Over the past week, we have seen the NSW government come out with strong words and now action against reported underquoting by agents. This isn’t a new issue, as there have always been rumblings from buyers that every property that sells for above the guide or range has been under quoted. This can often be sour grapes that another buyer saw more value in the property, but there are definitely some cases that raise an eyebrow.

Politicians and anti-auction advocates point to buyers spending ‘thousands’ on building and pest inspections and strata reports, only for the property to sell well above the guide.

But why do the buyers have to continuously engage an Inspector for every property? Would it not make more sense for the seller to undertake a transferrable Building and Pest Inspection on the property? Many Building and Pest Inspectors are conducting these for clients nowadays.

A question that is often asked by buyers to agents is, “Has a building and pest inspection been done on the property?” If the answer is no, buyers often put the property towards the bottom of the list until closer to the auction. If it is yes, we have found an increased engagement level from the marketplace with a greater chance of selling at auction.

An objection often asked is “But the buyers think the report is biased, or the sellers mate did it” If you ask any building and pest inspector, they have to ensure everything is checked, regardless of who the client is. It is their licence on the line and should the report not be thorough, then the buyer can speak with the inspector or take further action.

Another objection is, “What if the inspector finds something that could hurt the sale?” Imagine if the buyer found it out a week before the auction and nothing could be done about it. In the case of a seller conducted building and pest inspection, they have the option of rectifying any known issues or possibly adjusting their expectations in light of the work needed.

If the owner doesn’t want to do a Building and Pest Inspection prior to the auction, you would have to ask yourself, “What are they hiding? What are they afraid of finding?”

Or what are you afraid of finding?