Inspecting properties
Reading a building and pest inspection report
An eleven-point framework for reading a professional report properly, not just skimming the summary.
- Work through scope, areas inspected, areas excluded, findings, hazards, pest evidence, recommendations and photographs — not just the summary.
- An area the report didn't inspect isn't evidence that area is fine.
- Severity language isn't standardised across inspectors — ask if a term is unclear.
- Photographs in the report often carry more context than the written summary.
An eleven-point framework
Reading a professional inspection report properly means more than checking whether it says "major defects: none". Work through it in this order: (1) scope and exclusions — what was and wasn't covered; (2) areas inspected; (3) areas not inspected, and why (locked, inaccessible, no ladder access); (4) major defects; (5) safety hazards; (6) timber-pest findings; (7) conditions conducive to pest damage even without current activity; (8) recommended specialists; (9) photographs, which often show more context than the written summary; (10) your own questions for the inspector; and (11) matters relevant to negotiation or withdrawal, always subject to your contract terms and your conveyancer's advice.
Exclusions matter as much as findings
Every building and pest report has exclusions — areas that couldn't be safely or lawfully accessed, and inherent limitations of a visual, non-invasive inspection. A report that found nothing wrong in an area it also didn't inspect isn't evidence that area is fine. Read the exclusions list as carefully as the findings.
Severity language isn't always consistent
Different inspectors and firms use different severity language — "major defect", "significant issue requiring further investigation", "conducive condition" don't always mean exactly the same thing across reports. Under AS 4349.1, the standard governing pre-purchase building inspections, major and minor defects are classified by severity and safety impact, not cost — a small, cheap repair can be a major defect if it's a safety or structural issue, while an expensive cosmetic item can be minor. If a term isn't clear, ask the inspector directly rather than assuming based on how alarming or reassuring the wording sounds.
Know the report's own liability limits
Most inspection reports include a liability limitation of their own, often capped at or near the fee you paid for the inspection — so if a serious defect is missed, what you can practically recover may be limited to that fee, not the cost of the defect. Read the report's liability or limitation-of-liability section and ask the inspector directly what their liability is capped at and what professional indemnity insurance they hold — see the choosing an inspector guide for how to verify that insurance exists in the first place.
Practical checklist
Reading the report
- Read the scope and exclusions before the findings
- Note every area marked as not inspected, and why
- Review every photograph, not just the ones referenced in the summary text
- List your own follow-up questions for the inspector
- Take anything material to your conveyancer before deciding how to proceed
Questions for a professional
- What does this specific severity term mean in your report, in plain language?
- Which findings, if any, would you personally want followed up by a specialist?
- What is your professional liability capped at, and does that reflect current insurance requirements?