What to Look For in a Builder's Report

A builder's report, sometimes called a pre-purchase building inspection report, is a written assessment of a property's physical condition carried out by a qualified inspector before you purchase. In New Zealand, most buyers of existing homes include a building inspection condition in their offer, and for good reason. At Chaperone, we think of a builder's report as one of the best investments a buyer can make, even when the property looks well-maintained on the surface. Understanding what the report is telling you is just as important as getting one.

Who Carries Out the Inspection

A building inspection should be carried out by a suitably qualified person, such as a licensed building practitioner or a member of the New Zealand Institute of Building Surveyors. It is worth asking about their qualifications and professional indemnity insurance before engaging them. While some real estate agents may offer to recommend an inspector, many buyers prefer to find their own to ensure the inspector's loyalty is clearly to them rather than to the sale proceeding. The cost of an inspection varies depending on the size and type of property but is typically a few hundred dollars.

What the Report Covers

A standard builder's report will assess the roof, exterior cladding, foundations, subfloor space, interior walls and ceilings, windows, plumbing and drainage, and any other accessible parts of the structure. The inspector will note visible defects, areas of concern, and anything they were unable to inspect due to access limitations. Most reports use a traffic light or priority system to indicate the severity of issues found. It is important to understand that a builder's report covers visible and accessible areas only - it is not an invasive inspection and cannot identify problems hidden behind walls or under concrete.

Red Flags to Take Seriously

Some findings in a builder's report warrant careful consideration before proceeding. Signs of moisture damage or weathertightness issues are among the most significant, particularly in homes built during the period commonly associated with New Zealand's leaky building era. Evidence of substandard repairs, structural movement, or deferred maintenance that has been left to compound can indicate significant future costs. A good inspector will provide context around their findings, but for anything serious it is worth engaging a specialist, such as a structural engineer or a weathertightness consultant, to get a clearer picture of the extent and cost of remediation.

Minor Issues and Maintenance Items

Every property of any age will have some items in the report. Minor maintenance issues such as perished sealants, isolated areas of rust, or standard wear and tear are common and should not necessarily cause alarm. The key is to distinguish between items that are cosmetic or routine maintenance and those that indicate underlying problems. Reviewing the report with the inspector directly, either in person or by phone, can help you understand which findings are priorities and which are simply part of owning an older home.

Using the Report in Negotiations

If a builder's report reveals significant issues, it is worth discussing with your solicitor whether to negotiate a price reduction, request that specific repairs be carried out before settlement, or in serious cases consider whether to proceed with the purchase at all. A report with significant findings does not automatically mean you should walk away, but it does mean the price and terms should reflect the condition of the property. Having the findings documented professionally puts you in a strong position to have that conversation with the vendor.

Making an Informed Decision

A builder's report is not designed to make your decision for you, but to give you the information you need to make it well. At Chaperone, we encourage buyers to read the full report carefully, ask the inspector questions, and share any significant findings with their solicitor and mortgage adviser. Some lenders may also ask about the condition of a property when assessing a mortgage application. Going into a purchase with a clear understanding of the property's condition means fewer surprises after settlement and a stronger foundation for your investment.