PPI?

Article by Bruce Gow

Get a PPI Before You Buy

Are you about to buy a home in NSW? Obtaining a PPI (pre-purchase inspection) for termites isn’t expensive, but it could save you a small fortune. Termites are a substantial problem for home owners in and around Sydney and it’s an unfortunate fact for home buyers that a home can have thousands of dollars worth of termite damage that isn’t visible when the home is inspected.

When the cost of a pre-purchase termite inspection is only $250 for a visual or $500 for a Thermal Termite Inspection and you’re about to invest hundreds of thousands in a home, it’s difficult to justify not arranging one. Yet not everyone does, and occasionally the decision not to obtain a pre-purchase termite inspection will cost an unsuspecting purchaser a great deal of grief and a lot of money.

If you are unfortunate enough to purchase a home and discover that termites have caused several thousand dollars worth of damage, insurance won’t cover the cost, and the responsibility for repairing the home will be yours.

Why aren’t the sellers or agents responsible? Because when you purchase a home you’re given the opportunity of thoroughly inspecting it. You can also make your offer conditional on a satisfactory PPI, so if you elect not to do so, you’re agreeing to purchase the home in the condition it was in when you inspected it – and if that included termites, then they’re all yours too!

It’s easy to arrange an inspection for termites by calling your local termite expert but be sure to make it clear in any offer documents that your purchase is subject to the outcome of the inspection – your conveyancer or lawyer should be able to advise you on the appropriate offer wording.

Once you’re in your new home, it’s just as important to obtain regular pest inspections. Termites can enter the home and do substantial damage in just a few months, and because it is usually ‘subterranean’ termites that are involved, the chances are you won’t see them coming – they move underground, and use mud tunnels to enter your home. You’re unlikely to see them at work either – they hollow out the wood from the inside, so the exterior of the woodwork can appear perfectly intact.

Termites are capable of doing tens of thousands of dollars damage to the structure of a home, especially if they have attacked the roof structure, a wooden floor or piers.
A home owner who is selling their home may be completely unaware of termite damage – but it’s also not hard to imagine that in some instances, the discovery of termite damage a home owner cannot afford to repair may prompt an attempt to sell quickly. And unfortunately, it’s when we see a bargain that we’re most likely to act in haste, lest we miss out! Slow down, and insist on a PPI, in case it’s less of a bargain that it appears.

The cost of a pre-purchase pest inspection is a small price to pay to ensure that you won’t be caught out by termite damage. They’re inexpensive, easy to arrange, and can most often be done at relatively short notice so if you’re about to buy, call your termite expert today to arrange your PPI.

“Don’t get caught out by not having a PPI before purchasing your dream property. A PPI could save you from buying a termite infested home which then saves you multiple thousands of dollars in the long run.” – Bruce Gow