Purchasing a property is a significant investment, so the last thing you want is to be stuck with unexpected expenses to fix faults such as rising dampness, movement or cracking in the walls, safety hazards or a defective roof.

That said, most contracts require a buyer to obtain a building report and a pest report to check for creepy crawlies such as termites, white ants, and other pests that can damage the property.

A building inspection by a licensed building inspector will reveal any potentially costly structural or safety issues within a property. It will also outline what work needs to be completed to return a property to a safe and comfortable standard and the estimated cost for completing the repairs. For a buyer, it can give you some understanding of whether it’s a good buy or a lemon. It’s a little like buying a used car from a private seller. Getting a mechanic to look under the bonnet before you hand over your hard-earned money is always advisable. Likewise, before buying a house, get a building inspector to run their eye over the property. According to Hipages, there is no flat rate for building inspection costs. The fee will largely depend on the size of the property. Expect to pay around $200–$300 for a smaller property and $400–$500 for an average-sized house. Pest inspections can be completed simultaneously for $100 and $150 extra[i].

In most states and territories, buyers must pay for building and pest inspections. Additionally, when house hunting, you might need to order inspection reports for multiple properties, so it’s important to factor this expense into your budget.

If you are buying a brand-new property with new fixtures and fittings, don’t take it as gospel that everything is in perfect working order. The trouble is that new properties won’t immediately reveal any structural issues, and if you have recently secured a property off-the-plan from a developer, it is recommended that you organise a “handover report.”

A “handover report” is a comprehensive report of a newly built property by an independent builder and covers the interior of the apartment and external areas where possible and includes items such as the quality of the final finishes, including paintwork, plastering and tiling, as well as external cladding and finishes to balconies, as well as walls, ceilings and floors. Its purpose is to ensure that you are protected from any substandard workmanship while it also assesses the structural integrity of the building by highlighting, in detail, any defects and imperfections.

Prices to carry out a handover inspection report start at $380 for a unit[ii], and depend on your state or territory and the builder you hire. However, it is a worthwhile investment that can spare you the financial burden of fixing possible defects to a brand new property in the future.

To discuss your property buying options, speak to a Raine & Horne agent today.

[i] https://hipages.com.au/article/how_much_does_a_building_inspection_cost

[ii] https://www.inspectmyhome.com.au/handover-inspections-reports.html#:~:text=Prices%20to%20carry%20out%20a,office%20for%20an%20accurate%20quote.