Pros vs Cons: Relying on Vendor-Paid Pre-Purchase Inspection Reports

The Elephant In The Room Property Podcast | Inside Australian Real Estate

Buying a home can get tricky and expensive, especially when you have to pay a bunch of money for inspections before sealing the deal. Some even end up skipping these checks because the bills add up fast, especially if they keep losing out on bidding wars. In this episode, we're digging into two options: seller-paid inspection reports or splitting the cost among potential buyers.

But here's the big question: Can you really trust the reports if the seller is the one paying for them? Are there hidden issues, or is everything on the up-and-up? To guide us in exploring these questions, we sit down with Rhys Rogers, the co-founder and CEO of Before You Bid, a groundbreaking property technology firm at the forefront of transforming the pre-purchase inspection landscape.

In a world where technology is shaking things up, prop-tech companies are jumping in to make life easier for homebuyers. One such solution is the advent of marketplaces for pre-purchase inspections. Can these platforms offer a more accessible and affordable option for buyers? Join us as we break down the nitty-gritty of relying on seller-paid reports, exploring the good stuff, the challenges, and how technology is shaping the way we buy homes.

Episode Highlights:

00:00 - Introduction

01:24 - Who is Rhys Rogers?

02:11 - What sparked Rhys’s idea for a property-related service or product?

04:36 - Discussing the pros and cons of the concept of a shared economy

06:13 - Challenges in ensuring consistency and reliability among inspectors in the marketplace

09:38 - How do vendors decide whether to make inspection reports public on the platform?

12:45 - What’s the process of selecting building and pest inspectors for bank valuations?

18:20 - Managing conflicts of interest between building inspectors and real estate agents

22:08 - Suggestions for improving the seller-paid inspection system to avoid bias

27:15 - What ensures inspectors' accountability for rule violations or inaccurate reports?

30:10 - What are the Australian standards for a building and pest inspection?

32:52 - Current regulations and standards for strata record-keeping across Australian states

37:16 - Rhys's potential expansion into a real estate marketplace

38:33 - How can buyers leverage building and pest report data for property evaluation?

41:20 - Rhys Rogers’ property dumbo

47:46 - How prevalent is the practice of getting a second inspection to verify initial findings

53:18 - Veronica’s advice for buyers when it comes to relying on seller-paid reports

About Our Guest:

Rhys Rogers is the co-founder and CEO of property technology Before You Bid. Rhys started out his professional career as an insolvency accountant, before delving into creating a start up in the property space. Since launching 8 years ago, Before You Bid has grown to be the largest marketplace for building and pest and strata inspectors. The platform now helps over 100,000 people buy and sell property every year and aims to be the Home of Property Compliance and Due Diligence.

Connect with Rhys Rogers:

• Connect with Rhys on LinkedIn: https://www.linkedin.com/in/rhys-rogers-b7772038
• Visit their website: https://www.beforeyoubid.com.au/

Resources:

• Visit our website https://www.theelephantintheroom.com.au
• If you have any questions or would like to be featured on our show, contact us at: The Elephant in the Room Property Podcast [e-mail]
• Looking for a Sydney Buyers Agent? https://www.gooddeeds.com.au
• Work with Veronica: https://www.veronicamorgan.com.au
• Looking for a Mortgage Broker? https://www.blusk.au
• Work with Chris: [e-mail]

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