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Buyer GuideDue Diligence

Building & Pest Inspections

Why inspections matter, what they cover, and how to understand inspection reports.

Teylo Team 8 min readUpdated January 2026

Why Inspections Are Essential

Building and pest inspections are your best defence against buying a property with hidden problems. They can uncover structural issues, water damage, termite infestations, and safety hazards that aren't visible during a standard viewing. The cost of an inspection is minimal compared to the potential cost of repairs.

What Building Inspections Cover

A comprehensive building inspection examines:

  • Structural elements: foundations, walls, roof framing, load-bearing elements
  • Exterior: cladding, windows, doors, balconies, decks, drainage
  • Interior: walls, ceilings, floors, doors, windows, built-ins
  • Roof space: framing, insulation, ventilation, sarking
  • Under-floor areas: stumps, bearers, joists, ventilation
  • Wet areas: bathrooms, laundry, kitchen for signs of water damage
  • Services: accessible plumbing, electrical (visual only), hot water system
  • Safety items: smoke alarms, pool fencing, balustrades

What Pest Inspections Cover

Pest inspections focus on timber-destroying organisms:

  • Live termites and evidence of termite activity
  • Termite damage (past and present)
  • Conditions conducive to termite attack
  • Termite risk assessment
  • Borers and wood decay fungi
  • Chemical or physical termite barriers
  • Recommendations for ongoing management

When to Get Inspections

Timing matters for inspections:

  • Before auction: Complete inspections before the auction since there's no cooling-off period
  • Private treaty: Can be done before making an offer or as a condition of the contract
  • During cooling-off: If buying in states with cooling-off, use this time for inspections
  • Pre-purchase: Even new builds benefit from independent inspections

Choosing an Inspector

Look for these qualifications when choosing an inspector:

  • Licensed and insured (check they have professional indemnity insurance)
  • Experienced in inspecting similar property types
  • Member of a professional association (e.g., ABIS, HIA)
  • Provides detailed written reports with photos
  • Offers to discuss findings with you
  • Uses appropriate equipment (moisture meters, thermal cameras)
  • Independent (not recommended by the selling agent)

Understanding Your Report

Reports typically categorise findings as:

  • Major defects: Significant structural or safety issues requiring immediate attention
  • Minor defects: Issues needing repair but not urgent
  • Maintenance items: General wear and tear, routine maintenance needed
  • Safety hazards: Items posing immediate risk to occupants
  • Conditions conducive: Factors that may lead to future problems

Common Issues Found

Frequently discovered problems include:

  • Roof defects: damaged tiles, rusted gutters, poor flashings
  • Moisture and rising damp in subfloor areas
  • Termite damage or activity (affects 1 in 3 Australian homes)
  • Cracks in walls (structural vs cosmetic)
  • Faulty waterproofing in wet areas
  • Electrical safety issues
  • Asbestos-containing materials (pre-1990 homes)
  • Poor drainage around the property

What to Do with the Report

If the inspection reveals issues, you have options: request the vendor fix issues before settlement, negotiate a price reduction, include a special condition in the contract, or walk away if problems are too significant. Your solicitor can advise on the best approach.

Cost of Inspections

Expect to pay:

Inspection TypeTypical CostNotes
Combined Building & Pest$500-$800Most common option
Building Only$400-$600For properties with low pest risk
Pest Only$250-$350Add-on to existing building report
Strata Inspection$200-$400Essential for apartments
Pool Inspection$100-$200Check compliance with fencing laws
Asbestos Assessment$200-$500For pre-1990 homes if concerned

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