Two weekends and a few hundred dollars of due diligence routinely prevents five-figure problems. Here is exactly what to check, in the order that finds the most.
Due diligence is everything you check between deciding to buy and signing. Done properly it takes two weekends and a few hundred dollars. Skipped, it becomes a six-figure problem discovered after settlement.
The four checks below are the ones that actually find things. The rest are detail.
1. The building and pest inspection
This is the single highest-return spend in the whole buying process. A $600 inspection routinely finds $5,000–$40,000 of problems.
What a good inspector looks for
| Problem | What it looks like | Typical repair | Severity |
|---|---|---|---|
| Rising damp | Tidying marks up to ~1m above skirting, blistered paint, musty smell, efflorescence on brick | Injector DPC replacement, $2,000–$8,000 | High |
| Structural cracks | Stepped cracks through mortar joints, especially diagonal from openings, or cracks that move | Underpinning $20,000–$60,000 | Critical |
| Termite damage | Damaged skirtings, hollow-sounding timber, mud tubes, bubbling paint | Treatment plus damaged-member replacement | High |
| Roof age and condition | Repointing, ridge capping, rust, sarking | Partial $6K–$15K, full $15K–$30K | Medium |
| Roof plumbing | Stains on ceilings, low points, no overflow | $2,000–$6,000 | Medium |
| Electrical | Old switchboard, no safety switches, unpermitted extensions | $2,500–$6,000 | Medium |
| Plumbing | Slow drains, low water pressure, old galvanised pipework | $1,500–$8,000 | Medium |
Choose your own inspector
Agents "recommend" inspectors who are fast and rarely find problems, because a clean report sells the house. Choose a licensed builder's inspector yourself, one you booked by phone rather than through the agency. Budget $500–$800 for a typical house. If the agent objects to your own choice, that is information.
Inspect more than once
Go at least twice if you can: once midweek in daylight to see the neighbourhood and parking realistically, and once at the weekend evening to see noise, traffic and neighbours. Both tell you different things. Bring a phone and photograph every defect before you make an offer, so you have a dated record if it worsens.
2. If it's an apartment: the strata report
For units and townhouses, the contract of sale must contain the contract notes and the section 184 information. Get both, and read them properly.
| Document | What it tells you | Why it matters |
|---|---|---|
| Contract notes | Levies, sinking fund balance, major works planned | A building needing a $400K façade lift will hit your levies |
| Section 184 statement | Total levies outstanding, contribution period | You inherit what's unpaid — ask for the account ledger |
| Minutes of last AGM | Disputes, litigation, building defects | A building in litigation is a building you'll fund |
| Insurance schedule | Building value, excess, last revaluation | Underinsurance is common in older buildings |
| Proposed works schedule | Capital works in the next 5 years | Ask what you'll pay and over how long |
Two questions to ask the agent in writing: "Are there any current or threatened legal proceedings against the owners corporation?" and "Is there a proposed capital works program, and what is my estimated contribution?" If the answer to either is vague, get the minutes yourself.
3. The title and the land
Your conveyancer orders searches on the contract, but you can and should look yourself first. These free public records catch the deal-breakers.
- Check the title plan (NSW) or register of titles. Look for easements, covenants, and restrictions on the certificate of title. A " drainage easement" through your backyard limits where you can build. A "building restriction" may block a second storey forever.
- Check the council planning scheme (Victoria). Look up the zoning, the overlays, and whether the property is in a proposed planning scheme amendment area.
- Check flood and bushfire mapping on your state emergency service website. This is free, instant, and regularly changes after major weather events. A property bought after a flood but before the mapping updated is your problem.
- Check for contamination sites — a former gas station or dry cleaner has cleanup liability attached to the land in most states. Free registers, quick search.
- Check the subdivision plan for any notional easements, particularly in new estates. These are commonly overlooked and restrict building forever.
- Check the bushfire risk rating and the BAL (Bushfire Attack Level) where relevant — it affects insurance, not just safety.
- Walk the boundaries on Google Street View and satellite imagery. A neighbouring extension sitting on the boundary is worth a conversation.
4. The neighbourhood and the money
These checks cost nothing and prevent expensive surprises.
On sales history: use the state land registry (NSW, VIC, QLD, WA all have free or cheap access) rather than portal estimates. Portal "median" figures are asking-price based and routinely wrong for individual streets.
The one-page due diligence sheet
Print this and take it to every inspection.
Make the inspection a condition
Whatever you agree with the seller, write it into the contract. "Subject to satisfactory building and pest inspection" costs nothing and gives you a walk-away right within the cooling-off window. If you don't make it a condition, the inspection only tells you what you've already agreed to live with.
We publish general information, not legal or financial advice. Off-the-plan contracts, conveyancing and settlement law vary by state and by individual circumstances. Always have your own independent legal adviser review any contract before you sign — the cost is trivial against the risk. Found something wrong? Tell us.