The short version
- If you're seriously planning to bid, get the inspection done before auction day. Once the hammer falls in Victoria, there's no cooling-off period and no building condition.
- Book as soon as you've decided the place is a real contender, ideally a week or more out, so there's time to get quotes on anything the report finds.
- A report supplied by the agent or vendor isn't independent. Consumer Affairs Victoria recommends getting your own.
If you're bidding on a house in Brunswick, Preston, Essendon or anywhere else in Melbourne's inner north and west, this is one of the first things to sort out, ideally well before auction week. The answer is yes, if you're actually going to bid. You also don't need to pay for a report on every house you look at to do it properly.
Why does the inspection have to happen before an auction?
An inspection has to happen before an auction because once you're the winning bidder in Victoria, you're locked in. Consumer Affairs Victoria is clear on this: if you buy at auction there is no cooling-off period, and you accept the contract terms that were on display before the auction. You can't add a "subject to building inspection" condition after the fact unless the seller agrees, and on auction day they have no reason to.
You'll also be signing the contract and paying a deposit straight after the auction. There's no law setting the amount, but Consumer Affairs Victoria says it's usually 10 per cent of the price. So if the roof structure or the stumps turn out to be a problem the week after, that's your problem, and your deposit is already on the table.
The same goes for buying just before an auction. If the seller accepts your offer less than three clear business days before the auction date, you don't get a cooling-off period either.
Is a building inspection worth it if I might lose the auction?
A building inspection is worth it for any property you're genuinely prepared to bid on, even though you might lose. I know it stings to pay for a report and then get outbid. Plenty of buyers have been through that a few times in a row. But think about what you're comparing it to: a few hundred dollars against finding out after settlement that the house needs restumping, a new roof or major work in the bathrooms.
Keep the cost down by being fussy about which places you inspect. A few things that help:
- Do your own walk-through first at the open. Look for cracks above doors and windows, floors that slope or feel bouncy, and water stains on ceilings. If it already looks like a project you don't want, save your money.
- Read the Section 32 before you book. If something in there rules the place out, you've lost nothing.
- Only inspect the places where you've got finance sorted and a number in mind you'd actually bid to.
- Ask your inspector to talk you through the report by phone. That call often tells you more than the PDF.
When should I book the inspection before auction day?
Book the inspection as soon as a property becomes a real contender, ideally at least a week before the auction. The inspection itself takes one to three hours on site, and at DSP the report usually comes through the same day. The time pressure comes after the report, when you need to act on what it says.
If the report flags something you need a second opinion on, such as a structural engineer for a big crack or a plumber for a suspected leak, those people need time to get out there too. Leaving it to the Thursday before a Saturday auction doesn't give you that room.
Access is the other thing. You don't have to chase the agent yourself. I'll liaise with the selling agent to arrange a time, but in a busy spring campaign, agents' calendars fill up fast, so the earlier you ask, the better.
Can I rely on a building report the vendor or agent provides?
You shouldn't rely on a vendor-supplied report as your only check. Consumer Affairs Victoria says to be cautious about reports supplied by the agent or seller, and that getting your own done is the only way to make sure it's independent and accurate. The inspector who wrote it was working for the seller, and you can't ask them follow-up questions.
A vendor report can still be useful as a starting point. If it mentions something, take it seriously. But it doesn't replace an inspector who's working for you, answers your questions, and is looking at the place with your money in mind.
What will a pre-auction inspection actually tell me?
A pre-auction inspection tells you about the major defects, safety hazards and general condition of the parts of the home that can be safely reached and seen on the day. That includes the interior, the roof space, the exterior, the subfloor and the roof itself. It's a visual inspection to Australian Standard AS 4349.1, so it doesn't involve cutting into walls or lifting floor coverings.
What I find most useful for buyers is knowing which issues are normal wear for the age of the house and which ones change what you should bid. A cracked tile and a sagging roof line are very different conversations. If you want the detail on what's in and out of scope, I've written that up in what a pre-purchase building inspection actually checks.
Common questions
Is there a cooling-off period if I buy at auction in Victoria?
No. Consumer Affairs Victoria says there is no cooling-off period for a successful bidder at auction, or for an offer the seller accepts less than three clear business days before the auction date.
Can I make my auction bid subject to a building inspection?
Not after the fact. At auction you accept the contract terms shown beforehand, and you can only add conditions if the seller agrees. That's why the inspection needs to happen before auction day.
Do I need a pest inspection as well before auction?
In most cases, yes. A building inspection doesn't look for termite activity, so a combined building and pest inspection is the usual choice for houses in Melbourne.
Sources
- Consumer Affairs Victoria - Buying property at auction
- Consumer Affairs Victoria - Inspect properties before you buy
- Consumer Affairs Victoria - Buying property by private sale
General information only, based on a visual inspection perspective. It is not legal or financial advice, and every property is different. An inspection report is not a guarantee that a property is free of defects.
About Dale
Dale Phelan owns DSP Building Inspections and does every inspection himself. He started out as a carpenter, became a registered builder (Domestic Builder Unlimited, DB-U 61057), and has project-managed, built and developed more than 35 homes around Melbourne. He is still actively building, so his reports explain the likely cause of each defect and how urgent it is. More about Dale