Building Inspection Before Auction

Picture this: a crisp Melbourne Saturday, coffee in hand, kids kicking a football on the nature strip, and the auctioneer warming up his patter. Your heart's set on the weatherboard in front of you. Bids are about to fly. In two minutes you could own it outright, unconditional. If you have not read a building report, you are really bidding blind.

Why Inspections Matter Before an Auction in Victoria

At a Victorian auction the contract is unconditional the moment the hammer falls. There is no standard cooling off period and you cannot insist on a building inspection clause unless the vendor agrees beforehand. Consumer Affairs Victoria is very clear: the cooling off period does not apply to properties bought at auction or within three clear business days of one.

That means any hidden structural issue, termite damage or rotten stumps becomes your problem as soon as you sign. A pre purchase inspection gives you facts to work with, not hunches.

What a Pre-Purchase Building Inspection Actually Covers

Professional reports in Australia generally follow Australian Standard AS 4349.1–2007. The standard lists the main areas: interior, roof space, exterior, sub floor, roof exterior and the site within 30 metres.

The inspector is looking for major defects that affect the integrity of the structure and safety, and also noting minor defects that may add up to maintenance costs. Reports should flag moisture ingress, movement or cracking, inadequately supported beams, drainage issues and evidence of termites.

You Cannot Rely on Cooling Off or Contract Conditions at Auction

Let's underline this, because buyers often get caught: there is no cooling off after an auction in Victoria and you cannot simply insert a building inspection condition after the fact. If you want a subject to inspection clause, you must negotiate it with the vendor before auction day, or buy privately instead.

Choosing the Right Inspector and Checking Credentials

Anyone can print a glossy report, so make sure you engage someone qualified and properly registered. The Victorian Building Authority regulates building practitioners and provides an online search tool to verify registrations.

Ask for:

Proof of professional indemnity insurance
Sample reports so you can judge clarity
Confirmation the inspection complies with AS 4349.1
A willingness to talk you through the findings

Recent prosecutions show what happens when unregistered operators pose as experts. It is a reminder to check credentials, not just price.

Timing the Inspection and Reading the Report

Book your inspection as soon as you are serious about bidding. Reports usually take one to two business days, but auctions pop up quickly, so give yourself breathing space to digest the contents.

When the report arrives:

Separate deal breakers (major structural faults, active termites) from niggles (loose door handles, cracked tiles)
Ask the inspector to clarify anything unclear, ideally on a quick call
Put a dollar figure on repairs so you can fold that into your maximum bid

Using the Findings to Set Your Bidding Limit or Negotiate Pre-Auction

If the report shows significant issues, you have two options. You can simply walk away. Or you can use the information to negotiate a pre auction deal at a price that reflects the work required, or ask the vendor to remedy key defects before you sign. Some buyers successfully secure a lower price prior to auction using a frank, documented report.

Even if you still bid, the report helps you set a hard ceiling. There is nothing worse than winning, then realising the sub floor needs $30,000 of work.

Typical Red Flags in Melbourne Homes

Different suburbs throw up different problems, but inspectors often see:

Termite activity, especially in older timber homes and properties backing onto reserves
Rising damp and poor sub floor ventilation in Victorian and Edwardian terraces
Movement or cracking in clay soils in the outer north and west
Asbestos in eaves, linings and old sheds
DIY renovations that never saw a permit or surveyor

These issues fall squarely within the AS 4349.1 checklist, so a competent inspector will call them out.

Apartments and Townhouses: What Differs, What Doesn't

With apartments you still need a building inspection, but the focus shifts. Inside the lot, defects are your responsibility. For common property like roofs, lifts and basements, you rely on the owners corporation. Ask for the latest owners corporation minutes and maintenance plans. The inspection can still pick up leaks, waterproofing failures, balcony defects and non compliant cladding. The principle is the same: know the condition before you bid.

Quick DIY Checks at Open for Inspections (and Their Limits)

You cannot replace a professional, yet a sharp eye during the open home helps you decide whether to spend money on a report:

Look for fresh paint patches that might be hiding cracks or leaks
Sniff for damp or mould in cupboards and under sinks
Check doors and windows for sticking (could indicate movement)
Peer under the house if possible for wet soil or dodgy piers

Use these cues to prioritise which properties deserve a full inspection. Then let the expert crawl where you cannot.

Simple Pre-Auction Inspection Checklist

Get the Section 32 and read it early (or have it reviewed for you)
Download the Consumer Affairs due diligence checklist and tick off each point
Book a registered inspector and confirm they use AS 4349.1
Receive and digest the report. Call the inspector with questions
Price the repairs and set your maximum bid
Decide strategy: bid, negotiate pre auction, or walk away
Have your conveyancer ready on auction day to check any last minute contract tweaks

Where the Section 32 Fits In (and Why to Get It Reviewed)

The Section 32 vendor statement is a legal document the seller must give you. It outlines key information about the property: title details, easements, rates, notices, services and more. It is not a building report. You still need both. Having a conveyancer review the Section 32 ensures there are no nasty surprises like unapproved works or planned council acquisitions.

Final Thoughts

Melbourne auctions move fast. Doing your building inspection before auction gives you control: you know what you are buying, what it will cost to fix and when to stop bidding. It is not just about avoiding lemons. It is about bidding with calm confidence.

Ready to go one better? Pearson Chambers Conveyancing will review your Section 32 for free and talk you through the contract so you can focus on winning the right home, not just any home.

Call: 03 9969 2405
Email: contact@pearsonchambers.com.au