How to Negotiate Repairs Using Your Building Inspection Report

Buying a property is one of the biggest financial decisions you’ll ever make—and the last thing you want is to discover costly defects after you’ve signed the contract. That’s why building inspection reports aren’t just helpful—they’re powerful.

When used the right way, they can become your best tool in negotiating fair repairs, price reductions, or conditions before settlement.

In this guide, we’ll show you exactly how to negotiate repairs using your building inspection report, including what to focus on, how to approach the seller, and how to avoid common pitfalls that could cost you thousands.

Quick Overview

At a Glance: Negotiating Repairs with Confidence

• Building inspection reports help uncover hidden issues like structural damage, plumbing problems, or pest infestations.

• These reports give you solid grounds to renegotiate price, request repairs, or even walk away from a deal.

• Timing is crucial—negotiation happens between the cooling-off period and contract finalisation.

• Always prioritise major safety or structural issues over cosmetic flaws.

Want to protect your investment and get a better deal? Keep reading to learn how to use your report as a negotiation tool.

Step-by-Step: How to Use Your Report in Negotiations

1. Understand the Severity of the Issues

Not all defects are dealbreakers. Before jumping into negotiation, assess the report with a clear head:

• Major structural defects: cracked foundations, sagging roofs, or faulty wiring should be top priority.

• Safety concerns: things like loose railings, faulty smoke alarms, or asbestos should be addressed.

• Moderate issues: plumbing leaks, mould, pest activity can be expensive but manageable.

• Minor/cosmetic issues: peeling paint or dated fittings aren’t worth pushing for.

Pro Tip: Ask your inspector to walk you through the most serious items. You can also get quotes from tradies for an accurate idea of repair costs.

2. Prioritise What to Negotiate

Trying to get everything fixed is unrealistic. Focus on what matters most:

• Health and safety risks

• Structural integrity

• Anything likely to worsen over time

• Repairs that affect livability or resale value

Avoid pushing back on every small item—being reasonable builds trust and gets you further.

3. Choose Your Negotiation Strategy

You’ve got options depending on the type and scale of issues:

• Price reduction: Ask for a fair discount based on the cost of repairs you’ll take on.

• Request seller repairs: Have the seller fix certain items before settlement (get it in writing!).

• Special conditions in the contract: For major repairs, you can request that they be professionally completed by a certain date.

• Walk away: If the issues are severe and the seller won’t budge, sometimes the smartest move is to walk.

Did You Know? In Australia, you often have more negotiating power during the cooling-off period—especially if the market isn't ultra-hot.

4. Use Language That Gets Results

Present your concerns professionally and factually. Here’s how:

• Be specific: “The report identifies termite activity in the subfloor, estimated treatment cost is $2,500.”

• Be reasonable: “We’re still keen to proceed, but would like to renegotiate based on these findings.”

• Stay calm: Avoid blame, emotion, or ultimatums unless truly necessary.

Always attach the relevant page(s) of the report for reference.

5. Get Everything in Writing

Verbal agreements don’t cut it in real estate. Once terms are agreed on:

• Amend the contract to reflect any new conditions

• Include quotes, timelines, or required professionals

• Have your solicitor or conveyancer review everything before signing

This avoids surprises at settlement.

Quick Guide: From Defect to Deal – A Realistic Repair Negotiation Example

Moving In With Your Eyes Open

You’ve just received your building inspection report, and it shows rising damp, a roof leak, and dodgy backyard drainage. You still love the home, but these aren’t cheap fixes.

Common Challenges:

• Is the seller even willing to negotiate?

• How much can you reasonably ask for without losing the deal?

• What if they deny there’s an issue?

How to Solve It:

Get Trade Quotes Fast: Call a local plumber and roofer. Secure written estimates for repairs.

Choose Your Negotiation Angle: Decide whether you want a price reduction or repairs completed before handover. Let your agent know your preferred approach.

Use the Report Strategically: Send the relevant report sections and quotes to the seller with a polite message:

“We’re still happy to proceed, but based on the $7,500 repair quote, we’d like to adjust the offer accordingly.”

Stay Open to Compromise: They may offer partial fixes or split the costs. Be prepared to meet halfway if the home is otherwise ideal.

Why It Works:

You’ve shown you're serious, done your homework, and remained flexible—traits that usually lead to successful negotiation and a smoother settlement.

Need help interpreting your inspection report? Reach out to a local buyer’s advocate or building consultant to help you plan your next move.

FAQs: Using Your Building Inspection Report Effectively

Q: Can I renegotiate after signing the contract?

A: Yes—if you're within the cooling-off period (varies by state) or if you have a building and pest clause. Your legal rep can advise based on your contract terms.

Q: What if the seller refuses to negotiate?

A: You can:

• Walk away (if you’re still within the cooling-off period)

• Proceed at your own risk

• Try again with more evidence or compromise

Q: How much should I ask for in a price reduction?

A: Match it to real quotes. If repairs cost $10K, asking for a $10K reduction is reasonable. Avoid inflating numbers—it can backfire.

Q: Should I worry about small defects in the report?

A: Not really. Focus on major repairs—cosmetic issues are usually expected and not a deal-breaker.

Q: Can I negotiate repairs on a newly built home?

A: Absolutely. Even new homes can have defects. The builder may be obligated to fix them under warranty.

Conclusion

A building inspection report is more than just a checklist—it’s your opportunity to protect your future home and financial security.

By learning how to read the report carefully, prioritise key issues, and negotiate with confidence, you turn a potential stress point into a major advantage.

Just remember: stay professional, know your rights, and don’t be afraid to ask for what’s fair. The right negotiation could save you thousands and help you move into your new home with peace of mind.