A pre-purchase builders report - Why?

​A pre-purchase builders report (also known as a building inspection report) is a detailed, non-invasive visual assessment of a property's physical condition, highly recommended for potential homebuyers in New Zealand. It is a crucial part of the due diligence process and helps buyers identify any existing or potential problems before finalising a purchase. 

Purpose and Benefits

• Informed Decision Making: Provides a clear understanding of the property's condition to help you make an informed decision on whether to proceed with the purchase.
• Negotiation Power: Identifies defects or issues that could be used as leverage to renegotiate the price with the seller.
• Avoid Costly Surprises: Uncovers hidden problems that could result in expensive repairs down the line, potentially saving thousands of dollars.
• Lender/Insurer Requirements: Many banks and insurance companies require a satisfactory pre-purchase report before offering finance or coverage. 

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What the Report Includes
A standard pre-purchase builders report, which should comply with the New Zealand Standard NZS 4306:2005 (Residential Property Inspection), generally covers accessible areas such as: 

• Interior and Exterior: Walls, ceilings, floors, windows, doors, and cladding systems.
• Foundations and Structure: Visible elements in the subfloor and roof spaces, checking for issues like rot, borer, or structural damage.
• Roof: Roofing materials, gutters, flashings, and chimneys.
• Services: Visual inspection of plumbing, drainage, and electrical systems for general condition and signs of obvious faults.
• Site Areas: Fences, driveways, paths, and retaining walls.
• Moisture and Dampness: Identifies signs of dampness, leaks, or weather tightness issues. 

Limitations
It is important to understand that a standard report is a visual, non-invasive inspection. The inspector will not move furniture, lift carpets, or perform destructive testing (like drilling into walls) to find concealed issues. If the report raises concerns, you may need to arrange further, more specialised inspections (e.g., a structural engineer's report or a detailed weathertightness survey). 

Key Steps for Buyers

1. Engage an Inspector: Hire a qualified, independent building inspector, preferably a Licensed Building Practitioner (LBP) or a member of an association like the New Zealand Institute of Building Inspectors (NZIBI).
2. Make Offer Conditional: If you are not buying at auction (where sales are unconditional), ensure your offer is conditional on a satisfactory builders report.
3. Review the Report: Read the report thoroughly and discuss any findings with the inspector.
4. Follow Up: Use the information to make an informed decision, negotiate with the seller, or seek further expert advice on identified issues. 

For more information, the Consumer Protection website in NZ offers guidance on building reports and red flags.

Call us first on 021 143 2995

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