Buying a property is a big step. Whether you are a first-time buyer or a seasoned property investor, it’s always important to carry out your due diligence. In this week’s article, we caught up with a member of our Bayleys Marlborough team to talk about home buyer’s reports.
Kirsty Winder is consistently ranked among the top Bayleys Marlborough residential salespeople. She is also recognised in the Top 10% of Bayleys salespeople nationwide. So, as you can imagine, Kirsty knows a thing or two about the home buyer’s reports you should be considering before you buy. Read on for the low-down!
Home Buyer’s Reports:
What is a LIM?
KW: LIM stands for Land Information Memorandum. We are lucky in Marlborough to have free access to the council files which show lots of information.
Does every purchaser need one?
KW: Everyone should get a LIM. However, as our council files are so in-depth, some buyers choose not to. As a matter of best practice, I would always recommend that purchasers obtain one as part of their selection of Home Buyer’s Reports.
How do Marlborough buyers attain a LIM, how long does it take, and how much is charged for this report?
KW: Depending on whether the property is residential or rural, the charge for a LIM will be between $300 and $600. It can take up to ten days to receive and five days for review. A LIM report clause is noted in the general terms of sale and allows 15 working days to confirm.
What is a Title Report?
KW: It’s not a report as such. A title is the legal description of a property, and it’s not negotiable. All the properties we market have a title available.
Does every purchaser need one?
KW: Yes! And it should be sighted by their solicitor or conveyancer.
What information does this report contain?
KW: It includes the legal description, whether there are easements and caveats. It also identifies the legal owner.
Should every purchaser obtain a valuation?
KW: No, but banks may require this for finance.
How do Marlborough buyers attain a Valuation Report and how much might be charged for it?
KW: We have valuers in the area, and a vendor or purchaser can arrange this report, the cost might be somewhere between $600 and $1500, depending on the property.
Builders, Engineers, Geotech Reports
In what circumstances might it be necessary to obtain one of these more specialist reports?
KW: A purchaser might include these among their home buyer’s reports if they have a section with challenging building sites. Or for properties near water and any property where subsidence or liquidation is of concern.
How can purchasers check that they are approaching a reputable person or business to compile a more specialist report for them?
KW: We can help with a list of service providers, but our professional code of conduct doesn’t allow us to recommend one specific person. The purchaser’s bank may specify who to use.
Other Home Buyer’s Reports:
Are there any other reports that you think it’s important for Marlborough purchasers to obtain in any circumstance?
KW: The most important report is a Builder’s Report. Unless a house is under a master build warranty, I would always recommend investing in a Builder’s Report.
Thanks to Kirsty for her expertise in home buyer’s reports. If you have any further questions or would like us to help you find the perfect property, please contact us HERE. We’ll have you jumping for joy in no time!