Building and Pest Inspections. The Australian Buyers Checklist

The building and pest inspection is the single most important piece of due diligence a buyer commissions before settlement. A good report costs a few hundred dollars and tells the buyer what is structurally sound, what is cosmetic, what needs urgent attention and what could become a six-figure problem in three years.

This guide covers what is in the report, what it costs, how to choose an inspector and how to use the findings. It does not cover strata-specific inspections. For apartments and townhouses also see the AgentBridge guide on strata reports.

What a Building Inspection Covers

A building inspection is a visual assessment of the property's structure and major systems. Inspectors work to Australian Standard AS 4349.1, which sets out the scope of a pre-purchase property inspection.

The report typically covers:

• Roof structure, roof covering, gutters and downpipes
• Ceiling space (if safe to access)
• Internal walls, ceilings, doors and windows
• External walls, eaves, cladding and paint condition
• Floor structure and subfloor space (if accessible)
• Wet areas (kitchen, bathrooms, laundry)
• Site drainage, paths, fencing and retaining walls
• Garage, carport and outbuildings
• Visible electrical and plumbing condition (not a specialist assessment)

The inspection is non-invasive. Inspectors do not lift carpet, cut into walls or remove fixed items. They report what is visible from a normal inspection. Hidden defects behind walls, under floor coverings or inside cavities are not within scope.

What a Pest Inspection Covers

A pest inspection focuses on timber pests, primarily termites. Inspectors work to Australian Standard AS 4349.3. The inspection assesses:

• Active termite infestation
• Past termite activity and damage
• Conditions conducive to termites (moisture, timber-to-ground contact, poor ventilation)
• Other timber pests (borers, decay fungi)

Most Australian buyers commission a combined building and pest inspection from a single provider. This is cheaper than two separate reports and the inspector can flag where pest risk and building condition interact.

What an Inspection Will Not Tell You

Buyers need to know the limits of a standard report. Inspections do not cover:

• The condition of items behind finished surfaces (waterproofing membranes, wall framing, slab integrity)
• Electrical safety beyond visible defects (a separate electrical safety certificate is required)
• Gas safety (separate gas certificate required)
• Asbestos identification (a specialist asbestos report is needed for older properties)
• Swimming pool compliance (separate pool safety certificate)
• Heritage and planning compliance
• Boundary positions, easements or title matters (these come from the conveyancer's searches)
• Land contamination
• Engineering assessment of structural movement (a structural engineer's report may be required if movement is found)

Where the report flags a concern beyond its scope, the inspector will recommend a specialist follow-up. Specialist reports add cost but are essential when the building report flags suspected structural movement, suspected asbestos in a renovation property or unusual roof framing.

What It Costs in 2026

Combined building and pest inspection fees in 2026 typically range as follows. Prices vary by state, property size and travel distance.

Property Type	Typical Combined Fee Range
Apartment or townhouse	$350 to $550
Standard 3-bedroom house	$450 to $750
Large house (4+ bedrooms)	$600 to $950
Older or character property	$650 to $1,200
Rural or acreage property	$800 to $1,500 plus travel

Specialist follow-up reports add $400 to $1,500 depending on scope. A structural engineer's report on a property with suspected movement typically costs $800 to $2,000.

When to Commission the Inspection

Timing matters. The inspection should happen during the cooling-off period or while the contract is still conditional on a satisfactory inspection. Buyers who settle without a clean inspection lose the ability to renegotiate or terminate.

The practical sequence:

• Offer accepted or auction won
• Contract signed or exchanged
• Inspection booked within 24 to 48 hours
• Inspector attends within 3 to 5 business days
• Report received within 24 hours of the inspection
• Buyer reviews and discusses findings with the conveyancer or buyers agent
• Decision made within the cooling-off window or condition period

For auction purchases, the inspection happens before auction day. Auctioned properties sell without cooling-off in most states, so a pre-auction inspection is the only protection. A pre-auction inspection that comes back clean justifies confident bidding. A report with material defects guides whether to bid at all and at what price.

How to Choose an Inspector

Five things to check before engaging:

• Licensing. Inspectors must hold the relevant state licence (building practitioner registration, builder's licence or specialist pest licence). Confirm registration on the state regulator's online register.
• Insurance. The inspector should hold professional indemnity insurance. Ask for evidence.
• Independence. Use an inspector with no connection to the selling agent or the seller. An inspector recommended by the selling agent is not the right choice.
• Sample report. Ask to see a redacted sample report. The format and detail level vary widely. A good report has clear photos, written commentary and a defect summary.
• Walk-through. The best inspectors will walk the buyer through the property at the end of the inspection or hold a phone call to explain the findings. This is more useful than the written report alone.

Buyers should not choose on price alone. A $300 inspection by an unlicensed operator with no sample report is not a saving. The right inspector flags issues that would cost $30,000 to remedy. The fee is rounding.

How to Read the Report

A building and pest report typically has three sections.

The executive summary lists the major findings and the inspector's overall opinion. This is usually one to two pages. Read it first.

The detailed findings cover each part of the property in order. Each finding is rated. The rating system varies by inspector but a common scale is:

• Minor. Cosmetic or routine maintenance. Not urgent.
• Significant. Needs attention within 12 to 24 months. Costs hundreds to low thousands.
• Major. Structural or safety issue. Costs thousands to tens of thousands.
• Urgent. Immediate safety concern. Address before occupation.

The annexures include photos, the inspector's qualifications, the inspection conditions and the scope limitations.

Buyers should focus on the major and urgent findings. Minor and significant items are negotiating points but rarely deal-breakers. Major and urgent items need quotes from licensed tradespeople before deciding whether to proceed.

Using the Report to Negotiate

A building and pest report with material findings gives the buyer three options.

The first is to proceed at the agreed price, accepting the work as future maintenance. This is common when the issues are significant but expected for the property's age.

The second is to renegotiate the price. The buyer goes back to the seller (through the agent or directly) with quotes from licensed tradespeople for the remediation work and asks for a price reduction. Sellers will typically accept a partial reduction. A $20,000 quote rarely produces a $20,000 reduction, but $8,000 to $12,000 is realistic.

The third is to terminate the contract. This requires the contract to be conditional on a satisfactory inspection and the timeline to be within the condition period. Termination is rarely the right answer unless the major defects are genuinely structural or the cost of remediation changes the value proposition materially.

A buyers agent adds real value at this point. Knowing what is a fair reduction, what tradespeople genuinely quote for the work and how the seller is likely to respond is the agent's day-to-day work.

Frequently Asked Questions

How long does a building and pest inspection take

The on-site inspection takes 1.5 to 3 hours for a standard residential property. Larger or older properties take longer. The report is typically delivered within 24 hours of the inspection.

Can I attend the inspection

Yes, and buyers should where possible. Attending the last 30 minutes lets the inspector walk through the findings while the property is in front of you. This is more useful than reading the report alone.

What if the inspector finds something serious

Discuss the finding with your conveyancer and your buyers agent. Get a quote from a licensed tradesperson for the remediation work. Decide whether to proceed at the agreed price, renegotiate or terminate. Major defects typically lead to a price renegotiation, not termination.

Do I need a building inspection on a new build

Yes. Even new builds have defects. A handover inspection (or pre-handover inspection) on a new home is standard practice and identifies items the builder must rectify before completion. Defect rectification rights typically run for 12 months after handover under most state warranty schemes.

Is the seller required to disclose known defects

Disclosure rules vary by state. Most states require disclosure of certain matters (encumbrances, easements, planning notices) through the vendor statement or contract. Disclosure of building condition is more limited. Buyers should not rely on the seller's disclosure as a substitute for an independent inspection.

Related Resources

• Conveyancing in Australia. What Happens Between Contract and Settlement
• Strata Reports and Owners Corporation Searches Explained
• A Step-by-Step Guide to Buying Your First Home in Australia

About AgentBridge

AgentBridge is a property distribution business that connects sellers and developers with a national network of more than 80 buyers agents across every Australian state and territory. Buyers agents on the panel commission inspections as standard practice and use the findings to negotiate on their clients' behalf.

Last reviewed: 22 May 2026.