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What Does a Building Inspection Report Include and Why It Matters

Most people think a building inspection report is a glorified checklist—confirming whether a house is still standing and hasn’t been secretly holding hands with termites. That’s the bare minimum, and frankly, not enough. A proper inspection report should expose the things you weren’t even thinking to check—the ones that could cost you thousands in repairs or worse, turn your "great deal" into a financial sinkhole.

A quick scan of some reports will show you the usual suspects: foundation issues, electrical faults, water damage, and pest infestations. But here’s the thing—not all reports are created equal. Some barely scratch the surface, while others give you the real dirt on a property’s past, present, and future risks. Knowing what should actually be in that report (and what’s conveniently left out) is what separates a smart buyer from an expensive mistake.

So, let’s go beyond the obvious. Here’s what a proper building inspection report should include and why it actually matters—because if you’re making one of the biggest financial decisions of your life, you’d better know exactly what you’re paying for.

 

1. Structural Integrity—The Skeleton of Your Investment

 

A building’s structure isn’t just about whether the walls look solid. Plenty of properties appear fine at first glance but have serious issues beneath the surface. A proper report should include:

Foundation stability – Movement or sinking foundations can cause cracks, uneven floors, and long-term structural failure.
Wall cracks and movement – Hairline cracks? Probably nothing. Large, widening ones? That’s a structural red flag.
Roof conditions – A sagging or poorly maintained roof is an expensive fix waiting to happen.
Load-bearing walls—Some “open-plan” designs involve more guesswork than engineering. If structural support has been compromised, you’ll want to know.

Many reports skip a proper damp meter check, which can expose unseen water damage within walls—something that could lead to long-term structural deterioration.

 

2. Pest Infestation

 

A home might look spotless, but termites and rodents don’t exactly introduce themselves at inspections. A solid report will include:

Termite activity – They don’t just eat wood; they compromise entire structures.
Evidence of past pest treatments – If a house has needed multiple exterminations, that’s a clue.
Moisture issues – Damp wood is an all-you-can-eat buffet for termites.

Freshly painted skirting boards or patchy flooring can sometimes mean pest damage was covered up, not fixed.

 

3. Electrical Safety

 

Electrical faults are one of the leading causes of house fires. A building inspection report should cover:

Wiring conditions – Some older homes still have outdated wiring that’s a fire hazard.
Overloaded circuits – Modern appliances need a lot more power than older systems were designed for.
Switchboard compliance—If an inspector doesn’t check for outdated, unprotected circuits, they’re overlooking a serious safety risk.

A working light switch doesn’t mean safe wiring. Many reports fail to test for earth leakage protection, which can prevent electrocution risks.

 

4. Plumbing and Drainage

 

Plumbing issues don’t just mean occasional leaks. Left unchecked, they lead to water damage, mold, and costly repairs. A proper inspection will cover:

Water pressure and flow rates – Inconsistent pressure can mean aging pipes or blockages.
Leaks and moisture damage – Even minor leaks can cause mold infestations inside walls.
Sewer line integrity – Tree roots can invade older pipes, causing hidden blockages.

Some older homes still have galvanised steel pipes, which corrode from the inside out. If they aren’t appropriately inspected, they could fail within a few years.

 

5. Compliance With Building Codes – The Fine Print That Matters

 

Buying a property means inheriting every problem the previous owner ignored—including any illegal modifications. A proper report should check:

Unapproved renovations – If a seller added rooms or knocked down walls without council approval, you could be stuck with fines or worse, removal orders.
DIY electrical and plumbing work – Amateur installations aren’t just risky; they’re usually non-compliant.
Structural modifications – If major support beams were altered without engineering approval, that’s a costly fix waiting to happen.

Why It Matters: Some insurance companies won’t cover claims for non-compliant properties. If an inspection doesn’t flag these issues, you could be footing the repair bill yourself.

 

Not All Reports Are The Same

 

A good inspection report is detailed, thorough, and written by someone who actually knows what they’re doing. Some inspectors rush through the process, leaving you with a generic report that doesn’t tell you what you actually need to know.

A rushed inspection = expensive surprises later.
Vague reports = hidden problems.
A thorough report = peace of mind.

If an inspector isn’t checking moisture levels, insulation quality, and minor structural shifts, you’re getting a half-baked report.

 

The Smart Move – Read the Fine Print Before Signing Anything

 

Not all issues are deal-breakers, but they’re all negotiation points. A detailed inspection report gives you leverage—whether that’s asking for repairs, a lower price, or walking away from a bad investment.

Ask for specifics – A report that glosses over defects is useless.
Get a second opinion – If a report seems too vague, question it.
Don’t let minor fixes distract from more significant problems – Some sellers focus on cosmetic improvements while ignoring structural flaws.

 

The Report Is More Than a Checklist—It’s Your Insurance Against Disaster

 

A proper building inspection report isn’t just a formality—it’s your best defense against costly mistakes. If it’s missing key details, you’re the one paying for them later.

Building inspections in Melbourne vary in quality, so choosing an inspector who does more than a basic walk-through could save you from years of unexpected repairs. The more thorough the report, the better your chances of making a smart, financially sound decision.

Because in property, what you don’t know can cost you the most.

 

 

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