Walking through a property you might buy is different from viewing a rental.
You're committing to years of repayments, and problems you miss now become your responsibility the moment settlement happens. A cracked foundation or a leaking roof can derail your first home buyer budget before you've made your first mortgage payment. The inspection is your chance to identify those risks before you sign anything.
What You're Actually Looking For During an Inspection
You're checking whether the property matches the price you're about to pay and whether any repairs will cost more than you've budgeted for.
Start with the roof. Look for missing tiles, rust on the gutters, or sagging sections. Water damage shows up as stains on ceilings or walls, and mould grows in corners where ventilation is poor. In older Modbury homes, particularly those built in the 1970s and 1980s near the Tea Tree Gully Council area, asbestos sheeting might still be present in eaves or under carports. You're not expected to test for it yourself, but if you see fibrous sheeting that looks weathered, note it and ask for a building report.
Check every tap. Run the water for a minute and watch the pressure. Turn it off and listen for knocking in the pipes. Open every window and door to see if they stick or if the frames are warped. Test power points with your phone charger. Walk across floors and feel for soft spots or bouncing, which can indicate structural issues underneath.
Outside, look at the boundary fences. If they're leaning or rotted through, you'll be paying to replace them. Walk around the perimeter and check for cracks in the foundation or brickwork. Large cracks that run diagonally or step along mortar lines can point to movement in the slab, and that's expensive to fix.
When to Bring a Professional Building Inspector
You should book a building inspection on any property you're serious about, and you should do it before your home loan application reaches unconditional approval.
The inspection costs between $400 and $700 depending on the size of the property and what's included in the report. That report will cover structural issues, pest damage, electrical and plumbing concerns, and any work that doesn't meet current building standards. If the inspector finds a problem, you can use that information to renegotiate the price, ask the seller to fix it, or walk away while your finance is still conditional.
Consider a buyer who found a townhouse near the Modbury Village shopping precinct. The property looked clean and the price sat within their pre-approved range. The building inspection revealed that the hot water system was 15 years old and likely to fail within two years, and the deck at the rear had white ant activity in three of the supporting posts. The replacement cost for both items was around $8,000. The buyer renegotiated the price down by $6,000 and used part of their contingency fund to replace the hot water system before moving in. Without that report, they would have faced those costs within months of settlement and no capacity to cover them.
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Book a chat with a Finance & Mortgage Broker at Red Sea Lending today.
Questions to Ask the Selling Agent Before You Leave
Ask how long the property has been on the market and whether the price has changed since listing.
If it's been listed for several months or the price has dropped, that tells you the seller might be motivated. Ask whether the property has had previous offers and why those offers didn't proceed. Sometimes the answer is finance related, but other times it's because another buyer's building report uncovered a problem the seller hasn't disclosed.
Ask about council rates, water rates, and strata fees if the property is part of a community title. You'll be paying those ongoing, and they affect your borrowing capacity when lenders assess your home loan options. Ask when the roof was last replaced, when the hot water system was installed, and whether any major renovations have been done. If work was completed recently, ask if it was done with council approval and whether compliance certificates are available.
If the property backs onto a reserve or public land, ask what's planned for that space. The Modbury area has seen development around key transport corridors, and vacant land near the O-Bahn interchange has been rezoned in the past for medium-density housing. You don't want to buy a quiet block only to have townhouses built behind you two years later.
How Inspection Findings Affect Your Loan Approval
Most lenders include a satisfactory building report as a condition of finance, and if the valuation comes in lower than the purchase price because of structural concerns, your loan might not settle.
Your lender will order their own valuation once your application is lodged. The valuer considers the condition of the property, recent sales in the area, and any risks that could affect resale value. If your building report shows significant defects and the valuer notes the same issues, the bank might reduce the amount they're willing to lend. That means you'll need to find additional deposit funds, renegotiate the purchase price, or withdraw from the contract if your finance condition allows it.
If you're using a low deposit option like the Australian Government 5% Deposit Scheme, the property must meet minimum standards because Housing Australia is guaranteeing part of the loan. Properties with major structural defects or incomplete building work won't be accepted under the scheme. If you're relying on first home buyer stamp duty concessions, the property still needs to meet the eligibility criteria for your state, and that includes being suitable for occupation as your principal place of residence.
Red Flags That Should Make You Walk Away
Large cracks in the slab, active pest damage in structural timber, or evidence of unpermitted building work are all reasons to reconsider the purchase.
If the seller can't provide compliance certificates for recent renovations, or if the council has no record of approval for an extension or carport, you inherit that risk. The council can issue an order to remove the structure or bring it up to code, and that cost falls to you. If the property has been renovated without updating the electrical wiring or plumbing, you'll be facing those costs soon after settlement, and they can run into tens of thousands depending on the size of the home.
Water stains on ceilings or walls, especially near bathrooms or under windows, often mean there's been a leak that wasn't properly repaired. Mould that reappears after cleaning indicates a ventilation or drainage problem, and that affects livability and resale value. If the building inspector notes any of these issues as high priority, take that seriously.
What to Do With the Information You Gather
Once you have your notes and your building report, sit down with your broker and go through the findings before you make an offer or proceed to unconditional finance.
If the property needs work, get quotes for the repairs and factor those costs into your budget. If the numbers don't work, it's better to walk away now than to stretch your finances and regret it six months in. If the property is sound but needs minor fixes, you might be able to negotiate a lower price or ask the seller to complete the work before settlement.
Your broker can also help you understand how the condition of the property affects your loan structure. If you're planning to use an offset account or split your loan between fixed and variable rates, the amount you borrow and the equity you start with will influence what products are available to you. Properties that need significant work might not qualify for certain loan features or might require a larger deposit to offset the lender's risk.
Call one of our team or book an appointment at a time that works for you. We'll go through your inspection findings, explain how they affect your borrowing position, and help you decide whether to proceed or keep looking.
Frequently Asked Questions
Should I get a building inspection before making an offer on a property?
You should book a building inspection after your offer is accepted but before your finance becomes unconditional. The inspection costs between $400 and $700 and gives you the information you need to renegotiate, request repairs, or walk away if serious issues are found.
What are the most important things to check during a property inspection?
Check the roof for missing tiles or rust, run every tap to test water pressure, open all windows and doors to see if they stick, and walk the floors to feel for soft spots. Outside, look for cracks in the foundation, check the condition of boundary fences, and note any signs of water damage or mould.
Can a bad building report affect my home loan approval?
Yes. If the building report shows major defects, the lender's valuation might come in lower than the purchase price, reducing the amount they'll lend. Properties with significant structural issues may not qualify for low deposit schemes like the Australian Government 5% Deposit Scheme.
What should I ask the selling agent during an inspection?
Ask how long the property has been listed, whether the price has changed, and why previous offers didn't proceed. Also ask about ongoing costs like council rates and strata fees, when major items like the roof or hot water system were last replaced, and whether any renovations were done with council approval.
What defects should make me reconsider buying a property?
Walk away if you see large cracks in the slab, active pest damage in structural timber, or evidence of unpermitted building work. Water stains, recurring mould, or missing compliance certificates for recent renovations are also serious concerns that can lead to costly repairs after settlement.
