What are your expectations when you receive your building and pest report?

Do you think there is such a thing as the perfect home?

What about buying a second hand, established home?

What are your expectations as a buyer and are they realistic in terms of dwelling age, condition, and location?

It is not uncommon for a building and pest inspection report to come back with some sort of defect and issues relating to the property. This can cause a lot of stress to the property owner or prospective buyer due to a misunderstanding of what is being highlighted and the big question that runs over your mind is, “what is this going to cost me?”.

Let’s break it down so you can analyse your report and make a plan to keep the home you have fallen in love with. As real estate agents we are here to help you through a building and pest report and find a solution for all parties involved in the sale.

How to analyse the report:

  1. Take your time to read through the report , see the facts and set your emotions aside
  2. Find what the major concerns are within the report, write them down in a list
  3. Write a separate list of the minor concerns in the report
  4. Make a list or tick the items you are willing to accept
  5. Seek clarity from the Building & Pest inspector

6. Contact your sales agent to discuss your concerns with your items you have written down.

7. The agent can then discuss with the seller about the building and pest report to keep the situation calm and help find a solution for both parties.

8. Table the items you are concerned about to your solicitor. From here you can accept the building and pest report or request certain items to be fixed before settlement. The seller may opt for a price reduction and allow the buyer to fix the items raised as it suits you.

Some common concerns raised on a Build & Pest report are;

  1. Termites. This word seems to freak most buyers out, please read our article regarding these little creatures that exist in our region. https://www.locationsestateagents.com.au/news-events/tricky-termites/
  2. Moisture content in bathrooms or wet areas
  3. Cracks/ movement in ceilings, walls or retaining walls
  4. Concrete cancer in house stumps or unstable stumps
  5. Leaking roof or gutters

Once the report is broken down to major concerns that you really want to have rectified and agreed upon with all parties through the solicitors, the agent can help obtain quotes and arrange the works to be completed prior to settlement.


What if works can’t be completed prior to settlement? If both parties agree, the seller’s solicitor can hold enough funds in trust to pay for the works to be completed. This means you can move in on settlement day knowing the works will be completed given there is a ‘security’ held to guarantee it will be done. Once the work has been done and verified, the balance of funds can be released to the seller at settlement, less costs.

It’s important to realise that no one house is perfect but most things can be fixed.  Communication is key when discussing your building and pest report if there are issues raised that need attention.  For further advice, we recommend speaking to your preferred solicitor and building and pest inspector.

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