What Every Buyer Needs To Know About Building & Pest Inspections
In This Week’s How's The Market | Edition 120
What Every Buyer Needs To Know About Building & Pest Inspections
Architectural Mastery by Wood Marsh
July Rate Decision In: RBA Hits Pause - But What’s Brewing Beneath?
What Every Buyer Needs To Know About Building & Pest Inspections
You’re buying the dream home. Renovated, styled to perfection, photos could be straight out of The Block. You make an offer. You win.
Then the roof caves in.
Literally.
Welcome to the most overlooked part of buying real estate: building and pest inspections - and why skipping them could cost you tens of thousands (or even your safety).
60% of Buyers Don’t Do One…
Some agents state that more than half of the buyers in Melbourne go to auction without a building and pest inspection.
Why?
“Oh we’re planning to renovate anyway.”
“It looks fine in the photos.”
“I’ll just deal with issues later.”
Sound familiar?
But here’s what really happens…
The House Looked Perfect - Until We Found the Roof Fire
James & I once inspected a picture-perfect Croydon North home. It was renovated, styled beautifully, and lived in by owners who were house-proud perfectionists.
But up on the roof?
Black, charred beams from a previous Kevin ’07 insulation fire - one storm away from caving in.
Fix cost? $450
Risk of not checking? Catastrophic.
“Major Structural Defect” vs “Major defect on a structure”
Real talk: minor defects = no legal way out of a signed contract.
A few cracked tiles or a leaky tap? You’re stuck.
But if there’s a major defect on a structure (slabs, foundations, roof trusses, bearers & joists, load bearing walls etc.), you might be able to walk… if your contract protects you.
Vendor conveyancers often tweak the clauses to make it even harder for buyers to exit.
Always get your contracts reviewed by a good conveyancer before signing.
Never Trust the Agent’s Inspector
Let’s not sugarcoat it.
Some agents use the same “friendly” inspectors to downplay issues - turning major defects into minor defects so buyers can’t get out or to just downplay potential issues.
A better rule?
Always hire your own inspector
Make sure they’re insured, independent, and highly rated
Always call them after the report to talk through it.
We usually ask something along the lines of:
“Would you let your mum buy this?”
Inspection Reports Always Sound Bad
Even great homes can have 50+ defects listed. That’s normal.
What matters is understanding which ones are real deal-breakers, and which are just maintenance issues you can fix over time.
If in doubt, ask the inspector:
Is it urgent?
What’s the rough cost to fix?
Would you still buy it?
When to Walk, When to Fix
Rotten windows on a 100-year-old Armadale home? Pretty standard.
Slab heave that’s cracking the house in half? Massive red flag.
Tiles need grouting in a bathroom - this can come up as a major defect.
When to Get the Inspection?
Auction? You MUST do it beforehand. You can’t back out after winning.
Private sale? Make an offer subject to inspection. Get a conveyancer to review the clause prior to making an offer and potentially use your own.
Stay ahead of the market — get the real auction results every week!
What The Agents Are Saying
Stock is slower and different to this time last year.
After chatting with some agents that operate heavily around the Prahran & Richmond markets this week - I’ve heard some similar sentiment.
This year there are more apartments and less houses.
One agent this time last year said their team had 8 2-bed Victorian houses lined up for August auctions, however, now, they have only one set and ready to go.
And we bought that pre market…
So they are actually launching no Victorian houses under $1.5m as an office for next month and all apartments.
Agents are also reporting seeing some more developers come back into the market.
I went to two auctions over the weekend that were both knockdown rebuilds and mostly land value.
Both had 4+ bidders and ended up selling substantially over quoted ranges and for reasonably high per m2 rates compared to comparable sales.
I believe as building costs ease and property prices rise, we will see more competition in this space.
The Wow Factor!
3/16 The Righi, South Yarra, Vic 3141
A rare offering of timeless elegance, tech sophistication, and architectural brilliance — steps from the best of South Yarra….
Standout Features
Half-floor luxury residence in exclusive South Yarra
Private lift entry directly into your home
Bespoke interiors with natural travertine, parquetry flooring & gas fireplace
Chef’s dream kitchen with Wolf, Sub-Zero, Pitt & Zip appliances
Crestron smart home system – full control of lighting, security & entertainment
Price guide: $4,400,000 - $4,600,000
In The Media
July Rate Decision In: RBA Hits Pause — But What’s Brewing Beneath?
In a move that’s keeping markets on edge, the Reserve Bank of Australia has left the cash rate steady at 3.85%, while inflation sits comfortably at 2.1%. The decision comes as global eyes remain fixed on President Trump’s extension of his “Liberation Day” tariff pause until August 1 - a geopolitical twist that gives central banks some breathing space.
Despite holding firm, the RBA isn’t hitting the brakes on future cuts. With unemployment stable at 4.1%, GDP growth slow but steady, and housing prices defying gravity (Perth up 1.3% in a month!), this month’s pause looks more like a calm before the easing storm.
Markets still expect up to three cuts this year, so is this a strategic breather or just the beginning of something bigger?
Housing heats up. Rates stay put. Global tension simmers. All eyes are now on August.
Final Thoughts
A stunning property can hide serious secrets — so don’t let looks fool you. When in doubt, inspect first, buy smart, and always ask the hard questions.
If you or someone you know would like assistance to buy this year, book in a call and we can discuss if we can help.
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at tristan@tomii.com.au
Happy Buying!
Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
