A couple in western Sydney put an offer on a three-bedroom weatherboard house in 2024. The place looked solid at the open inspection. Paint was fresh, the kitchen had been updated, and the agent mentioned two other interested buyers. They skipped the building inspection to avoid “losing the property” and settled six weeks later. Within three months, they found active termite damage in the subfloor framing, a cracked sewer pipe under the laundry, and non-compliant electrical work behind the renovated kitchen. Repair bill: $47,000. The building inspection they skipped would have cost $500.
First home buyers face enormous pressure to move fast, and building inspections are the first expense that gets cut when emotions run high. But a pre-purchase building inspection is the single most cost-effective step you can take before buying a home in Australia. It catches structural problems, pest damage, safety hazards, and non-compliant work invisible during an open house walkthrough.
This guide covers what a building inspection includes, what it costs, how to read the report, the red flags that should concern you, and how to find a qualified inspector.
1. What Is a Pre-Purchase Building Inspection?
A pre-purchase building inspection is a visual examination of a property’s accessible areas, carried out by a qualified building inspector before you commit to buying. The inspection follows AS 4349.1 (the Australian Standard for pre-purchase inspections of residential buildings) and covers the structural condition, safety, and general maintenance of the property.
The inspector does not open walls, lift carpets, or dig up foundations. It is a non-invasive assessment of what can be seen and accessed from normal vantage points. An experienced inspector will still catch problems most buyers miss: hairline cracks indicating foundation movement, moisture stains suggesting hidden leaks, and patched areas hiding previous damage.
What the inspection covers:
- Structural elements: foundations, footings, floor framing, walls, roof structure
- Exterior: cladding, brickwork, windows, doors, balconies, decks, retaining walls
- Interior: walls, ceilings, floors, wet areas (bathrooms, laundry, kitchen)
- Roof space: trusses, rafters, sarking, insulation, ventilation, evidence of leaks
- Subfloor: stumps, bearers, joists, ventilation, moisture levels, drainage
- Site drainage: stormwater, grading, pooling, downpipe connections
- Safety items: smoke alarms, handrails, balustrades, stairs
What the inspection does NOT cover:
The standard building inspection excludes electrical wiring, plumbing pipework, gas fittings, air conditioning, pools, and anything concealed behind walls or under floors. These require separate specialist inspections. More on that in Section 5.
2. Building Inspection vs Pest Inspection
First home buyers often confuse building and pest inspections or assume they are the same thing. They are separate assessments, usually performed by different specialists, and you need both.
| Feature | Building Inspection | Pest Inspection |
|---|---|---|
| Standard | AS 4349.1 | AS 4349.3 |
| Inspector | Building inspector, surveyor, or architect | Licensed pest controller |
| Focus | Structural defects, safety, maintenance | Termites, borers, wood decay |
| Areas checked | All accessible structural areas | Subfloor, roof void, exterior, gardens |
| Equipment | Moisture meter, spirit level, binoculars | Thermal imaging camera, moisture meter, tapping tools |
| Typical cost | $300 to $600 | $200 to $350 |
| Combined cost | $450 to $700 (combined building and pest) | — |
Why you need both: A building inspector checks structure but may not identify active termite infestation. A pest inspector checks for timber pests but does not assess structural adequacy. Termite damage is the most expensive defect found in Australian homes, costing an average of $10,000 to $15,000 to remediate according to CSIRO research, and it is often invisible until the timber is physically tested.
Most inspection companies offer combined packages at a lower price than booking separately. For a standard three-bedroom house, expect $450 to $700 for the combined report.
3. When to Book Your Inspection
Timing your building inspection depends on whether you are buying at auction or by private treaty.
Private treaty (most sales):
Make your offer subject to a satisfactory building and pest inspection. This is a standard contract condition in every state and territory. You typically have 7 to 14 days to complete inspections before the condition must be satisfied or waived. If the inspection reveals serious defects, you can renegotiate the price, request repairs, or withdraw from the contract without penalty.
Auction purchases:
Once the hammer falls at an Australian auction, the sale is unconditional. There is no cooling-off period, and you cannot add a building inspection condition after the fact. You must arrange your building and pest inspection before auction day. Budget an extra $500 to $700 for inspections on a property you might not win, but consider it insurance against a far larger mistake.
Cooling-off periods by state:
| State | Cooling-Off Period | Can Buyer Cancel During Cooling-Off? |
|---|---|---|
| NSW | 5 business days | Yes, with 0.25% penalty of purchase price |
| VIC | 3 business days | Yes, with $100 or 0.2% penalty |
| QLD | 5 business days | Yes, with 0.25% penalty |
| WA | No statutory cooling-off | Rely on contract conditions |
| SA | 2 business days | Yes, by written notice |
| TAS | No statutory cooling-off | Rely on contract conditions |
| ACT | 5 business days | Yes, with 0.25% penalty |
| NT | 4 business days | Yes, by written notice |
Book your inspection in the first day or two of any cooling-off period. Reports take 24 to 48 hours. If you wait until day three of a five-day period, you will not have time to negotiate based on the findings.
4. What a Building Inspector Checks
A thorough building inspection follows a systematic path through every accessible area of the property.
| Area | Key Items Checked |
|---|---|
| Exterior and site | Brickwork/render cracks (over 5mm suggests foundation movement), drainage grading, retaining walls, trees within 3m of building |
| Roof (external) | Cracked/broken tiles, corroded metal sheeting, flashing around penetrations, ridge capping mortar, gutters and downpipes |
| Roof space | Truss/rafter condition, sarking, insulation, leak evidence (water stains, mould), ventilation |
| Subfloor | Stump condition and plumb, bearer/joist integrity, ventilation clearance (min 150mm per AS 2870), termite evidence (mud tubes, frass) |
| Interior | Wall/ceiling cracks (diagonal cracks near doorframes indicate movement), door/window operation, floor levels, wet area waterproofing, mould |
5. Additional Inspections You May Need
The standard building and pest inspection does not cover everything. Depending on the property, you may need one or more specialist assessments.
| Specialist Inspection | When You Need It | Who Does It | Typical Cost |
|---|---|---|---|
| Electrical inspection | Older homes (pre-1980), renovated properties | Licensed electrician | $200 to $400 |
| Plumbing inspection (CCTV drain camera) | Older homes, tree roots near drains, history of blockages | Licensed plumber | $250 to $500 |
| Structural engineering report | Significant cracking, foundation concerns, retaining walls | Structural engineer | $1,500 to $2,500 |
| Asbestos inspection | Any home built before 1990 | Licensed asbestos assessor | $300 to $600 |
| Pool compliance check | Property has a pool or spa | Licensed pool inspector | $150 to $350 |
| Strata inspection (units/townhouses) | Strata-titled property | Strata search specialist | $200 to $350 |
Electrical inspection: Homes built before 1980 may have aluminium wiring, cloth-insulated cables, or no safety switches (RCDs). A licensed electrician can check the switchboard, test circuits, and identify non-compliant work.
Plumbing inspection: A CCTV drain camera inspection by a licensed plumber reveals cracked, collapsed, or root-invaded pipes invisible from the surface. Especially valuable for properties over 30 years old or those with large trees near the building. TradieVerify lists 7,557 active plumbers across QLD and ACT.
Asbestos: Most Australian homes built before 1990 contain asbestos in some form: eaves, wet area sheeting, vinyl floor tiles, or roof materials. An asbestos inspection identifies what contains asbestos and its condition. Disturbing asbestos without proper licensing is illegal in every state.
6. Red Flags That Should Make You Think Twice
Not every defect is a deal-breaker, but some findings should trigger serious caution or a price renegotiation. These red flags represent expensive repairs or safety risks that first home buyers often underestimate.
Structural red flags (consider walking away):
- Major foundation cracking (stair-step cracks in brickwork wider than 5mm)
- Active termite infestation with structural timber damage
- Significant roof structure defects (sagging ridge, split trusses)
- Evidence of subsidence or heave (doors jammed shut, floors sloping noticeably)
- Asbestos in poor condition throughout the property
Costly but fixable (negotiate the price down):
- Roof replacement needed within 5 years ($8,000 to $25,000)
- Subfloor restumping required ($4,000 to $15,000 for a typical house)
- Bathroom or laundry waterproofing failure ($3,000 to $8,000 per wet area)
- Switchboard upgrade needed ($800 to $2,000)
- Damaged or blocked sewer line ($2,000 to $8,000)
Hidden renovation warning signs:
Fresh paint throughout, new carpet over old floorboards, and recently tiled bathrooms can mask problems. Ask the inspector to pay extra attention to recently renovated areas. Common issues behind renovations include non-compliant electrical work (no permits), removed structural walls, and covered-up water damage. If the report identifies unpermitted work, check with your local council. Unpermitted work affects insurance coverage and creates legal issues when you sell.
7. How to Read Your Building Inspection Report
A building inspection report typically runs 30 to 60 pages and uses standardised defect classifications under AS 4349.1.
| Classification | Meaning | Action Required |
|---|---|---|
| Major defect | Significant impact on habitability or structural adequacy | Specialist assessment, price negotiation, or withdrawal |
| Minor defect | General maintenance, ageing, or minor damage | Budget for repair, low urgency |
| Safety hazard | Immediate risk to occupants | Must be addressed before occupation |
Start with the summary page and its overall condition rating. Focus on items classified as “major defect” or “safety hazard” first. Check the photo evidence for each defect and review the limitations section, which lists areas the inspector could not access. Inaccessible areas may contain hidden problems.
Using the report to negotiate: If the inspection reveals $15,000 in necessary repairs, present the relevant pages to your conveyancer and request a price adjustment through the selling agent. Sellers often accept a reduction rather than risk the buyer walking away.
8. How to Choose a Qualified Building Inspector
Building inspection is not a nationally regulated profession. Licensing requirements vary by state, and in some states, anyone can call themselves a building inspector. This makes choosing carefully critical for first home buyers.
Minimum qualifications to look for:
- Current builder’s licence or building surveyor registration in the relevant state
- Professional indemnity insurance (minimum $1 million cover)
- Public liability insurance
- Membership in a professional body: AIBS (Australian Institute of Building Surveyors), HIA, or Master Builders
- Experience with the property type you are buying (brick veneer, weatherboard, slab-on-ground, etc.)
State-by-state inspector requirements:
| State | Licensing Requirement | Regulator |
|---|---|---|
| QLD | Licensed building inspector (QBCC) | QBCC |
| VIC | Registered building practitioner (VBA) | VBA |
| NSW | Licence not mandatory (industry self-regulation) | Fair Trading NSW |
| WA | No specific inspector licence (recommend licensed builder) | DEMIRS |
| SA | No specific inspector licence (recommend qualified builder) | CBS SA |
| TAS | No specific inspector licence | CBOS TAS |
| ACT | Licensed building assessor | Access Canberra |
| NT | No specific inspector licence | NT BAS |
Queensland and Victoria have the strongest regulation. In QLD, residential building inspectors must hold a QBCC licence. In VIC, building practitioners must be registered with the VBA. In other states, look for inspectors who hold a current builder’s licence, as this demonstrates verified construction knowledge.
With 94,127 active builder licences across VIC, QLD, WA, and ACT on TradieVerify, you can verify a building professional’s licence before booking. Cross-check your inspector’s licence number on TradieVerify or the relevant state regulator’s website.
Questions to ask before booking: What is your licence number? Do you carry professional indemnity insurance, and what is the coverage amount? Can you provide a sample report? How soon after the inspection will I receive the written report?
9. Building Inspection Costs Across Australia
Building inspection costs vary by property size, location, and inspector experience. Regional areas sometimes attract a travel surcharge. Combined building and pest packages offer the best value.
| Inspection Type | 2-Bedroom Unit | 3-Bedroom House | 4+ Bedroom / Large Home |
|---|---|---|---|
| Building only | $300 to $450 | $400 to $600 | $550 to $700 |
| Pest only | $200 to $300 | $250 to $350 | $300 to $400 |
| Combined building + pest | $400 to $550 | $500 to $700 | $650 to $900 |
Factors that affect price: Property size and complexity (two-storey on stumps costs more than single-storey slab), location (regional areas attract travel surcharges), urgency (same-day service adds $50 to $150), and inspector qualifications (registered building surveyors charge more than general inspectors). Always get a written report with photos.
Do not choose the cheapest inspector. A $250 inspection that misses a $20,000 defect is the most expensive decision you will make.
Frequently Asked Questions
Is a building inspection legally required before buying a home in Australia?
No. Building inspections are not legally mandatory in any Australian state or territory. They are optional but strongly recommended by every consumer protection body in the country. Consumer Affairs Victoria, NSW Fair Trading, and the QBCC all advise buyers to arrange independent building and pest inspections before committing to a purchase. Skipping an inspection to save $500 can leave you exposed to tens of thousands in hidden repair costs.
Can I use a building inspection report to negotiate the purchase price?
Yes. If the report identifies defects requiring repair, you can present those findings to the seller through your conveyancer and request a price reduction. For example, if the report identifies $12,000 in roof and subfloor repairs, you can request a $12,000 reduction or ask the seller to complete the repairs before settlement. Sellers often agree to avoid the sale falling through. Include a “subject to satisfactory building and pest inspection” condition in your contract to preserve this right.
What is the difference between a building inspector and a building surveyor?
A building inspector conducts pre-purchase property assessments and reports on condition and defects. A building surveyor (also called a building certifier) is a registered professional who assesses building plans for code compliance and issues building permits and occupancy certificates under the National Construction Code. Both can perform pre-purchase inspections, but a building surveyor brings deeper regulatory knowledge. In VIC and QLD, building surveyors must be registered with the VBA or QBCC respectively.
Should I attend the building inspection in person?
Yes, if possible. Attending lets you see defects firsthand and ask questions on the spot. Most inspectors welcome buyers attending, and the inspection typically takes 1.5 to 3 hours. If you cannot attend, arrange a phone call with the inspector to discuss key findings before the written report arrives.
Do I need a building inspection for a brand-new home?
Yes. New homes can have defects from rushed construction, poor workmanship, or non-compliant materials. An independent inspection before your final handover identifies defects the builder must fix under the statutory warranty period (6 years for structural defects in most states). Do not rely solely on the builder’s own final inspection or the building certifier’s sign-off. An independent inspector works for you, not the builder.
What happens if the inspector misses a major defect?
If your inspector holds professional indemnity insurance and misses a defect that a competent inspector should have identified, you may have a claim against their insurance policy. This is one reason to always choose an inspector with current professional indemnity cover (minimum $1 million). Check their insurance certificate before booking. Without insurance, you have limited recourse beyond a complaint to the relevant state body or a claim through the small claims tribunal.
Key Takeaways
- A pre-purchase building inspection costs $300 to $700 and can save you tens of thousands in hidden repair costs
- Always get both a building inspection AND a pest inspection, or book a combined package
- For auction purchases, complete inspections before auction day. There is no cooling-off period after the hammer falls
- Red flags like major foundation cracking, active termite damage, or significant roof defects should trigger a price renegotiation or withdrawal
- Check your inspector’s licence, professional indemnity insurance, and professional body membership before booking
- Use inspection findings to negotiate the purchase price through your conveyancer
- Verify your building professional’s licence on TradieVerify or through the relevant state regulator
- Book specialist inspections (electrical, plumbing, asbestos) for older homes or properties with renovations
Related Guides
- How to Hire a Licensed Builder — Our builder hiring guide
- How to Check a Tradesperson’s Licence — Our licence verification guide
- Home Warranty Insurance — Our home warranty insurance guide
Sources
- Queensland Building and Construction Commission, “Before You Buy and Sell,” https://www.qbcc.qld.gov.au/your-property/buying-selling-property/buying-property
- Consumer Affairs Victoria, “Inspect Properties Before You Buy,” https://www.consumer.vic.gov.au/housing/buying-and-selling-property/buying-property/inspect-properties-before-you-buy
- WA Consumer Protection, “Property Inspections,” https://www.consumerprotection.wa.gov.au/property-inspections
- Australian Institute of Building Surveyors, “Professional Standards Scheme,” https://aibs.com.au/Public/Public/Professional-Standards.aspx
- Standards Australia, “AS 4349.1: Inspection of Buildings – Pre-purchase Inspections – Residential Buildings,” https://www.standards.org.au
- Housing Industry Association, “Inspection of Buildings – General Requirements,” https://hia.com.au/resources-and-advice/building-it-right/australian-standards/articles/inspection-of-buildings-general-requirements
- NSW Fair Trading, “Building Inspections,” https://www.fairtrading.nsw.gov.au/housing-and-property/building-and-renovating
- CSIRO, “Termite Management and Prevention,” https://www.csiro.au/en/research/animals/pests/termites