What Is a Building and Pest Inspection and Do I Need One?

A building and pest inspection is one of the most important steps a property buyer can take before signing a contract. It identifies structural defects, safety issues and pest activity (including termites) that may not be visible during a standard open for inspection. This guide explains what is covered, what it costs and when you must arrange one.

What Does a Building Inspection Cover?

A building inspection is carried out by a licensed building inspector and assesses the structural condition of the property. It typically covers the roof structure, walls, floors, ceilings, windows, doors, drainage, moisture and any visible structural defects. The inspector produces a written report grading issues as major defects, minor defects or safety hazards.

What Does a Pest Inspection Cover?

A pest inspection is carried out by a licensed pest inspector and looks for evidence of timber pest activity — primarily termites (white ants), borers and wood decay fungi. Termites cause billions of dollars of damage to Australian homes each year and are not covered by standard home insurance. A pest inspection checks accessible roof voids, subfloor areas, walls and gardens for signs of activity.

How Much Does a Building and Pest Inspection Cost in Australia?

Note: Costs vary by state, property size and inspector. Always use a licensed inspector with professional indemnity insurance.

When Should I Get a Building and Pest Inspection?

For a private sale: arrange the inspection after your offer is accepted but before the cooling-off period expires. You can make the contract conditional on a satisfactory building and pest inspection. For an auction: you must arrange the inspection before the auction, at your own cost, because there is no cooling-off period and the contract is unconditional once the hammer falls. Never skip the inspection on an auction property.

What Happens If the Inspection Finds Problems?

Minor defects are normal in most properties, especially older homes. Major structural defects or active termite infestations are serious and may justify renegotiating the price, requesting the vendor rectify issues before settlement, or withdrawing from the purchase (if you have a building inspection clause in a private sale contract). If you are at auction and the inspection revealed serious issues, factor the rectification cost into your maximum bid.

GeeVee Verdict: Always Get One

Building and pest inspections cost $400 to $800. Termite damage alone can cost $50,000 to $150,000 to rectify. The inspection is always worth the cost. Even on modern properties, issues with drainage, roof flashing, subfloor moisture and structural movement are common. Never waive a building inspection to make your offer more attractive — the risk is asymmetric.

Frequently Asked Questions

Can I use the vendor’s building inspection report?

Some vendors provide a pre-purchase inspection report. You can review it, but it was commissioned by the vendor and the inspector’s duty of care is to the vendor, not to you. For full protection, commission your own independent inspection.

Do I need an inspection on a new build?

Yes. New builds can have defects too. For off-the-plan purchases, engage an independent building inspector for a pre-settlement inspection before you complete the purchase — this is your last opportunity to identify defects the developer must rectify.

What is a pool safety inspection?

If the property has a pool or spa, a separate pool safety certificate may be required by law (requirements vary by state). Your conveyancer will confirm what is required in your state before settlement.

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