Buying property is a major financial decision, and getting a professional building inspection helps protect your investment. If the inspection report finds defects or hidden issues, you might wonder if you can negotiate the purchase price. In many cases, you can.
Knowing how inspections impact negotiations helps you make better decisions, avoid unexpected costs, and possibly save a lot of money.
Why Building Inspections Matter Before Settlement
A building inspection gives you an independent, professional look at the property’s condition. It can reveal structural problems, safety risks, maintenance needs, and defects you might not notice during a regular viewing.
Common problems uncovered during inspections include:
- Structural movement or cracking
- Roof leaks or drainage problems
- Electrical or plumbing safety issues
- Pest damage or timber decay
- Non-compliant renovations
- Moisture intrusion or mould risks
These issues can greatly affect a property’s value, so they often become the reason for price negotiations.
Can You Negotiate After a Building Inspection?
Most private sales include a building and pest inspection clause in the contract. This clause lets buyers:
- Request repairs
- Renegotiate the price
- Or withdraw from the contract.
If significant defects are discovered.
Negotiation is especially common when the inspection reveals issues that:
- Were not disclosed by the seller
- Affect structural integrity or safety.
- Require immediate or expensive repairs.
- Reduce the property’s market value.
Sellers are usually willing to negotiate since future buyers will likely find the same problems.
When Negotiation Is Most Successful
You have a better chance of renegotiating when:
1. The Issues Are Major
Major problems like structural faults, water damage, or electrical hazards matter more than minor cosmetic issues.
2. You Have Professional Evidence
A thorough inspection report with photos and clear details gives you strong leverage and credibility.
3. Repair Costs Are Documented
Getting quotes from tradespeople can back up your request for a lower price.
4. The Market Favours Buyers
When the market is slow, sellers may be more open to negotiation because they don’t want to lose a sale.
When Negotiation May Not Be Possible
Sometimes, renegotiating the price just isn’t possible:
- Auction purchases: These are usually unconditional, meaning you accept the property “as is.”
- Minor defects only: Small maintenance issues rarely justify price changes.
- No inspection clause: Without this clause, you may have limited rights to renegotiate.
How to Negotiate After Receiving Your Inspection Report
If your inspection finds problems, here’s what to do:
- Review the report carefully – Understand which issues are serious versus minor.
- Talk to your inspector – They can explain severity, urgency, and repair implications.
- Get repair estimates – Use licensed trades for accurate costings.
- Submit a formal request – Your conveyancer or agent can present evidence to the seller.
- Be realistic – Focus on major defects rather than cosmetic concerns.
If you negotiate professionally and have clear evidence, you’re more likely to succeed and drop the purchase price.
Should You Walk Away Instead?
Sometimes, the best choice isn’t to negotiate but to walk away. Think about withdrawing if the report shows:
- Structural instability
- Extensive water damage
- Termite infestations affect the integrity.
- Illegal building works
- Major foundation issues
A professional inspection isn’t just about negotiating price — it’s about protecting you from making a costly mistake.
Why Professional Inspections Give You Negotiation Power
Not all inspection reports are the same. A detailed report from a qualified building inspector gives you:
- Clear defect explanations
- Photographic evidence
- Practical repair recommendations
- Safety risk identification
- Priority levels for issues
This level of detail gives buyers confidence and gives sellers concrete reasons to reconsider price or conditions.
Final Thoughts
Yes, in many cases, you can negotiate the price after a building inspection, which can save you significant money. A professional inspection gives you the facts, the evidence, and the confidence to negotiate or walk away if needed.
The key is to book your inspection early, understand the results, and get expert advice to help you decide what to do next.
Buying property in Melbourne?
Make sure you know exactly what you’re buying before you commit. Book a professional building inspection with Elevate Building Inspections to get the clarity you need to negotiate confidently and protect your investment.
