The Amato Property Blog

buying with confidence: pest and building  inspection essentials

Navigating the property market can be a daunting task, especially for buyers who may not be fully aware of the potential pitfalls hidden within a home’s structure or surroundings.

To shed light on this critical aspect of property transactions, we recently sat down with Craig Pearce, from CTP Pest and Building Inspections, who has over a decade of experience in Newcastle, Lake Macquarie, and surrounding areas. His in-depth knowledge and candid insights offered a wealth of information for both seasoned and first-time property buyers.

In this article, we explore the insights shared by Craig Pearce on the importance of pest and building inspections in the home buying process, the challenges and risks associated with the unregulated property inspection industry, proper licensing and insurance, and the importance of providing solution-based advice to clients and the need for trustworthiness and reliability in choosing an inspector.

The Importance of Pest and Building Inspections

Pest and building inspections are two sides of the same coin. Each serves a distinct purpose and is critical for assessing a property’s overall condition.

• Pest Inspections focus on identifying termites, borers, and wood rot, which can undermine the structural integrity of a building. “A timber pest inspection doesn’t deal with rodents or spiders,” Craig clarifies. “It’s all about assessing timber-damaging threats.”
• Building Inspections, on the other hand, are broader in scope. They cover approximately 3,500 potential issues, from minor cosmetic defects to major structural concerns. A building report ensures you understand the safety and durability of a property before committing to a purchase.

Craig strongly recommends conducting both inspections, as they complement one another and ensure no stone is left unturned. “It’s about helping clients make an informed decision,” he says. “When you’re spending hundreds of thousands or even millions, that peace of mind is priceless.”

The Unregulated Landscape of Inspections

A surprising revelation from Craig was that the pest and building inspection industry in New South Wales is unregulated. This deregulation, which occurred in 2009, means that anyone can claim to be an inspector, regardless of qualifications or experience.

“It’s the Wild West,” Craig says bluntly. “You’ve got pest technicians conducting building inspections after a three-day course.”

This lack of regulation has led to significant variability in service quality. Craig advises buyers to research potential inspectors thoroughly. Key criteria to consider include:

• Licensing: Look for inspectors who are licensed builders with New South Wales Fair Trading.
• Insurance: Ensure they carry public liability and professional indemnity insurance.
• Reviews: Check online reviews and testimonials for an honest reflection of their service.
• Experience: Ask how long they’ve been operating and what their inspection process entails.

Transparency is crucial. “Don’t hesitate to ask for proof of insurance or qualifications,” Craig says. “This is your investment, and you deserve to feel confident in your choice.”

The Inspection Process and Technology

At CTP Pest and Building Inspections, the process goes beyond ticking boxes. Their approach is rooted in thoroughness and client education.

Craig’s team uses advanced tools, including $10,000 thermal imaging cameras, to detect issues invisible to the naked eye. Moisture meters are another staple in their arsenal, helping identify water damage and hidden leaks.

“Thermal imaging cameras pick up heat variations,” Craig explains. “They can reveal termite activity or water leaks that might otherwise go unnoticed.”

He shared an example where a camera detected significant roofing leaks and structural rot in a property that appeared pristine to the naked eye. “Without the camera, those issues could have easily been missed,” he adds.
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The Myth of Red Flags

One of the most interesting takeaways from our conversation was Craig’s perspective on “red flags.”

While some inspectors might use the term to warn clients away from a property, Craig takes a more nuanced view. “I don’t believe in red flags,” he says. “Every issue is manageable with the right approach.”

Craig shared a story about a property in Lake Macquarie where significant termite damage initially appeared to be a deal-breaker. After his inspection quantified the damage and offered a clear plan for remediation, the buyer was able to negotiate a $500,000 reduction in the purchase price.

“It’s about understanding the scope of the problem and finding a solution,” Craig emphasizes. “Every property has a buyer.”

Meth Testing: An Overlooked Aspect

CTP Inspections also offers methamphetamine contamination testing, a service that is gaining popularity in certain markets. “It’s not just about drug labs,” Craig explains. “Recreational use can also leave behind contamination.”

Meth testing involves swabbing surfaces for contamination levels exceeding 0.5 micrograms per 100 square centimeters. Craig has encountered contaminated properties in all price ranges, from modest homes to multi-million-dollar penthouses. “It’s odorless and sightless, but it can pose serious health risks,” he notes.

While meth testing isn’t necessary for every property, Craig recommends it for rental properties or homes with an unknown history. “It’s about due diligence,” he says. “If there’s any suspicion, it’s better to test and know for sure.”

Vendor Reports: Proceed with Caution

Vendor-provided inspection reports are becoming more common, but you need to be cautious when relying on them. They’re often tailored to present the property in the best possible light. 

Independent inspections ensure you’re receiving unbiased information that aligns with your interests as a buyer.

“For a few hundred dollars, you get peace of mind knowing your inspector is working solely for you,” Craig says. He recommends always commissioning your own report, even if a vendor report is available.

The Inspection Process and What Buyers Should Do Next

A typical inspection by CTP takes 1.5 to 3 hours, depending on the size and complexity of the property. Afterward, buyers receive a detailed report outlining the findings.

Craig’s top advice for buyers? Read the report carefully and always follow up with the inspector. “The verbal explanation is everything,” he says. “It puts the report in context and helps you understand what’s urgent versus what’s manageable.”

He also cautions against relying solely on summary pages, which can oversimplify complex findings. “Compile a list of questions and take the time to discuss them with your inspector,” he advises. “You’re making a significant investment—don’t rush the process.”

Properties That May Not Need Full Inspections

Not all properties require both pest and building inspections.

For example, high-rise apartments constructed with non-timber materials may only need a building report.

However, properties with timber subfloors, even in multi-unit complexes, should still undergo comprehensive inspections.

“Understanding the construction type is key,” Craig explains. “If the primary building materials aren’t susceptible to termite attack, a pest inspection might not be necessary.”

Success Stories That Highlight the Value of Inspections

Craig’s career is filled with stories that underscore the importance of thorough inspections. From identifying severe termite damage in a million-dollar home to helping a client win an insurance claim after a two-year battle, his work has had a profound impact on countless buyers.

One particularly striking example involved a property where significant termite damage was uncovered.

While many buyers would have walked away, Craig’s inspection enabled the client to negotiate a reduced purchase price and move forward with remediation. “It’s not about scaring people off,” he says. “It’s about empowering them with the facts.”

Key Takeaways for Buyers

When asked for his top piece of advice, Craig emphasizes the importance of the verbal explanation. “Reports can seem overwhelming, especially when they focus solely on defects,” he says. “Talking to your inspector helps put everything in perspective.”

He also stresses the importance of choosing the right inspector. “Do your homework,” he advises. “Look for someone who’s insured, experienced, and has a reputation for thoroughness.”

Final Thoughts

Buying a property is one of the biggest financial decisions you’ll ever make. With so much at stake, investing in a thorough pest and building inspection is essential.

Craig Pearce and his team at CTP Pest and Building Inspections provide not just technical expertise but also the guidance and reassurance buyers need to make confident decisions.

For more information about CTP Inspections, visit their website at ctpestandbuilding.com.au, call 0488-885-203, or follow them on Facebook, Instagram, and TikTok.

For a deeper dive into this topic, check out the full discussion with Craig Pearce HERE.

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Amato Property, together with their directors, officers, employees and agents have used their best endeavours to ensure the information passed on in this document is accurate. However, you must make your own enquiries in relation to the information contained in this document and seek advice from your financial advisor, broker or accountant to ascertain its application to your circumstances.