What is a property inspection?

A property inspection is the examination of a residential property by a prospective buyer (or their representative) before purchase to assess its condition, size, layout, and any issues that might affect value or suitability. Property inspections happen at several stages during a typical Australian purchase.

The first inspection is usually an open home or private inspection arranged by the selling real estate agent. Open homes typically run for 30 minutes on weekends, with private inspections by appointment. Buyers walk through the property, check the layout, fittings, fixtures, and obvious condition issues, and ask the agent about the property's history, recent repairs, and the seller's reasons for selling. The agent's Material Facts obligations require disclosure of certain known issues such as water leaks, structural problems, and recent flooding, but specific rules vary by state.

Before signing a contract or making a final bid, serious buyers usually arrange professional building and pest inspections. A building inspector examines the structural condition, the roof, the gutters, the walls and foundations, the plumbing and drainage, and any signs of recent or hidden problems. A pest inspector checks specifically for active termite damage, fungal decay, and other timber pests. Combined building and pest inspections typically cost 400 to 700 dollars and produce written reports highlighting any concerns and recommended further investigation. Strata (apartment) inspections add a strata report covering the body corporate's finances, history, and planned major works.

Final inspections (also called pre-settlement inspections) happen in the week before settlement. The buyer walks through the property to confirm it is in the same condition as at the time of contract, that agreed inclusions are still in place, and that the property is vacant or occupied as agreed. If issues are identified at the final inspection, the buyer's conveyancer can negotiate adjustments at settlement or, in more serious cases, withhold settlement until the issues are resolved. Most states have a cooling-off period (typically two to five business days, varying by state and property type) during which the buyer can withdraw with limited penalty if issues emerge.