Why You Can't Trust All Building and Pest Inspections: Real Cases & Expert Advice

Building and pest reports are a critical part of due diligence and can save you from costly surprises after settlement. However, not all inspection reports are created equal, and we’ve seen firsthand how relying on the wrong inspector can lead to serious issues being missed.

To put it bluntly, there are some inspection companies we no longer accept reports from – simply because they have a consistent track record of overlooking significant problems. Some inspectors, alarmingly, have no background in building or construction at all and without that practical experience, they often don’t know what to look for, or worse, don’t understand the implications of what they’re seeing, or missing.

We recently had two separate cases that highlight just how crucial it is to choose a reputable and experienced inspector:

1. Major Plumbing Issues Missed

In the first case, prior to signing up with us, a buyer purchased a building and pest report from an inspector who had cleared the property with no major concerns. However, we weren’t confident, so we arranged for a second opinion from a more trusted inspector.

What was discovered? Rising damp.

This red flag from the second inspector prompted a further plumbing inspection, which uncovered between $30,000–$50,000 worth of plumbing repairs needed. None of this was even hinted at in the original report. Had the buyer relied solely on that first report, they would’ve walked into a very expensive problem.

We should note, this did not stop us from purchasing the property on behalf of our clients, this was an expense they were willing to take on. However, they were able to make an informed decision on how much they were willing to pay for the property to offset this discovered expense.

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2. Active Termites Overlooked

The second case was even more alarming. The initial inspection report showed no sign of termite activity. But this particular inspector has been known to miss termites in the past, so we arranged another independent inspection.

What was discovered? Evidence of past termite activity.

This time, termite mudding and damage were found in the subfloor. The second inspector recommended an invasive termite inspection due to the potential for hidden structural damage. Shockingly, there was no mention whatsoever of past or present termite activity in the original report.

We did in fact organise for this invasive inspection and discovered the extent of the mudding/damage was limited to a couple small areas and no further damage was noted. This was good news for our clients looking to buy and meant they could offer confidently, knowing they wouldn't be walking into a home with potentially hundreds of thousands worth of structural damage.

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What This Means for Buyers

These situations aren’t rare and they serve as a serious reminder:

Just because a property has a building and pest report doesn’t mean you’re in the clear.

You must consider:

• Who did the inspection?

Do they have building experience? Are they known for thorough, detailed work? How long have they been in the business?

• What’s their reputation?

Some companies are known in the industry for rushing inspections or missing key issues.

• Is the report overly vague or generic?

A lack of detail, minimal photos, and/or generic copy and paste notes throughout could be a red flag.

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Our Advice

We strongly recommend only trusting independent building and pest inspections from qualified professionals with a background in construction and a reputation for thorough, honest reporting. Spending a little extra up front could save you tens of thousands, not to mention a lot of stress, in the long run.

If you're unsure who to trust, reach out to us. We work with some of the most reputable inspectors in the industry and are happy to point you in the right direction.

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