Is This a Scam Building Report


Real Estate so I don't have high hopes.

The real estate said they will send me the pest and building inspection but they send me this instead.

I was going to get my own done.

Do they need to provide you with a building and pest inspection in NSW?


  • +9

    My cousin did that inspection, paid by the seller. The report passed with flying colours. You don't trust my cousin?

  • +1

    Yes this is sometimes an option. You pay a fraction of the cost for a report which the seller arranged. This is so building report cost isn't a put off for potential buyers

    It's still your option to get your own report by finding your own builder. But it will cost you upwards of $400 for a property you may not be successful in purchasing.

    • +1

      Small price to pay compared to the purchase price and potential cost of repairs.

      • +2

        Not if you the up visiting 20 homes and being outbid on all.

      • +2

        That's why you purchase the $50 from the seller instead of commissioning your own.

        But if you don't trust it, then yes you organise your own and pay everytime youre interested in a property.

  • In my experience the reports the REAs provide are usually just as good as any report you may source yourself. They are done with reputable inspectors - they are not a scam.

    • +2

      Found the real estate agent.

    • +1

      Agree with this, or, put differently, they are no worse than a typical independent building report that is full of qualifications and non-reliance clauses. They are useful in identifying properties with major concerns. Short of that, they're a pretty consistent read.

  • +1

    the answer to your question is , no they do not.

    this is a sales tactic , more people will buy the report and they still get the full price from that lucky buyer.

  • Realestate contract or not, you should always have your inspection done separately. In the end, it will be you paying the price if things go south.

  • +2

    It's standard practice. One company does the report and everyone pays a bit. The buyer pays most.

    Sometimes you just $1 up front. Sometimes you pay$50.

    Saves the selling agent having to let many inspectors through. So only one goes through and everyone trusts him.

    • +1

      Why would you trust a mob the selling agent chose?

      • +3

        It's not always the selling agent that picks it.

        Once I was interested in the house and I was the first to ask for a pest and building inspection report. So I picked a random company and asked them to arrange with the selling agent. Then, they were selling the report that company I picked did to all purchasers.

        I'm sure the agent will decline to "waste their time" with another inspection given that there are soooo many buyers out there.

        At the end of the day all reports are shit.

        The house we did end up buying had a report that he couldn't access under the house. …. But the access was actually easy! Lazy bastard.

        Also they missed completely a crack in wall which ended up being subsidence caused by a downpipe that never got connected to the storm water pipes

  • +3

    Do not use any inspection service provided by the REA. Their prime objective is a completed sale and their commission.
    Get a good independent inspection from someone reputable that does not rely on kickback from REAs.
    Sometimes the best thorough inspection is your own if the seller does not mind you having a good look around.

  • +1

    You never trust anything provided by the real estate agent, its always in their best interest to have someone they can goto and get a favourable report done for them, it may have certain things not addressed or removed as required to sell the property. If you want a real report you need to pay for it yourself.

  • A Building Inspection Report is not a required document for Conveyancing in NSW.

    Disclaimer: Do speak with your conveyancer or solicitor, as I am only a medical professional…

  • +1

    What happens when multiple potential buyers pay the $50? If 10 do it, does the actual purchaser have to pay anything at all, as there’s no balance? Or are they still liable for $450 regardless of how many people pay the $50?

  • This is likely a report, so ask if it is. if it is, it won't be a scam. Very common in NSW and building traction here.

  • +2

    Never EVER buy a house using the seller’s building report. It’s too important an investment to take the risk. The agent ONLY cares about their commission. They will do whatever it takes to get that. Just think about that for a bit…..

    • +1

      that's true…a few years ago in VIC, I asked the agent if the owner got a permit for installing a second kitchen that use to be storage shed. He said it hasn't exploded so it's safe… Didn't bother with another inspection. That said, the property sold below market price in a booming market by $50K.

      • Was there a problem?

        • +2

          undocumented installation of gas piping… not worth the risk and you won't get insurance payout if there was an accident