Building inspections and the Sydney real estate market- What you need to know?

Sydney has one of Australia’s most dynamic and competitive real estate markets. With a rising population and strong economy, housing demand keeps growing. However, the city’s property market is known for high prices and older buildings, which can be tricky for buyers and sellers.

Sydney’s real estate has grown significantly, with median house prices hitting record highs. Low interest rates, population growth, and insufficient housing supply have driven this. Despite the challenges caused by COVID-19, Sydney’s property market has stayed strong, and many experts predict more growth will follow.

Building inspections matter

Building inspections are essential when buying or selling property in Sydney. Qualified professionals assess a property’s condition and spot potential problems or defects. The main goal is to give buyers a clear picture of the property’s shape so they can decide if they want to buy it. For sellers, inspections can pinpoint issues to fix before listing the property. Tackling these proactively can prevent delays or problems during the sale and boost the property’s value.

Inspection types

Sydney buyers and sellers should know about several inspection types:

  • Pre-purchase building and pest inspection 

They are most common for buyers. An thorough check of the property’s condition, structure, wiring, plumbing, and signs of pests like termites.

  • Strata inspection

This is essential for buyers considering a unit or apartment focuses on shared areas like the roof, gardens, facilities, and the strata scheme’s finances.

  • Vendor inspection 

Optional for sellers before listing it helps find issues to address and can reassure potential buyers about the property’s condition.

Picking an inspector

When choosing a Sydney building inspector, hire a qualified, experienced pro. Look for members of respected industry groups like the Australian Institute of Building Surveyors (AIBS) or the Housing Industry Association (HIA). Ask for references and read reviews from past clients to gauge the inspector’s reputation and work quality. Ensure they provide a clear, thorough report detailing any issues and how to address them look at here now.

Inspection costs

Building inspection costs in Sydney vary based on the property’s size and type, the level of detail needed, and the inspector’s experience and qualifications. Buyers can expect to pay $400-$800 for a standard pre-purchase building and pest inspection.

While an added expense when buying, it’s a significant investment. Spotting potential problems early can avoid pricey surprises later and inform your decision to purchase.

Acting on inspection results

After an inspection, buyers and sellers must act on the results. Buyers may use the report to negotiate with the seller, request specific fixes before buying, or leave altogether. Based on the results, sellers may need repairs or improvements before listing. Addressing issues proactively shows buyers they’ve taken steps to ensure the property is in good shape, boosting its value and appeal. Building inspections are just one part of Sydney’s property transaction process. Other key steps include getting financing, doing legal and due diligence, and negotiating sale terms.

Buyers and sellers should work with seasoned pros throughout, including real estate agents, mortgage brokers, and conveyances. They can help navigate Sydney’s complex, competitive market and keep the transaction moving smoothly.

Earl Fujiwara
the authorEarl Fujiwara