Building and pest inspection: what to expect (2026)

Why you need a building and pest inspection

When purchasing property in Australia, you have limited rights to seek remedies after settlement for defects you could have discovered beforehand. The principle of caveat emptor(buyer beware) means the burden is on you to investigate the property’s condition before signing an unconditional contract.

A professional building and pest inspection commissioned before exchange gives you:

• Full disclosure of the property’s condition from a qualified professional, not just what’s visible to the naked eye.
• Negotiating power. If significant defects are found, you can ask for a price reduction or require the vendor to fix them before settlement.
• Walk-away rights. In a private sale with a building inspection condition, you can withdraw from the purchase if major defects are found.
• Future maintenance planning. Even if all issues are minor, the report helps you understand what maintenance to budget for.

What’s inspected

A standard combined building and pest inspection in Australia covers:

Building inspection

• Roof (tiles, gutters, flashings, penetrations)
• Roof space (structure, insulation, ventilation)
• Subfloor area (drainage, moisture, structure)
• External walls (cladding, rendering, cracks)
• Internal walls and ceilings (cracks, water damage, stains)
• Floors (bounce, squeaks, levelness)
• Windows and doors (operation, sealing, frames)
• Wet areas (bathrooms, laundry, kitchen) for waterproofing and drainage
• Garage and outbuildings
• Visible drainage and stormwater
• Retaining walls and fencing

Pest inspection

• Termite activity (live termites, past activity, damage)
• Termite conducive conditions (timber-to-soil contact, excessive moisture)
• Timber borers
• Evidence of other pests (rodents, wood decay fungus)

Note: inspectors can only assess what is accessible and visible. A building inspection is not a structural engineering report or a compliance inspection, it identifies visible defects and issues, not hidden structural faults (unless there are visual indicators).

Inspectors generally do not test individual electrical outlets, gas appliances, or plumbing fixtures (beyond a visual check). A separate electrical or plumbing inspection may be warranted for older properties.

Common issues found

Experienced inspectors find something in almost every property they inspect, the question is severity.

High severity (deal-breakers or major price negotiation)

• Active termite infestation. Termites can cause extensive structural damage, particularly to timber-framed homes. Active infestations require immediate professional treatment and can require significant structural repairs.
• Rising damp. Moisture wicking up through walls from the ground, often caused by failed damp-proof courses. Can cause structural damage, mould, and health issues. Repairs can cost $5,000 to $30,000+.
• Major structural cracks. Diagonal or step cracking through external masonry walls, particularly around windows and door frames, can indicate foundation movement. May require a structural engineer’s assessment.
• Significant roof damage. Failed flashings, cracked tiles, or deteriorated roofing membranes that require full replacement. Roof replacements can cost $10,000 to $30,000+.
• Subfloor drainage issues. Poor drainage allowing water pooling under the house, which promotes termite activity and timber decay.

Moderate (maintenance items to budget for)

• Cracked or missing roof tiles
• Blocked or poorly graded gutters and downpipes
• Failed bathroom waterproofing (common in older properties)
• Termite conducive conditions (but no active infestation)
• Deteriorated external paint and caulking
• Substandard electrical (older switchboards, surface-mounted wiring)
• Retaining walls showing signs of movement

Minor (normal wear and tear)

• Sticking doors and windows
• Hairline cracks in plasterboard walls
• Worn or damaged floor coverings
• Minor external paint deterioration

Cost of inspections

Always get a combined building and pest inspection from the same inspector (or at least coordinate the two). Many defects that attract pests (e.g. moisture, timber decay) are identified in both inspections, a combined report gives the full picture.

Who to hire

Look for an inspector with the following qualifications:

• Building inspector. Should be a licensed builder, architect, or engineer with inspection qualifications. Check for membership in the Australian Institute of Building Surveyors (AIBS) or similar.
• Pest inspector. Should be a licensed pest controller or timber pest inspector, qualified under Australian Standard AS 4349.3.
• Professional indemnity insurance. Essential. If the inspector misses a significant issue, you need recourse.

Try to attend the inspection in person. A good inspector will walk you through the property and explain findings in plain English, far more valuable than reading a report alone.

When to get the inspection

• Private sale with conditions. The inspection clause in your contract gives you a set timeframe (typically 7 to 14 days after exchange) to commission the inspection and, if issues are found, to either withdraw or renegotiate.
• Before auction. Must be done before auction day. Contact the agent to arrange access. Allow at least 48 to 72 hours turnaround to receive the report.
• Before making an offer (preferred). Some buyers commission inspections before making an offer to negotiate with full knowledge. This means paying for an inspection on properties you may not buy, but avoids conditional delays.

How to read the report

Building and pest reports follow a standard format (typically AS 4349.1 for building and AS 4349.3 for pests). Key sections to focus on:

1. Summary / overview. This section gives the inspector’s overall assessment. Read this first, does the inspector flag any “major defects” or “safety hazards”?
2. Major defects. These are defects that require significant remediation. A major defect in the report is different from minor maintenance items.
3. Pest activity. Any active termite evidence, past termite damage, or conducive conditions. Note: past termite activity (treated and resolved) is less concerning than active infestation.
4. Photographs. Good reports include photos of all significant findings. Review these carefully, a crack in a photo often communicates more than a paragraph of text.
5. Items not inspected. Reports must disclose what could not be accessed. Unexplored areas (e.g. concealed roof void, locked rooms) are risk areas.

Not all defects are created equal. A report listing 15 minor items is very different from one listing 3 major defects. If in doubt, call the inspector directly and ask them to explain the severity and estimated cost of remediation.

Negotiating after an inspection

If the inspection reveals significant issues, you have several options:

1. Withdraw from the purchase (if within your inspection condition timeframe). You are entitled to a refund of the deposit.
2. Negotiate a price reduction. Get quotes for the identified repairs and ask the vendor to reduce the price by that amount. Be specific, quote the estimated cost and attach the relevant section of the report.
3. Ask the vendor to fix it. For some issues (particularly safety hazards), you can request the vendor rectify the defect before settlement. Less common, most vendors prefer to reduce the price than arrange repairs.
4. Accept and proceed. If defects are minor and the price already reflects the condition, you may choose to proceed without negotiation.

When negotiating based on inspection findings:

• Get repair quotes from licensed tradespeople (not verbal estimates)
• Be reasonable, all properties have some defects
• Focus on major defects, not minor wear and tear
• Negotiate through your conveyancer or agent, in writing

Inspections for new homes

Many buyers assume new homes don’t need an inspection. This is a mistake. Common issues found in new construction include:

• Incomplete waterproofing or substandard bathroom tiling
• Drainage issues not visible at ground level
• Structural cracks in brickwork from settling
• Substandard insulation or missing insulation
• Defects in electrical or plumbing that didn’t pass handover inspection

For new homes, consider engaging a pre-handover inspector who attends the builder’s handover inspection with you. Any defects identified can be included in a defects list that the builder must rectify before you take possession.

New homes typically come with a statutory warranty period (usually 6 years for structural defects, 2 years for non-structural defects in most states). Document any issues with photos and written notices to the builder. See our complete buying guide for the broader process.