Summarised by Centrist
The real estate market in Auckland is in turmoil as buyers spend thousands on building reports that often fail to meet standards. Industry professionals are calling for regulations to better standardise the inspection process.
One agent reported that buyers are spending up to $10,000 on inspections, causing many deals to fall through over minor issues.
“I’ve had deals recently fall over based on reports that have sounded a bit scary and could have sounded a bit friendlier,” said Ray White agent Ben Ryken.
Darryl August, president of the New Zealand Institute of Building Surveyors, noted, “The industry definitely needs to improve.” CEO Neville Scott stressed the importance of proper training and indemnity insurance for inspectors to protect buyers from potential liabilities.
Currently, many inspection companies operate outside recognised organisations, leading to inconsistent results.
“Some builders simply do not know how to do this,” August added. He said that there is a difference between a builder and a qualified building surveyor.
Auckland lawyer Joanna Pidgeon also advised buyers to ensure their inspector has professional indemnity insurance, which could offer recourse if issues arise.
The Real Estate Authority supports using accredited inspectors and comprehensive reports that adhere to NZS 4306:2005 standards.
