Buyer guide · Updated

How to read a building and pest report (without panicking)

Read a building and pest report in this order: the summary, then major defects and safety hazards, then timber pest findings, then the limitations and areas not inspected. Minor defects are usually maintenance. Then call your inspector, get quotes for anything significant and talk to your conveyancer before the Inspection Date.

1. The summary page

This tells you the overall condition compared to similar homes of the same age, and highlights the findings that matter. Forsite reports start with a one page summary written in plain English. See the sample layout.

2. Major defects and safety hazards

How defects are graded: major defect, safety hazard, minor defect and timber pestMajor defectFix without undue delay. Key for negotiation.Safety hazardA risk to people. Fix before you move in.Minor defectWear and maintenance. Budget for it.Timber pestActivity, damage or risk conditions.

A major defect is one that needs fixing without undue delay to avoid unsafe conditions, loss of use or further deterioration. A safety hazard is anything that puts people at risk, such as a loose balustrade. These are the items that matter most for your decision and negotiation.

3. Timber pest findings

Look for whether live termites were found, whether there is damage, whether there is evidence of treatment or a management system, and the overall risk rating. A high risk rating with no live termites still means you need a plan.

4. Minor defects

Most homes have a long list of minor defects: cracked paint, small gaps, worn finishes, dripping taps. They are useful for budgeting but rarely a reason to walk away.

5. Limitations and areas not inspected

This section is easy to skip but important. If the roof void or subfloor could not be accessed, or furniture hid walls, the risk of something being missed is higher. You may want to arrange a further inspection once access is available.

Words you will see

  • Conducive conditions: things that make termite attack more likely.
  • Further investigation recommended: a specialist should look at it, such as an engineer, plumber or electrician.
  • Typical of age: normal wear for a home of that era.
  • Moisture reading high: damp in that area, which may point to a leak.

Next steps

  1. Call your inspector with questions.
  2. Get quotes for major items from licensed trades.
  3. Talk to your conveyancer about proceeding, negotiating or terminating before 5pm on the Inspection Date.

General information for Queensland buyers, current at the date above. It is not legal or financial advice. Your conveyancer or solicitor can advise on your contract.

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