What to Look for When Inspecting Your First Property

You've found a place that fits your first home buyer budget and worked out your deposit.

Now you're standing in a house or unit trying to figure out what you should actually be looking at during an inspection.

The single most useful thing you can do is look beyond fresh paint and staging to identify problems that will drain your savings after settlement. That means understanding what to check yourself and when to bring in a professional before you commit.

Timing Your Inspection Around Roster Commitments

Most real estate agents run open homes on Saturdays between 10am and 2pm. When you're rostered on weekends or working night shifts, that window doesn't exist. Contact the listing agent directly and request a private inspection outside standard hours. In our experience, agents will accommodate police officers more often than not, particularly when you mention you're pre-approved and ready to proceed. If you've already got loan pre-approval, say so upfront. It signals you're a serious buyer and worth the agent's time at 6pm on a Tuesday.

Consider a buyer working permanent nights who asked to inspect a unit in Blacktown at 4pm on a weekday. The agent agreed, the buyer brought a retired plumber mate along to check the bathroom and laundry, and they identified a slow leak behind the vanity that would have cost around $4,000 to repair properly. The buyer used that information to negotiate a $5,000 price reduction before exchanging contracts.

What to Check Before You Book a Building Inspection

Walk through every room and open every door, cupboard, and window. You're looking for water damage, cracks wider than a five-cent piece, uneven floors, and windows or doors that don't close properly. Check under sinks for stains or dampness. Turn on taps and flush toilets to confirm water pressure and drainage. In units, ask about the strata report and when the building last had major works done to common areas like the roof, lifts, or underground parking.

In Western Sydney suburbs like Penrith, Mount Druitt, and Parramatta, older fibro homes are common. If the house was built before 1990 and has fibro or weatherboard cladding, asbestos is likely present. That doesn't automatically rule out the property, but it does mean renovation costs go up significantly. You'll need a licensed asbestos removalist for any work involving walls, eaves, or the roof, and that can add $10,000 or more to a renovation budget.

Strata reports matter more than most first home buyers realise. A building with a low strata levy might look appealing until you read the report and discover the owners corporation has $80,000 in the sinking fund and a $300,000 roof replacement due within two years. That means a special levy is coming, and you'll be liable for your share within months of moving in.

When to Pay for a Professional Building and Pest Inspection

Once you've decided a property is worth pursuing, book a building and pest inspection before you exchange contracts. This costs between $400 and $600 depending on the property size and location, and it's the one expense you shouldn't skip. The inspection report identifies structural issues, termite damage, water ingress, and electrical or plumbing problems that aren't visible during a casual walkthrough.

Make the contract subject to a satisfactory building and pest inspection. That clause gives you the right to negotiate repairs, ask for a price reduction, or walk away entirely if the report uncovers major defects. If the seller refuses to include that condition, it's a warning sign. Most sellers in NSW expect buyers to include inspection clauses, particularly for older homes.

As an example, a first home buyer looking at a house in Campbelltown found rising damp in two bedrooms and active termites in the subfloor during a professional inspection. The repair quote came back at $18,000. The buyer went back to the seller with the report, negotiated a $15,000 price reduction, and used the savings to fix the problems after settlement. Without that inspection, they would have discovered the termites months later and worn the full cost themselves.

How Property Condition Affects Your Home Loan Application

Lenders use the property as security for your loan. If the building and pest inspection reveals major structural problems, some lenders will reduce the amount they're willing to lend or decline the application altogether until repairs are completed. That can derail your purchase if you're relying on a low deposit home loan and don't have extra cash to cover a bigger deposit.

Valuations ordered by the lender sometimes come back lower than the purchase price, particularly when the property needs significant work. If you've agreed to pay $650,000 and the bank values the property at $620,000, you'll need to find the $30,000 difference in cash or renegotiate the price with the seller. When you're buying your first home, that gap can kill the deal if you've already stretched to meet the deposit requirement.

Properties with asbestos, structural cracks, or uncertified renovations can trigger lender concerns. If the previous owner added a deck or renovated the kitchen without council approval, the lender may ask for certification before they'll settle the loan. Chasing retrospective approvals from the local council takes weeks and sometimes isn't possible, which leaves you scrambling to find another property or another lender willing to proceed.

Red Flags That Should End Your Interest Immediately

Some problems aren't worth negotiating over. Large cracks in brick walls running vertically or horizontally, particularly near doors and windows, suggest foundation movement. Pooling water under the house or a damp smell in the subfloor points to drainage issues that cost tens of thousands to fix properly. If the building and pest report mentions words like "major structural movement" or "extensive termite damage to load-bearing timbers," walk away unless you've got a big renovation budget and the purchase price reflects the work required.

Multiple unauthorised alterations are another warning. If the seller has enclosed a balcony, added a bedroom, or converted a garage into living space without council approval, you inherit the risk. The council can force you to remove the work or apply for retrospective approval, and there's no guarantee that approval will be granted. Factor that risk into your decision, particularly if those unapproved changes are the reason the property suits your needs.

If you're looking at apartments or units, check the strata meeting minutes for mentions of water ingress, cladding issues, or disputes between owners. Buildings with combustible cladding face rectification costs in the hundreds of thousands, and owners are liable for their share. A two-bedroom unit in a building with a $2 million rectification bill could leave you facing a $40,000 special levy on top of your mortgage repayments.

Property inspections take time, but they're the only way to know what you're actually buying. The couple of hours you spend checking taps, opening cupboards, and reading strata reports will save you from problems that take years and thousands of dollars to fix. Get pre-approval sorted, book inspections around your roster, and don't sign anything until you've seen a professional building and pest report. Call one of our team or book an appointment at a time that works for you, and we'll make sure your first home loan application accounts for the property condition and any work you're planning after you move in.

Frequently Asked Questions