Buyers regularly hire a “building inspector” without understanding that there are at least five distinct types of pre-purchase inspection — each with different scope, methodology, and cost. The wrong inspection misses defects that the right one would catch. The right combination, ordered in the right sequence, identifies issues that can save (or cost) tens of thousands.
This guide covers the five major inspection types, when to use each, what they cost, and how to read inspection reports.
The five types of pre-purchase inspection
| Type | What it covers | Cost | When to order |
|---|---|---|---|
| Standard building inspection | Visual general condition | $400–$700 | Every property (minimum) |
| Pest/termite inspection | Active infestation, past damage | $300–$500 | Older buildings, weatherboard, wet areas |
| Structural inspection | Engineer-assessed structural integrity | $800–$1,500 | Visible cracks, suspected subsidence |
| Dilapidation report | Pre-construction condition baseline | $600–$1,500 | Adjacent to neighbour construction |
| Special-purpose inspection | Specific issue (asbestos, mould, drainage) | $500–$2,500 | When standard inspection flags concern |
Standard building inspection — what it actually covers
A standard building inspection (also called a pre-purchase inspection or AS4349.1 inspection) is a visual examination of the building’s condition. The inspector looks at:
- External walls, roof, gutters, eaves
- Internal walls, ceilings, floors
- Doors, windows, locks
- Plumbing fixtures (visible only)
- Electrical fittings (visible only)
- Subfloor and roof space (where accessible)
- Site drainage and grading
What it does NOT cover:
- Concealed defects (behind walls, under floors, in roof cavities)
- Pest activity (separate inspection)
- Structural engineering assessment
- Compliance with building permits
- Condition of plumbing/electrical inside walls
- Roof tiles or membrane condition (typically only what’s visible from ground)
The standard inspection is a starting point. It identifies areas requiring follow-up specialist inspection.
Pest inspection — what to know
Termite damage is the most common building defect discovered after purchase in Victoria. Common types:
- Subterranean termites — most damaging, common in older timber houses
- Drywood termites — rarer in Victoria but common in coastal stock
- Woodborers — less damaging but indicative of conditions
A pest inspection report should include:
- Active infestation findings
- Previous damage indicators
- Conducive conditions (moisture, vegetation contact)
- Treatment recommendations
- Re-inspection schedule
Termite damage rectification typically costs $5,000–$80,000.
Structural inspection — when it matters
A structural inspection is performed by a structural engineer (rather than a general building inspector). Order one if the standard inspection finds:
- Cracks longer than 5mm or wider than 2mm
- Doors or windows that won’t close properly
- Floor unevenness
- Visible foundation issues
- Signs of subsidence (see our reactive soil guide)
- Failed retaining walls or significant cracking
Dilapidation reports — for adjacent construction
If a neighbour is undertaking major construction (new dwelling, excavation, multi-storey extension), a dilapidation report documents your property’s pre-construction condition. This protects you from liability for damage that pre-existed the construction.
Particularly important when:
- Neighbour is excavating below your foundation level
- Multi-storey new build adjacent to your single-storey
- Vibration-prone work (pile driving, demolition)
- Heritage property where any damage requires expensive restoration
Reading inspection reports — what to focus on
Inspection reports use risk gradings:
- Major defect. Significant repair needed. Cost typically $5,000+. Prioritise rectification or price reduction.
- Minor defect. Cosmetic or routine maintenance. Cost typically under $2,000.
- Maintenance item. Normal property maintenance. Plan for over time.
- Recommendation.Inspector’s suggestion for further investigation or specialist inspection.
How to use inspection findings in negotiation
- Quantify rectification costs. Get tradesperson quotes for major defects ($200–$300 per quote).
- Request price reduction. Use the rectification cost plus 10–20% buffer.
- Request vendor rectification. Especially for major safety issues — wiring, structural, gas.
- Walk away. If rectification cost is unrecoverable from the price reduction or the vendor refuses to adjust.
Order of inspections — practical sequence
- Standard building inspection first ($400–$700)
- If standard flags pest concerns, add pest inspection ($300–$500)
- If standard flags structural concerns, add structural engineer ($800–$1,500)
- If standard flags drainage or specific issues, add specialist inspection
Total typical pre-purchase inspection spend: $700–$3,500. For a $700,000 purchase, that’s 0.1–0.5% — well worth it given the defect-discovery upside.
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