Why a builder's report matters

What a builder's report is

A builder's report, also called a property inspection report, is an independent check of a home's condition by a building inspector. In New Zealand, look for an inspector who works to NZS 4306:2005, the standard for residential property inspections, and who has professional indemnity insurance.

It's a different thing from a registered valuation, which is about price, and from a LIM, which is the council's record of the property.

What it usually covers

• Structure: foundations, piles, the subfloor, framing and any signs of movement. These get extra attention on Wellington's hillside sections
• Weathertightness: moisture readings around windows, cladding and other risk areas. This matters most for homes built from the late 1980s to the mid-2000s with plaster-style (monolithic) cladding
• Roof: roofing condition, flashings, guttering and signs of leaks
• Plumbing and drainage: visible pipework and any obvious drainage problems
• Electrical: a general visual check. A full electrical inspection is a separate specialist job if you need one
• Outside: decks, retaining walls and other structures

A good report also separates normal wear for the home's age from issues that need fixing soon.

Why it matters for buyers

A builder's report turns an emotional decision into an informed one. Spending a few hundred dollars to find a moisture problem before you buy is far cheaper than finding it after settlement, when it's yours to fix. If the report turns up a real issue, it also gives you a fair basis to renegotiate the price or ask the seller to fix it before settlement.

Older homes will always have something flagged, so a long report isn't automatically bad news. What matters is which issues are urgent and what they'll cost. Read it alongside the LIM as well. If the inspector spots work that may have needed a building consent, your lawyer can check the LIM to see whether it was signed off.

Why it matters for sellers too

This one surprises people. Getting your own report before you go to market means you know what a buyer's inspector is likely to find. You can fix genuine issues in advance, or price and market the home honestly around them, instead of being caught out by a buyer's report halfway through a sale.

Buyers will usually still get their own report, because the inspector's contract is with you, not them. But being upfront about your home's condition tends to make negotiations smoother and faster, because there are fewer surprises.

Timing and cost

The inspection usually takes a few hours, and the written report often arrives within a few days to a week. Buyers usually make their offer conditional on a builder's report, so they can walk away or renegotiate if something serious turns up. If you're buying by tender and want to go unconditional, get the report done before the closing date. If you're selling and want a pre-listing report, get it done well before marketing starts, so there's time to act on it.

The cost depends on the size of the home and the inspector, from a few hundred dollars for a small home to over $1,000 for a larger one. Get a quote first. Compared with the price of the home, it's a small cost for a lot of certainty.