[paula1]

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?

[Escapin]

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.

[paula1]

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.

[LambChop]

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.

[Escapin]

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.

[cinderellainsydn...]

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....

[paula1]

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.

[Fanny McPhail]

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.

[bluedragon]

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.

[paula1]

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