Building and Pest Inspection Guide: What Every Australian Buyer Needs to Know
Everything you need to know about building and pest inspections in Australia. Covers what inspectors check, costs by state, how to read the report, and negotiating based on results.
A building and pest inspection is one of the most critical steps in buying property in Australia. It is your opportunity to uncover hidden defects, structural issues, and pest infestations before you commit to a purchase. Skipping this step — or not understanding the report — can lead to tens of thousands of dollars in unexpected repair costs after settlement.
This guide explains exactly what a building and pest inspection covers, how to book one, how much it costs in each state, how to read the report, and how to use the findings to negotiate a better deal.
Definition
Building and pest inspection
A professional, non-invasive assessment of a property's structural condition and pest status, conducted by licensed inspectors before purchase. It identifies defects, safety hazards, termite activity, and maintenance issues to help buyers make informed decisions.
What Is a Building and Pest Inspection?
A building and pest inspection is a professional assessment of a property's physical condition. It is typically conducted by a licensed building inspector and a pest inspector (often the same company offers both as a combined service). The inspection is non-invasive, meaning inspectors examine visible and accessible areas without demolishing walls or digging up foundations.
- Building inspection: Assesses the structural integrity of the property including the roof, walls, floors, foundations, plumbing, electrical systems, drainage, and any visible defects such as cracks, dampness, or water damage.
- Pest inspection: Checks for evidence of timber pests including termites (white ants), borers, and wood decay fungi. Termite damage is one of the most expensive issues to remediate and is not covered by standard home insurance.
What Do Inspectors Check?
A thorough building inspection covers the following areas:
Building Inspection Checklist
Building Inspection Areas
- Roof — condition of tiles or sheeting, gutters, downpipes, flashing, and signs of leaks
- External walls — cracks, movement, weathering, cladding condition, and damp issues
- Internal walls and ceilings — cracks, stains, sagging, and signs of water penetration
- Foundations and subfloor — stumps, bearers, joists, moisture levels, and ventilation
- Wet areas — bathrooms, laundry, and kitchen for waterproofing adequacy and leaks
- Windows and doors — operation, seals, frames, and glazing condition
- Electrical — visible wiring, switchboard condition, and safety switches (RCDs)
- Plumbing — visible pipes, water pressure, hot water system, and drainage
- Site drainage — grading, stormwater management, and any pooling or erosion
- Outbuildings — garages, sheds, carports, retaining walls, fences, and paths
Pest Inspection Focus Areas
- Subfloor timbers and stumps for termite damage or activity
- Roof void for termite leads (mud tubes) and borer damage
- Wet areas where moisture attracts termites
- Garden beds, trees, and timber structures adjacent to the house
- Evidence of previous termite treatments
- Moisture readings using thermal imaging or moisture meters
How to Book a Building and Pest Inspection
- 1
Time it correctly
Book during the cooling-off period for private treaty sales, or before auction day if buying at auction. For auctions, there is no cooling-off period, so you must inspect beforehand.
- 2
Choose a licensed inspector
Ensure the inspector holds a current licence in your state and carries professional indemnity insurance. Ask for their licence number and verify it with the relevant state authority.
- 3
Request a combined report
Booking a combined building and pest inspection is cheaper and more efficient than engaging two separate inspectors.
- 4
Attend if possible
Being present at the inspection allows you to ask questions, see issues firsthand, and get immediate verbal feedback before the written report is prepared.
- 5
Check the scope
Confirm the inspection covers all accessible areas. Some inspectors exclude certain areas (such as roof spaces they cannot safely access) — these exclusions will be noted in the report.
Attend the Inspection
Always try to attend the inspection in person. Inspectors can show you issues firsthand, explain their severity, and answer questions on the spot. The written report is important, but nothing replaces seeing potential problems with your own eyes.
Costs by State
The cost of a combined building and pest inspection varies by state, property size, and property type. The following are typical ranges for a standard residential property:
- New South Wales: $400 - $600 combined
- Victoria: $400 - $600 combined
- Queensland: $350 - $550 combined (pest inspections are particularly important in QLD due to higher termite risk)
- Western Australia: $350 - $500 combined
- South Australia: $350 - $500 combined
- Tasmania: $300 - $450 combined
- ACT: $400 - $550 combined (note: the ACT requires building and pest reports to be attached to the contract by the vendor)
- Northern Territory: $350 - $500 combined
Larger properties, multi-storey homes, and properties with extensive outbuildings will cost more. Some inspectors charge extra for thermal imaging, which is highly recommended for detecting hidden moisture and termite activity.
How to Read the Report
Building and pest reports follow Australian Standard AS 4349.1 (building) and AS 4349.3 (pest). They categorise issues by severity:
- Major defects: Significant structural issues that require immediate attention and substantial expenditure. Examples include major foundation cracking, severe termite damage to structural timbers, or a failing roof structure.
- Minor defects: Issues that are not structurally significant but should be repaired to prevent deterioration. Examples include minor cracking, worn seals, or surface corrosion.
- Maintenance items: Normal wear and tear that requires routine maintenance, such as painting, clearing gutters, or replacing washers.
- Safety hazards: Issues that pose an immediate risk to occupants, such as missing safety switches, asbestos, or unstable structures.
Pay particular attention to the summary of findings section and any recommendations for further investigation by a specialist (structural engineer, electrician, or plumber). If the inspector recommends further investigation, take it seriously — it usually means they have identified something concerning that exceeds the scope of a standard inspection.
Common Issues Found in Inspections
- Cracking: Hairline cracks in plaster are usually cosmetic. Cracks wider than 5mm in brick or concrete may indicate foundation movement and require engineering assessment.
- Rising damp and moisture: Particularly common in older homes without adequate damp-proof courses. Can lead to mould, timber decay, and structural damage over time.
- Termite damage or activity: Active termites require immediate treatment ($2,000 - $5,000+ for treatment, potentially $20,000+ for structural repairs).
- Roof defects: Broken tiles, rusted sheeting, failing flashing, and blocked gutters are common and can lead to water ingress.
- Asbestos: Common in homes built before 1990. Not dangerous if undisturbed, but removal is expensive ($5,000 - $30,000+ depending on extent).
- Non-compliant renovations: Unpermitted structural changes, illegal plumbing, or electrical work that does not meet current standards.
- Poor drainage: Water pooling around foundations can cause long-term structural issues and is often overlooked.
Termite Damage Warning
Termite damage is not covered by standard home insurance in Australia. Active termite infestations can cost $2,000-$5,000 to treat, with structural repairs potentially exceeding $20,000. If the pest inspection reveals active termites or significant damage, factor these costs carefully into your decision.
Negotiating Based on Results
The inspection report is a powerful negotiation tool. If significant issues are identified, you have several options:
- 1
Request a price reduction
Obtain quotes for the required repairs and ask the vendor to reduce the purchase price by a corresponding amount. This is the most common approach.
- 2
Request the vendor complete repairs
Ask the vendor to fix specific items before settlement. Be cautious — the vendor may choose the cheapest contractor and you have limited control over quality.
- 3
Renegotiate contract terms
For example, extend the settlement period to allow time for further specialist assessments.
- 4
Exercise cooling-off rights
If the issues are severe enough, you can withdraw from the contract during the cooling-off period (a small penalty may apply).
- 5
Walk away
If the inspection reveals major structural defects, active termite damage, or prohibitively expensive issues, walking away may be the smartest financial decision.
Pre-Purchase vs Pre-Auction Inspections
The timing of your inspection depends on how the property is being sold:
- Private treaty (pre-purchase): You can make your offer subject to a satisfactory building and pest inspection, or conduct the inspection during the cooling-off period. This gives you the opportunity to negotiate or withdraw based on the findings.
- Auction (pre-auction): There is no cooling-off period for auction purchases, so you must complete your inspection before bidding. Contact the agent to arrange access. Be aware that you will pay for the inspection even if you do not win the property — this is a cost of participating in the auction process. Use the Inspection Planner to schedule and coordinate multiple pre-auction inspections efficiently.
Related Resources
- Inspection Route Planner — Plan and schedule your property inspections
- Property Due Diligence Checklist — Everything to check before buying
- Contract Red Flags — Warning signs in property contracts
A building and pest inspection is not an optional extra — it is an essential part of buying property in Australia. The $300 to $600 you spend on a combined inspection is insignificant compared to the cost of discovering termite damage, structural defects, or hidden asbestos after settlement. Always engage a licensed inspector, attend the inspection if possible, read the report carefully, and use the findings to make an informed decision about whether to proceed, negotiate, or walk away.
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This guide is for general information only. Inspection requirements and standards may vary by state. Always engage a licensed inspector appropriate for your property type and location.