RealyBuilding report NZ: what a pre-purchase inspection covers
A builder's report (also called a pre-purchase building inspection) is one of the two essential due diligence reports in any NZ home purchase — the other being the LIM. Skip it and you risk inheriting tens of thousands of dollars of repairs that the seller knew about and you didn't. This guide explains what a good report covers, what it costs, what it deliberately doesn't include, and the specific red flags worth walking away over.
What a builder's report should cover (NZS 4306)
The voluntary New Zealand Standard NZS 4306:2005 Residential Property Inspection sets out what a competent report covers. Always ask whether the inspector follows it. The standard requires inspection of:
- Site (drainage, retaining walls, paving, fences)
- Exterior (cladding, joinery, decks, balconies)
- Roof (covering, gutters, flashings, where safely accessible)
- Interior (walls, ceilings, floors, doors, windows)
- Subfloor (where accessible)
- Ceiling space / roof cavity (where accessible)
- Services (visible plumbing, hot water, visible electrical)
- Moisture testing (non-invasive) on walls in wet areas
A NZS 4306 report is visual and non-invasive. The inspector does not lift carpets, drill walls, or move heavy furniture.
What it does NOT cover
- Specialist building defects — leaky-building diagnosis (you need a moisture expert with invasive testing)
- Asbestos sampling — separate test, separate cost
- Methamphetamine contamination — separate NZS 8510 test
- Compliance with council consents — that's what the LIM is for
- Geotechnical issues (subsidence, slip risk) — needs a geotech engineer
- Pest infestation beyond visible signs (borer, rodents) — usually requires a separate pest inspection
What it costs and how long it takes
- Cost: $500–$900 for a standalone home. More for large homes, multi-unit titles, or coastal/cliffside properties.
- Inspection time on-site: 2–3 hours.
- Report turnaround: 24–72 hours.
- Booking lead time: 2–7 days in busy markets — book the inspector as soon as your offer is accepted.
Red flags worth walking away over
- Monolithic cladding from 1994–2005 with no remediation — classic leaky-building era. Insurance and re-sale can both be problems.
- Significant moisture readings inside the cladding with no obvious source — usually means hidden leaks.
- Untagged electrical work or DIY-look wiring in switchboards.
- Unconsented additions visible from the report and confirmed by the LIM (decks, garages converted to bedrooms, internal walls moved).
- Foundation cracks wider than ~3mm or stepped diagonal cracks in brickwork.
- Roof at end of life on a price-stretched purchase — re-roofing is $20,000–$60,000.
- Asbestos cement cladding in poor condition — removal alone can run into five figures.
How to choose an inspector
- Ask whether they follow NZS 4306 and will provide a written report (not just a verbal walkthrough).
- Ask whether they carry Professional Indemnity insurance — you need this if you ever rely on the report for a claim.
- Ask whether the agent recommended them. If yes, get a second name — independence matters.
- Read a sample report before paying. Reports that are mostly "as observed" with no commentary or photos are not worth $700.
- Confirm the report is in your name (so you can rely on it legally), not the agent's.
Order the report and keep the evidence
- Book early enough to meet the building-report condition in your agreement.
- Give the inspector concerns raised by the LIM, property file or open home.
- Walk through significant findings and commission specialist checks where recommended.
- Keep the written report, photographs, quotes and follow-up answers with the property's other documents.
Realy's Info Pack keeps the building report beside the LIM and agreement so the people helping you are working from the same evidence.
Frequently asked questions
Do I need both a builder's report and a LIM?
Yes. They cover different things. The builder's report tells you the physical condition of the house; the LIM tells you what the council has on file (consents, hazards, rates, zoning).
Can I share the seller's builder's report instead of getting my own?
Only if it was commissioned in your name — otherwise you have no legal right to rely on it. Sellers sometimes provide an inspection report; treat it as background reading, not a substitute.
Can I get a builder's report before making an offer?
Yes — this is common for auction properties because all due diligence must be done before bidding. The cost (~$700) is at risk if you don't end up buying.
Is the builder's report enough for a leaky home?
No — a NZS 4306 inspection is non-invasive. If there's any sign of a monolithic-clad 1994–2005 property, commission an additional invasive moisture investigation from a specialist.
Manage your whole purchase in one place
Realy gives buyers a private workspace to track LIM, builder's report, finance, KiwiSaver, and settlement — free to start.
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