Due diligence vital in preparing to buy property

Due diligence vital in preparing to buy property

29 March, 2016

Independent expert advice is essential when preparing to buy property – whether it’s by negotiation, or by auction or tender, says Harcourts NZ CEO Chris Kennedy.

Speaking in response to a news article on the reliability of vendor-supplied building reports, Mr Kennedy says Harcourts would always recommend to any prospective purchaser of property that they should carry out their own due diligence – including arranging for an independent building inspection, and requesting LIM reports and title checks.

When markets become heated and competition for properties is high, particularly at auctions, vendors sometimes supply potential buyers with a building report as well as LIMs and title checks.

“If time is tight and competition is high ahead of a sale, vendors can supply reports with the aim of making things easier for prospective buyers, and giving them fewer jobs to do.

“While our agents will always endeavour to ensure information provided to anybody interested in a property is accurate, we’d still always advise people to get their own independent advice. That way they know the source of the information, as well as the credentials and loyalties of the person who has supplied it,” Mr Kennedy says.

“That applies to LIMs and title checks as well as building reports. Always seek an independent, expert opinion so you can make an informed choice about whether to purchase or not.”

He suggested asking friends or trusted associates who have used reliable building inspectors and would recommend them.

“When the market heats up and auctions are brought forward, buyers start to worry they’re going to miss out. In those circumstances it can be very tempting to take a vendor-supplied report. By all means take it as a reference, but we’d still recommend buyers do all their due diligence and commission their own.

“There’s no advantage in winning an auction if you end up with problems you hadn’t foreseen,” Mr Kennedy said.

ENDS

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