Residential vs Commercial Inspections: Differences & Costs

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Residential and commercial building inspections differ in scope, the rules that apply and the depth of the report. A residential pre-purchase inspection follows AS 4349.1 and is priced by the size of the home. Commercial buildings have no equivalent pre-purchase standard, so the scope is agreed for each building and quoted per property.

A residential inspection checks a home's condition against a set Australian Standard and a fixed report format. A commercial inspection covers offices, shops, warehouses and similar buildings, where the scope is agreed in advance and usually includes the building's safety systems and the owner's maintenance obligations as well as its physical condition.

Side-by-side comparison:

• Standard: Residential – AS 4349.1-2007 for pre-purchase inspections. Commercial – no pre-purchase standard; scope agreed in writing.
• Timber pests: Residential – AS 4349.3-2010. Commercial – AS 4349.3-2010 also applies to all building classes.
• Safety systems: Houses – essential safety measures obligations don't apply. Commercial – essential safety measures and their maintenance records are relevant.
• Report: Residential – set structure for buyers. Commercial – built around the agreed scope.
• Price: Residential – fixed prices from $550. Commercial – quoted per property.

AS 4349.1 does not cover commercial buildings. A commercial inspection is scoped by agreement and usually refers to the building's National Construction Code classification and, in Victoria, the owner's essential safety measures obligations under the Building Regulations 2018. AS 4349.3 for timber pests applies to all building classes, including commercial.

The AS 4349 series has parts for general requirements (AS 4349.0, withdrawn by Standards Australia in 2023), residential pre-purchase inspections (AS 4349.1), group-titled properties (AS 4349.2) and timber pests (AS 4349.3). None is a commercial pre-purchase standard.

Essential safety measures include items such as smoke alarms, sprinklers, fire extinguishers, exit signs and emergency lighting. The Building and Plumbing Commission explains that they apply to all buildings except houses and outbuildings, and that owners must prepare an annual essential safety measures report and keep maintenance records.

A commercial pre-purchase inspection therefore looks at the building's condition and at whether the paperwork behind its safety systems is in order.

A residential report follows the structure set by AS 4349.1 and describes the home's condition and defects for a buyer. A commercial report is built around the scope agreed before the inspection, so it can cover the building fabric, roof and drainage, and the essential safety measures records, and it identifies where a specialist should be engaged.

Agree the scope in writing before a commercial inspection. It should say which parts of the building are included, what access is available and what the report will cover.

For a residential purchase, our report also includes indicative repair costs for the defects that matter, which you can use in price negotiation.

We deliver residential pre-purchase reports on the same day as the inspection. Commercial timeframes depend on the size of the building, access and the agreed scope, so we confirm the inspection time and the report delivery date when we quote. Whoever you use, ask for the delivery date in writing before you book.

If you are buying at auction or within a short cooling-off period, the report date matters as much as the price.