A Sunshine Coast home inspection of a revenue property notes that the building has been optimized for revenue generation. How should the buyer approach the purchase?
Yesterday we were at an acreage property that had been built for a specific purpose, that was, it was there to produce revenue for the owner. For that purpose it fit the bill perfectly.
- Upstairs rentable.
- Downstairs suite.
- Detached double garage rentable.
- Two RV sites with hookups.
- Great landscaping.
- Some ocean view.
- Majestic tall trees.
- Wood carving artworks galore.
- Certainly picture worthy of airbnb.
Now there were many different building styles and forms, indicative of additions and renovations. For example, both concrete and block wall foundations; a balcony turned into an interior space; a flexspace awaiting conversion into who knows what. Some incompleted features, clearly identifiable. Some features just not thought out, until it was too late. Nonetheless, all evidence of a creative mind at work.
Overall, we could see it serving the purpose the seller’s purpose (income) very well. But what about the buyer who wants an inspection report. Well here’s the rub. We can only report on visible deficiencies and those items that may be a concern for occupant health and safety.
- If our clients are investors, it will likely serve their purposes well.
- However, if our clients are going to live in the property long term, then it depends how fussy they are going to be.
- If they walk into it as a ‘project’ house with issues they are willing to address as they come along, then it should be OK.
- However if they are meticulous and perfectionists, the house is likely to disappoint with endless items that will require replacement or redoing to a higher standard.
So the inspection is always about the steak. Sometimes the sights, sounds and smell of the BBQ need to be stripped away to see if the purchase is right for the buyer. This is particularly important with first time home buyers who just may not be able to comprehend all that they see. It’s also one reason why, in our area, well-off new arrivals prefer to buy new or build a home rather than risk buying an older property.