Why is snagging necessary?
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Gibraltar’s property market continues to have tremendous appeal, both to locally-based buyers seeking residential accommodation or office and commercial property, and to investors. Many investors in Gibraltar’s new developments buy properties off plan, aware that the demand for renting these modern properties is high. Despite the current pandemic lockdown crisis and predictions of a global economic downturn, Gibraltar’s unique position is likely to see this demand sustained, especially as tenants opt for the higher specifications, quality finishes and contemporary features that new properties offer.
Why is snagging important for your property?
Buying an apartment - whether as a financial investment or as your home - is a major expense. The likelihood is that you have borrowed a substantial amount of money in the form of a mortgage. There then will be added expenditure in order to furnish, organise removals, legal fees and so on. Acquiring a property involves a major outlay of money.
If you are buying off plan, you will not have seen the property before you are asked to meet the developer in order to carry out the ‘snagging’. This means running a check of the property, often with a representative of the developer or the developer’s contractor, and picking out any issues that might need to be finished off fully. The snagging process picks up any flaws or defects, and ensures that these are dealt with prior to full completion, or within the guarantee period for a new building as agreed with the developer. These ‘snags’ could be anything: faults in door locking mechanisms, poor quality silicone seals around the bath, a toilet not flushing, lights not functioning, badly scratched glazing, boot marks on walls…Advanced Property Care’s snagging team has seen a bit of everything over the years!
If you have bought off plan, you have to place a good deal of trust in the developer, and, given the large financial outlay, it is not at all unreasonable to expect the property to be perfect when it is handed over. You expect to buy what is stated in the sales brochure that tempted you to purchase specifically that apartment. After all, if you were to buy a tin of tomato soup and discovered that despite what is pictured on the label you end up with a tin of pea soup, you would expect to be able to return it to the shop you bought it from. Trite example, but same principle!
Most developers work extremely hard to hand over perfect properties. There is an element of trust in all the working relationships on a large, complex new building development: you have to trust the developer, who has to trust the architects, engineers, project managers, suppliers, quantity surveyors, contractors, tradesmen and so on. Even the best developers occasionally encounter problems with quality of workmanship.
There are all sorts of reasons for this, but often it is the case that skilled labour is difficult to recruit, especially in locations where there are numerous large new projects under way at the same time - which is exactly the case in Gibraltar. It is also the case that developers are under enormous pressure to complete the build in order to be able to hand over apartments and complete the sales - meaning money can come into the developers’ businesses to offset the huge expenditures involved in the actual construction process. This pressure to complete is often communicated down through to contractors and workers who are put under pressure to rush through their work - and rushed work can mean there is a greater chance of there being poor finishes.
There is also the possibility that some flaws are not noticed for some time. Some buyers are not able to occupy the property for a while after completion and if these are not picked up before the guarantee period is finished, there may not be any recourse to have the flaw repaired by the developer. And this could add to the buyer’s financial burden.
This is why snagging - inspecting a property for defects and poor finishes - is vital for buyers.
Snagging reports
Advanced Property Care has been engaged to carry out snagging processes in several of Gibraltar’s recent new developments, and we have been engaged to carry out snagging in new developments that are still in the throes of near-completion. We have found that in Gibraltar, the developers we have worked with are very committed to quality finishes in their properties, and, when this is not achieved, they are equally committed to rectifying faults as quickly as possible.
As a snagging team, Advanced Property Care is exceptionally thorough. We take our time to inspect every property - from compact studio apartments to spacious penthouses - equally thoroughly. We take a photographic record of every property we inspect, and this is particularly detailed for those buyers who do not reside in Gibraltar and are unlikely to see the apartment for some time after completion. We send reports to the buyers (our clients) with every inspection, and it is sometimes the case that we have to return several times to a property to ensure that the snags are all completed to an acceptable standard. That degree of thoroughness is down to experience and a systematic inspection process.
What types of defects are found during a snagging inspection?
Our snagging inspections uncover all sorts of faults in new properties. More usually these would include unacceptable standards of painting or sealing, stiff hinges, or doors catching on the floor. Where there are wooden laminate floors fitted, we are very careful to seek out scratches or flaws on the flooring, as this can be very expensive to repair or replace. Sometimes flaws are less obvious - a crack in the plaster can be a sign of a structural issue rather than a poor finish; if a wall around a pipe leading to an external area is not properly finished, it could mean that vermin such as rats or cockroaches can get into the property. Not only can this be a risk to health, but it can lead to more damage.
Should snagging be carried out before or after completion?
It is always best to carry out snagging prior to completion so that any flaws can be rectified before money is handed over. Sometimes developers put buyers under pressure to complete fast, and this sometimes means that buyers gloss over the snagging process.
Advanced Property Care is a highly responsive and flexible business. We can usually schedule inspections within 48 hours of being notified that a property is ready for inspection. We turn around our reports fast so that both the client and developer are fully aware of what has been snagged. That helps to speed up the process. We will not accept anything that we deem to be remotely sub-standard. Our view is that developers are responsible for handing over properties that are perfect; if they want to push buyers to complete then they must ensure the property is up to standard fast.
Why quality finishes are important?
You would not buy a dress where the hem is unstitched unless you had a seriously generous discount and the means to sew a repair. You would not buy a brand new car if the paintwork was scratched or the brakes were unresponsive. So why spend a significant sum of money on a new property that isn’t just right?
More importantly, especially if you are an investor planning to rent out the property you are purchasing, defects can cost you money in the long run. A shabby finish to an apartment will mean prospective tenants may well be able to put downward pressure on rental charges. You may find it harder to attract tenants and have to drop the price of the rent. Worse still, it may be the case that you cannot let the property until you have had additional work carried out at your own cost. If the flaw become serious during a tenancy, you, as a landlord, may even have to fund temporary accommodation for your tenant while you rectify the defect. This latter is rare, but we have known this to happen where a house was flooded with sewage because the drainage system had been so poorly built by the original developer! That owner had to fund the installation of a new system, have the house disinfected, redecorated, new ground floor finishes - floorboards, doors, skirting, wiring etc. installed - and compensate the tenant for loss of their own personal property.
Have you just bought off plan and need your property snagged?
If you have, then drop us a line or give us a call. We can talk you through the process and our fees. Snagging is vital for buyers, especially for off plan properties, and especially if you are not currently in Gibraltar and cannot carry the work out yourself.
Get in touch through the contact page or call Dave, on +350 54012772
