Building and Pest Inspections Explained
A building and pest inspection is a professional assessment of a property's physical condition by a licensed inspector. It is not the same as a visual open home walkthrough — inspectors use moisture meters, thermal cameras, and subfloor access to identify defects invisible to the untrained eye. Getting an inspection before you commit is one of the highest-value $500 you'll spend in a property purchase.
What a building inspection covers
A building inspection covers the accessible parts of the property that relate to structural integrity, moisture management, and safety compliance. A licensed inspector will examine:
- ✓Structural integrity — foundations, load-bearing walls, roofline, subfloor framing
- ✓Roof condition — tiles or sheeting, gutters, downpipes, flashings (exterior and interior roof space if accessible)
- ✓Subfloor — dampness, timber pest evidence, structural members visible below floor level
- ✓Internal finishes — walls, ceilings, floors, doors, windows
- ✓Drainage and stormwater — gutters, downpipes, surface drainage from the building
- ✓Safety features — safety switches, smoke alarms, pool fencing
A building inspection does not cover: pool or spa equipment, electrical wiring behind walls, plumbing inside walls, council compliance of additions and alterations, or air conditioning.
What a pest inspection covers
A pest inspection (specifically timber pest inspection) looks for evidence of termites, wood borers, and fungal decay affecting timber elements of the structure. Inspectors access subfloor areas, roof space, and inspect internal wall cavities where accessible. They use moisture meters to detect elevated readings that may indicate timber pest activity behind surfaces, and thermal cameras in some cases.
A pest inspection cannot guarantee 100% detection — concealed pest activity may be missed. This is not negligence; it is a function of what is physically accessible. An inspector who finds evidence in one area will recommend further investigation of adjacent areas.
How to read the report
Building inspection reports use a defect classification system. The specific terms vary by inspector and state, but the typical categories are:
| Rating | What it means |
|---|---|
| Major defect | Significant damage or risk requiring urgent attention — structural, moisture, or pest issues of serious magnitude |
| Minor defect | Issues requiring attention but not constituting significant risk — maintenance items or deterioration not yet serious |
| Safety hazard | Items posing immediate risk — missing safety switches, broken pool fencing, unstable structures |
| Maintenance item | Routine upkeep required — gutters, minor paint, garden drainage |
A report with many items is normal for an older property. What matters is the severity classification of each finding, not the total count. Focus on major defects and safety hazards first.
Common findings: what they mean and what they cost
Costs are indicative ranges. Get quotes from licensed tradespeople before relying on these figures.
| Common finding | What it means | Typical cost | Negotiate? | Walk away? |
|---|---|---|---|---|
| Timber pest activity (active) | Live termites or borers present | $2,000–$8,000 treatment + repair assessment | Yes — major | Often yes unless price reflects it |
| Timber pest damage (inactive, minor) | Past attack, treated, some damage | $1,000–$5,000 depending on scope | Yes — always | Not usually |
| Rising damp (active) | Moisture moving up from soil through walls | $5,000–$30,000 depending on extent | Yes — major | Seriously consider |
| Subfloor moisture elevated | Dampness under floor — not yet rising damp | $1,000–$3,000 ventilation + treatment | Yes | No — but monitor |
| Minor roof cracking (pointing) | Mortar between tiles degrading | $500–$2,000 repoint | Yes | No |
| Major roof failure (sagging, sheets lifted) | Roof nearing end of life | $10,000–$30,000 replacement | Yes — major | Negotiate hard |
| Leaking downpipes / blocked gutters | Water ingress risk if not addressed | $200–$1,500 | Minor leverage | No |
| Safety switch absent | Electrical compliance issue | $300–$600 to install | Minor | No |
When to commission an inspection
The ideal time is before making an offer — this gives you full information before committing financially, and you can walk away cleanly if the inspection reveals unacceptable issues. If you're competing with multiple buyers, this may not always be practical.
The standard alternative is to make your offer conditional on a satisfactory building inspection — typically a 5–10 business day condition period. This gives you the right to withdraw or renegotiate if the inspection reveals major issues.
Auction contracts are unconditional. You must commission your building and pest inspection before the auction date — there is no ability to withdraw after the hammer falls. Plan for the inspection to be completed at least a few days before the auction.
Who pays and what it costs
The buyer pays for the inspection. A combined building and pest inspection typically costs $400–$700 for a standard residential property. Investment properties, older buildings, or properties with complex structures may cost more.
This cost is non-refundable even if the inspection reveals issues and you do not proceed with the purchase. It is still one of the most cost-effective pieces of due diligence you can undertake.
What to do with a bad report
If the inspection reveals major defects, your options are: