Beginner's Guide to Property Inspections

What Should First Home Buyers Check During a Property Inspection?

You need to check structural integrity, plumbing and drainage, electrical systems, pest activity, and the condition of walls, ceilings and floors. In Dulwich Hill, where many homes were built between 1900 and 1940, you also need to look for cracked render, subsidence around sandstone foundations, and signs of rising damp in brick dwellings close to the Cooks River floodplain.

Most buyers walk through a property once, notice the kitchen and the light, and move on. The inspection is where you slow down and look at what holds the building together. You are deciding whether the property is worth what you are about to borrow, and whether the repair costs after settlement will blow your budget.

Consider a buyer looking at a brick cottage near Lewisham Park. The front room has been renovated, but the back of the house still has the original bathroom and laundry. During the inspection, they notice soft floorboards near the shower, a water stain on the ceiling above, and a downpipe that drains directly onto the path instead of into stormwater. The building report later confirms an active leak in the shower base and timber rot in the subfloor. The repair quote comes back at $12,000. They renegotiate the purchase price and use the saving to cover the work after settlement. That negotiation only happened because they identified the problem during the inspection.

When you arrange pre-approval before attending inspections, you know your funding limit and can move quickly when you find a property that works. Lenders will still require a valuation, but your own inspection protects you from problems the valuer might not flag in detail.

Should You Hire a Building and Pest Inspector?

Yes. A licenced building and pest inspector will identify defects and hazards you are likely to miss, and their report gives you the evidence needed to renegotiate or withdraw from a contract during the cooling-off period.

You are not trained to assess whether a crack in a wall is cosmetic or structural, or whether timber damage is old or active. The inspector is. They also carry professional indemnity cover, which means their assessment is insured. Your own observation is not.

In Dulwich Hill, older terraces and semi-detached homes often have additions or alterations that were done without council approval. The building inspector will identify unauthorised work and assess whether it meets current standards. If it does not, you may face council orders or insurance complications after you move in.

The cost of a combined building and pest inspection generally sits between $500 and $800 depending on the size and age of the property. That cost is small compared to the price of a structural repair or pest treatment you did not know you were taking on. Budget for the inspection as part of your upfront costs alongside conveyancing and any strata reports.

What Are the Most Common Issues Found in Dulwich Hill Properties?

Rising damp, cracked sandstone footings, outdated electrical wiring, and termite damage in older timber structures are the most common issues in Dulwich Hill homes built before 1950.

The suburb sits on a mix of Ashfield shale and Hawkesbury sandstone. Properties on sloping blocks near the light rail corridor or close to the Cooks River catchment can experience movement in their footings, particularly if the sandstone base has deteriorated or if water is pooling against the foundation. You will see this as cracks in external render, doors that stick, or gaps appearing between walls and skirting boards.

Rising damp occurs when the original damp proof course has failed or was never installed. Older brick homes often show tide marks on interior walls, peeling paint near floor level, or a musty smell in rooms that do not get much airflow. The fix usually involves repointing, installing a chemical damp course, or improving drainage around the perimeter of the building. Costs vary depending on how much of the house is affected.

Termites are attracted to moisture and timber. If the property has timber stumps, weatherboards, or an old subfloor structure, you need a pest report. Treated timber and regular inspections reduce ongoing risk, but if active termites are found, treatment and repairs can run into the thousands.

Electrical wiring in homes from the early 1900s may still include old ceramic fuse boards, ungrounded circuits, or aluminium wiring that does not meet current safety standards. Rewiring is often required before you can get home and contents cover, and it is not something you want to discover after settlement.

How Do You Check for Water Damage and Drainage Problems?

Look for stains on ceilings and walls, soft or uneven flooring, and test taps for water pressure. Outside, check that downpipes connect to stormwater drains and that paths or paving slope away from the building.

Water damage is rarely obvious at first glance. You need to go into every room, look up at the ceiling, and check around windows, skylights, and air conditioning units. A brown or yellow stain means water has entered at some point. Whether it is an old leak or an active one is the question the building inspector will answer.

In the bathroom, kitchen and laundry, turn on every tap and flush the toilet. Watch how quickly water drains. Slow drainage can indicate blocked pipes or poor fall in the waste line. Check under sinks for moisture or corrosion on the pipework. If the property is a unit, ask the strata manager whether there have been any reports of leaks or water ingress in the building.

Outside, walk the perimeter of the house during or just after rain if possible. Water should flow away from the building, not toward it. If downpipes are broken, disconnected, or draining onto garden beds against the wall, water is going to sit against the foundation and eventually cause damp or structural movement. Fixing drainage is not always expensive, but it is something you need to price before you settle.

What Questions Should You Ask the Selling Agent or Owner?

Ask when the roof, hot water system, and any major appliances were last replaced or serviced. Ask whether the property has had any pest treatments, whether all work was done with council approval, and whether there have been any insurance claims for water or fire damage.

The agent is not required to volunteer problems, but they must answer direct questions honestly. If you ask whether there has been water damage and the answer is no, but the building report later shows evidence of a concealed leak, that creates a disclosure issue you can take further.

For strata properties, ask for the most recent strata report, levy notices, and minutes from owners corporation meetings. You want to know whether there are any special levies planned, whether the building has defects under review, and whether there have been disputes with other owners. Your solicitor or conveyancer will review these documents, but you should read them yourself before making an offer.

If the property has solar panels, ask who owns them. Some systems are leased, and the lease transfers to you as the buyer. If you are applying for a loan using the Australian Government 5% Deposit Scheme, confirm that the property falls within the price cap for your area and that the dwelling type is eligible under the scheme.

When Should You Walk Away from a Property?

Walk away if the building report identifies structural defects that will cost more to fix than you can afford, or if the seller refuses to renegotiate and you cannot cover the repairs within your budget. Also walk away if the property does not meet lending requirements and you cannot secure finance.

Not every defect is a reason to withdraw. Cosmetic wear, minor plumbing repairs, or a roof that will need replacing in a few years are all things you can price into your offer or plan for after settlement. But if the inspector finds active termites in the frame, large cracks indicating foundation movement, or electrical systems that need a full rewire, you are looking at tens of thousands in costs before the property is liveable or insurable.

Lenders will also walk away if their valuer identifies serious defects. If the property is valued below the purchase price or deemed unsuitable security, your home loan application will not proceed. You will lose your deposit if you cannot secure finance and the contract is not conditional, so make sure your offer includes a finance clause and a building inspection clause before you sign.

If you are emotionally attached to a property, it is hard to walk away even when the numbers do not work. That is where a broker helps. We look at what the property will cost you in total, not just what it costs to buy, and we will tell you if the deal does not stack up. Call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions