What to expect at a final inspection

Whether you are a Buyer or a Seller, the property in question needs to have a final inspection completed. They are an important part of the buying and selling process, especially when purchasing your dream home.

Watch this video to learn more from Joanne Danckwardt from One Agency JD Property Agents in Fairy Meadow as she explains what a final inspection is, and what it means for the Buyer and the Seller in any property transaction.

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A final inspection is held just prior to settlement and is the buyer’s opportunity to make sure everything in the property is in order before the final payment is made and settlement completed. It ensures the condition of the property has not changed since contracts were exchanged and also that contract requirements are satisfied, fittings and fixtures are all in working order and that the house has been vacated accordingly.

The property must be in the same condition in which it was when the contracts were exchanged and the inclusions specified in the contract remain. For example, a buyer is entitled to ensure the floor coverings are still there, the pool is not green, smoke detectors have not been removed, holes in the walls, rubbish left under the house, or furniture left on/in the property. The inspection will support the buyer with any conditions that were specified in the contract upon exchange have been actioned by the seller.

Why are final inspections important?

The time between exchange and settlement is usually 42 days. This is a substantial amount of time, and it should never be assumed that the property is in the exact same condition as it was when it was first inspected. This is especially true if the property has been lived in for the duration of the settlement period.

If the property is not in its agreed-upon condition, it is expected that it should be fixed prior to settlement occurring. A buyer does not want to open the door to their new property after settlement to find plumbing issues, or rubbish everywhere – things that could have been remedied prior to settlement.

When should a final inspection be held?

As a general rule though, the final inspection should be carried out on the day of settlement. If there are any issues or concerns, they can be addressed prior to settlement occurring. It not ideal to conduct the final inspection while the seller is still living in the property.

Sometimes there may not be sufficient time between the final inspection and settlement for the seller to rectify any issues. In this situation, the solicitor may look to hold back funds from settlement so that repairs can be made. You do not want to add any other surprise costs when buying a home.

What should you look for at a final inspection?

When inspecting as a buyer, it not just the walls and floors you should be looking at. Look at the fixtures and fitting that have been included in the contract. Ideally, you are checking the property in all its aspects to ensure it is in working order, and that everything is up to the standards they were when you signed the contract. A good real estate agent will ensure that the final inspection is thorough. Items to inspect include:

• Electricals
• Appliances
• Landscaping
• Fixtures
• Window dressings
• Doors and windows
• Rubbish bins
• Any items that were included in the contract as part of the sale of the property, like furniture.
• Other items to inspect include the hot water system, gas meter, telephone lines, pool pump (if applicable) and smoke detectors.

If you're ready to discover the secrets to being ready to sell your home, download our free insider secrets to being ready to sell checklist.

YES, DOWNLOAD MY CHECKLIST

If you feel you could benefit from our experience with buying and selling, we’d love to hear from you. Simply reach out.  We hope that has helped you today. If you have any questions, we’d love to talk to you. Our number is 0426 264 771. We look forward to talking to you soon.