakes that taste forgot.

Photographer captures the beauty of adoption

The love of a family is usually tough to capture on camera. This is an exception.

Pregnancy progression photo ideas

Want to record your pregnancy as your belly grows? Here are some creative, fun ideas for photo shoots along the way.

The myths and facts about "normal" breastfeeding

When it comes to successful breastfeeding, there is a wide variety to what is "normal", according to new research.

Tin can craft and DIY ideas

Got a few old formula, Milo or coffee cans around the house? Use these fantastic upcycling ideas to create items for around the house and yard.

Dads meet their newborn for the first time

Emotional photos of two fathers meeting their newborn son have resonated with viewers worldwide, attracting thousands of Facebook likes and shares.

Skin safety isn't just a summer worry

Lax about the slip slop slap with your kids as weather turns cooler? Here's a reminder as to why we have to remain vigilant for our children?s future health.

Personalised baby gifts

We've scoured the internet to find gorgeous personalised keepsakes and nursery decor to record baby name and dates. They make great gifts for christenings, name days and birthdays! (All prices in AU.)

Creative sleeping baby photoshoots

See how some parents and photographers have captured sleeping babies in unusual positions and using different props.

DIY kitchen and food hacks

DIY your way to a better kitchen and make cooking easier with our clever hacks. (Some content reproduced with permission from mashable.com.)

Winter warmers for babies and toddlers

Your baby or toddler will be nice and snug in these beautiful and fun winter pieces. Most are hand-made or knitted, and they're all designed to keep your little one toastie - and adorable!

 

Mind, body, beauty, life

Making time for me

We look at your wellbeing, covering health, relationships, beauty and fashion, mind and body.

 
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.