A pre-purchase building inspection is one of the most valuable investments you can make when buying property. For a cost of $400 to $800, a qualified inspector can identify structural defects, safety hazards, and maintenance issues that could cost you tens of thousands of dollars to repair.
But not all building inspections are equal, and not every property needs the same level of scrutiny. Here's what you need to know.
What does a building inspection cover?
A standard pre-purchase building inspection in Victoria follows Australian Standard AS 4349.1. The inspector will examine all reasonably accessible areas of the property, including:
- Structure: Foundations, footings, stumps (for raised-floor homes), slab integrity, load-bearing walls, and framing
- Roof: Tiles or metal sheeting, gutters, downpipes, fascia, flashing, and roof space (insulation, ventilation, signs of leaks)
- Exterior: Cladding, brickwork, render, windows, doors, balconies, decks, and retaining walls
- Interior: Walls, ceilings, floors, doors, windows, wet areas (bathrooms, kitchen, laundry), and stairs
- Sub-floor: Stumps, bearers, joists, ventilation, dampness, and pest evidence
- Site: Drainage, grading, paths, driveways, fences, and outbuildings
What is NOT covered
Standard inspections typically do not include:
- Areas that are concealed, inaccessible, or obstructed by furniture
- Plumbing, electrical, or gas systems (these require specialist inspections)
- Swimming pools and their compliance with current fencing regulations
- Environmental hazards such as asbestos identification (requires a separate specialist report)
How much does a building inspection cost?
In Melbourne and regional Victoria, expect to pay:
- Standard house inspection: $400–$600
- Large or older home: $600–$800
- Combined building and pest inspection: $500–$900
- Apartment or unit: $300–$500
Some inspectors offer combined building and pest packages at a reduced rate. Given that termite treatment alone can cost $10,000 to $25,000, a combined inspection is almost always worthwhile.
When should you get a building inspection?
Ideally, you should arrange a building inspection before signing the Contract of Sale. This is straightforward for private sales where you can include a “subject to building inspection” special condition in the contract.
For auctions, there is no opportunity to add special conditions. You must complete your building inspection before auction day because once the hammer falls, you are committed — no cooling-off period, no conditions, no way out if the inspection reveals problems.
How to read a building inspection report
A typical report runs 30 to 60 pages and can be overwhelming. Focus on these sections:
- Summary of significant findings: This is the most important section. It lists the major defects that need attention.
- Major defects: Issues that are serious, costly to repair, or pose safety risks. Examples include significant cracking in load-bearing walls, rising damp, roof structural issues, or non-compliant building work.
- Minor defects: Issues that require maintenance but are not structurally significant. Cosmetic cracking, minor wear, and age-related deterioration fall into this category.
- Safety hazards: Items that pose an immediate risk, such as unsafe balustrades, missing smoke alarms, or exposed wiring.
What qualifies as a “deal-breaker”?
There is no universal answer, but the following issues should give you serious pause:
- Significant structural cracking (more than 5mm wide)
- Active termite infestation or extensive termite damage
- Rising damp or significant moisture ingress
- Illegal building work or non-compliant additions
- Asbestos in a deteriorated or friable condition
- Roof structure failure or extensive water damage
Using the report in negotiations
A building inspection report is a powerful negotiation tool. If the report reveals significant defects, you can:
- Negotiate a price reduction to cover the cost of repairs
- Request the vendor complete repairs before settlement
- Walk away from the purchase (if you have a subject-to-building-inspection condition in your contract)
For example, if the report identifies $15,000 in required repairs, you have a strong basis to negotiate the purchase price down by a similar amount.
Start with the documents
Before you spend money on a building inspection, review the Section 32 and Contract of Sale to ensure the property is worth investigating further. A Pre Contract Review at precontractreview.com can flag issues in the documents that might affect your decision — saving you the cost of an inspection on a property you would have walked away from anyway.