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

 

Five ways my second pregnancy is second best

As I roll into the second half of "Pregnancy: The Sequel", here is breakdown of the differences I have found thus far.

Domestic politics

Why I felt guilty about having a cleaner

Coming home to a clean house was a pleasure – and yet, I felt uneasy.

'Ugly' hearing aid ad leaves parents fuming

When Alecia Donoghue found out her baby would need hearing aids she worried about him becoming the target for schoolyard bullies.

Have you seen these missing children?

The Australian Federal Police has released the following information to locate some of Australia's missing children through the Family Law Court.

Margarita time

Keira Knightley welcomes first child

British actress Keira Knightley has become a first-time mother.

IVF patients in the dark over which clinics are least successful

Couples with fertility problems have little way of knowing which IVF clinics are the best performers despite significant differences between clinic success rates.

Couple forced to defend their decision to become parents

They met, fell in love and got married. Then, just like couples everywhere, Simon and Vicky Moore decided it was time to have a baby.

The one parenting tip that made all the difference

Amongst the useless, ill-informed advice we're given as new parents, many of us also receive nuggets of wisdom that make our lives just that little bit easier.

Five lies you tell yourself when you're pregnant

You can see it all now: glowing mumma with her gorgeous babe ... you know exactly what you're going to be like. Or perhaps you know exactly what you're not going to be like.

Family expecting fourth set of twins

A couple is expecting their fourth set of twins in five years.

The day my daughter almost drowned

We had six adults standing there, so I felt like I could relax a bit. After all, what could go wrong with so much supervision?

Sydney siege survivor names baby after victim Katrina Dawson

A Sydney barrister who survived the Lindt cafe siege has named her newborn daughter after her best friend who died in the tragedy.

The universal working mother experience

These days mothers need more than just traditional career advice.

Obama feels full force of toddler tantrum

Shopping centres, restaurants, the White House ... the list of places toddlers like to throw tantrums is endless.

Banishing bloat

How to avoid a bloated tummy

Here are some foods to eat in order to escape feeling ghastly and gassy.

The great new picture book for anxious kids

My son is a worrier by nature. I learnt long ago that it was completely pointless to say to him "Don't worry about it!".

Budget stripped more than $15b from families

The combined impact of the two budgets for low and middle income people was "devastating", new analysis by the Australian Council of Social Service shows.

Pregnant women urged to get flu shots

As the winter chill starts to arrive, NSW Health is urging pregnant women to get their flu shots.

65-year-old gives birth to quadruplets

A 65-year-old German woman, who already has 13 children, has given birth to quadruplets.

What you need to know about pregnancy and health insurance

It's not just waiting periods that couples need to consider - there are other factors to consider when thinking about health insurance.

Yummy mummy

Nicole Trunfio breastfeeds baby on Elle magazine cover

Australian model Nicole Trunfio has taken the concept of multitasking to a fashionable new level for Elle Australia.

Warnings after baby girl died while sleeping in bouncer

Parents have been warned about the dangers of letting babies sleep in bouncers and swings following the death of a three-month-old girl.

Coping with fatigue as a parent

Sleep deprivation is a real hazard of caring for a baby. But there are ways to manage the challenges of fatigue better.

A very 21st century issue: parents, parks and smart phones

It's not all the parents, and it's not all the time, but there is often at least one doing it. And sometimes, that 'one' is me.

Appliances

Faulty washing machines linked to house fires

More than 80,000 faulty Samsung washing machines pose a fire threat in homes throughout Australia despite a nationwide recall of the machines.

7 things you might not know about postnatal depression

Despite its widespread nature, there is still a great amount of mystery surrounding PND - and it's important to try unravelling as much of that as we can.

Seven questions you should be asking about your health cover

If the last time you assessed your health cover was five years ago, there?s a chance it may no longer suit your needs. To ensure it?s still right for your family, click here for seven questions to ask.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

How to use gas effectively in labour

Many women in labour don't use gas effectively and suffer more side effects than benefits. Here's how to get the most out of this pain relief option.

'He has gastro but that's okay, right?': sick kid etiquette

We cannot place all children who are sick in a bubble till they recover, but we can give other parents a choice about exposing their kids to them.

Welcome to Winter

Now that the colder months are here, Essential Baby as all the information you need for staying healthy and happy during the chilly season.

Ada Nicodemou: 'I can never be completely happy again'

Home and Away actress Ada Nicodemou has opened up about the loss of her stillborn baby.

10 things to consider when you're thinking about trying for a baby

Before you start tracking your menstrual cycle and reading up on the best positions to get pregnant, there are a few other things you may want to consider.

How special surgery and IVF can create a post-vasectomy baby

Cricket legend Glenn McGrath and his second wife Sara are expecting their first child together, thanks to IVF and a delicate surgical sperm retrieval process that helped the couple to conceive.

Belle Gibson's mother 'disgusted and embarrassed'

The mother of disgraced wellness blogger Belle Gibson has accused her daughter of lying about her childhood in an attempt to garner public sympathy.

Doctor's mobile phone 'left inside c-section mum'

A new mum claims a doctor left his mobile phone inside her after delivering her baby via caesarean section.

I'm a mum and I'm following my dreams

I want my kids to know that no matter what happens in life, you can still be who it is that you've always wanted to be.

Those first daycare days

I had this innate 'mum' moment the other day.

'If one person had listened, my life would have been so different'

Katherine's father will die in prison for the horrifying sexual abuse of his daughter. Yet she is the one with the true life sentence.

This new plan undermines breastfeeding and baby health at everyone's expense

Mothers, babies, the health system and the wider society are going to pay the price of this new budget.

Couple to celebrate terminally ill baby's birthday in unique way

Baby Jai Bishop has lived at Starship Hospital for the past seven months, with his parents flying back and forth from Hokitika, 1100km away, to be by his side.

Life On Mars

It's men who need 'retraining', not women

We are all responsible for our own behaviour. Telling victims to harden up is wrong.

Baby Gammy's dad tries to claim charity money

The biological father of baby Gammy has reportedly tried to access charity money raised for the little boy's medical costs.

Where are the childcare places?

It?s all very well to encourage women to work if they choose to, but how can the measures lead to increased workforce participation when women are once again left holding the baby?

The pain of not having babies and not knowing why

After seven years of wishing, hoping, crying, punching pillows and shouting "why me?!", the end result is more than I ever thought possible.

Getting your family finances in order

Whether you're after a new car for a growing family, a bigger house, or are just fixing up your finances, here are the basics on borrowing.

Mum shares graphic selfie to warn against tanning

A mum has shared a graphic photo of her skin cancer treatment as a warning to others.

Does parenthood make us happier?

We can certainly gain higher levels of happiness when we become parents, but the trick is to not get overwhelmed by the pressures of raising our kids.

No, having a dog is not like having a human child

It's obvious these people dote on their pets, but they're barking up the wrong tree.

 

Top baby names

Baby Names

The numbers are in and we can now bring you the 2014 top baby name list for Australia.

 
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.