Understanding the Coverage of a Building Inspection Report

A building inspection report is one of the most powerful tools a property buyer or owner in Melbourne can have. Yet many people feel overwhelmed when they first receive this document. It is often full of technical terms, defect ratings, and urgent-looking notes. This updated 2025 guide will show you exactly what to expect, how to read your report, what actions to take, and how to use your report to protect your investment and peace of mind.

What is a Building Inspection Report?

A building inspection report is a detailed written summary of a property’s condition, prepared by a qualified inspector. It covers all accessible areas and highlights:

• Structural issues
• Maintenance concerns
• Safety hazards
• Any urgent or future repairs needed

In Melbourne, these reports follow standards set by the Victorian Building Authority (VBA) and Australian Standard AS 4349.1. They are vital for buyers, sellers, and current owners wanting to know exactly what’s going on with a property.

What’s Included in a Melbourne Building Inspection Report?

A quality building inspection report from Buywise Inspections will typically include:

Property Details

Address, property description, weather, time of inspection, and the inspector’s credentials.

Summary Table or Overview

An at-a-glance list of significant findings, urgent issues, and overall property condition.

Defect Ratings

Issues are usually graded as Major Defect, Minor Defect, or Safety Hazard. Some reports use colours or numbers to highlight severity.

Room-by-Room Assessment

Detailed notes and photos for each area including exterior, interior, roof space, subfloor, wet areas (bathrooms and laundry), and outbuildings.

Structural Elements

Inspection of foundations, walls, floors, ceilings, and roof framing for movement, cracks, or signs of deterioration.

Moisture Readings and Dampness

Results from thermal imaging or moisture meters are included because hidden leaks or damp areas can mean bigger problems, such as termite risk.

Pest or Timber Damage

Notes on visible signs of pest attack, like termites or decay, and conducive conditions are included if you booked a combined building and pest report.

Safety and Compliance Checks

Smoke alarms, pool fencing, balustrades, window locks, and electrical safety switches are usually reviewed.

Photographic Evidence

High-quality photos show key defects or areas of concern, making it easier to understand the report.

Recommendations

A section with clear next steps, stating what should be fixed now, what can wait, and who to consult, such as a builder, engineer, or plumber.

How to Read and Interpret Your Building Inspection Report

Start with the Summary

Read the executive summary or main findings first. This gives you a snapshot of the overall property health.

Understand the Defect Ratings

Focus on Major Defect or Safety Hazard items. These may include:

• Structural movement such as cracks in walls or uneven floors
• Termite damage
• Water leaks or rising damp
• Electrical faults
• Unsafe balconies or staircases

Review Photos and Annotations

Use the photographs to visualise problems and check their locations in the home. Look for close-up shots of defects or damaged materials.

Look for Repeated Issues

If multiple areas have damp, leaks, or cracking, this could indicate a bigger underlying problem.

Read the Recommendations

Inspectors usually list immediate actions (fix now), routine maintenance (plan ahead), and further inspections, such as calling a specialist engineer, plumber, or pest expert.

Common Terms and What They Mean

Major Defect

An issue that could significantly affect safety, habitability, or value if not fixed. An example is a major structural crack.

Minor Defect

A cosmetic or low-risk issue, such as small plaster cracks or minor paint flaking.

Safety Hazard

Anything posing immediate danger, for example, exposed wiring or missing balustrades.

Conducive Conditions

Features such as poor drainage or garden beds against the house that make problems like termites or damp more likely.

Further Investigation

The inspector recommends a specialist review, often for complex or hidden issues.

Sample Building Inspection Report (Annotated Example)

Here is an example of a typical finding in a Melbourne building inspection report:

Example Finding:
Location: Bedroom 2, southern wall
Issue: Cracking visible, extending two metres
Rating: Major Defect

Recommendation: Engage a structural engineer to assess the cause and recommend repairs. This could indicate subsidence.

Tip: Your inspector can explain any findings if you are unsure. Do not be afraid to ask for clarification.

What Should You Do After Receiving the Report?

Do not panic. Most reports contain a mix of minor and major defects. This is normal for both old and new properties.

Prioritise major issues

Urgent safety or structural problems need to be addressed before purchase, sale, or moving in.

Use the report in negotiations

If you are buying, you can:

• Request repairs before settlement
• Negotiate the price down based on repair costs
• Walk away from a risky purchase

Obtain quotes

For major repairs, get quotes from qualified trades or specialists.

Plan routine maintenance

Keep on top of minor issues before they become big problems.

If selling, consider repairs

Address key defects before listing to improve your sale price and attract more buyers.

Local Melbourne Context: Why These Reports Matter

Melbourne’s mix of new and heritage homes means unexpected issues are common, even in recent builds. Properties in certain areas such as the Inner North, Eastern Suburbs, or Bayside may have specific risks like subsidence, termite activity, or old plumbing.
A thorough building inspection report is often required for bank financing and is essential for your legal protection under Victorian law.

Frequently Asked Questions (FAQ)