A 40-page report is not a verdict, it is a map
Your inspection report will arrive thick, technical, and alarming. It will list dozens of findings, use language you have not seen before, and describe defects you cannot picture. The length of the report tells you almost nothing about the property. What matters is learning to read the structure, understand the severity classifications used under , and sort serious defects from routine maintenance items. That skill is the difference between walking away from a good house and overpaying for a bad one.
A long list of findings does not mean a property is a disaster. It means the inspector did a thorough job. The question is never "how many findings?" It is "which of these actually matter?"
How the report is structured
Most pre-purchase building inspection reports in Australia follow , the Australian Standard for pre-purchase inspections of residential buildings . Pest inspection reports follow a separate standard, . You will usually receive two reports — one for building, one for pests — though some inspectors combine them.
A typical AS 4349.1-compliant building report has three main sections.
The summary page. This appears at the front and gives an overall condition rating for the property compared to similarly constructed and reasonably maintained buildings of approximately the same age . You will see terms like "below average," "average," or "above average." An "average" rating means the property has defects, but they are normal for a home of that age and construction type. It does not mean the property is mediocre.
The detailed findings. This is the bulk of the report. It works room by room or area by area — exterior, interior, roof void, roof exterior, subfloor, site drainage — with photographs and descriptions of each finding .
Limitations and exclusions. Every report lists what the inspector could not access or assess. Standard inspections under AS 4349.1 are non-invasive and visual only . The inspector does not open walls, lift carpet, move furniture, or test electrical circuits. If the subfloor had no access, or the roof void was blocked by insulation, those areas will be listed here. Read this section carefully. A clean report with large exclusions is less reassuring than a thorough report with minor defects.
The severity classifications do most of the work
AS 4349.1 uses two official defect categories: and . Many inspection companies add a third informal category — maintenance items — for clarity. Some reports use a traffic light system (red, amber, green) or a numbered scale (1 to 5) to rate severity. The labels differ between companies, but the underlying logic is the same: does this need urgent attention, planned repair, or routine maintenance?
Once you know which category a finding falls into, you know how to react to it. The rest of this step works through what actually shows up in each category.
Red flags: when to get specialist advice or walk away
These findings in a building report signal significant cost, safety risk, or both. If any of these appear, get a specialist quote before making any decisions.
Significant structural cracking. Cracks wider than 5mm in brick walls or concrete slabs, or stair-step cracking in brickwork, can indicate foundation movement or subsidence . Hairline cracks are normal in most homes. Wide, growing, or diagonal cracks are not.
Active termite infestation. The pest report will classify termite evidence as (live termites found) or (old damage, no live activity) . Active infestation means the property needs immediate treatment and a structural assessment of affected timbers. CSIRO research found that 1 in 3 Australian homes in high-risk areas are susceptible to termite attack .
Major moisture or water damage. Sustained water ingress causes timber rot, mould growth, and structural deterioration. Waterproofing failures account for approximately 30% of building defect claims in Australia . Look for the inspector's comments on staining patterns, moisture meter readings, and whether damage is active or historical.
Non-compliant electrical or plumbing. If the report identifies wiring or plumbing that does not meet current safety standards or appears to be the result of unlicensed work, you need a licensed electrician or plumber to assess scope and cost.
Foundation or subsidence issues. Uneven floors, doors that will not close, and cracking patterns that suggest differential settlement all point to foundation problems. These can cost tens of thousands of dollars to rectify depending on severity and soil conditions .
Yellow flags: issues worth noting but manageable
These findings need attention but are generally fixable at a reasonable cost.
Minor cracking. Hairline cracks in plaster or mortar joints up to about 2mm are common in most Australian homes due to seasonal thermal movement and minor settling . Monitor them, but they rarely indicate structural failure.
Aging roof. A roof nearing the end of its lifespan (say, 25+ years for terracotta tiles or 15+ years for metal roofing) will need replacement eventually. This is a future cost to factor in, not a reason to panic.
Dated plumbing or electrical. Older galvanised steel pipes or rewirable fuse boxes are not defects — they were standard for their era. But they will need upgrading, and you should budget for that.
Drainage issues. Poor site drainage or inadequate stormwater management is one of the most common findings in Australian building reports . It is usually fixable but should not be ignored, as ongoing moisture around footings accelerates deterioration.
Green flags: normal wear and cosmetic issues
These findings are routine and should not influence your buying decision. Peeling or weathered exterior paint. Minor surface cracks in render. Worn carpet or dated interior finishes. Garden maintenance items like overgrown vegetation against walls. Small chips or scratches on surfaces.
Every home has cosmetic wear. A 20-year-old house that shows no wear at all would be more surprising than one that does.
Reading the pest report
The timber pest report under covers subterranean termites, borers of seasoned timber, and wood decay fungi (rot) . It classifies timber damage as "slight," "moderate," "moderate to extensive," or "extensive" .
The critical distinction is between active and inactive evidence. means live termites were found during the inspection. means old damage is present but no live pests were detected . Active evidence is a red flag that requires immediate specialist treatment. Inactive evidence still matters — it tells you the property has been attacked before and may be vulnerable again.
Questions to ask your inspector
After you receive the report, call your inspector and ask these questions:
- 1"Which findings would you classify as urgent safety issues?"
- 2"Are any of these defects likely to worsen quickly if not addressed?"
- 3"Would you recommend a specialist inspection for any specific items?" (for example, a structural engineer for cracking, or a licensed electrician for wiring concerns)
- 4"What is the likely cost range to fix the major defects?"
- 5"How does this property compare overall to others of a similar age that you inspect?"
A good inspector will walk you through the report over the phone and help you understand what matters most. You are paying for their expertise, not just their written findings.