Home Inspection Checklist: What to look for before buying a house in Australia
Dominic Beattie
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- Professional building and pest inspections can uncover hidden defects that may costs thousands if missed.
- Don't rely on photos alone, in-person inspections help identify issues that online listings won't reveal.
During COVID, virtual inspections became more common. While they were useful, they didn't always reveal hidden defects like plumbing issues, structural damage, or noise levels.
Today, with in-person inspections back in full swing, some buyers are still skipping them, often to their detriment.
Thing is, photos and virtual tours can only show so much. Without physically stepping inside, you might miss crucial details like natural light, ventilation, street noise, or early warning signs of structural issues.
And that can be costly. A thorough home inspection is designed to uncover safety risks, defects, and maintenance issues before you commit. Doing this before buying a home gives you the opportunity to renegotiate or walk away if needed.
Common home buyer mistake: Cosmetic presentation > Building condition
A common issue in Australia is that buyers assume if a home looks clean and modern, it must be in good condition.
Unfortunately, presentation and building quality are not the same thing. Fresh paint, styling, and renovations can hide significant underlying issues. I know this because I see it everyday.
I have inspected a new duplex that didn't even have a hot water service installed and the property was sinking significantly, pulling away from the structure next door.
See also: Buying a home in Australia
So, what exactly should you be looking for before signing on the dotted line?
Property inspection checklist
Here's a comprehensive home inspection checklist to use before making an offer.
Water pressure and drainage
Plumbing issues can be expensive to fix, and weak water pressure could signal old pipes or poor drainage.
- Flush all toilets
- Turn taps on and off
- Check water pressure in showers and bath
- Test hot water in bathrooms and kitchen
- Look for water stains under sinks (a sign of slow leaks)
- Check the hot water system's age and condition (old systems may need costly replacement)
- Run the taps in sinks and observe how quickly water drains
- Look for leaks or pooling water
According to Myles Clark, director of the Victorian Association of Home Inspectors (VAHI) and founder of Aus Property Report, an Australian building inspection platform, poor drainage – as in water draining towards or accumulating under the home – or pooling water around the property is a sign inground drainage may be damaged.
Windows and doors
Faulty doors and windows can impact security, insulation, and energy efficiency.
- Open and close to check smooth operations
- Check locks and latches
- Look for gaps or drafts
- Identify cracking to brickwork and inconsistent gaps next to windows (tight at the bottom, open at the top)
Mr Clark says doors or windows that stick or do not close properly indicate movement. “This can be seasonal and very normal,” he adds.
- Take note: If the home is in a bushfire-prone area, check whether windows and doors meet the Bushfire Attack Level (BAL) requirements, which are set under Australian building standards to reduce fire risk.
Flooring
Foundation issues are expensive to repair, and strong smells or dampness could mean mould or pet damage.
- Check carpets for stains, fraying, or odours
- Look for uneven floors or movement
- Ensure walls and floors meet flush
- Inspect timber floors for scratches, warping, or damage
- Take note: In some areas (such as parts of Melbourne and Adelaide), reactive soils can contribute to movements and cracking over time.
Electricity
Old wiring can pose serious safety risks and may require costly electrical upgrades. If the home was built before the 1970s, it may have old fuse boxes that need upgrading.
- Test all power points
- Turn lights on and off
- Check for modern fittings (e.g. energy efficient bulbs, LED lighting)
- Inspect the electrical panel and wiring age
- Look for exposed wires or scorch marks around outlets (this could signal past electrical faults)
- Take note: Check that the property has working smoke alarms, as these are legally required in all Australian homes, with specific placement rules varying by state and power source requirements depending on when the house was built.
Kitchen and storage
Storage is something buyers often overlook but regret after they move in.
- Open and close all cabinets and drawers
- Check hinges, handles, and fittings
- Inspect benchtops for cracks, stains, or water damage
- Look for signs of pests
- Take note: In warmer climates, pest activity can be more common, so inspect kitchen areas carefully.
Walls and structure
Walls can reveal structural or moisture issues.
- Check paint condition and surface wear (especially around windows and door frames)
- Note of fresh paint in isolated areas, particularly around ceilings or windows (this can indicate recent repairs)
- Look for cracks in plaster or ceilings (excessive diagonal cracks to plasterboard throughout indicates movement)
- Inspect skirting boards for bubbling paint or swelling (this can indicate leaks have or are still present)
- Identify large cracks in load-bearing walls (these could indicate serious structural problems)
- Watch for signs of past leaks like water stains or mould on ceilings or walls
- Look for decay or rot to large structural timber members (these are a safety concern and should be taken care of immediately)
Roof and outdoor areas
A neglected roof can lead to expensive repairs down the track.
- Walk around the backyard, patio, or balcony and assess safety
- Inspect gutters, downpipes, and drainage
- Check fences and gates (are they sturdy and secure?)
- Inspect sagging rooflines (a potential indicator of structural issues)
- Take note: In cyclone-prone areas (QLD, NT, WA), roof construction must meet stricter standards so confirm the roof meets cyclone ratings during inspection.
Insulation and ventilation
Often overlooked, but critical for comfort and long-term costs.
- Check roof or ceiling insulation
- Look for ventilation in roof cavities
- Assess airflow in bathrooms and laundry
- Take note: Proper insulation and ventilation can impact heating and cooling efficiency and helps prevent mould and moisture build-up.
Location and surroundings
If you are happy with the physical components of the property, make sure it's in a location that suits you. Even if the house itself is perfect, a bad location can be a dealbreaker.
- Visit at different times of the day (is it noisy at a particular time?)
- Check proximity to schools, shops, cafes, and public transport
- Research noise levels and traffic
- Review crime rates in the area
- Check council zoning and future development plans (a quiet street today might be noisy in five years)
The possibility that a high-rise apartment might be built next door and proximity to essential services or lifestyle establishments can impact the value of the property down the track, which matters when you consider selling.
Don't skip the building and pest inspection
Once you’ve personally walked through the property and completed your own inspection, the next step is to get a building and pest inspection.
A building and pest inspection is a professional, non-invasive assessment of a property’s structure, systems, and pest activity. In Australia, these inspections are typically conducted under:
- AS 4349.1 (building inspections)
- AS 4349.3 (timber pest inspections)
These assess areas not visible during a standard inspection and can uncover any defects with the property you may have missed, structurally or otherwise, so that you're fully informed about the condition of your new asset.
See also: Is a building and pest inspection really necessary?
With a building and pest report, you won't be caught out by any nasty, unexpected surprises.
Serious defects are not always visible during casual walkthrough
A professional pre-purchase inspection completed to Australian Standard AS 4349.1 by a quality, thorough inspector provides a more structured assessment of the accessible areas of the property and can help buyers better understand the condition, risks, and likely maintenance issues before committing to a purchase.
Another important point is that not all inspectors operate the same.
In most Australian states, pre-purchase building inspectors are not specifically licensed for this type of work, which means buyers should carefully check an inspector's experience, professional indemnity insurance, building background, and whether their reports are prepared in accordance with AS 4349.1.
Common issues uncovered by a building inspection:
Mr Clark shares the most common problems they uncover after a building inspection.
- Moisture ingress and water damage findings
- Poor drainage negatively impacting the property
- Major footing movement (slab and stump issues)
- Shower recess leaks occur more than we like
- Lack of general maintenance leading to major defects overtime
- Poor quality construction works undertaken by unskilled operators
- Termite damages especially in the hotter climates
- Subfloor ventilation problems leading to mould growth
- Safety hazards such as missing smoke detectors, second storey windows with no restrictors, and balustrades not adequate to keep children from falling at heights
According to Mr Clark, many of these defects “start small and worsen over time” especially if not identified early.
Get a land surveyor’s report
Land surveying helps you understand the boundaries of your yard, house, and land, as well as contours, drainage, and plumbing underneath your home.
This may be important particularly if you’re planning renovations down the track or want to avoid boundary disputes in the future (e.g. your neighbours renovating or planting trees that would encroach into your property).
Pre-settlement inspection (the final check before you buy)
This is your last opportunity to inspect the property before settlement.
It's an important step as you want to make sure the previous owners have taken their belongings, and that any agreed repairs have been completed, as in the house is in the same condition or better than when you first walked through.
Pre-settlement inspection checklist:
- Confirm the property is vacant
- Check no items or rubbish have been left behind
- Verify the conditions of the contract have been fulfilled like painting, cleaning, gardening, etc.
- Ensure fixtures and inclusions remain
Once you settle, any problems will become your responsibility.
Can you pull out of a sale after a building and pest inspection?
Yes, if your contract includes a building and pest inspection condition, you can usually withdraw if major defects are found. But whether you can walk out from a sale unscathed (or just lightly scratched) or not depends on how you purchase the property and when you act.
See also: What happens if I pull out of a property sale
If you buy at auction
Auction purchases in most states and territories usually have no cooling-off period. Once the hammer falls and you are the highest bidder, the property is “sold” to you. You will sign a binding, unconditional contract immediately after the auction.
If major defects are discovered after signing the contract, backing out can result in losing your full deposit and potentially facing legal consequences. That’s why inspections are typically done before bidding.
If you buy via private treaty
Depending on the state or territory, you will have a cooling off period after signing a contract for a privately negotiated sale. You can back out within this period (varies by state, typically 2-5 business days) but you may have to pay a small penalty (e.g. 0.25% of purchase price in NSW).
You can also renege on the purchase if your contract includes a building and pest inspection clause (meaning the sale is conditional on inspection), and the defects meet the conditions outlined.
In competitive markets, however, it is not uncommon for buyers to submit a conditional offer as vendors selling via private treaty may favour the buyer with fewer or no conditions.
Buying a home? Don’t skip inspections
In hot markets, buyers sometimes skip inspections to make their offer more appealing. I get the pressure, FOMO is real. But winning the auction only to inherit $50k+ in hidden repairs is a nightmare.
Be strategic. You don’t need to inspect every property you look at, but once you’re seriously interested, get it done. For auctions, that means doing your due diligence before auction day.
What happens if you find problems?
If you uncover issues with the property, it’s important to act quickly.
Speak to your conveyancer immediately
They can negotiate with the seller to either fix the issue before settlement or adjust the sale price to cover the cost of repairs. In some cases, a special condition can be added to the contract, ensuring that necessary repairs are completed before you take ownership.
If significant new damage has occurred or agreed-upon repairs haven't been made, you may have the right to dispute it depending on the contract.
What happens when an inspection uncovers issues?
If defects are identified prior to exchange, the buyer’s solicitor would generally liaise with the vendor’s solicitor to negotiate either rectification works or an allowance in the agreed price.
In the Sydney market there is not always room to negotiate, depending on the nature of the defect and the level of competition for the property.
If the issue appears likely to become a significant post-settlement cost, I may advise my clients to walk away.
Get professional advice
For serious issues like structural damage, termites, or faulty wiring, getting professional advice is crucial.
If the problem is extensive and the seller refuses to negotiate, you may need to reconsider the purchase.
In many cases, buyers rely on building and pest inspection clauses to withdraw from the sale if major defects are found. Taking the time to address issues upfront can save you thousands in unexpected repairs.
Don’t get emotionally attached to a property
When someone loves a home, it can be easy to justify defects or convince themselves the issues are manageable. Unfortunately, some of those concerns later turn out to be major red flags that carry serious financial implications.
This is why having experienced professionals involved in the due diligence process is so important. A property should be assessed objectively, beyond the styling, emotion, or perceived deal, to properly understand its true condition and long-term suitability.
Find a home loan
Finally, once you’re confident in the property, compare home loans to find a suitable option.
The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 5.95% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
