What Careless Inspections Could Mean for Investment Homes in Bali

A leading real estate agent in Bali is reminding prospective home buyers of the need to ensure investment homes are properly inspected. Patrick Clancy of PT Bali Nirmana Property says home buyers should not skimp on home inspection although it could be tempting given the costs.

Speaking following the recent merger news about Bali Nirmana Property, he says a good inspection is worth every penny. Not only do investors get details on the strengths and weaknesses of homes they’re considering, but they learn how everything in the home works. Clancy stressed the importance of looking for an inspector with several positive reviews since home inspection is not regulated in Bali.

“Buying a home is the most significant investment most people make in their lives. You really need to have professionals of the highest caliber going through the process with you. It’s important to have an inspector who will pay attention to detail and provide a timely, comprehensive report. You should never purchase a home without getting all the necessary information and a professional inspector can help with this,” he says.

If inspections aren’t conducted properly, buyers may purchase home for more than they are worth. They may also a acquire a property with significant problems and be left with no recourse. Clancy says a thorough inspection is crucial for identifying both major problems and smaller issues.

It is recommended that home buyers ask their real estate agents for referrals. Experienced agents have worked with many inspectors and they know which ones are trustworthy. The best inspectors are certified and belong to a professional association. Buyers should not be afraid to ask for credentials, Clancy says. Home buyers can also ask prospective inspectors to see a sample of one of their inspection reports. This helps them to prepare for what you will get and plan for how they will use the report to negotiate the price of the home.

Clancy, who is based in the firm’s Sanur, Bali office, also suggests sitting with an agent to determine the right type of inspection. Choosing the wrong type of inspection can reduce the amount of leverage buyers have during negotiations. If they choose a home inspection, when they get the report, they can ask the seller to fix certain problems before closing the sale or to give them a credit so they can do the repairs. If home buyers choose a general inspection, they can walk away if they find out about significant problems but there is no opportunity to ask for things to be fixed.

Clancy says home buyers should attend the inspection ready to take notes from the investment property inspectors.

“Homes can be quirky and buyers need to know where important systems are located and how they are operated. The inspector should not just point out the pros and cons, but also show potential buyers how items function. They should share details about things like air filters and shutoff valves. If the home is older, they should also identify which systems and appliances may need updating,” he says.

It is also important for homeowners to read through the inspector’s report carefully and ask them or the agent any questions. If problems like mold or pests are found, the report should recommend follow-up action with the appropriate professionals. Clancy suggests using the general report to negotiate the terms of the purchase with the focus being placed on major concerns like heating, cooling or the roof. Where there are no major problems, there may be niggling concerns which the sellers can address. Homeowners can ask for these to be corrected before the sale is completed.

Even if buyers hire an inspector who comes highly recommended, they shouldn’t expect miracles. Home inspectors can only offer an opinion on the things they can see. If problems are deep inside a wall or in a closed-off room, they can’t warn prospective buyers. Also, since inspectors are human, they may miss things. It is advisable to have the real estate agent tour with them, make notes and ensure attention is paid to detail. Buyers are also reminded that things can change in the home between inspection and when the sale is finally closed.

Still, inspections are invaluable, Clancy says.