If you're buying a house, a building inspection is one of the most useful tools you have. For a few hundred dollars, a qualified inspector spends a couple of hours walking through the property and tells you what's actually wrong with it, in writing.
It's part of our complete Section 32 (Vendor's Statement) guide, if you want the bigger picture.
But building inspections are also misunderstood. People expect more from them than they deliver, and sometimes get less out of them than they should. This is a plain-English breakdown.
What a building inspection is
A pre-purchase building inspection is a visual assessment of the property's structure and condition, carried out by a qualified inspector. They produce a written report describing what they observed and any defects, safety issues, or items needing repair.
The Australian Standard for these inspections is AS 4349.1, which sets out the minimum scope.
What's included
A standard inspection covers the visible and accessible parts of:
Structural elements
- Foundations and footings (where visible)
- Walls (internal and external)
- Floors and floor framing (where accessible)
- Roof structure
- Subfloor (if accessible)
Roof and exterior
- Roof covering, gutters, downpipes
- Eaves, soffits, fascias
- External cladding and brickwork
- Windows and external doors
- Chimneys
Interior
- Walls, ceilings, floors
- Doors, windows, fittings
- Stairs and balustrades
Wet areas
- Bathrooms and kitchens, looking for visible signs of leaks, deterioration, mould
- Plumbing fixtures (visual check, not pressure tested)
Site features
- Driveways, paths
- Retaining walls
- Fences
- Surface drainage
The inspector will normally do a walk-through with you afterwards (if you've arranged to attend) and point out the major findings before sending the written report.
What's not included
This is the part people miss. A standard building inspection does NOT cover:
Pests
Termites, borers, and other timber pests are a separate report. You can buy a combined building and pest inspection, but they are technically two services.
Plumbing and gas
The inspector looks at visible pipes and fixtures. They do not pressure-test plumbing, inspect inside walls, or test gas lines. A separate plumber's report is required for that.
Electrical
Same as plumbing. Visual only. A licensed electrician's report is needed for a real assessment of wiring, switchboard, and circuits.
Inside walls, behind tiles, under flooring
The inspector only looks at what's visible without invasive testing. They can't see what's behind a plasterboard wall or under a sealed bathroom floor. A house can look fine and still have problems hidden behind the finishes.
Asbestos
The inspector may note possible asbestos-containing materials (such as old fibro cladding) but they don't sample or test. A separate asbestos inspection is required if you want certainty.
Pool, spa, septic systems
These have their own specialist inspectors.
Compliance with building codes
The inspector reports on visible condition. They do not generally certify that work was done to code, or that approvals were obtained for past renovations.
Roof cavity, subfloor
The inspector will access these if they can safely do so. They will note in the report if they couldn't get in. If a roof cavity wasn't accessed, you're missing important information.
How to read the report
A typical report runs 20 to 40 pages and includes:
A summary
The first page or two should be a clear summary of the inspector's findings. If you only read this much, read it slowly. Major issues should be highlighted here.
Photos
Modern reports include lots of photos. Look at them. A photo of cracked render means something different to a photo of structural cracking.
Section-by-section observations
Each part of the property gets its own section. Most observations are neutral ("brick external walls in fair condition") but the important ones flag defects.
Risk grading
Many reports grade defects by urgency:
- Major or safety: address before purchase or settlement
- Moderate: should be repaired but not urgent
- Minor or cosmetic: low priority, normal wear
Limitations
The report will list what was NOT inspected and why. Read this section. If the subfloor wasn't entered, that's a gap in your information.
What to do with the report
A few practical responses:
If the report is clean (or only flags minor issues), you have peace of mind. Proceed to the next step.
If the report flags moderate issues, get quotes for repair. Sometimes vendors will negotiate the price down by the repair cost. Sometimes they won't, and you decide whether to walk.
If the report flags major issues (structural movement, severe water damage, suspected asbestos, etc.), you have decisions:
- Walk away
- Renegotiate the price significantly
- Get a specialist follow-up (e.g., a structural engineer)
If the report flags items the inspector couldn't access, you may want to negotiate access for a follow-up before signing. For auctions this isn't possible. For private treaty it sometimes is.
Cost
Standard building and pest inspections in Victoria cost about $400 to $700 combined. Standalone building inspections are usually $300 to $500. Some inspectors charge more for unusual properties (acreage, multiple buildings) or for written reports turned around in a few hours.
This is genuinely cheap insurance against a much bigger problem. A few hundred dollars now is cheap insurance against a problem that could cost tens of thousands later, and few buyers regret paying for it.
A note on auction properties
For auctions, you must get inspections done before the auction. The contract becomes binding the moment the hammer falls, with no cooling-off and usually no inspection conditions.
That means up to $500 per property on inspections, knowing that most properties you inspect you won't end up buying. That's a real cost of auction-style buying that many first-timers don't factor in.
For private treaty sales, you can make your offer subject to a satisfactory inspection, which means you only pay for the inspection on the property you're actually planning to buy.
How to find a good inspector
A few markers of a good inspector:
- Qualified (registered builder, building surveyor, or accredited inspector)
- Insured (professional indemnity insurance specifically for inspections)
- Independent (not connected to the agent or vendor)
- Detailed reports with photos
- Happy to walk you through the report on the phone
Ask for a sample of a recent report before booking. The quality of inspection reports varies dramatically. A vague "all in good order" report is worth less than a detailed one with photos and clear language.
A simple test
Read the inspection report before you sign the contract. If you don't understand parts of it, call the inspector and ask. They wrote it; they should be willing to explain it. Most good inspectors expect this and don't charge extra for the conversation.
Better to spend an hour on the phone now than years living with a problem you didn't know about.
Sources
- Standards Australia: AS 4349.1 Inspection of buildings (pre-purchase): the Australian Standard setting the minimum scope of a pre-purchase building inspection.
- Consumer Affairs Victoria: Buying and selling property: the regulator's guidance on due diligence, including inspections, before you buy.
Sources verified 25 July 2026. Inspection costs are illustrative and vary.
General information only. This article is not legal or financial advice. Consult a licensed conveyancer, solicitor, or financial adviser before making decisions about your specific situation.
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