Building Inspection Report: What’s Included and How to Understand Your Results
What is a Building Inspection Report?
A building inspection report is an in-depth, written summary of a property’s true condition, provided by a qualified inspector after a careful assessment. For Melbourne buyers, sellers, and property investors, understanding your building inspection report is crucial for making smart decisions, protecting your investment, and avoiding costly surprises after settlement.
Building inspection reports are standard practice across Victoria and usually required by banks or lending institutions as part of the purchase process. Whether you are buying your first home, selling, or investing, your report provides peace of mind and a clear plan for your next steps.
What’s Included in a Melbourne Building Inspection Report?
A quality building inspection report follows Australian Standard AS 4349.1 and covers all accessible areas of your property. The report is designed to be as clear and practical as possible, with photos, summary tables, and recommendations for buyers and owners.
Here’s what you can expect in a Melbourne building inspection report:
1. Inspection and Property Details
- Property address, type, and age
- Inspection date, weather conditions, and time on site
- Inspector’s name, accreditation, and contact details
- Areas inspected and any inaccessible sections (e.g., locked roof space, subfloor, or attic)
2. Executive Summary
This is your quick reference for all significant findings. The summary highlights:
- Major defects that require urgent attention
- Safety hazards, such as electrical or structural risks
- Overall property condition (good, fair, poor)
- Recommendations for immediate actions or further investigation
The executive summary is the best place to start before diving into the detailed findings.
3. Explanation of Defect Ratings
Each defect is rated by severity. Your report will clearly define the difference between:
- Major Defect: Something that significantly affects safety, structure, or value, like a large structural crack or a serious leak.
- Minor Defect: A small issue such as a cracked tile, sticking door, or cosmetic blemish.
- Safety Hazard: Any condition that could cause injury, like a loose handrail or exposed wiring.
Most reports use colour codes, tables, or icons so you can instantly see which issues need urgent attention.
4. Detailed Area-by-Area Assessment
Your inspector will review every accessible section of the property, including:
- Exterior: Walls, cladding, brickwork, render, fascias, soffits, eaves, and external stairs
- Roof Exterior: Tiles, sheets, flashing, gutters, downpipes, and visible framing
- Roof Space (Attic): Trusses, insulation, sarking, ventilation, signs of leaks or pests
- Subfloor: Stumps, piers, joists, bearers, signs of dampness, wood rot, or pest damage
- Interior Rooms: Walls, floors, ceilings, doors, windows, architraves, cornices, wardrobes
- Wet Areas: Bathrooms, kitchens, laundries; looking for leaks, water damage, or poor waterproofing
- Garages, Carports, Sheds: Structure, roof, doors, floors, and electrical fittings
- Fences, Gates, Retaining Walls: Damage, decay, movement, safety risks
- Driveways, Paths, External Steps: Trip hazards, cracks, poor drainage
Every section will include observations, photos, and recommendations for repairs or further investigation.
5. Structural and Maintenance Issues
Your report will highlight any visible structural concerns or ongoing maintenance issues. These might include:
- Cracks in brickwork or render
- Uneven floors or signs of subsidence
- Leaking or rusted gutters and downpipes
- Rotten or decayed timber
- Sagging ceilings, roof leaks, or broken tiles
- Damp patches on walls or ceilings
Early identification of these problems helps you avoid expensive surprises.
6. Timber Pest Findings (If Included)
If you book a combined building and pest inspection, the report will also cover:
- Signs of termite activity or damage
- Past pest treatment (with photos of mud tubes, frass, or affected timber)
- Borer or fungal decay in wooden structures
- Areas that are at high risk for future pest problems, such as subfloor moisture or garden beds against walls
7. Safety and Compliance Checks
A thorough building inspection report checks for:
- Smoke alarms, safety switches, visible wiring issues
- Pool and spa fencing (if relevant)
- Window and balcony locks
- Trip hazards, loose stairs, or damaged balustrades
Any non-compliant or unsafe conditions are clearly flagged.
8. Photographic Evidence
Photos are essential for understanding the report. Expect:
- Wide shots showing locations (for example, “kitchen ceiling above sink”)
- Close-ups of defects (such as cracks, leaks, or timber decay)
- Annotations or arrows to highlight problem areas
- Reference numbers linking photos to each finding
9. Recommendations and Next Steps
Your inspector will include:
- Which issues require urgent repair before purchase or move-in
- Ongoing maintenance to plan for in the coming months or years
- Suggestions for further specialist inspections, such as a plumber, electrician, or engineer
Guidance for negotiation, for example, asking the vendor to fix or discount for major repairs
How to Read and Use Your Building Inspection Report
Step 1: Start with the Executive Summary
This section tells you if there are any show-stoppers. It will summarise any structural, safety, or urgent defects.
Step 2: Review Defect Ratings and Definitions
Make sure you understand the difference between major and minor defects, and safety hazards.
Step 3: Examine the Photos
Photos make it easy to identify defects in person. Use them during your own walkthrough of the property.
Step 4: Look for Patterns or Repeated Problems
Multiple issues in the same area may mean a bigger underlying problem. For example, damp in several rooms or cracks in different walls.
Step 5: Read the Recommendations
The inspector will explain which issues need immediate attention, which can wait, and where a specialist (like a structural engineer) is needed.
Step 6: Ask for Clarification
Do not hesitate to call your inspector for further explanation. Good inspectors are happy to talk you through any technical details.
Common Findings in Melbourne Building Inspection Reports
Melbourne’s unique mix of weather, soils, and housing styles means certain defects are more common in our reports:
- Cracking in Brickwork or Plaster: Often due to reactive clay soils, especially in outer suburbs such as Wyndham or Casey.
- Damp or Mould: Frequently found in heritage homes in St Kilda, Carlton, or Fitzroy, often due to rising damp, leaking roofs, or blocked gutters.
- Termite Risk: Leafy suburbs such as Eltham, Doncaster, or Mornington Peninsula are prone to timber pests.
- Roof and Gutter Issues: Storms and old age cause many leaks in established suburbs like Camberwell, Hawthorn, and Glen Iris.
- DIY Renovations: Poor-quality work is common in homes that have been quickly flipped for sale.
- Plumbing Problems: Outdated pipes, leaky bathrooms, or poorly connected drainage can be costly to repair.
- Electrical Safety Issues: Old fuse boxes, exposed wiring, or missing safety switches in homes built before the 1990s.
Example: Interpreting a Typical Finding
Sample Report Entry:
- Location: Bedroom 3, northern wall
- Issue: Crack visible, 1.5 metres long, extends from window sill to skirting board
- Rating: Major defect
- Recommendation: Engage a structural engineer to assess and confirm if foundation movement is present. Immediate repairs not recommended until cause is identified.
Understanding this example helps you see how the report guides your next step and negotiation with the seller.
What Should Buyers and Owners Do With Their Building Inspection Report?
- For Buyers:
Use major defects as grounds to negotiate a price reduction, request repairs, or, in some cases, withdraw from the purchase if the contract allows. - For Sellers:
Address key defects before listing your home to improve buyer confidence and your sale price. - For Owners:
Plan and budget for maintenance to prevent small issues from becoming expensive problems.
Always discuss findings with your inspector, especially if you plan to renovate or add extensions, so you can anticipate any extra work or permits needed.

Frequently Asked Questions
No, but they are strongly recommended and often expected by buyers and lenders.
Yes. Buyers often use major findings to reduce the price or require repairs before settlement.
Only if you book a combined building and pest inspection. Standard reports cover only visible signs unless otherwise specified.
Most Melbourne homes require one to two hours for a thorough inspection. The report is typically delivered within 24 hours.
Reports are usually considered valid for up to three months, as new issues can arise over time.