What is a Building Inspection?
Definition
Building Inspection
A building inspection is a professional assessment of a property's structural condition and overall state of repair, conducted by a licensed building inspector. In Australia, it is strongly recommended before purchasing a property and typically covers the structure, roof, walls, floors, plumbing, electrical systems, and moisture levels.
A building inspection — sometimes called a pre-purchase building inspection — gives you a detailed, independent report on the physical condition of a property before you commit to buying it. The inspector identifies existing defects, potential safety hazards, and maintenance issues that could cost you thousands to fix after settlement. While not legally required in most states, skipping a building inspection is one of the most common and costly mistakes property buyers make.
What Does a Building Inspector Check?
A standard building inspection covers all accessible areas of the property. The inspector will examine:
- Structural elements: Foundations, footings, load-bearing walls, beams, and stumps for cracking, movement, or deterioration
- Roof: Roof cladding, gutters, downpipes, fascia, flashing, and the roof cavity for leaks, sagging, or damage
- External walls: Brickwork, cladding, render, and weatherboards for cracking, moisture ingress, or deterioration
- Internal areas: Walls, ceilings, floors, doors, and windows for cracks, uneven surfaces, water staining, or poor workmanship
- Wet areas: Bathrooms, laundry, and kitchen for waterproofing failures, leaking taps, and water damage
- Plumbing: Visible pipework, hot water system condition, water pressure, and drainage
- Electrical: Visible wiring, switchboard condition, safety switches, and smoke alarms (note: inspectors do not test concealed wiring)
- Sub-floor and crawl spaces: Ventilation, moisture levels, stumps or piers, and evidence of water pooling
- Site drainage: Grading around the property, stormwater management, and retaining walls
When to Get a Building Inspection
- 1
Before signing the contract (ideal)
If the vendor agrees, arrange the inspection before you exchange contracts. This gives you full flexibility to walk away or negotiate without any contractual obligations.
- 2
During the cooling-off period
In most states, you have a short cooling-off period (2-5 business days) after signing. Use this time to arrange an urgent inspection. If major defects are found, you can withdraw from the contract.
- 3
As a contract condition (subject to inspection)
Your conveyancer can insert a 'subject to satisfactory building and pest inspection' clause. If the report reveals significant issues, you can negotiate or terminate the contract under this condition.
How Much Does a Building Inspection Cost?
Building inspection costs in Australia typically range from $300 to $600 for a standard residential property. Larger homes, older properties, or multi-storey dwellings may cost more. A combined building and pest inspection usually costs $400 to $700 — offering a saving compared to booking each inspection separately.
Given that a single undetected structural issue can cost $10,000 or more to repair, a building inspection is one of the best investments you can make during the buying process. For a full walkthrough of what to expect, read our building and pest inspection guide.
How to Read a Building Inspection Report
A good building inspection report will classify defects by severity:
- Major defects: Significant structural issues requiring immediate or urgent attention (e.g., foundation cracking, severe roof damage, major water ingress)
- Minor defects: Issues that require repair but are not structurally critical (e.g., minor cracking, worn weatherseals, aging fixtures)
- Maintenance items: General wear-and-tear items that should be addressed to prevent future problems (e.g., painting, gutter cleaning, regrouting)
Focus on the major defects first. Ask the inspector to explain anything you do not understand and request cost estimates for significant repairs. Use this information to negotiate a lower purchase price or request the vendor complete repairs before settlement.
Frequently Asked Questions
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