Do you think sellers should provide a LIM and builders report?

Around 80% of our selling clients see the benefit in providing a LIM report up front. Around 60%  are going a step further and providing a builders report as well.

We recommend providing these reports because it makes it easy for buyers to offer and allows us to overcome problems at the beginning of the process, avoiding the heartbreak of offers falling over at the last minute because of issues that could have been sorted if they were discovered earlier.

While most of our clients can see the benefits, it is certainly not the industry norm to recommend providing these reports up front.  My question is – do you find having easy access to these reports valuable?

We would love to hear your feedback. It would help us to educate future sellers and provide more information up front for our future buyers.

Interested in learning more about LIM’s and Builders reports? Wondering what the hell a ‘LIM’ is anyway? Check out these two posts:

7 tips on how to ready a lim report…

5 tips on reading a builders report…

Best wishes till next time,

Andrew Duncan
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THOUGHTS OF THE WEEK:
“We must not allow other people’s limited perceptions to define us.”
“A yawn is a silent scream for coffee.”
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  1. I believe that in preperation for selling a property, a vendor should get the reports. The LIM will allow them to see if there are open building consents, or forgotten features (liquifaction , flooding or airport runway). Then they will be prepared for what the purchaser will find and want to negotiate on. A purchaser should still get their own LIM done, or ask the seller to have the TA share that report with them. But only if its not too old.

    A builders report will also help the seller prepare the property for selling. They will see maintenence that needs done and be able to advise where to spend money to fix any items needing repaired.
    The purchaser wont need this report as they should still have an expert look at the property. However the sellers report may be useful if any items become contentious.

    These reports, if done in advance must speed up the process. Thats a win-win

  2. With the Seller providing the LIM & Bldrs Report surprises are minimized and purchasers feel empowered with more info.

  3. Congratulations Lindsey Mills You have won our $200 bunnings voucher! Your prize will be in the post tomorrow. Thank you everyone for all your thoughtful and constructive comments. We had a great response to this question across all mediums: blog, facebook & twitter. I am blown away by the time many of you have put into your responses and I really appreciate you all getting involved. The over-whelming feedback is that providing a LIM is essential and providing a builders report can help speed up the sale and at least provide an informative starting position for prospective buyers. As a seller – if you can make it easier for more buyers to take part in the process then that has to be a good thing at the end of the day.

  4. No:) Many inspectors/builders would suffer in the pocket… Both homes I have purchased I got builders report and lim report… I think the responsibility of these are ultimately the purchasers …

  5. I would say yes to both reports. Having available can speed up the sale. In my experience buying a property can be stressful and time consuming. A lot of time first home buyers are not sure what they are looking for. Some buyers are worried about the money spent on research, etc

  6. In my experience LIM report does not give detailed information and the same information is found on the council file for free. So I don’t see why the vendor has to spend $400+. Builder’s report – yes, – I have seen sales fallen through after potential buyers got builder’s report. Waste of potential buyer’s money if the sale doesn’t go through and heartache for the vendor. A builder’s report by the vendor can help them remedy any issues before the property is put on the market and the potential buyer to get their own in case if they have doubts.

  7. No to a LIM report – this is nothing more than a summary of what the council holds on it’s file, and you should be going in to inspect the file anyway.
    Yes to a builder’s report, available for inspection anyway, and signed by a reputable builder it will provide a buyer with confidence. And if the buyer still has reservations they can source their own inspection.

  8. Lim report is necessary,but builder report will depend on house condition, if the house is in relatively good condition, builder report is value add to the house selling to give buyer peace of mind. But if the house needs lots of attention, it would be better to leave the choice for buyers. At least buyers will not be running away until they do their own builder inspection.

  9. Yes to a LIM report. It seems silly to purchase a house at such expense without some documentation to go with it. And it helps with speeding up the buying process as you don’t have to wait 10 days to receive the LIM. Builders reports are handy but buyers are aware these can be in the vendors favour. I always get a report from my usual building inspector.

  10. If I was selling my home, I would definitely make a LIM report available. I would make a builders report available if it wasn’t disadvantageous to do so.
    Some builders wouldn’t want their reports to be circulated further. I’m thinking about private builders in these cases. From my experience, most of the building/house inspection companies you find in the yellow pages or online provide fairly generic, not hugely helpful reports. In most cases, making these reports available would probably be fine.
    I would also consider having a valuation carried out. If this is favourable, share it. If not, don’t.
    The more information a vendor can make available, the more offers they will receive. I know from my own direct experience and the experience of family members buying houses that it can be very expensive doing all the research yourself and sometimes you just walk away. Tender offers are expensive to put together. As are the increasingly common quasi tender situations whereby all offers are provided to the vendor on a predetermined date.
    So, in short, yes vendors should provide what they can. They will attract more interest.

  11. A LIM will speed up the offer process, as that time could be utilised to engage an expert to advise on time/ cost of rectification.
    Not sure on the builders report. As mentioned, will builders be happy to extend that report to unknown people. Perhaps a list of trades people would be a more helpful handout as it would save a lot of work trying to find someone available to provide the required report/advice to enable an offer to proceed.

  12. It will definitely be handy to have a LIM and builder’s report, specifically for those wanting to go ahead with placing an offer. Waiting for this to be processed as part of the conditions of the offer can be stressful on both the buyer and seller

  13. Yes, definitely a LIM.
    A vendor commissioned builder’s inspection is helpful but often viewed suspiciously by buyers and there are questions about whether they have legal redress.
    A better option would be if it was commissioned by the agent perhaps, undertaken with the specific purpose of being for buyers to rely upon as a pre-purchase inspection.

  14. LIM report ‘Yes’, builder’s report ‘No’ as I think people won’t necessarily believe a vendor provided report and will still commission their own if they are interested in the property.

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