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Get lost reading your building and pest report? You’re not alone
Building and pest reports are meant to provide clarity. For many buyers, they do the opposite. Smart Property Investment speaks with inspection specialist Myles Clark about why reports feel alarming, what they can and can’t uncover, and how to choose an inspector you can trust.
For many property buyers, the building and pest report is the moment excitement gives way to anxiety.
Pages of technical language, long defect lists, and repeated references to “major” and “minor” issues can make even a solid home appear riddled with problems. For investors and owner-occupiers alike, the result is often analysis paralysis.
And yet, the opposite fear also looms large: the stories of serious defects that somehow escaped detection, only to emerge after settlement.
According to Myles Clark from Aus Property Report, investors should upskill themselves to understand the purpose and limitations of building and pest inspections.
So… what are the biggest building risks you need to look out for?
According to the expert, the most pointed risks facing buyers are water and leak-related issues – which can remain under the radar during building and pest inspections, and cost a lot of money to fix.
“The biggest hidden issues in homes are often related to water and drainage,” Clark said. “That includes subfloor moisture to inaccessible areas, damaged in-ground plumbing, poor site drainage resulting in footing movement. These problems can lead to timber decay or structural damage over time, and they’re rarely visible during an inspection as they are simply not visual.”
A clear outline, given that building and pest are visual and non-invasive inspections that highlight issues present on the day.
Termite damage presents a similar challenge. While active infestation and past damage can be identified when access is available, the extent or the severity of the damage may be concealed behind walls or within areas that are simply inaccessible.
“Termite damage is serious, but it often requires an invasive inspection to fully determine the extent of the damages,” Clark said. “That’s beyond the scope of a visual, non-invasive inspection.”
For this reason, Clark encourages buyers to think of inspectors less as final arbiters and more as general practitioners (GPs).
“A building inspector is like a GP,” he said. “They identify symptoms and risks. If something needs deeper investigation, they refer you to the right specialist, such as an engineer, plumber or pest expert, who can provide detailed advice on costs and remediation.”
This distinction is particularly important when it comes to drainage and plumbing issues, where costs can vary dramatically.
“Older properties often have clay pipes, which are vulnerable to root intrusion and inground breakages,” Clark said. “In-ground plumbing inspections are essential in those cases. Fixes can range from a few hundred dollars to tens of thousands, depending on the extent of the problem and whether footings are affected.”
How do you know if your inspector is really looking out for you?
However, buyers should seek detailed clarification through a phone call from their inspectors before closing the book on a property, which might otherwise make a strong investment.
“A quality inspector should always talk buyers through the report,” he said. “They’ll explain which issues are routine for the age of the property, which are manageable, and which genuinely affect the decision to proceed.”
Without that conversation, buyers may fixate on terminology rather than substance. All defects are unique to that property, and the severity can be lost within the words of the report at times.
“Words like ‘major defect’ have a technical definition, but without explanation, they can be misleading,” Clark said. “Communication is what turns a report from a source of fear into a decision-making tool.”
However, even the most thorough inspection has clear limitations, something buyers must understand to avoid misplaced confidence.
“A standard building and pest report is visual and non-invasive,” Clark said. “Inspectors don’t test service systems like hot water units or air-conditioning. Suspected asbestos requires separate testing. Drainage below ground often can’t be assessed. And access restrictions, roof cavities, subfloors, and locked areas mean some defects simply can’t be seen.”
In other words, the report is a starting point, not a guarantee.
That reality makes the choice of inspector critical, yet the industry itself offers little regulatory protection.
It can be the Wild West in inspector land
Clark explained that outside of Queensland, Australia does not have licensing requirements for inspectors. Even in the Sunshine State, there are a number of workarounds that mean your inspector might not be the best person for the job.
“Outside of Queensland, there’s currently no licensing or registration,” Clark said. “That puts the onus on buyers to vet inspectors properly.”
Experience, he argues, matters more than credentials alone.
“A good inspector usually has extensive building experience, ideally nine years or more, whether as a builder, insurance assessor or building professional,” he said. “They understand how homes are constructed, how defects occur, and how compliance works in practice.”
Buyers should also look for evidence of process and professionalism: detailed sample reports, the use of proper tools such as moisture meters and thermal cameras, and a willingness to discuss findings after the inspection.
“Paying more for a quality inspection is rarely money wasted,” Clark said. “You’re not paying for the report; you’re paying for a professional to help you make an informed decision.”