How much does a building inspection report cost?

You’ve just found your dream property. The curb appeal is drawing you in, and there’s plenty of natural light. The floor plan is perfect, and the price seems reasonable. But is everything as it seems? Or is there a catch?

Before you sign any contracts and get the keys to your new home, it’s worth paying for a reputable building inspector to check for problems you didn't see during your viewing. Your inspector will assess the house and put their findings in an easy-to-understand report for your review.

The cost of a building inspection varies, but in general, you’ll usually pay around $250-$350 for a small property or $400-$500 for an average property. If you want to add a pest inspection, too, this will usually set you back an extra $100-$200. That said, this is just an estimate. Your actual cost will depend on where you live, the size of the home, and how comprehensive you want your search to be.

Over the last 30 years, we’ve helped thousands of Australians buy and sell their homes. During that time, we’ve seen the importance of hiring a building inspector to ensure prospective properties are the real deal.

So, to help you understand how the process works, we’re going to walk you through it piece by piece. Let’s start by taking a look at what a building inspection report entails.

What is a building inspection report?

A building inspection report is the final report provided by your building inspector after they examine your chosen property.

This isn’t just a case of pulling back the curtains and looking behind wardrobes to check for dust. A thorough building inspector will assess every aspect of the property to make sure it’s as good as advertised. A typical building inspection covers:

• Plumbing and drainage, including all taps, sinks, and toilets.
• Electrical systems, plug sockets, and wiring.
• The building construction, such as the foundation, retaining walls, and roof framing.
• The property exterior, including driveways, gardens, chimneys, and gutters.
• Property extensions and home renovations to ensure they comply with legislation.
• Indoor walls to check for cracks, damp, and mould.
• Any potential fire hazards.

If the building inspector finds no problems, you're good to go. But if they find any flaws, they'll tell you about them in the building inspection report so you can decide on the next steps.

If you decide that a serious issue—such as concerns during a structural inspection—is worth investigating further, you can request this service from the building inspector. They can then check whether this issue is the result of a more severe problem.

Related: Key property inspections when buying a house

Understanding average building inspection costs

The truth is that it’s very difficult to predict exactly how much you’ll pay for a basic building inspection report. The best course of action is to get several quotes from inspectors in your area and then decide on the best one.

Inspectors independently charge and offer different pricing and services, as an indication we’ve provided some rough estimates for home inspection costs in Australia based on different house types below. In addition, there are many providers across Australia that can offer a range of online services for property compliance and due diligence. Speak to your DiJones agent to find out more.

One/two-bedroom home: $400-$500.

Three-bedroom home in a non-urban area: $500-$800.

Four/five-bedroom home in a non-urban area: $650-$1000.

Three-bedroom home in a metropolitan area: $500-$750.

Four/five-bedroom home in a metropolitan area: $600-$900.

Know that these building inspection costs apply primarily to homes. If you’re buying a unit or townhouse, you’ll need to get a strata report (apartment inspection) instead.

With a strata report, your inspector will also check the Owners’ Corporation records to determine the building’s history, policies, and current financial standing.

This report usually costs around $300-$400. However, in some cases, your vendor may provide you with one for free.

However, as we said, these costs vary.

What are the main factors affecting building inspection costs?

There are five core influencing factors that can impact how much your building inspection costs. Once you understand them, you can budget a rough estimate for your situation. But as always, it’s worth getting several quotes to be certain.

Property size and type (residential, commercial, industrial)

Let’s start with the obvious. Inspection costs depend on the size of your home. The bigger your property is, the more your inspection will cost. Building inspection pricing to inspect a commercial building is also typically far steeper because of the expertise needed to inspect those properties.

Location (urban, rural, regional)

In general, the closer you are to urbanisation, the more you’ll pay for the inspection. Rural costs are comparatively lower, but if you’re in a metropolitan area, expect to pay a high price. Costs also vary by region. Brisbane and Sydney, for instance, are usually more expensive than Adelaide and Darwin.

Age of the property

Older properties genuinely warrant more close inspections because they are prone to hidden problems. This will increase your building inspection costs, especially if the building has wiring and plumbing systems that haven’t been renovated for a while.

Inspection scope

You may need to pay more or less depending on the scope of your inspection. Inspecting the structural integrity of old homes, for instance, will usually take longer and cost more than a quick check of the drainage systems. Pest inspections, termite inspections, and mould assessments will also cost extra.

Inspector’s experience

If your inspector has a lot of qualifications and experience, they may require a higher payment. This is expected due to the higher quality service they provide. It’s worth assessing different building inspectors yourself so you can find the best value for money.

How to choose the right building inspector

We recommend shopping around for different building inspecting companies in your area to find the best value. There are four primary things we suggest you look for:

• Accreditation: Each state has different requirements for someone to become a building inspector (more on that below). Do your research and ensure your chosen inspector has the right accreditation for your region.
• Experience: It’s a good idea to find a reputable building inspector who has experience within the field. It’s one thing to notice that a foundation is wonky but much harder to notice small defects and what they mean in context. Experience equals due diligence.
• Reviews: A review can tell you a lot about how good (or poor) a building inspector’s service is. Just be wary. If a reviewer doesn’t have an authentic profile, they may have been paid to give a good recommendation.
• Cost: Lastly, there’s cost. We recommend this as a final step. Check reviews, accreditation, and experience to narrow down your search, and from there, choose the best value for money.

Choosing an affordable building inspector can make all the difference when you’re trying to save some cash.

But ultimately, it’s about finding the balance between price and quality. If the building inspector isn’t qualified enough and misses a major problem, it could cost you more in the long run.

What qualifications should I look for in a building inspector?

The necessary qualifications for a building inspector vary by region. Let’s explore each state one by one.

1. Victoria

In Victoria, your building inspector should be registered with the Victorian Building Authority (VBA). To do this, they’ll need to have A Diploma in Building Surveying and proven experience in the construction industry.

2. New South Wales

Your New South Wales building inspector should be accredited by NSW Fair Trading. This requires a Tafe Certificate IV in Building and Construction (or equivalent), as well as a contractor licence issued by NSW Fair Trading.

3. Western Australia

In Western Australia, look for inspectors registered with the Building Commission. This means they need to have a qualification in building, construction, or surveying in addition to two years of experience in the building industry.

4. Queensland

QLD building inspectors should have a residential building inspection licence with the Queensland Building and Construction Commission (QBCC). This shows they have completed a relevant course and have experience with property inspections.

5. Australian Capital Territory

In ACT, we suggest looking for building inspectors who have a Certificate IV or Diploma in Building Inspections or a related field, as well as experience in the trade

6. Tasmania

While Tasmania doesn’t have any specific licences, most inspectors should have a qualification in construction and the means to prove they have the relevant experience.

7. Northern Territory

Like Tasmania, NT has no licensing. But once again, expect your inspector to prove they have a relevant qualification like a Certificate IV or Diploma in the field.

8. South Australia

Again, South Australia doesn't have specific licensing requirements. But you should look for inspectors with a relevant Certificate IV or Diploma. A good indicator of SA is also membership with a body like the Australian Institute of Building Surveyors.

Ways to save on building inspection costs

If you’ve read up to this point, you might be wondering whether you can avoid building inspection costs completely. But remember that paying a one-time fee now could be the difference between landing your dream home or buying a nightmare filled with months of renovations.

Still, there are steps you can take to make the whole process more affordable. Here are some possibilities for saving some cash:

• Bundling inspections: Try to bundle property inspections where you can. If you choose a building and pest inspection package, it’ll usually be cheaper than paying for both services separately.
• Stay on schedule: The best time to get a building inspection is well before settlement day. If you need to pay for an inspection on short notice, you might have to pay more for the service.
• Choose off-peak times: Busy periods like weekends, public holidays, and hotter months tend to cost more. Where you can choose off-peak times for better rates.
• DIY: There is no law saying you have to get a building inspection. If you have the experience, you can examine your property yourself. We always recommend hiring a professional, though. They can spot defects that you might not consider.

Related: Pre-sale building and pest inspections - how they save you time and money

Frequently asked questions

Browse some of our most frequently asked questions for building inspection reports.

Can I get a copy of the building inspection report as a buyer?

Yep. You’re entitled to the completed inspection report as soon as it's finished. We suggest keeping it for future reference, especially if you’re already in the settlement process. It can be a good legal document if you need to back out of the sale before settlement without incurring any damage fees.

Can I get a copy of the building inspection report as the home seller?

Yes, but you won’t get it by default. You’ll need to ask your buyer’s agent for a copy. This can be a good way to learn about defects and plan for renovations if your property isn’t up to scratch. But beware.

From our experience, it can sometimes be quite upsetting to learn that your property has serious problems that you can’t easily fix. Decide whether it’s a good decision or whether it’s better not knowing.

How long is a building inspection report valid in Australia?

There isn’t an expiration date by law. That said, building inspection reports are usually considered relevant for three to six months. After that, they aren’t as useful because weather and pests can significantly impact the property during that timeframe.

Our advice is to get your building inspection report during the negotiation stage, especially if you have a conditional contract. If the inspector finds any problems, you may have leeway to back out of the deal.

What if I find issues in the property after the inspection?

That depends on where you are in the negotiation. If you haven’t yet signed any contracts, you can decide whether the property is worth your time and money. If you’re in the negotiation stage, you may have some leverage to back out if your contract allows it. Consult with your conveyancer or solicitor to work out the next steps.

What is the difference between a building inspection and a stage inspection?

A building inspection is typically performed on an existing property to assess its overall condition, whereas a stage inspection is conducted during the construction of a new building. The main focus of a stage inspection is to ensure that each stage of the building process is being done correctly and according to plans and regulations.

Related: How to choose a high performing real estate agent and why it matters

The bottom line

Building inspection costs are often the last thing you want to think about right when you’re looking for a new home. But they’re also one of the most essential ways for you to determine whether a property is the right fit.

Our advice? Always shop around for multiple quotes before you book an inspection. While we’ve provided the best estimates, it’s always worth assessing several inspectors to find the best value for money.

Want more ways to save while you’re buying or selling your home?

Since launching in 1992, DiJones has helped thousands of Australians with their property buying and selling. Read our selling and buying guides for more information, or contact us today if you’d like our support.