A building inspection report is one of the most useful tools a homebuyer has when negotiating a property purchase in New Zealand. Once you understand what the report is telling you, you can use its findings to either negotiate a lower price, request repairs, or — in serious cases — walk away from the deal altogether.
What Is a Building Inspection Report?
A building inspection report is a written assessment of a property's condition, prepared by a qualified building inspector. In New Zealand, inspectors typically assess the structure, roof, cladding, plumbing, drainage, moisture levels, and any visible defects. The report does not cover hidden work inside walls or electrical systems (unless a separate electrical inspection is arranged), but it gives you a solid picture of the property's overall condition.
It's worth noting that building inspectors in NZ are not currently required to hold a government licence, though many are Licensed Building Practitioners (LBPs) or members of professional bodies such as the New Zealand Institute of Building Surveyors. Always check your inspector's qualifications and experience before engaging them.
Reading the Report Before You Negotiate
Before you can negotiate effectively, you need to understand what you're reading. Most reports categorise findings by severity — commonly using terms like urgent, significant, moderate, or maintenance item. Focus your attention on:
- Urgent or significant defects — These are issues that affect the safety, weathertightness, or structural integrity of the home. Examples include leaky cladding, substandard foundations, or serious roof damage.
- Deferred maintenance — Items that aren't critical right now but will need attention soon, such as repainting, resealing, or gutter replacement.
- Minor issues — Small cosmetic or wear-and-tear items that are normal in any lived-in home.
For anything related to weathertightness or cladding systems, it's worth cross-referencing with guidance from BRANZ, New Zealand's independent building research organisation, or checking the MBIE Building Performance website for information on common defects and the NZ Building Code.
Prioritising the Issues
Not every finding in a report justifies a price reduction. A useful approach is to sort findings into three buckets:
| Category | Examples | Negotiation Value |
|---|---|---|
| Safety or structural | Leaking roof, rotting framing, foundation movement | High — significant price reduction or repair request |
| Weathertightness | Failing cladding, poor flashings, moisture ingress | High — can be very costly to remediate |
| Deferred maintenance | Old paint, worn seals, minor drainage issues | Moderate — factor into your offer |
| Cosmetic | Scuffs, dated fittings, minor cracks | Low — generally not a negotiation point |
Get quotes from qualified tradespeople for any significant remediation work before you go back to the vendor. Having real numbers behind your negotiation is far more persuasive than a vague reference to "issues in the report."
How to Approach the Negotiation
Once you've prioritised the findings and gathered repair estimates, you have a few options:
1. Request a Price Reduction
Present the vendor (through your real estate agent or solicitor) with a clear summary of the significant defects and the estimated cost to remedy them. Ask for a price reduction that reflects those costs. Keep the conversation factual and unemotional — you're not criticising their home, you're adjusting for its actual condition.
2. Request Repairs Before Settlement
Instead of a price reduction, you can ask the vendor to fix specific issues before settlement. If you go this route, make sure any agreed repairs are completed by licensed tradespeople and that you receive documentation (e.g., documentation of compliance for plumbing work (confirm the specific documentation required with your plumber or the PGDB), or sign-off from an LBP for structural repairs). Check Licensed Building Practitioners to verify credentials.
3. Use It as a Walk-Away Trigger
If the report reveals serious defects — particularly leaky building issues, significant structural problems, or evidence of unpermitted work — it may be wiser to walk away. Check with your solicitor about your options under the sale and purchase agreement, especially if you have a building inspection condition in your offer.
Understanding Unpermitted Work
If the report flags work that appears to have been done without a building consent, this is a red flag. In New Zealand, certain work requires a building consent under the NZ Building Code, while some minor work qualifies as a Schedule 1 exemption. However, you should always confirm with your local council whether specific work was consented — never assume. Unpermitted work can affect your ability to get insurance or sell the property later.
When to Call a Professional
If the report raises concerns about electrical wiring, always engage a registered electrician — electrical work is restricted under the Electrical Workers Registration Board (EWRB) rules. Similarly, any plumbing or drainlaying concerns should be assessed by a licensed plumber registered with the Plumbers, Gasfitters and Drainlayers Board (PGDB). For structural or weathertightness issues, an LBP or registered engineer can provide a more detailed assessment and repair estimate.
If you need a qualified building inspector or any of the above tradespeople, you can find local professionals on tradedirectory.co.nz.
Licensed Building Practitioner (LBP)
BCITO Qualified
