How Much Does A Building Inspection Cost?

How Much Does a Building Inspection Cost? A Complete Guide to Pricing, Factors, and What to Expect

Buying a home or investment property represents one of the largest financial commitments for many Australians during their lifetime. One of the most vital things to include in the buying process is a building inspection to ensure you aren't making a bad investment and avoid any nasty surprises post-settlement. Such an inspection provides a granular view of the condition of a property and can help you avoid an expensive repair, negotiate a much better price or even exit a deal entirely if red flags are found.

The cost of building inspection varies for different properties depending on many factors: property type, location, age, size, and the type and level of inspection required. In this guide, we’ll look at average building inspection costs in Australia, what the process entails, and why this cost is worth considering when you are planning your next investment property purchase.

What is a Building Inspection?

A building inspection is a professional evaluation of the structure and condition of a property. If it’s a building inspection, that usually covers an evaluation of the building’s:

• Structural integrity (e.g., foundation, walls, roof)


• Roofing and gutters


• Plumbing and drainage systems


• Electrical systems


• Windows, doors, and frames


• Pests infestation (eg termites, wood rot)


• Leading signs of water damage or mold


• General maintenance issues

The inspector will give you a report that outlines their findings, including any defects or problems that could impact the safety, operation or value of the property.

Depending on whether you are buying or selling, building inspections can also be referred to as pre-purchase inspections or pre-sale inspections.

How Much Do Building Inspections Cost In Australia?

If you are still wondering how to know the building inspection cost, several factors play an important role. These include:

a) Location

One of the factors that impact building inspection costs is where the property is located. Inspection fees in major cities such as Sydney, Melbourne, and Brisbane will tend to be higher than in more affordable suburbs. In comparison, more rural areas or smaller towns might experience a less expensive inspection process, but some inspectors may charge travel costs in more remote areas.

• Sydney and Melbourne: High demand drives up prices, particularly for thorough inspections in inner-city locations or prestige properties.


• Regional or rural: Inspectors could have lower fees but you’ll need to consider travel costs if the property is in a less accessible area.

b) Size and Type of Property

The size of the property being inspected is another variable that will impact the price. Bigger houses or homes with add-ons(such as garages, sheds, or second floors) will take longer to survey, thus costing more.

• Standard homes (2-3 bedrooms): Generally building inspections for standard-sized houses are less expensive than larger homes.


• Large families and properties: If the home is over 300 square metres or has several levels, you’ll pay extra.


• Complex properties: Multifamily dwellings (such as apartment complexes and townhouses) or commercial buildings will cost more because they take longer to inspect and are more complex.

c) Age and State of the Property

Outdated wiring, asbestos, or water damage can be hidden issues, so older properties are generally more difficult to inspect. Because an inspector has to be more thorough, looking out for potential problems that wouldn’t exist in newer buildings, an inspection of an older home might cost more.

• Older homes (50+ years): Needs a more detailed inspection that could increase the costs. Typical problems in older residences could be cracked foundations of buildings, wear on roofs, or invasions by vermin.


• New homes: Newer properties might have fewer problems and could be less expensive to inspect.

d) Scope of Inspection

Another factor that influences price is the level of detail needed in the inspection. A typical building inspection will cover the basics, but certain inspections provide additional services or more detailed analysis.

• Standard building inspection: This usually involves an overall inspection of the property’s structural features, safety features, plumbing, and electrical systems.


• Combined building and pest inspection: Often, home buyers will want to have a building inspection as well as a pest inspection (especially for termites). This broad-spectrum inspection is usually more thorough and directly contributes to the overall cost of the service.


• Specialty inspections: Extra inspections like asbestos, mold or pool inspections and testing can incur additional costs. To give you an idea, asbestos or mold inspections can add another $300 to $800 depending on the location, and complexity.

e) Experience and Qualification of the Inspection

The cost will also depend on the experience and qualifications of the inspector. Fees are higher with more qualified inspectors who, for instance, are members of professional associations like the Master Builders Association (MBA) or the Australian Institute of Building Surveyors (AIBS).

f) Urgency of the Inspection

If you want the inspection report fairly quickly, such as if you’re on a short settlement period, the concierge service may be available for an extra charge. Some inspectors provide same-day or next-day reports, often for a few dollars more than a standard inspection.

Average Building Inspection Prices Across Australia

Building inspection cost varies across Australia. These costs vary based on the factors given above.

a)Building Inspection for Residential Purposes

• Normal houses (2-3 bedrooms, approx. 200–250 sqm): $300 around $600 (in regional areas) and $400–$800 (in metro areas like Sydney, Melbourne and Brisbane)


• More bedrooms (4+) or over 300 sqm: $600 to $1,000 for a basic inspection


• Specialty services: Homes with pools, complex designs or older properties, veteran services cost $800 to $1,500.

b) Combined Building and Pest Inspection

Many property buyers will opt for doing a building inspection along with a pest inspection (usually done for termites). This combo usually retails for around:
$500 to $1,000 for a typical home.

• $600 – $1,200 for larger homes or very complex properties (for example, multi-story homes)


• This joint service covers everything from structural to pest inspections and can be more cost-effective than separate ones.

c)Commercial Building Inspections

Commercial building inspections are often much more costly than IDR inspections due to the scale and specialized requirements of commercial properties, including compliance with commercial building codes and regulations. Fees for commercial inspections range between $1,000 to $3,000 or more, based on the size and complexity of the building.

d) Specialty Inspections

• Pest Inspection: $150 to $300 (for termites and general pest problems)


• Asbestos Inspection: $300–$600


• Mold inspection: $300 to $700


• Pool Inspections: $100 – $250


• Septic system inspection: $200 to $500


• Radon test: $200 to $400 (if required in certain locations)

e) Price Differences from State To State And City To City

Differences in state and city costs are affected by local demand and the cost of living in that area. Here are some ballpark estimates of building inspections in major Australian cities.

• Sydney: Between $400 and $800 for a routine inspection, with higher fees for larger homes or more complex inspections.


• Melbourne: $350 to $750 for a standard-sized home inspection.


• Brisbane: From $350 up to $700 for a standard inspection.


• Perth: $350 to $700 for a standard inspection.


• Adelaide: Between $300 and $600 for a standard inspection.


• Regional areas: $250–$500 (in rural and remote areas, inspection prices may be lower, but travel costs may apply).

Is a Building Inspection Worth the Cost?

Getting a building inspection can be viewed as an extra upfront cost, but the truth is the value will always surpass the expense. Here's why:

a) Avoiding Expensive Repairs

A building inspection allows you to discover problems that may not be readily apparent. Structural damage, pest infestations, and water damage, finding these problems early can save you thousands in unexpected repairs.

b) Negotiating Power

If defects are revealed during an inspection, it gives you leverage in negotiations. You can request the seller repair the problems, reduce the sale price or give you credit for the cost to fix them.

c) Peace of Mind

A comprehensive building inspection will provide you with peace of mind to proceed with your purchase, armed with all knowledge of any existing issues. This can be especially helpful if you are purchasing a home for your family or an investment property that you intend to hold long-term.

d)Insurers and Lenders Requirements

With some insurers or lenders, you need a building inspection before you can get your policy or loan approved, more so in the case of older homes or properties that tend to be riskier where structural stability is concerned.

How to Select a Good Building Inspector?

When selecting a structural inspector, consider the following:

• Certifications and Qualifications: Check the inspector has been licensed and certified by a professional body, including the Master Builders Association (MBA), or the Australian Institute of Building Surveyors (AIBS).


• Experience: Hire an inspector who has a proven track record and experience with the type of property you are considering(residential, commercial, or rural property, for example).


• Reputation: Check reviews and see if friends, family or your real estate agent can recommend one.


• Transparency on Costs: Get a written quote in advance to avoid any surprise charges or extra fees.

Conclusion

In Australia, the price of a building inspection will be between $300 to $1,500, based on the location, size of the property and extent of the inspection. While it might appear to be an extra cost, a building inspection is a necessary part of the property purchase process. It offers a wealth of information regarding the state of the property and can save you a lot of money, by identifying potential problems before they become more serious and therefore expensive.