What to Look for in a Building Report

You've received your building report—now what? Understanding how to read and interpret this crucial document can mean the difference between a good investment and a costly mistake.

The Anatomy of a Quality Building Report

Essential Components

A comprehensive building report should include:

Executive summary: Key findings and recommendations at a glance
Property details: Address, age, construction type, and size
Inspection methodology: What was and wasn't inspected
Detailed findings: Room-by-room assessment with photos
Risk ratings: High, medium, or low priority items
Cost estimates: Approximate repair costs for major issues
Recommendations: What actions to take and when

Understanding Risk Ratings

🔴 High Priority (Critical)

These require immediate attention and may be deal-breakers:

Structural instability or foundation failure
Active water ingress or significant moisture damage
Unsafe electrical systems
Serious roof defects causing leaks
Hazardous materials (asbestos in poor condition, lead paint)

Action: Consider walking away or negotiate significant price reduction

🟡 Medium Priority (Important)

Issues that need addressing but aren't immediately dangerous:

Aging roof requiring replacement within 5 years
Minor foundation cracks requiring monitoring
Outdated plumbing or electrical that should be upgraded
Weathertightness concerns requiring investigation
Drainage issues affecting property

Action: Get specialist quotes and factor into purchase price

🔵 Low Priority (Minor)

Maintenance items that don't affect safety or structure:

Cosmetic repairs (paint, minor cracks)
Gutter cleaning and maintenance
Window and door sealing
Minor plumbing leaks
General wear and tear

Action: Budget for routine maintenance

Key Areas to Focus On

1. Foundation and Structure

What to look for:

Crack patterns and severity
Evidence of movement or settlement
Timber condition (rot, borer)
Pile condition and spacing

Red flags:

Horizontal or diagonal cracks wider than 3mm
Doors and windows not closing properly
Significant floor slope or unevenness
Soft or rotted timber framing

2. Roof and Weatherproofing

What to look for:

Roof covering condition and remaining life
Flashing installation and condition
Gutter and downpipe functionality
Evidence of leaks or repairs

Cost indicators:

Full roof replacement: $15,000-$40,000
Re-roofing over existing: $8,000-$20,000
Major repairs: $3,000-$10,000

3. Moisture and Weathertightness

Critical measurements:

Moisture readings above 18-20% indicate problems
Check readings in multiple locations
Look for patterns suggesting active leaks
Note locations of high readings

4. Electrical System

Modern standards require:

RCD protection on all circuits
Grounded outlets throughout
Adequate circuit capacity
Safe wiring practices

Upgrade costs:

Full rewire: $15,000-$30,000
Switchboard upgrade: $2,000-$4,000
Adding RCD protection: $500-$1,500

Reading Between the Lines

Disclaimer Language

Pay attention to these phrases:

"Recommend further investigation by specialist": The inspector found something concerning but can't assess full extent
"Unable to access/inspect": Hidden areas could contain problems
"Appears satisfactory": No obvious issues but not guaranteed
"Requires monitoring": Issue isn't serious yet but could worsen

Photos Tell the Story

A quality report includes clear photos of:

All significant defects
Overall property condition
Specific problem areas
Safety hazards

What's NOT in the Report

Standard building reports typically don't cover:

Pool compliance: Requires separate inspection
Methamphetamine contamination: Needs specialist testing
Asbestos identification: May require lab testing
Geotechnical issues: Need soil engineer assessment
Pest inspection: Some inspectors include, others don't
Detailed drainage: May need plumber or drain camera

Taking Action After the Report

1. Get Specialist Quotes

For any significant issues, obtain written quotes from licensed tradespeople:

Builder for structural work
Roofer for roofing issues
Electrician for electrical problems
Plumber for plumbing concerns

2. Negotiate Strategically

Options include:

Price reduction: Reduce price by cost of repairs plus contingency (20-30%)
Vendor repairs: Ask seller to fix issues before settlement
Vendor contribution: Split repair costs
Walk away: If issues are too severe

3. Plan Your Renovations

Use the report to prioritize post-purchase work:

Address safety issues immediately
Fix water ingress and weatherproofing
Tackle structural repairs
Upgrade essential systems
Handle cosmetic improvements

Questions to Ask Your Inspector

Don't hesitate to follow up on:

"How serious is this issue?"
"What's the likely cost to fix?"
"How urgent is this repair?"
"Can this wait 5 years?"
"Would you buy this property?"
"What would you do first?"

Common Report Misunderstandings

Myth: "A clean report means the house is perfect"

Reality: No house is perfect. A good report identifies issues that matter, not every minor defect.

Myth: "The report is a guarantee"

Reality: Reports assess visible, accessible conditions at inspection time. Hidden issues may exist.

Myth: "I can skip the inspection if the house looks good"

Reality: The most serious problems are often hidden. Fresh paint can hide major defects.

Keeping Your Report

Your building report is valuable beyond the purchase:

Maintenance schedule: Plan repairs and upgrades
Insurance claims: Proves pre-existing conditions
Future sale: Demonstrates property care
Renovation planning: Guides improvement priorities

Need a Building Report?

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