A common question from potential home buyers is: “Do I need to get a building report done?”
In most cases, banks don’t require a building report. However, if they have concerns about the property—based on listing photos or disclosures—they may ask for one.
But regardless of the bank’s requirements, it’s highly recommended to get a building report when buying a home in New Zealand. It helps you make an informed decision and gives you peace of mind.
How Does It Work?
When making an offer, you can include a condition like:
“Subject to a satisfactory building report.”
This condition usually lasts about 15 days and protects you from buying a property with hidden defects or issues.
What Does a Building Report Cover?
The report typically costs between $400 and $900, depending on the size of the property. A qualified builder or inspector will check for:
- Cracks in walls or foundations
- Water damage and rot
- Pest issues
- Compliance with building codes and regulations
What Happens After the Report?
Once you receive the report, you can decide how to proceed:
- If issues are found, you might renegotiate the price, add further conditions to the sale, or in serious cases, choose to walk away.
- If the report is clear, you can move forward confident that the property is sound.
Why It’s Worth It
While it might feel like just another upfront cost, a building report can save you from major financial headaches down the road. It’s a smart step to protect your investment and your future home.
Disclaimer: This content is general information only and is intended for educational purposes. HelloYello provides mortgage advice and does not provide KiwiSaver investment, legal, insurance, tax, or accounting advice.
