Pre-Purchase Inspections and Price Negotiation in Victoria

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A pre-purchase building inspection gives you evidence to negotiate with. In Victoria, a report that lists defects, says whether they can be repaired and estimates the repair cost lets you put a dollar figure in front of the agent before you commit. Consumer Affairs Victoria recommends getting one before you sign a contract of sale.

Before you are committed. There is no cooling-off period at auction and you buy on the contract terms on display, so inspect before auction day. For a private sale, inspect before you sign, or make the contract subject to a building inspection. The three-business-day cooling-off period is short and ending the contract costs money.

How the timing works under Victorian rules:

• Auction: Consumer Affairs Victoria states there is no cooling-off period for a successful bidder, and you can't negotiate changes to the contract terms by bidding. Book the inspection in the week before the auction.
• Private sale: you can negotiate a condition such as the successful completion of a building or pest inspection. Make sure it is written into the contract of sale.
• Cooling-off: for residential private sales you have three clear business days from when you sign. You end the contract by written notice to the seller or their agent, and the seller can keep $100 or 0.2% of the price, whichever is greater.
• No cooling-off applies if you buy at auction, within three clear business days before or after a public auction, or if the property is mainly for industrial or commercial use.

An inspection takes time to book and report, so leaving it to the cooling-off period leaves very little room to negotiate.

Structural and major defects carry the most weight: significant cracking from movement, failed stumps or footings, active roof leaks, wet areas leaking into the structure and timber pest damage. Routine maintenance, such as tired paint, cracked sealant or a dripping tap, rarely moves the price because buyers are expected to allow for it.

Defect checklist – what to raise and what to let go:

• Structural (raise it): movement cracking, failed stumps or footings, sagging roof framing. Usually supports a price reduction or a repair before settlement.
• Water damage (raise it): active roof leaks, leaking showers or wet areas, rising damp. Often hides further damage, so it carries weight.
• Timber pests (raise it): active termites or past termite damage. Reported under AS 4349.3 and often a deal-breaker.
• Safety (raise it): hazards such as unsafe balustrades or steps. Ask for them to be fixed before settlement.
• Maintenance (usually let go): paint, minor sealant gaps, worn fittings. Budget for these rather than negotiate.

AS 4349.1-2007, Inspection of buildings – Pre-purchase inspections – Residential buildings, sets minimum requirements for a visual inspection of a residential property and the report that follows. It applies to houses, townhouses, villas and units. It is not a compliance audit against building regulations, and timber pests are covered by a separate standard, AS 4349.3.

In practice this means:

• Covered: a visual inspection of the accessible parts of the property and a written report on its condition and defects.
• Separate standard: timber pest inspections follow AS 4349.3-2010. Our building and pest package covers both.
• Not included: a certificate that the building complies with building regulations.
• Asbestos: Consumer Affairs Victoria suggests a separate asbestos assessment if the property was built before 1990.

State legislation can add requirements beyond the standard, so a Victorian inspection should also reflect Victorian rules.

Check before you book. David Dunat is a Registered Building Practitioner (Domestic Builder – Unlimited) DB-U 66182 and a Registered Quantity Surveyor QS 74065. You can confirm both on the Building and Plumbing Commission (formerly the VBA) public register. The QS registration is what supports putting cost figures on defects.

Consumer Affairs Victoria suggests choosing an inspector with full professional indemnity insurance and checking registration with the Building and Plumbing Commission.

Read more about our pre-purchase building and pest inspections and what an inspection typically costs.