Building inspection before or after offer?

If you have spent a few Saturdays criss crossing Melbourne for open homes, you will know the feeling. You finally find a place in Brunswick or Bentleigh that feels right, then the agent asks the big question. Are you ready to make an offer? Right here is where another question pops up. Should you organise a building inspection before you offer, or after?

This guide breaks the decision into simple steps for Melbourne buyers. By the end, you will know what to do for an auction, what to do for a private sale, how building inspections actually work, and how to protect yourself in the contract.

The Short Answer

Buying at auction: get your building and pest inspection before the auction. There is no cooling off period after an auction, and you cannot add conditions unless the seller agrees in advance.

Buying by private sale: you can either inspect before offering, or make your offer subject to a building and pest condition. Victoria also has a three business day cooling off period for most private sales, although there are exceptions and a small termination fee.

That is the headline. Let's walk through why the timing matters and how to choose the right path for your property.

First, Understand Melbourne's Two Sales Paths

Auctions

At auction, the rules are strict. If you are the successful bidder, you sign the contract and pay the deposit straight away. There is no cooling off period. You cannot make the contract subject to finance or to a building and pest inspection unless the seller has agreed to those conditions beforehand. In practice, that means you must complete your due diligence, including inspections, before auction day.

Tip for auction campaigns around Melbourne: book your inspection early in the week so there is time to read the report, ask questions, and get the Section 32 vendor statement reviewed. More on Section 32 in a moment.

Private Sales

For a private sale, you and the seller can negotiate conditions. The Consumer Affairs Victoria guidance is plain. A contract can include conditions such as subject to finance or a building inspection. Victoria also provides a cooling off period of three clear business days for most private residential sales, although it does not apply in all cases, for example when you buy at or close to an auction or when the property is mainly for commercial use. If you cool off, you will forfeit the greater of $100 or 0.2 per cent of the purchase price.

Because you can add conditions, the timing question for a private sale is really a strategy question. Do you inspect first, then offer clean, or do you offer quickly with a building and pest condition?

What a Pre Purchase Building Inspection Actually Covers

A good pre purchase inspection in Australia follows AS 4349.1. That standard sets the minimum requirements for a visual, non invasive inspection of a dwelling and the associated report. It focuses on accessible areas and looks for defects, significant items and safety issues, without dismantling the home. The standard also explains what is outside scope, such as full compliance checks and detailed costings.

Consumer Affairs Victoria recommends engaging a qualified building inspector, surveyor or architect, and it notes that an independent report can help you negotiate and plan repairs. It also warns buyers to be cautious about reports offered by a seller or agent, and to arrange their own report for independence.

If you need help finding a suitably registered practitioner, the Victorian Building Authority provides a public search to check registration. Using a properly registered practitioner is sensible risk management.

Pros and Cons: Inspection Before the Offer

Advantages

Stronger offer: In a competitive inner north campaign, a clean offer without a building condition can be more attractive to a seller.
Fewer moving parts: You avoid juggling inspectors, deadlines and notices after you sign.
Clearer budget: You can factor likely repair items, such as re stumping or roof repairs, into your offer.

Trade offs

Up front cost with no guarantee of success: You might spend on a report and still miss out if another buyer secures the property.
Time pressure: Good inspectors get booked out. If you fall in love with a house on Saturday and offers close Monday, you may struggle to schedule an inspection in time.

Pros and Cons: Offer First, Subject to Inspection

Advantages

Speed: You can get on the table quickly in a hot private negotiation.
Safety net: A well worded building and pest condition gives you the right to withdraw or renegotiate if the report reveals major issues.

Trade offs

Weaker offer in the seller's eyes: Some owners prefer unconditional offers or favour buyers who have already done their checks.
Tight timeframes: Conditions usually carry short deadlines. If your inspector cannot access the subfloor or roof space promptly, you may be forced to extend or decide with incomplete information.
Cooling off limits: You may not be able to rely on cooling off if your offer is accepted within three clear business days before or after a scheduled auction, among other exceptions.

How to Protect Yourself in a Private Sale Contract

Use a Clear Building and Pest Condition

Ask your conveyancer to insert a clause that makes the contract subject to a satisfactory building and pest inspection by a qualified inspector, with a practical deadline for completion and a simple right to terminate or renegotiate if significant defects are found. Consumer Affairs Victoria confirms that private sale contracts can include conditions like this.

Lean on the Inspection Report to Negotiate

If the inspection reveals cracked stumps, damp issues, roof sag or other significant problems, use the report to ask for repairs or a price adjustment. Consumer Affairs notes that a report can support negotiation and help you plan maintenance.

Remember the Cooling Off Clock

If cooling off applies, it starts when you sign the contract, not when the seller signs. The window is short, so line up your inspector and your conveyancer early.

Section 32: Why Your Contract Review Should Happen in Parallel

Before a buyer signs a contract in Victoria, the vendor must provide a Section 32 vendor statement. It discloses key matters that affect the land, and it must be given before you sign. Reviewing it can uncover issues like unapproved works or owners corporation fees that may influence your decision.

A building inspection and a Section 32 review go hand in hand. One looks at the physical condition, the other at the legal and planning picture. Together they give you a clearer view before you commit.

Special Cases: Auctions and Pre Auction Offers

Auctions: do your inspection before auction day. Once the hammer falls, you sign and pay the deposit, and there is no cooling off period.
Pre auction offers: if your offer is accepted within three clear business days of the auction date, the cooling off period does not apply. Treat it like an auction in terms of timing.

What Inspectors Look For in Melbourne Homes

The Consumer Affairs checklist for buyers suggests keeping an eye out for common red flags. Sloping or bouncy floors can point to stumping issues, damp brickwork can indicate rising damp, and sagging roofs or cracked tiles can lead to expensive repairs. Cosmetic touch ups sometimes hide problems, which is another reason to rely on an independent inspection.

In practice, an AS 4349.1 inspection is visual and non destructive. Inspectors assess accessible internal and external areas, roof spaces and subfloors where there is safe access. Reports call out major and minor defects, and they outline limitations if parts of the property cannot be accessed on the day.

Apartments and Townhouses

If you are buying into an owners corporation, ask your inspector and your conveyancer about common property risks. The inspection of a single lot can be of limited help if the roof, external walls or services are common property that could require contributions later. The national inspection standard flags that strata purchases involve particular issues around common property and shared maintenance liability. Pair the inspection with an owners corporation records review.

Who Should You Hire?

Choose an independent inspector who is experienced with Melbourne housing stock and familiar with AS 4349.1. Consumer Affairs suggests using a qualified inspector, and the Victorian Building Authority provides a practitioner search so you can check registration status. Be wary of vendor commissioned reports and avoid conflicts of interest.

Suggested Timelines That Work in Melbourne

If the Property Is Going to Auction

Get the Section 32 and contract reviewed early in the campaign.
Book building and pest inspections at least three to five days before the auction.
Clarify any access issues for the inspector. Many weatherboard homes in the inner west have tight subfloor access, so the agent may need to arrange the right keys or trade access.
If you need special conditions, negotiate them with the vendor before auction day, otherwise assume the contract will be unconditional if you win.

If It Is a Private Sale With Offers Closing Soon

Ask your conveyancer for a rapid Section 32 review.
If time allows, inspect before offering and go in clean.
If time is short, lodge your offer subject to building and pest, with a reasonable deadline for the report and a clear right to end the contract if major defects are found. Consumer Affairs confirms these conditions can be included.
Do not rely entirely on cooling off. It is short, it does not apply in all cases, and it costs a small fee if you withdraw.

So, Before or After the Offer?

Here is a simple way to decide.

If the property is heading to auction, always inspect before. There is no safety net afterward.
If the property is a private sale and competition is moderate, inspect first if you can. You will make a stronger offer and you will feel calmer while you negotiate.
If the property is a private sale and the campaign is moving quickly, offer with a well drafted building and pest condition. Book the inspection immediately. Keep an eye on the three day cooling off clock and on any pre auction timing that might remove cooling off.
In every case, get the Section 32 reviewed. It is a legal disclosure the vendor must provide before you sign, and it often reveals details that matter just as much as the physical condition.

Final Tips From the Trenches

Ask for photos in your report. Good inspectors include clear images and plain English comments that help you prioritise repairs.
Be present at the tail end of the inspection if possible. A five minute chat on site can bring the report to life.
Plan for follow up specialists. A standard pre purchase inspection is visual, so electrical, plumbing or invasive moisture testing may require separate checks.
Think long term. A squeaky floorboard might be cosmetic, but active leaks, significant cracking or termite damage can turn into large bills.

Conclusion and Next Steps

Choosing when to get a building inspection comes down to the sale method and your risk appetite. For auctions, book early and go in eyes open. For private sales, use your inspection timing and contract conditions to balance speed with safety. Combine the inspection with a proper Section 32 review so you see the whole picture.

If you would like a friendly second set of eyes on your contract and a clear plan for conditions, reach out to Pearson Chambers Conveyancing. We are local, we speak plain English, and we offer a free Section 32 contract review.

Contact Pearson Chambers Conveyancing

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