Last updated: July 2026
Building and Pest Inspection Guide for First Home Buyers
A building and pest inspection is one of the most important steps when buying your first home. For $500 to $900, a qualified inspector will check for structural defects, termite damage, and other issues that could cost tens of thousands to fix. You should arrange inspections before exchanging contracts on a private treaty sale, or before auction day if buying at auction.
Why You Need Both Inspections
A building and pest inspection protects you from buying a property with hidden structural defects or active termite damage. These are two separate inspections (often done by the same company on the same visit) that together give you a clear picture of the property's condition.
The cost is small compared to the repair bills you could face. Termite damage alone costs Australian homeowners an average of thousands of dollars per affected property according to CSIRO research, and structural repairs can run into the tens of thousands. For a first home buyer stretching their budget with the help of government schemes, an unexpected repair bill can be devastating.
What a Building Inspection Covers
A qualified building inspector will examine the property's physical condition and report on:
- Structural integrity: foundations, walls, load-bearing elements, and roof structure
- Moisture and damp issues: rising damp, water ingress, poor drainage
- Electrical and plumbing: visual inspection for obvious defects (not a full compliance check)
- Safety hazards: potential asbestos (common in pre-1990 homes), lead paint in older properties
- Compliance issues: non-compliant renovations or additions
- Roof and gutter condition: leaks, sagging, damaged tiles or sheeting
- General maintenance: cracking, paint deterioration, rot, and wear
The inspector will provide a written report grading each area as satisfactory, needs attention, or requires urgent action. A good report will also include photos and estimated repair costs for any issues found.
What a Pest Inspection Covers
A pest inspection focuses specifically on timber pests, primarily termites. The inspector will check for:
- Active termite infestation: live termites in or around the property
- Evidence of past termite damage: repaired or unrepaired damage from previous infestations
- Conditions conducive to termites: excessive moisture, wood-to-ground contact, poor ventilation in sub-floor areas
- Other timber pests: borers, fungal decay (wood rot)
Termites are a serious concern across most of Australia, particularly in Queensland, New South Wales, and the Northern Territory. Even properties in cooler states like Victoria and Tasmania can be affected.
Typical Costs
Inspection costs vary depending on the property size and location, but here is a general guide.
| Inspection Type | Cost Range |
|---|---|
| Building inspection | $400 - $700 |
| Pest inspection | $200 - $400 |
| Combined building and pest | $500 - $900 |
| Pre-purchase strata report | $200 - $350 |
| Pool compliance certificate (if applicable) | $200 - $400 |
Booking a combined building and pest inspection is usually cheaper than arranging two separate inspections, and it means only one visit to the property.
Red Flags to Watch For
While your inspector will explain any issues in their report, these are the red flags that should make you pause and think carefully before proceeding:
- Structural cracking, especially diagonal cracks in brickwork or concrete, which can indicate foundation movement
- Rising damp or evidence of persistent moisture problems
- Roof damage, including sagging, cracked tiles, or rusted sheeting
- Active termites in any state, but especially in QLD, NSW, and NT where they are most prevalent
- Asbestos, which is common in homes built before 1990 and can be expensive to safely remove
- Non-compliant renovations, such as enclosed patios, added bathrooms, or structural changes done without council approval
When to Get an Inspection
The timing depends on how you are purchasing the property:
Private Treaty (Negotiated Sale)
Make your offer subject to a satisfactory building and pest inspection. This gives you the right to withdraw or renegotiate if the inspection reveals serious problems. Cooling-off periods are short and vary by state — typically 2 to 5 business days — and Western Australia and Tasmania have no statutory cooling-off period at all, so arrange your inspections before you sign wherever possible.
Auction
Get inspections done before auction day. There is no cooling-off period when you buy at auction, so you need to know the property's condition before you bid. This means paying for an inspection on a property you might not win, but it is far better than discovering a major issue after you are legally committed.
Off-the-Plan
For off-the-plan purchases, your inspection happens at the practical completion stage before settlement. Your conveyancer will advise on when to arrange this. It is worth engaging a building inspector to check the finished property against the plans and specifications.
Choosing an Inspector
Not all building inspectors are equal. Here is what to look for:
- Use a licensed building inspector (licensed under your state's regulations)
- Ask for a sample report before booking, so you know what level of detail to expect
- Choose an inspector independent of the selling agent to avoid conflicts of interest
- Check online reviews and ask your conveyancer or broker for recommendations
- Confirm they carry professional indemnity insurance
For more on the legal side of buying, see our conveyancing guide. For the full buying process, check the first home buyer checklist.
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Frequently Asked Questions
How much does a building and pest inspection cost in Australia?
A combined building and pest inspection typically costs $500 to $900. A building inspection alone is $400 to $700, and a pest inspection alone is $200 to $400. Booking them together is usually cheaper than getting two separate inspections.
Is a building inspection required before buying a house?
It is not legally required, but it is strongly recommended. A building and pest inspection can reveal hidden defects that would cost thousands or tens of thousands of dollars to repair. The inspection cost is small compared to the risk of buying a property with serious structural issues or active termites.
Should I get a building inspection before an auction?
Yes. Since there is no cooling-off period when you buy at auction, you must complete all inspections before auction day. If the property has issues, you will have no opportunity to back out after winning the bid.
What happens if the building inspection finds problems?
If you have made your offer subject to a satisfactory building inspection, you can renegotiate the price, ask the seller to fix the issues, or withdraw from the purchase. If you bought at auction, you cannot withdraw, which is why pre-auction inspections are so important.
Sources:
NSW Fair Trading - Buying a Property | Consumer Affairs Victoria - Buying Property | CSIRO - Termite Management
Disclaimer: This information is general in nature and does not constitute financial, legal, or tax advice. Calculations are estimates only and may not reflect your exact circumstances. Eligibility criteria and dollar amounts may change without notice. Always verify with the relevant government authority, your mortgage broker, or a licensed financial adviser before making decisions.