What to Look For in a Building Inspection Report

Why understanding your inspection report matters

You have paid for a building inspection and the report has arrived. It might be 20, 40, or even 60 pages long. It contains technical language, dozens of photos, and findings ranging from minor maintenance items to potentially serious defects. Now what?

Many buyers skim the report, focus on the overall verdict, and miss the detail that actually matters. Others panic at a long list of findings without understanding that most items are routine. Neither approach serves you well.

This guide explains how to read and interpret a building inspection report — whether you are buying in New Zealand or Australia. It covers the structure of a professional report, the key sections to focus on, what severity ratings mean, and how to use the findings to make informed decisions about your purchase.

Structure of a professional building inspection report

A well-structured report follows a logical, area-by-area format. While layouts vary between inspectors and reporting tools, you should expect the following sections in a professional report.

Executive summary

The best reports begin with an executive summary — a concise overview of the property's overall condition and the key findings from the inspection. This is your starting point. It tells you at a glance whether the property has significant issues, what the main concerns are, and whether further investigation is recommended.

Not all reports include an executive summary. If yours does not, look for a "key findings" or "summary of defects" section that serves a similar purpose.

Property details

This section records basic information about the property — address, property type, approximate age, construction type, cladding material, roof material, and any limitations on the inspection (areas that could not be accessed, weather conditions, furniture obstructing views).

Pay attention to the limitations. If the inspector could not access the roof space, subfloor, or parts of the exterior, those areas have not been assessed. This does not mean there is a problem — but it means you do not have the full picture.

Area-by-area findings

The body of the report is typically organised by area:

• Site and grounds — drainage, retaining walls, paths, vegetation, ground levels
• Exterior — cladding, flashings, sealants, windows, doors, decks, stairs
• Roof — covering material, ridges, valleys, gutters, downpipes, penetrations
• Subfloor — piles, bearers, joists, ventilation, ground moisture, ground clearance
• Interior — walls, ceilings, floors, doors, windows (room by room)
• Wet areas — bathrooms, kitchen, laundry, moisture testing results
• Services — electrical switchboard (visual only), plumbing, hot water, heating

Each area should include a description of what was found, the condition, any defects, and photos supporting the findings.

Photos and annotations

Photos are one of the most important parts of the report. They provide evidence for every finding and allow you to see exactly what the inspector saw. The best reports include annotated photos — images with arrows, circles, or labels pointing out the specific defect or area of concern.

Reports generated through modern inspection tools like InspectPro typically include annotated images throughout, making it much easier for non-experts to understand each finding in context.

If your report contains few or no photos, this is a significant quality concern. A professional inspection of a standard residential property should produce 50 to 150+ photos.

Understanding severity ratings

Most professional reports categorise findings by severity. This is critical for understanding which items require immediate attention and which are routine.

New Zealand — NZS 4306:2005

In New Zealand, the NZS 4306:2005 standard provides the framework for residential property inspections. Findings are typically categorised as:

• Significant defect — a defect of sufficient magnitude where rectification is required in order to avoid unsafe conditions, loss of utility, or further deterioration of the property. These are the most serious findings and may affect structural integrity, weathertightness, or occupant safety.
• Major defect — a defect that requires substantial repair or further investigation. Left unaddressed, it may lead to serious damage or become a significant defect over time.
• Minor defect — a defect that does not require immediate attention but should be addressed as part of ongoing maintenance.
• Maintenance item — normal wear and tear that requires routine attention.

The distinction between "significant" and "major" matters. A significant defect is something that could affect your decision to buy. A major defect is something that needs attention but may be manageable with remediation.

Australia — AS 4349.1

In Australia, inspections are conducted under the AS 4349.1 standard. The terminology is slightly different:

• Major defect — a defect of sufficient magnitude where rectification has to be carried out in order to avoid unsafe conditions, loss of utility, or further deterioration of the property. This is the Australian equivalent of a "significant defect" in NZ.
• Minor defect — a defect that is not a major defect. Includes maintenance items and cosmetic issues.

Some Australian inspectors use additional categories — "moderate defect" or "safety hazard" — but the major/minor distinction is the core framework under AS 4349.1.

Regardless of which standard applies, focus your attention on the highest-severity findings first.

Key sections to focus on

When reading through the full report, these sections deserve the closest attention.

Moisture readings

Moisture is one of the biggest risk factors in property purchase, particularly in New Zealand's leaky building context. Inspectors use moisture meters to test walls, floors, and ceilings in wet areas and other high-risk locations.

Look for:

• Elevated moisture readings in walls around showers, baths, and external walls
• The specific readings — most reports show a percentage or a relative scale. Ask the inspector what their threshold for concern is.
• Patterns — isolated high readings may indicate a localised leak. Widespread elevated readings suggest a more systemic issue.

Elevated moisture does not always mean a serious problem — it could be from recent cleaning, condensation, or a minor plumbing drip. But it warrants investigation, especially in older properties or those with monolithic cladding.

Roof condition

The roof is one of the most expensive building elements to replace. Key things to look for in the report:

• Material and estimated age — is the roof nearing the end of its expected life?
• Rust, corrosion, or deterioration — on metal roofs, surface rust is cosmetic but widespread corrosion may mean replacement is approaching
• Flashing condition — failing flashings around penetrations (pipes, vents, chimneys) are a common source of leaks
• Gutter and downpipe condition — blocked or damaged gutters cause water damage to fascia, soffit, and cladding

Subfloor

If the property has a subfloor (most older NZ homes do), this section is critical:

• Ground clearance — less than 150mm between ground and bearers restricts ventilation and increases moisture risk
• Ventilation — blocked or insufficient subfloor vents lead to damp conditions that accelerate timber decay
• Pile condition — look for commentary on pile material, condition, and any signs of settlement
• Damp or standing water — any mention of wet ground or pooling water under the house is a concern
• Borer or timber decay — evidence of insect damage or fungal decay in subfloor timbers

Cladding and weathertightness

Cladding issues are a major concern in both NZ and Australia. In the report, look for:

• Cladding type — monolithic plaster/EIFS systems from the 1990s–2000s are higher risk in NZ
• Cracking — hairline cracks may be cosmetic, but wider cracks or patterns of cracking can indicate structural movement or moisture ingress
• Failed sealants — sealant around windows, door frames, and penetrations has a limited life. Failed or missing sealant allows water entry.
• Ground clearance — cladding that extends to or below ground level is a significant defect as it allows moisture wicking and concealed damage

Wet areas

Bathrooms, kitchens, and laundries are high-risk areas for moisture damage:

• Shower waterproofing — is there evidence of leaking or failed waterproofing?
• Tile and grout condition — cracked grout or loose tiles can allow water behind the wall lining
• Ventilation — lack of adequate ventilation in wet areas leads to condensation and mould
• Moisture meter readings — elevated readings on walls adjacent to showers are a common finding

Electrical and plumbing

Building inspectors conduct a visual assessment only of electrical and plumbing systems. They do not test circuits or water pressure. However, visual findings can flag important concerns:

• Switchboard age and type — old ceramic fuse boards should be upgraded. Look for comments about RCD (residual current device) protection.
• Visible wiring condition — deteriorated, non-compliant, or amateur wiring is a safety concern
• Hot water cylinder — age, type, and condition. Cylinders over 15-20 years old may be approaching end of life.
• Visible plumbing — leaking joints, corroded pipes, or non-compliant modifications

Common findings and what they mean

Here are some of the most frequent findings in building inspection reports and what they typically mean for buyers.

Minor cracking in plaster or GIB

Small hairline cracks in interior wall linings are extremely common, especially in older homes. They are usually caused by normal building movement, settlement, or thermal expansion. Unless the cracks are wide (more than 1-2mm), progressing, or associated with other signs of movement, they are generally a cosmetic or minor maintenance issue.

Surface rust on roof

Light surface rust on a metal roof is cosmetic in the early stages. However, if the report notes widespread rust, pitting, or corrosion at fixings, the roof may need recoating or replacement in the medium term. Get a roofing quote to understand the cost.

Inadequate subfloor ventilation

A very common finding, particularly in older NZ homes. Blocked or insufficient subfloor vents create damp conditions that can lead to timber decay, musty odours, and an unhealthy living environment. The fix is usually straightforward — clearing blocked vents, adding new vents, or installing a subfloor ventilation system. Cost is typically moderate.

Elevated moisture in bathroom walls

If the inspector found elevated moisture around shower walls, it could indicate failed waterproofing or grouting issues. This ranges from minor (re-grout and seal) to significant (full shower rebuild if water has reached the framing). The severity depends on how high the readings are and how long the issue has been present.

Deck or balcony concerns

Decks are a common source of defects. Look for mentions of inadequate waterproofing beneath habitable spaces, missing or non-compliant balustrades, timber decay in framing, or inadequate fixings. Deck remediation can range from minor repairs to full rebuilds depending on the issues identified.

Evidence of previous repairs or modifications

Reports often note areas where previous repairs or modifications are visible. This is not necessarily negative — but it raises questions. Were the repairs done properly? Were they consented if required? Your inspector should note what they observe, and you may need to investigate further through council records.

When to walk away vs when to negotiate

Not every defect is a deal-breaker. The key is understanding the severity and cost of remediation.

Consider walking away if:

• The report identifies significant structural defects — major foundation issues, severe timber decay, or structural modifications that compromise the building's integrity
• There are signs of systemic weathertightness failure — particularly in monolithic-clad homes where remediation can cost hundreds of thousands of dollars
• The property has multiple significant defects that together represent a large remediation cost relative to the purchase price
• The inspector recommends further investigation in multiple areas and the overall picture is uncertain

Consider negotiating if:

• The defects are clearly defined and quantifiable — you can get quotes and negotiate a price reduction or request the vendor address them before settlement
• The issues are maintenance-related — a roof that needs recoating in the next five years, a hot water cylinder approaching end of life, or subfloor ventilation improvements
• The report identifies one or two major items that are common for the property's age and type, and the remediation cost is reasonable

Getting quotes for remediation

For any significant or major defect, get quotes from qualified tradespeople before finalising your decision. This gives you:

• A realistic cost for the work required
• Evidence to support a price renegotiation with the vendor
• A clear picture of what you are taking on if you proceed

Common trades to contact based on report findings:

• Roofer — for roof repairs, recoating, or replacement
• Builder — for cladding repairs, deck rebuilds, structural remediation
• Plumber — for plumbing concerns, hot water cylinder replacement
• Electrician — for switchboard upgrades, wiring concerns
• Waterproofing specialist — for shower or deck membrane failures
• Structural engineer — for foundation or structural concerns

Making the most of your report

A building inspection report is not a pass or fail document. It is a detailed assessment of the property's condition at a point in time. Use it as a decision-making tool:

1. Read the executive summary to get the overall picture
2. Focus on significant and major defects — these drive your decision
3. Review the photos — they often tell you more than the text
4. Ask the inspector to clarify anything you do not understand
5. Get quotes for significant work before negotiating or deciding
6. Keep the report — it becomes your maintenance roadmap if you proceed with the purchase

A thorough, well-presented report — with clear severity ratings, annotated photos, and practical recommendations — is one of the most valuable documents in any property transaction. It protects you from hidden surprises and gives you the confidence to make an informed decision, whether you are buying your first home in Auckland or investing in property across the Tasman.