Building and pest inspections: what they cover and when to walk away

A building and pest inspection is a visual check of a property by a licensed inspector, usually done in the week or two before an auction or during the cooling-off period of a private sale. It is not compulsory, but skipping it on an established home is a false economy. The report costs a few hundred dollars; the problems it finds can cost far more.

What the building inspection covers

The inspector walks the property inside and out, into the roof space and under the floor where there is access, and reports on what they can see. That includes cracking in walls and footings, roof condition, damp and drainage, the state of decks and balconies, and safety issues such as loose balustrades or missing smoke alarms. They do not move furniture, lift carpet or open walls, and they do not test electrical or plumbing systems; those need separate specialists if you are worried.

What the pest inspection covers

The pest inspection looks for termites and other timber pests, evidence of past activity, and the conditions that attract them: timber in contact with soil, poor ventilation, leaks, and gardens built up against the house. Active termites are a serious finding; old, treated damage with no current activity is common in older suburbs and not necessarily a reason to walk away.

Reading the report

Reports can look alarming because inspectors are required to note everything. Focus on three things. First, anything described as a major defect or safety hazard. Second, anything with an estimated repair cost, and whether that changes what you would pay. Third, recommendations for further investigation, which mean the inspector saw something they could not assess and you need someone else to look.

Call the inspector after you have read it. Most are happy to spend ten minutes telling you what actually worries them, which is more useful than the document itself.

When to walk away, and when to negotiate

Walk away from active termites in structural timber, significant movement in footings, or water getting into the building with no obvious fix. Negotiate on things that are real but repairable: a roof that needs replacing in five years, rotten deck boards, an old hot water system. In a private sale, a report is a legitimate reason to revise an offer. At auction, it is the reason you set your limit where you did.

Do the inspection before you fall in love with the place, not after. It is much easier to be sensible about a report on a home you are still weighing up.