Average Australian Mortgage Size in 2023
29 Nov 2023
Imagine buying your dream home, settling in and making it your own, to only realise three months down the line there was an existing termite infestation all along…
Buying a house is one of the biggest investments you’ll ever make in your life - an investment you want to safeguard. A building and pest inspection is a crucial step in the home buying process, one that should never be overlooked. After all, it could potentially save you from buying a dodgy home.
This article will take you through the importance of conducting a building and pest inspection, how much it costs, and the steps you can take if the inspection comes back negative.
The purpose of a building and pest inspection is to identify any issues with the property you may have missed in your initial walkthrough - structurally or otherwise - so that you’re fully informed about the condition of your new asset. No nasty, unexpected surprises.
Essentially, the building inspection determines the physical condition of the house (major/minor defects and safety hazards), while the pest inspection involves examining any evidence of active termites or other pest infestations.
A building and pest inspection is typically performed prior to finalising a property purchase - it’s usually a condition of your purchase contract.
A building and pest inspector will typically inspect the following areas:
Legally, you are under no obligation to have a building and pest inspection drawn up - it’s completely in your hands.
However, not doing a building and pest inspection is like buying a car without getting an RACQ check or mechanical vehicle inspection. You won’t know if there’s anything wrong with it until one day you’re stuck on the highway and the car won’t turn back on.
When buying a house, you don’t know what’s lurking behind the walls. Identifying problems early on can save homebuyers a considerable amount of money in repair costs down the line. It also provides an opportunity to renegotiate the purchase price or withdraw from the sale if the issues are severe enough.
A building and pest inspection can also provide peace of mind. Knowing that the property has been thoroughly inspected by qualified professionals can provide assurance that the investment is a sound one. Even if no major issues are identified, having a report that confirms the property's condition can provide homebuyers with confidence in their decision to sign on the dotted line.
To sum up, a building and pest inspection when purchasing a property is important as it identifies the following:
There’s no one true cost for a building and pest inspection. The fee will largely depend on your home’s location, the size of the property, and the type of package you choose.
Online platform hipages gives a general estimate of $150 to $1,200 for a building and pest inspection. Below is a cost breakdown based on the size of the property:
Unfortunately, not all inspections will return with a green tick of approval.
Oftentimes, minor problems can pop up such as a loose door, a bit of paint missing, or a blown lightbulb. These small issues aren’t necessarily anything to worry about, especially with a home that might be 10 to 40 years old.
However, if major issues are identified, it can provide homebuyers with negotiating power. If significant structural issues or pest infestations are detected, homebuyers can renegotiate the purchase price to account for the repairs or withdraw from the sale entirely. In this instance, a buyer could also go back to the agent or solicitor and request the owner fix the issue at their own cost with proof they have done so.
Generally, there are three pathways to go down when a fault is found:
To chat about home loans, your borrowing power, or to get started on your home ownership journey, chat to one of our friendly lending specialists today.
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