RealyBuilder's report NZ: what it covers, what it costs, and the red flags that matter
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.
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.
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