Purchasing a property is one of the most significant investments you’ll ever make. One of the most vital steps in this process is arranging a building inspection. This detailed report provides insights into the condition of the property and helps you make an informed decision.
Understanding the building inspection report is crucial to ensure you don’t overlook potential issues that may be costly to fix later on.

In this article, we will break down the building inspection report step by step, so you know exactly what to look for and how to interpret the findings. You can find out more about the importance of these inspections in making your property investment safer and more secure.
1. What is a Building Inspection Report?
Definition and Purpose
A building inspection report is a document prepared by a professional building inspector after assessing the condition of a property. The purpose of this report is to give you an in-depth understanding of the property’s condition, highlighting any issues that need attention.
Whether you’re buying, selling, or simply maintaining your property, the inspection report helps you make informed decisions regarding repairs, renovations, and pricing.
The report typically includes details about structural issues, plumbing, electrical systems, and any potential hazards, along with suggestions for repairs or improvements.
It’s essential to understand that a building inspection is not the same as a pest inspection, although some inspectors may combine both services in a single report.
Key Elements in the Report
- Overview of the Property: A general description of the property, including its age, size, and layout.
- Structural Assessment: Detailed information about the foundation, roof, walls, and any signs of damage.
- Plumbing and Electrical Systems: A review of the plumbing, drainage, and electrical systems to ensure they meet safety standards.
- Pest and Moisture Issues: Some reports also mention moisture levels, dampness, or signs of pests like termites, especially in older properties.
2. How to Read the Building Inspection Report
Section by Section Breakdown
Building inspection reports are usually organised in sections, each covering different aspects of the property. Understanding each section is crucial for assessing the property’s condition accurately. Let’s break down the key sections that are typically included:
1. Property Overview
The report usually starts with an overview of the property, including:
- General Description: This includes basic information such as the property’s address, type of building (e.g., detached house, townhouse), and any specific features.
- Age of the Property: The age can impact the likelihood of certain issues, such as outdated electrical systems or wear and tear on the structure.
- Accessibility: The inspector may mention areas of the property that were not accessible during the inspection, which could include locked rooms or areas with restricted access.
2. Structural Condition
This section focuses on the overall structure of the building. Common issues identified include:
- Foundation Problems: Cracks in the foundation, shifting, or settling can be a sign of significant issues.
- Roof Condition: Roofs are checked for leaks, missing shingles, or structural damage.
- Walls and Floors: This includes cracks, uneven surfaces, or signs of water damage. Uneven floors may indicate foundation problems or shifting.
3. Plumbing and Electrical Systems
In this section, the inspector will check the property’s plumbing and electrical systems for safety and functionality:
- Plumbing: Leaking pipes, clogged drains, or poor water pressure may be noted.
- Electrical Systems: The inspector will look for outdated wiring, faulty circuit breakers, and any other safety hazards related to the electrical system.
4. Pests and Moisture Issues
This section will discuss whether there are any signs of pest infestations, particularly termites, or any evidence of moisture problems:
- Moisture Problems: Signs of dampness, water stains, or mould will be highlighted.
- Pest Infestations: The inspector will mention any visible signs of pests such as termites, rodents, or ants.
Red Flags to Look Out For
Some red flags in the building inspection report may indicate significant issues. These include:
- Major Structural Problems: Significant foundation cracks or roof damage that could be expensive to repair.
- Persistent Water Damage: Ongoing water issues that have resulted in mould, wood rot, or compromised structural integrity.
- Electrical Hazards: Outdated wiring or faulty electrical systems that could pose a safety risk.
- Pest Infestation: Signs of termite damage or an ongoing pest infestation that needs immediate attention.
3. Interpreting the Severity of Issues
How Serious Are the Problems?
When reviewing the building inspection report, not all issues will carry the same level of urgency. Some problems may be minor and easily fixable, while others could require extensive work and higher costs. Here’s how to interpret the severity of the issues found:
1. Minor Issues
Minor issues are typically cosmetic or do not impact the structure or safety of the home. These include:
- Small cracks in walls or ceilings
- A few missing roof tiles or shingles
- Minor plumbing leaks
- Cosmetic damage to paint or finishes
These types of issues are usually low-cost repairs and do not require immediate action. However, it’s still essential to address them to maintain the property’s appearance and prevent them from worsening.
2. Moderate Issues
Moderate issues may need some attention, but they aren’t immediately dangerous or structurally compromising. These could include:
- Water damage on the ceiling or walls that needs fixing
- Slightly uneven floors or walls indicating foundation movement
- Plumbing issues such as a slow drain or low water pressure
While these problems may not require immediate, costly repairs, it’s important to factor in their costs and address them before they become major issues.
3. Major Issues
Major issues are typically more costly and urgent. These could include:
- Extensive foundation damage that requires significant repairs
- Structural damage to walls, floors, or roof that could compromise the home’s safety
- Electrical hazards that pose a fire risk
- Termite or pest damage that has compromised the structural integrity of the property
If the report highlights major issues, it’s important to consult specialists and consider the long-term costs and whether it’s worth continuing with the purchase or negotiating the price down.
4. What to Do After Receiving the Report
Addressing the Findings
Once you’ve received the building inspection report, the next step is to decide what actions to take based on the findings. Here’s how to approach it:
1. Negotiate with the Seller
If the inspection report reveals significant issues, you may be able to negotiate with the seller. You can:
- Request that the seller repair the issues before the sale.
- Negotiate a lower purchase price to account for the cost of repairs.
- Ask for credits toward the repair costs after the sale is finalised.
2. Consult Specialists for Major Issues
If the inspection reveals major issues, it’s a good idea to consult with specialists, such as a structural engineer, pest control experts, or electricians. They can provide detailed advice on the severity of the issues and estimated costs for repairs.
3. Plan for Repairs and Maintenance
If you decide to proceed with the property purchase, you can use the report as a guide to prioritise repairs. Some repairs may be immediate, while others can be planned for the future. Ensure that you budget for these repairs to avoid unexpected financial burdens down the line.
5. Common Terms in Building Inspection Reports
Key Terms to Know
Building inspection reports often contain technical language that can be difficult to understand. Here are some common terms you may come across:
- Subfloor: The area beneath the main floor of the house, often including the foundation and crawl spaces.
- Roof cavity: The space between the roof and the ceiling of the top floor, where insulation, wiring, and pipes may be located.
- Load-bearing walls: Walls that support the weight of the house and must be kept in good condition to ensure the structure’s integrity.
- Moisture ingress: The presence of moisture entering the building, which could lead to damage if not addressed.
Understanding these terms will help you interpret the report more effectively and make informed decisions based on the findings.
Conclusion
Understanding the building inspection report is essential for anyone looking to buy or maintain a property. By breaking down the various sections of the report and learning how to interpret the findings, you can make better decisions and avoid costly mistakes.
Regular building inspections help identify problems early on, ensuring that your property remains safe, secure, and valuable.
After receiving your building inspection report, remember to assess the severity of the issues and consult with specialists where needed.
Whether you negotiate repairs with the seller or plan for future maintenance, having a clear understanding of the report will put you in control of your property investment.
Frequently Asked Questions
How long does a building inspection take?
A standard building inspection typically takes around 2-4 hours, depending on the size and condition of the property. After the inspection, you will receive a report within 24-48 hours.
Can I skip the building inspection if the property looks fine?
While a property may appear to be in good condition, a building inspection can uncover hidden issues that might not be visible to the untrained eye. It’s always worth getting a professional inspection to avoid surprises later on.
What should I do if the building inspection report identifies major issues?
If the report identifies major issues, you can either negotiate with the seller for repairs or a reduced price, or decide whether to walk away from the deal. Consulting specialists for an in-depth assessment of the issues is always a good step before making any decisions.