Can you negotiate after building and pest inspection?
russell from wa building inspections perth

Can you negotiate after building and pest inspection?

What does a building and pest inspection cover?

A building and pest inspection might be useful for renegotiating price after building inspection.

If your buyers’ building and pest inspection reveals problems with the property, did you know that a building and pest inspection is advantageous to you for negotiating house price after inspection?

If the inspection shows severe damage or a pest infestation, you might be able to renegotiate the asking price of the property, depending on your circumstances. With the help of a building report, you might negotiate thousands of dollars off the asking price.

“We’ve had several clients praise us for our findings, as the concerns we have identified have allowed them to negotiate up to tens of thousands of dollars off the price of a property,” says Russell McCarthy RPL of WA Building and Pest inspections Perth.

Can you negotiate after building and pest

How can I reduce the price after a building inspection?


This depends on the way your contract is set up. As some offers are “as is” or are “auctions”, some are “subject to building and pest”  and some are subject to “satisfactory building and pest inspection”. Some are even subject to an arborist report where there are trees in confined spaces next to the property. If your offer is “subject to satisfactory building and pest inspection” here are the questions you need to ask yourself to see if you can possibly reduce the price of sale based on the result of the building inspection report:


1. Is there major or significant damage?


It’s helpful to have some awareness of how property value is determined if you wish to negotiate the purchase price of the property. Every home that isn’t brand-new has wear and tear from the prior occupant. You should consider the extent of such damage. A cabinet that has fallen off its hinge, for instance, is a defect but is quite simple to remedy.


Potentially serious concerns include the following:


  • an infestation of termites
  • concrete stumps supporting the house have considerable fractures or deterioration.
  • significant corrosion of the roofing
  • unapproved construction
  • penetration by water and increasing damp that is rising
  • roofing, outdoor tiling, or cracks in other cover.
  • dings in garage doors, screen doors, or windows
  • leaky faucets or taps
  • sections of rust
  • damaged boundary fencing or leaning fence panels
  • stiff windows and doors that are difficult to open
  • Bathroom or toilet porcelain that has chips or cracks


If any of these problems are present in the home you wish to purchase, you may be able to negotiate a price reduction based on the cost of repairs. Get a quotation from the appropriate repairer or contractor, then use that figure to negotiate with the seller. As you will still need to make repairs, it might not be a significant total savings, but it might allow you to avoid incurring double charges by not paying the entire asking amount for the home.


2. Is there minor damage?


Minor damages generally lend themselves more to wear and tear, so the likelihood of price negotiation is reduced. Minor damage are things such as:


  • Painting flaws
  • internally corroded door handles
  • tiles with cracks or scratches in living areas
  • windows and doors that don’t open and close easily
  • lacking light fixtures
  • jamming internal doors
  • minor wall cracking due to settling


Even while none of these issues stand out greatly, when taken as a whole, they create enough of a concern to warrant discussion with the seller. According to Russell McCarthy from WA Building Inspections Perth, “Our studies reveal property defects – this helps the buyer to better predict the expenditures that they may pay if they purchase the property – they can then choose to bear those costs or use the defects as a method of negotiating with these.”


3. Why are you making this purchase?


Investors might occasionally score a terrific price on a damaged house if they have big remodelling plans. If you want to demolish it and construct something new, serious problems like a termite infestation that are detected in a building and pest inspection can work in your favour. You don’t have to let the seller know about your plans, and you might be able to cut the asking price by thousands of dollars. Big problems with the concrete stumps may also allow you to make significant financial savings. If the seller’s property is unsound. They may not have many alternatives, which might result in significant savings for you.


4. How many offers does the seller currently hold?


A property price negotiation is simply that—a negotiation—to get a better deal. It takes some foresight and finesse to request a lower price without going overboard. Counting the number of offers the seller has received is one of the ways you may assist in negotiating the price. Ask yourself how many other individuals were present if you’re going to an open house inspection. Was the real estate agent’s time well spent with many people? Does it appear to be a well-liked house in a nice neighbourhood with a fair asking price?


Your negotiating position may suffer if there are too many other buyers in the market. If you ask for a price drop too strongly, the seller can just move on to the next buyer. However, if the seller doesn’t appear to have any other offers, you could be in a stronger position to start a discussion regarding the condition of the property and to make your counter-offer.


5. Is the vendor pressed for time?


The seller’s timetable may also influence how amenable they are to negotiations. Oftentimes, a seller is selling their present home after purchasing a new one. They could receive incentives to complete the deal as fast as possible if their deadline is more urgent. A pricey situation for them to be in may be leaving their home on the market when they move into their new home. They could be willing to accept a lower fee only to get the issue resolved as soon as possible.


While you may use this data to gauge your negotiation position, a building and pest inspection is one of the most important requirements before you can move further. After evaluating the property using the inspection report, try to renegotiate the price.


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