Can You Explain My Building Inspection Report?
You've received your building inspection report, opened the PDF and discovered pages of defects, photographs, classifications and technical terminology. Now you're wondering: what does all of this actually mean for the property I'm buying?
Why are building inspection reports so difficult to understand?
A pre-purchase building report is designed to document the condition of a property at the time of inspection. That means it can contain a large amount of information.
Depending on the report, you may see descriptions of cracking, moisture, roof defects, drainage concerns, deterioration, timber pest activity, maintenance items and recommendations for further investigation.
The problem for many buyers is not that the report contains too little information. It is that there is so much information that it becomes difficult to determine what actually matters.
What should I look at first?
Rather than reading every defect as though it carries the same importance, start by looking for findings that fall into a few key categories.
Major defects
These deserve closer attention because of their significance, likely rectification requirements or potential consequences if left unresolved.
Structural concerns
Findings involving foundations, footings, structural walls, floors, beams, columns or roof framing may require particularly careful consideration.
Safety issues
Conditions that present an immediate or potentially significant safety concern should be separated from ordinary maintenance items.
Active deterioration
Water ingress, moisture, timber deterioration or movement may become more expensive if the underlying cause continues.
Expensive repairs
A defect does not need to be structural to have a meaningful financial impact on the purchase.
Further investigation
Pay attention where the inspector recommends assessment by an engineer, plumber, electrician, roofer, pest professional or another specialist.
What does “major defect” mean?
A major defect is generally a defect significant enough to require rectification because of its effect on the property, safety, utility or potential for further deterioration.
However, the classification should always be read together with the inspector's actual description of the problem.
The words “major defect” alone do not tell you how much the repair will cost or whether the seller is contractually required to fix it.
What does “major structural defect” mean?
A major structural defect is more specific. It relates to a significant defect affecting the structural building or structural elements.
Depending on the property, these may include foundations, footings, load-bearing walls, structural floor systems, beams, columns and roof framing.
Major and structural are not the same thing
An expensive defect can be non-structural. Likewise, a report describing something as a major defect does not automatically mean it qualifies as a major structural defect under a property contract.
What do all the minor defects mean?
Existing houses are rarely defect-free.
Depending on the age and condition of the property, a report may identify deteriorated sealants, minor cracking, weathered finishes, loose fittings, ageing roof components, minor corrosion and many other maintenance items.
These findings still have value because they tell you about the condition of the property and future maintenance requirements. However, they should not automatically be given the same weight as a serious structural or moisture-related problem.
My report has 30 or 40 defects. Is that bad?
Not necessarily.
Counting defects is one of the least useful ways to judge a building report.
A 40-year-old property may have numerous maintenance observations simply because building materials have aged. Another property might have only a handful of findings, but one of those findings could involve a substantial structural repair.
The severity, cause and likely cost of the defects matter much more than the total number.
How should I prioritise the report?
What does “further investigation recommended” mean?
It generally means the inspector has identified a condition that cannot be fully assessed within the scope of the visual inspection.
For example, significant cracking may require structural engineering assessment. An electrical concern may require a licensed electrician. A plumbing or drainage issue may require further testing by an appropriate contractor.
It does not necessarily mean there is a catastrophic problem. It means more information may be required before the extent of the issue can be established.
What about repair costs?
This is often the missing piece when buyers read an inspection report.
A report may explain what is wrong without telling you what the defect could mean financially.
Repair costs depend on the extent of the problem, access, labour, materials, location and the repair method ultimately selected. Nevertheless, understanding whether a finding is likely to represent minor maintenance, a moderate future expense or substantial rectification can materially change how you view the property.
Does the seller have to repair everything in the report?
No.
A building report records property condition. It does not automatically create an obligation for the seller to rectify every item.
Contractual rights depend on the wording of the property contract, any building or building-and-pest inspection condition, the type of defect, applicable deadlines and the jurisdiction in which the property is being purchased.
Can I use the report to negotiate?
Significant unexpected defects may form part of negotiations between a buyer and seller.
Depending on the circumstances, a buyer may seek rectification, request a price adjustment or decide to proceed while budgeting for the work after settlement.
The strongest starting point is understanding which findings actually matter and the likely repair implications rather than simply sending the seller a list of every item in the report.
How do I turn a technical report into something useful?
Find the significant defects
Identify the items that could affect safety, structure, deterioration or substantial future expenditure.
Understand what they actually mean
Look beyond the classification and understand the likely cause, extent and implications of each important finding.
Put the repair costs into perspective
Separate routine maintenance from repairs that could materially affect your budget after purchase.
Decide what needs action before you proceed
This may mean obtaining further advice, asking questions, negotiating, checking your contract or simply budgeting for future maintenance.
Frequently asked questions
Can someone review a building inspection report I already have?
Yes. An existing inspection report can be reviewed to help identify the significant findings, explain technical terminology, prioritise defects and provide context around likely repair implications.
Do I need another building inspection?
Not necessarily. If the existing report contains enough information, photographs and defect descriptions, reviewing that report may answer many of your questions. A further site inspection or specialist assessment may still be appropriate where important information is missing or further investigation has been recommended.
Is a long building inspection report a bad sign?
No. Report length and defect count do not determine whether a property is a poor purchase. The significance, cause and likely cost of the important findings matter much more.
What should I worry about most in a building report?
Pay particular attention to structural concerns, safety issues, active deterioration, water ingress, significant timber damage, major defects and findings that may involve substantial repair costs.
Can an inspection report help me negotiate?
Significant findings can form part of negotiations. Understanding which defects are important and their likely repair implications can help you have a more informed discussion about the property.
Have a question before submitting your report?
If you're unsure whether your existing inspection report is suitable for review or have a question about the BuyerReport process, contact us and we'll point you in the right direction.
Contact BuyerReportGeneral information only. BuyerReport reviews the information contained in an existing inspection report and does not replace an inspection of the property where a further site inspection or specialist assessment is required. Repair-cost guidance is indicative and is not a contractor quotation. BuyerReport does not provide legal or conveyancing advice.