Buying a home from owner builder? Beware,Beware, Beware!

In principle I have nothing against owner builders but the fact is that many owner builds are badly built, dreadfully finished and some are downright dangerous. Why? It is because many owner builders think that it’s easy to replace professional builder and save money. Unless they have building skills they will rely on tradies and even when not let down serious issues can and do slip past.

As professional property pre purchase inspector it is my duty to advise the purchaser (by whom I am commissioned and to whom I owe a duty of care) of any significant defects.

The following example will show how a property investor got into trouble even when he did take all the right steps and commissioned a pre purchase property inspection report.

The property is a single storey older home with an new brick garage built to front and an extension built to rear. Shortly after purchasing, the new owner begun experiencing garage roof leaks from the tiled deck. He had trouble contacting owner builder to have the defects rectified (he does not want to know and is not answering messages) Then he commissioned me for the report.

The inspection revealed, yes he did have the leaks in the garage from the concrete slab above but also there were many other sub standard items that have slipped by including items that do not comply with BCA.

Cursory examination of documents revealed that they were in order. Yes there was building permit, the certificate of completion and the section 137B owner builders report.  There were electrical, plumbing and termite treatment certificates and the owner did get a pre purchase inspection report. All good, so what went wrong? This is what I found:

  1. Concrete steps did not comply with BCA
  2. Tiled slab over garage had no grading and outlet
  3. Downpipe spacing was 20M (max allowable 12M)
  4. Ventilation to sub floor blocked off
  5. New wall opening inside house(not part of permit) sagging head ( probably undersized lintel or no lintel)
  6. Stormwater drainage installation sub standard
  7. New tiles inside house create tripping risk
  8. No flashings over window heads
  9. Defective paving levels and grades to rear of dwelling
  10. Lack of workmanship, skill and care

In my opinion building surveyor was negligent in relation to final inspection. Owner builder’s report was negligent done by person unqualified and signed off by an engineer.

Pre purchase inspection report did not pick up the above items but because of the standard limitations and exclusions in the AS 4349.1 it may be compliant(I am still checking). I know that this property inspector does not have qualifications in building surveying so he would not have been able to determine items on non compliance.

Had I inspected the property before the purchase the purchaser would have been advised much better and would have avoided the problems he is now facing( additional expense in  chasing the owner, the building surveyor and the owner’s report engineer in VCAT)

As this example shows there is a big difference between just any pre purchase inspection and Building Expert report and it could make all the difference to you.

 

For other examples of properties inspected where serious issues were found:

http://www.buildingexpert.net.au/blog/building-inspection-pre-settlement-inspection-are-you-getting-all-that-you-have-paid-for/

http://www.buildingexpert.net.au/blog/pre-settlement-building-inspection/

And why does it go wrong?:

http://www.buildingexpert.net.au/new-renovating.htm

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Pre Purchase Building Inspection, there is no business like repeat business!

The first rule of sale is to sell, the second is to make your customer want to come back for more. Here at Building Expert we work very hard to make your experience the best there is.

From the moment you pick up the phone to call us , you get to speak to extremely well trained team member that knows exactly what we can and cannot do, to listen what you need and then offer you the right service and the price of our services, take your booking then call the agent and make appointment.

Then we let you know when the inspection is on to give you the chance to be there, have another look, see what we do and ask questions.

The inspections are carried out professionally, with punctuality and efficiently.

You will then get the verbal summary advice with explanations in a way that will explain clearly if there are issues and if so to make you comfortable about how to deal with them. In a day or two you will get email of your report and then you can call to ask questions if any. Sometimes our expert will want to think about the findings or do some research before finishing off your report.

Then you are told that as part of after sales service we are your building experts and you can call or email whenever you need, we are your guardians in the cloud watching over so you don’t blunder.

There is more. Things you can’t see. Just as the marvellous technology under the car bonnet you can’t see but it’s there so we do the same.

We are: educated, qualified, trained, experienced, registered, accredited, affiliated, insured, up to date and have invested in the latest technology (thermal imaging etc.)to give you the best layer of inspection certainty. So what does it come to ? A happy customer and a repeat business! Here is the experience from one of our customers:

Hi Branko, 

I thought I’d let you know that last Friday, 3 August, I was officially released from my sale contract.  I have never been so relieved!!

I will contact you again in due course to organize a further inspection when I find a property.  This time, I will organize it “prior” to signing any contract.  Hopefully it will all come together soon as another property I was looking at around the same time as the last unit, has come back on the market as the initial buyers’ finance fell through.


Thankyou again, 

C .P.

Here at Building Expert we don’t forget we don’t lay bricks, or cut timber or dig trenches. Our business is service and Oh boy do we know it and Oh boy do we give it!

Find out more about Pre Purchase Inspections:

Why you should get
building expert? http://www.buildingexpert.net.au/pre-purchase.htm

Building and timber pest
inspection – combined http://www.buildingexpert.net.au/pre-purchase-combined.htm
Building Inspection http://www.buildingexpert.net.au/pre-purchase-building.htm
Timber pest inspection http://www.buildingexpert.net.au/pre-purchase-timber-pest.htm
Pre settlement inspection http://www.buildingexpert.net.au/pre-purchase-settlement.htm
Pre auction inspection http://www.buildingexpert.net.au/pre-purchase-auction.htm

Building Expert -Branko Mladichek http://www.buildingexpert.net.au/about.htm

 

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Pre purchase building inspection, slab causing rising dampness.

Why should we worry about regulations and standards? It’s because we want to preserve the quality of our built environment by setting at least the minimum acceptable standards. Australian Standard is the minimum default standard. Some of the most experienced practitioners got together to input and develop the standards.

Why is that important when you are buying a home? Surely it was all checked on completion. Yes perhaps, but also things could have been missed  or alternatively owner could have done additional non complying works.

When you are buying a home, it’s probably your biggest investment and you will want to know if there are significant issues, so that is what we look for and to give you the best balanced advice.  Knowledge breeds confidence and knowing property condition and what to do about it will make you confident and comfortable about making the right decision.

In the example below the concrete paving to external areas was built too high and without proper slope and drainage. So What?

As it happens, trapped moisture not only breached damp proof course and caused rising dampness but also dampness increased termite risk and caused foundation heave cracking the slab.

If you look carefully you will see brick weep holes partially obstructed by paving and blocking water escape.

I had no alternative but to call the paving non compliant and recommended demolition and reconstruction at a lower level and to correct grade and including improved drainage.

Is this enough to sink a property sale?  You bet!

 

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Pre purchase inspection, it’s what your customers think that matters!

In my other blogs I have talked about how impressed I was with Apple, in fact so much that I have set it up as “The benchmark” for everything I do in business. It is a tough call to be the best but we should all have the aspirations of getting there. I have also talked about customer service and how I was impressed and can’t stop talking about it. Well it’s started to pay off.  Here are some emails from my customers:

Attention:  Branko Mladichek

Hi Branko, 

Firstly thank you for your report which I have forwarded on to my solicitor (xxxxxxxxxxxxx) and my Conveyancer (xxxxxxxxxxx).

I appreciate and totally understand your role in any inspection is that of being impartial and reporting matters honestly within your role.

However, I wish to thank you not only for all of the above, but also for your professionalism, understanding and patience with my situation.  I would have no hesitation whatsoever, in recommending you.  I say this no matter how my current dilemma unfolds.

Thank you again, 
C. P.
—————————————————————————–

Branko,

It was an absolute pleasure meeting you on Friday. 

Thank you for your attention to detail and professionalism – and answering all my very inquisitive questions.

 Regards,

Andrew  S

Nothing matters so much as what your customers think and say about you. When they don’t stop talking about you they are advertising your business.

I am very happy, naturally but it only fired me up to do better, to make each and every one customer say the same.  Yes it’s a tough call but I am on my way and enjoying the journey immensely.

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Building disputes, building reports, defects in new homes, what you should know.

If you have a building dispute and you need to take it further you will need professionally prepared building defect report to identify defects, reference them to breaches of warranty, breaches of contract and standards. You will then need estimate of cost to rectify defects an that should be prepared by a building cost expert. For VCAT claim you need two things:

Proof of defects (liability of builder to fix is assumed but in practice it can be a problem to prove as we can see with slab heave defects)

Proof of damages (cost to rectify)

Many people will choose to go to Consume Affairs (because it’s free) with their complaint and whilst the service is competent ( I have no beef with Consumer Affairs) and in many cases can help settle disputes it is limited and has no power of enforcement. Many builders know this and will simply ignore the process or will play along and then ignore. The signals I get from my customers are mixed. Sometimes they think it was useful and sometimes that it’s a waste of time.

Consumer Affairs will have defect report prepared for you and by law the report is VCAT compliant but that is where the usefulness stops. (Consumer Affairs is in partnership with Building Commission and that is it’s biggest failing). I have been a log time critic of Building Commission for a very simple reason that the reports are sub standard and that Building Commission (believe it or not) condones defective building work.See for yourself:

Building Commission should be upholding standards, do you think it does that? In my book any organisation that produces a document called “The Guide to Standards and Tolerances” and then ignores it has no credibility and is well past its use by date and should be discarded.

So if you are a consumer and you have paid hundreds of thousands of dollars for your new home and the brickwork is outside tolerances and looks like crap, Building Commission is saying to you: Let it go.

But in addition to that here are other serious shortcomings as detailed below:

Building Commission Inspector will only look at the items on your list, that means other defects (how will you know) are ignored.

Building Commission inspector will not review your drawings, contract and specification, so defects will be either missed or misdiagnosed.

Building Commission Inspector will not give you any advice in relation to your contract, variations, extensions of time, adjustments or any other matter.

Building Commission will not produce cost to rectify report. They will hang you out to dry (go somewhere else)

Building Commission Inspector will not appear at VCAT hearing as expert witness, so if the other side has their experts, you will be outgunned because you will have no one to contest their evidence.

What’s the moral of this blog? If you can get your report for free it’s probably not worth having and may actually be harmful to your complaint. A bad report will give builder somewhere to hide. Think about it.

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Imagine world was apples, staff training is the mother of customer service!

If you walk into Apple shop it always will be full of people. Despite that there is never a shortage of blue T shirts.

It is most unlikely you will be in the shop for more than 60 seconds and not make eye contact with customer service. If you talk to them they are: clean, presentable, bright, knowledgeable and helpful.

Nothing is too much. If they can’t help you with a particular problem there is always Genius Bar, staffed with specialists.

It comes down to:

  1. Careful selection for aptitude
  2. Staff training
  3. Motivating
  4. Monitoring
  5. Mentoring

What does the customer want?

Customer wants:

  1. Product quality
  2. Value
  3. Now or ASAP
  4. Service
  5. Respect
  6. After sale service

You could do a lot worse than use Apple for benchmark. Is your business up to it?

 

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Building dispute, getting justice is a tough hill to climb!

Last week I was involved in VCAT mediation for one of my clients (one of many) whose home is ruined by slab heave. Builder(one of the top tier builders) who did nothing for months but blame the owners (unfairly in my view) for not maintaining the property has now offered to yet again engage another (supposedly independent) engineer for assessment as to what should be done. Unfortunately my client fell for that and we are now again on merry go round waiting for “Jack Daniels ” (do nothing) solution that can only be crafted by engineer who does not want to bite the hand that feeds it.

Notwithstanding all that what transpired was that even if you have rights under warranty they are virtually worthless unless you have some very good evidence to back up your claims. The problem with my client is that I became involved well after problems started appearing and there were no systematic inspections, photos or other evidence that can clearly prove that the builder did the wrong thing. So what is the state of play?

My client has right of claim under structural warranty! The structural defect has been established and conceded by the (first) structural engineer. You would think that is enough. NO! Not only does the engineer not attribute the fault to the builder but also has no idea how to fix the home, instead he offers cosmetic fix, and Jack Daniels.

So what do we have? We have a young couple whose home is ruined with big mortgage and no spare money up against incredibly wealthy builder with the biggest legal guns he can buy.

Stay tuned, this story is developing.

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Roof leak, detection with thermal imaging

Roof leaks can be difficult to detect, sometimes they only occur when wind blows from a certain direction. Sometimes the leak is small, so small as to be undetectable with visual inspection. However, dampens from roof leak will be absorbed into building elements and can encourage growth of mould. Mould is unhealthy and can cause respiratory problems. In sufficient quantity there is unmistakeable smell of mould in the room.

Just last week I inspected a property where there was strong smell in one bedroom. The most likely source was inadequate sub floor ventilation and poor drainage against external wall that has been built up too high against brickwork.

Then I did what I always do, performed thermal imaging scan on the ceilings and walls and “Bingo”. There were unmistakeable images of dark areas consistent with coldness from dampness. TI is so reliable that checking is almost never required to confirm existence of dampness but is required for report content. I checked ceiling in suspect areas and yes moisture meter went off  (moisture content over 18% triggers audible beeping) Walls were checked and all below head height reading was 10% but just below cornice it was 15-16%.

As is usual, this dwelling did not have one problem causing dampness but three, sub floor ventilation and drainage defects + roof leaks. When I showed owner thermal images he was blown away, he had not suspected roof leaks.

If you have suspected dampness, mould or mould smell in the room TI can under some conditions lead you to the cause of the problem.

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Imagine world was apples! Part 2 – Customer Service (1)

It’s customer service that will determine if your customer will come back for more and not stop talking about you. I want to share this little true story with you.

Recently I took a 24inch desktop to Apple store in Chadstone for repair. Although the computer did not fail there were some messages coming up that the hard drive was on its way out. The computer was 5 years old and out of warranty.

As I was struggling carrying the computer from the carpark, about 50M from the Apple store I got a tap on the shoulder. “Can I take this for you” It was apple store employee in his blue T shirt coming back from his lunch break. It was a life saver! What a nice touch of customer service!

He took me to the Genius Bar looked up on the screen for my details and performed a check on the computer. It was indeed confirmed that there was a problem with the hard drive. He explained they could replace the drive but because it was out of warranty it would be just under $300 and will take about 3 days. Happy with that I left the computer there.

Two days later I got a call from the Apple workshop, Er we can’t replace the hard drive with the drive of the same capacity because it is superseded , is it Ok if we give you a bigger capacity drive (500GM instead of 250GB)? It will be the same price. Duh I thought why are you asking me, of course I will have bigger drive for the same price. But then I thought about it.

I was the customer and Apple was going to give me something else I was not expecting and even though it was going to be more valuable to me and infinitely better they were asking my permission. Why?

It was because I was the customer and I had the right to say yes or no. I was about the respect. What a nice touch of customer service!

A day after I got another call. Er sorry but we chipped the screen whilst repairing we have to get another one in,  sorry it will be another two days. OK I said , no big deal, it can happen to anyone.

Two days after I got a call. Sir, your computer is ready for pick up, and by the way, because we are late repairing it for you, there will be no charge.

I was blown away with customer service, I have been in business for over forty years and have never experienced anything like that, so forgive me for not being able to stop taking about it.

Would it not be nice if your builder was like that?

Would it not be nice if there were more apples in the world?

 

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Imagine world was apples! Part 1- Falling in love.

This story begun seven years ago when walking through JB HI-FI near Highpoint shopping centre I spotted IMac for the first time. I could not take my eyes of it, it was the most beautiful desktop computer I have ever seen. After tripping over beige boxes and cables for neatly 20 years. It was like falling in love with a woman on first sight and I had to have it. The next day I bought it and took it home. After a pleasant unpacking experience I put it on my desktop and plugged it in. As it powered up I was thinking , now I will have to configure it with the router for the internet. As I was looking for my WI FI modem/router information I glance up and WHAT?  Yahoo page come up, internet connection, it was ON. Suitably impressed I got on integrating my business , office and network.

Fast forward seven years and I still can’t stop looking at it, I am still in love with it more than ever. Now I have 27 inch IMac and it is the most beautiful computer anyone makes, there is nothing like it.

We now have nine of them in the office and the girls love them. I have not bought anti virus software for macs, ever and they just work.

We have everything apple now! Phones I pads I pods, TV

My two year old granddaughter sits on the floor playing wiggles on I pad singing along and waving hands. She scrolls through her mums I phone and finds photos and plays her video on the swing. It’s like she was born with it, she certainly was born for it.  How cool is that?

Apple has transformed my life for ever, for the better but also it has profoundly impressed me as a company, how it does business (and I am not easily impressed) and  has become my role model as what product and service should be, what marketing and retailing should be and most importantly what integrity in business should be.

Most impressively of all is how it managed to grow into a world’s biggest company but it’s every little bit works just like a clock. It’s every little bit is streets ahead of everyone else.  It’s a phenomenon of our time. There is nothing like it.

Ah! If the whole world was apples.

 

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