Episode
8

Building & Pest reports

We've never seen a report come back clean. Every property has defects, the question is whether they're cosmetic or structural. Here's how to read the report without panicking, and when to actually walk away.

Transcript

Before you commit to buying a house, you need a building and pest report.

An independent, licensed inspector physically checks the property — structure, roof, subfloor, timber, moisture, the lot — and gives you a detailed written report.

They cost around six hundred dollars, occasionally more if you're buying in a remote area.When you get the report back, don't panic. You're buying a used home, not one fresh off the lot. Every property has defects. We have never seen a report come back clean.

Inspectors split everything into minor defects, major defects, and safety hazards and there are two sections: one for the building, and one for pests.

Minor defects — small cracks, worn gutters, drainage niggles — every property has them. They're manageable and they generally won't be fixed as part of the sale.

Major defects are different. These are significant structural or safety-related issues — foundations, walls, roofs, termites etc.

A major defect doesn't always mean you need to walk away. But it does tell you what work you'd be taking on if you buy. We always recommend calling the inspector to talk it through. They see these issues every day and can usually give you a ballpark on what it'd cost to fix.

The whole point of the report is to know what you're buying, not that it’s perfect.The goal is always: no surprises after you get the keys.

Key takeaways
  • Every property has defects — a clean report doesn't exist. The question is whether issues are cosmetic or structural
  • Always call the inspector to talk through major defects — they can give you a ballpark on what it'd cost to fix
  • The goal isn't a perfect home — it's no surprises after you get the keys

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*Average capital gain is calculated across our portfolio from purchase price to current valuation estimate (average of two independent third-party valuation tools where both available). Annualised return (9.93%) uses compound annual growth rate (CAGR) from purchase to January 2026 valuation. National benchmark (7.2%) is the CoreLogic 3-year average annual growth rate for 2023-2025. ** The average homebuyer takes 9 months to find a house. Source: Realestate.com.au.

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