If you’re looking to purchase a property, a thorough pre-purchase building inspection report is essential. Buying a home or investment property is a big financial commitment, so it’s important that you are aware of any issues with the property before you sign on the dotted line. A pre-purchase building inspection report can reveal underlying defects or issues with the home, even if they are not easily noticeable during an open home or private inspection.
What Is a Pre-Purchase Building Inspection?
A pre-purchase building inspection is essential for anyone looking to purchase an existing property. This inspection is usually done prior to the sale being completed, and is performed by a qualified and licensed building inspector.
Pre-purchase building inspections are visual assessments that look at the condition of a property (both inside and outside). The purpose is to determine if there are any building faults, safety risks, or maintenance problems that may impact on the value or habitability of the property.
Common areas covered by building inspection reports include structural elements, roofing, drainage, water damage, and signs of pest infestations. Sometimes, these reports also include photos and recommendations for maintenance or repair, if any issues are found.
Why Is a Pre-Purchase Inspection Important?
During an open home or private inspection, most potential buyers will be on the lookout for potential issues with the property. However, there are a lot of building problems that may not be immediately visible, especially to the untrained eye. Cracks in walls, faulty wiring, pest infestations, or structural movement are all examples of common building issues that may be hidden beneath paint, plaster, or flooring.
If these issues go unnoticed, you could be left with costly repairs after settlement – whether you’re a first-time buyer or seasoned investor. For this reason, a pre-purchase building inspection is essential, as it can save you a lot of money and a massive headache in the long run.
Aside from uncovering hidden defects and saving you from unexpected expenses, a thorough property inspection report also helps to ensure compliance with safety and building standards. It can also provide you with leverage and help you to negotiate your sale contract and price if repairs are going to be needed.
Key Components of a Pre-Purchase Building Inspection Report
Although exactly what is covered in a property inspection report can vary from building inspector to building inspector, there are a few key things that will usually be covered:
- Structure: The property inspection report will look at the overall structural integrity of the property. This includes foundations and footings, load-bearing walls, roof framing and trusses, and sub-floor structures. This may also include signs of movement (such as cracks or uneven flooring), water damage, or termite damage – anything that might compromise the structure of the property.
- Exterior condition: The home’s exterior is one of the things that the property inspection report will look at. The building inspector will check the condition of the property’s external cladding, paintwork, brickwork, or weatherboard. They will also check the condition of any verandahs, patios, pergolas, and balconies, as well as any garages, sheds, driveways, or paths. They will also look at the property’s roof and roof space to see if there are any leaks, missing tiles, or corrosion, inspect any flashing or gutters, and check insulation and ventilation in the roof cavity. Any signs of damage, rust, rot, deterioration, or inadequate waterproofing will be noted in your property inspection report.
- Interior condition: The property inspection report will also assess the condition of the home’s interior. The building inspector may assess walls and ceilings for cracks, water staining, or poor patchwork and floors for sagging, lifting, or signs of moisture damage. They may also check any doors and windows for correct operation and alignment, as well as for any leaks, mould, or bad waterproofing in wet areas like bathrooms and kitchens. Even cosmetic issues like peeling paint or warped skirting boards can be red flags for more serious problems like dampness or previous leaks.
- Moisture issues and water damage: Water is a leading cause of long-term property damage. Building inspectors use tools like moisture meters to detect damp levels, leaking plumbing, and inadequate waterproofing in wet areas. They will also be able to identify any drainage problems around the property, or other red flags like water stains on ceilings or walls, soft timber underfoot, or bubbling paint that may be a sign of hidden water damage.
- Pest inspection: Building inspections are often combined with pest inspections. Pest inspections look for any signs of damage or other indicators that may suggest issues with rodents or other pests. Common things your building inspector will be looking for are termite activity or past damage, wood rot, fungal decay, and conditions conducive to pest infestation (e.g. damp soil against timber). Termites and other pests can significantly compromise a building’s structure and lead to damage that is notoriously expensive to fix, making a pest inspection a must for any potential buyer.
- Compliance issues: During your pre-purchase inspection, your building inspector may also notice other safety concerns or non-compliant additions that have been made to the home. Examples could be loose handrails, smoke alarms that are missing or do not work, non-compliant pool fencing, or obvious electrical concerns.
Most property inspection reports will also use a traffic light or risk-based system to provide an overview of the property’s overall condition. For example, “green” may be used to show that there are no significant issues. “Yellow” might show that there are minor or moderate defects that may need monitoring or maintenance, and “red” may show major defects or safety concerns requiring urgent attention. This kind of system can help buyers quickly understand the severity of any issues found. This way, buyers know whether the property’s condition is generally sound or whether further investigation or significant repairs are needed.
How to Read and Use a Property Inspection Report
Potential buyers should always take the time to read through their property inspection report thoroughly, to ensure they are fully aware of any potential issues before they commit to purchasing a property. Buyers should also not hesitate to contact their building inspector for more information, if there are any terms or items they don’t understand or they are unsure what any issues raised might mean for the property long-term.
Potential buyers should also get quotes for any repairs or upgrades identified in the report, so that they are aware of what it will cost to fix them if they go ahead with purchasing the property. You may be able to use this to negotiate your sale price or contract conditions, factoring in costs for immediate or future maintenance.
Whilst most homes, especially older ones, will have some level of wear and tear, it is important that potential buyers are able to make informed purchasing decisions. This means being fully aware of any issues that there may be with the property they are looking to purchase, so they know what they’re buying and what maintenance may be required.
Choosing the Right Building Inspector
To ensure you get the most value from your pre-purchase building inspection, it’s important that you choose a licensed and insured building inspector like Swell Building Inspections. A good building inspector will ensure their report adheres to recognised industry standards, which will guarantee that your inspection is thorough, reliable, and provides you with accurate insights into the property’s condition.
You should also ensure that you choose a building inspector with local knowledge. This is vital, particularly in areas that are prone to specific issues like termite infestations, flooding, or structural movement. A local building inspector will be able to help you identify region-specific risks that another inspector might miss.
Don’t forget to ask your building inspector what their report includes and excludes and whether they offer combined building and pest inspections. You should also check how long the inspection will take and whether you can attend the inspection for a walk-through, so that your inspector can point out any issues to you firsthand.
Your Next Steps to a Smarter Property Purchase
Whilst many see pre-purchase building inspection reports as just another thing to do in the property-buying process, they’re actually a lot more important than being just another box to tick. These reports are your main line of defence against any hidden defects, so skipping this important step can lead to a lot of costly surprises down the track. The upfront cost of a building inspection is small compared to the peace of mind it provides. By understanding what’s included in your property inspection report and how to interpret the findings, you can move forward with confidence and make more informed purchasing decisions as a buyer.
Are you ready to book your pre-purchase building inspection? From North Hobart to South Hobart and everywhere in between, Swell Building Inspections’ trusted local inspectors understand your area’s unique conditions and are ready to deliver a detailed, easy-to-read report that protects you as the buyer.