A third of recent Australian homeowners experienced buyer’s remorse after discovering issues in their property while moving in.
ME Bank recently conducted an inquiry with 1,000 property owners. 55% of them spent less time inspecting the property before purchasing it.
Due to restrictions and lockdowns imposed during pandemic, they were not able to inspect the property.
Two-thirds of five potential buyers stated that they were able to view photos and videos but had trouble inspecting the property in person.
According to the study, one third of the homeowners failed to arrange for a professional pest or building inspection.
Similar reading: 10 Things to Watch Out For During a Home Inspection
The same percentage who didn’t inspect their properties said that their emotions took control and that they had bought the property because they were in love with it.
One fifth of respondents said they are impatient and would like to close the transaction before the prices go up.
Common issues in the property
The poll found that 35% of homeowners had problems with their property after moving in.
Nearly half of the homeowners said that they had missed these issues because they did not have the necessary experience to inspect the property.
About 4 out 5 homeowners with problems paid more to repair, replace and improve their homes.
More than half of respondents said they would have paid less if they had known about the problem sooner.
|
Top Post-purchase Problems discovered by Owners |
|
|
Concern |
A portion of the homeowners |
|
Construction Quality |
32% |
|
Paintwork |
28% |
|
Garden fences |
23% |
|
Chattels and fittings |
21% |
|
Neighbours |
17% |
|
Services – hot water, heating and cooling |
15% |
|
Both noise and light |
14% |
|
Illegal building work |
10% |
|
General floor plan |
7% |
|
Valuation |
6% |
|
Situation |
6% |
|
Title and Zoning |
4% |
Buyer Tips
John Powell, general manager of ME Bank, stated that buyers should not let their emotions cloud their judgment during the buying process.
Powell said, “Give weight to any niggling issues and get a professional inspect your property.”
“It is also important to know your borrowing capacity in advance so you can buy your home with full confidence knowing you’ve got solid financial backing.”
President of the Real Estate Institute of Victoria, Leah Calnan stated that buyers should have the opportunity to inspect the property before making a commitment to buy.
“It’s indisputable that inspecting homes is a fundamental aspect of property transaction due diligence,” Ms Calnan said in a recent statement, commenting on Victoria’s ban on private inspections amid the pandemic.
“Without it, buyers and renters are flying blind – it’s just unrealistic to expect people to lease or buy a property without seeing it.”
Similar reading: Virtual inspections: What do you need to know?
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