A building report is a critical document when you’re buying property. It translates an inspector’s observations into actionable information about a building’s condition, safety, and likely future costs. Knowing what to look for in that report helps you negotiate, budget for repairs, and avoid unpleasant surprises after settlement. Here are seven key things to focus on when reviewing a building report before you buy.
Contents
1. Executive summary and overall condition rating
Start with the executive summary. A good report begins with a clear, concise overview that highlights major defects, immediate safety concerns, and items requiring urgent attention. Look for a general condition rating—often expressed as “good,” “fair,” or “poor”—which gives you an immediate snapshot of the property’s status.
Why it matters:
- The summary saves time and flags deal-breakers quickly.
- It helps you prioritize which issues need immediate negotiation or remediation before closing.
If the executive summary is vague or missing, request clarification from the inspector; you need a clear starting point.
2. Structural and foundation issues
Structural integrity is arguably the most important aspect of any Building Report. Inspectors evaluate foundations, load-bearing walls, beams, floor levels, and visible signs of settlement such as stair-step cracks in masonry, bowed walls, or significant floor slope.
What to check:
- Presence and description of foundation cracks (type, direction, and severity)
- Signs of ongoing movement or active settlement
- Any recommended specialist assessments (e.g., structural engineer)
Why it matters:
- Structural repairs are often the most expensive and disruptive.
- A recommendation for a structural engineer means you should obtain a professional opinion and cost estimate before proceeding.
3. Roof, gutters, and water penetration
Roof condition and drainage systems are common sources of long-term damage. The report should detail roofing materials, age estimates, missing or damaged elements, flashing condition, and gutter/downspout effectiveness. Equally important are signs of past or current water penetration—stains on ceilings, mold, soft timbers, or dampness in basements and crawlspaces.
What to check:
- Estimated remaining life of the roof
- Evidence of leaks or past repairs
- Recommendations for immediate or future action (patch, replace, improve drainage)
Why it matters:
- Water intrusion leads to rot, mold, and structural deterioration; addressing it early saves cost and health risks.
4. Plumbing and drainage systems
Plumbing issues can range from minor leaks to major sewer-line problems. The report should note the condition and age of the water heater, type of piping (copper, PEX, galvanized, polybutylene), visible leaks, water pressure concerns, and signs of past flooding or poor drainage around the foundation.
What to check:
- Any active leaks or corrosion
- Condition and age of water heater and visible appliances
- Recommendations for sewer scope or specialist testing if there are signs of chronic problems
Why it matters:
- Plumbing repairs and sewer-line replacements can be costly and disruptive.
- Hidden leaks often lead to secondary damage (mold, rot) that compounds repair costs.
5. Electrical systems and safety items
Electrical defects pose immediate safety hazards. A thorough report will describe the main service capacity, condition of the electrical panel, presence of outdated wiring types (knob-and-tube, aluminum), proper grounding, and functionality of critical safety devices like GFCIs and smoke/CO detectors.
What to check:
- Any unsafe wiring, overloaded panels, or evidence of overheating
- Missing or non-functional safety devices
- Whether further evaluation by a licensed electrician is recommended
Why it matters:
- Electrical repairs are essential for safety and can be expensive if rewiring is needed.
- Lenders and insurers may require corrections for unsafe electrical conditions.
6. HVAC, insulation, and ventilation
Heating, ventilation, and air conditioning systems affect comfort, energy bills, and indoor air quality. The report should list the HVAC equipment’s apparent age and condition, filter and duct cleanliness, and any evidence of poor ventilation (excess humidity, condensation). Insulation levels in attics and walls should be noted, as should the presence of drafts or thermal bridging.
What to check:
- Functionality and maintenance history of heating/cooling equipment
- Evidence of poor ventilation or moisture problems in attics/crawlspaces
- Recommendations for insulation upgrades or HVAC servicing
Why it matters:
- Replacing HVAC systems and improving insulation are significant expenses but yield long-term energy savings.
- Poor ventilation can exacerbate mold and moisture issues.
7. Safety hazards, code issues, and recommended follow-ups
Finally, scrutinize any identified safety hazards and code compliance issues. These include trip hazards, improper handrails or guardrails, missing smoke and carbon monoxide detectors, and any DIY or non-compliant alterations. The report should also list recommended follow-up actions—specialist inspections (structural engineer, electrician, plumber, pest control), estimated urgency, and expected next steps.
What to check:
- Clear categorization of defects: immediate safety, major repair, routine maintenance
- Specific recommended specialists and tests
- Photographs and measurements that support findings
Why it matters:
- Safety issues may require immediate fixes that influence occupancy or insurance.
- Specialist follow-ups give you realistic repair estimates and inform negotiation strategies.
Conclusion
A building report is more than a checklist—it’s a decision-making tool. Focus on the executive summary, structural integrity, roof and water issues, plumbing and drainage, electrical safety, HVAC and insulation, and any safety or code concerns. Pay close attention to recommended specialist follow-ups and the urgency of identified defects. Armed with a clear understanding of these seven key areas, you can negotiate more effectively, budget wisely for repairs, and avoid costly surprises. Always discuss unclear findings with the inspector and, when necessary, obtain specialist quotes before committing to purchase.