7 Building Inspection Red Flags That Should Kill the Deal
Every property has issues. The question is: which ones are manageable, and which ones should make you walk away? Here are seven red flags that experienced buyers take seriously.
## 1. Active Termite Damage
Past termite activity is common and treatable. *Active* termite infestation is a different story. If live termites are found, the extent of structural damage may not be fully visible without invasive inspection. Treatment alone costs $2,000–$5,000, but hidden structural damage can push costs to $20,000+.
## 2. Major Structural Movement
All houses settle over time. But diagonal cracking through brickwork, doors that won't close, or visible leaning walls suggest ongoing structural movement. Restumping alone costs $10,000–$30,000. If the report mentions "further investigation by a structural engineer," take that seriously - it means the inspector saw something concerning enough to flag.
## 3. Asbestos in Poor Condition
Asbestos in good condition can be managed in place. But friable (crumbly) asbestos, or asbestos in areas you plan to renovate, is a serious health and cost concern. Removal costs $1,500–$40,000+ depending on the extent. If the report identifies widespread asbestos in deteriorating condition, factor removal into your budget before offering.
## 4. Rising Damp With No Sub-Floor Ventilation
Rising damp is treatable, but chronic moisture issues in a property with inadequate sub-floor ventilation suggest a systemic problem. Treatment costs $3,000–$10,000, but if the underlying ventilation isn't addressed, the problem will return. Look for mentions of "high moisture readings," "efflorescence," and "inadequate ventilation."
## 5. Non-Compliant Electrical
An outdated switchboard without RCDs (safety switches) isn't just a cost issue - it's a safety hazard. If the report flags "no safety switches," "non-compliant wiring," or "aluminium wiring," budget $2,000–$20,000 depending on the scope of rewiring needed.
## 6. Significant Roof Defects
A roof at "end of serviceable life" means you're buying a $10,000–$25,000 repair. If combined with internal water staining, you may also have hidden timber damage. Multiple leaks suggest deferred maintenance - a sign the seller has under-invested in the property.
## 7. Drainage and Stormwater Issues
Poor drainage around a property leads to foundation problems, damp, and erosion. If the report mentions "ponding," "inadequate fall," or "blocked stormwater," these seemingly minor notes can signal expensive future problems ($2,000–$8,000 for drainage correction).
## The Bottom Line
A building inspection report is your last line of defense before committing to a purchase. If you see any of these red flags, don't panic - but do your homework. Get specialist quotes, renegotiate the price, or walk away. The cost of a missed defect is always higher than the cost of due diligence.