The building report found problems. %%Now what%%?
A one-page playbook covering the three paths when your pre-settlement building report flags issues. Each path is broken down into steps, triggers, and warnings — so you can pick the right one before the condition lapses.
Three paths. Three sets of steps.
The wrong response to a building report can cost you the property, the deposit, or tens of thousands in repairs. Pick the right path early.
Path 1 — Price Reduction
You do the work later. Works when the issues are manageable and you can still fund repairs after the bank trims lending.
Path 2 — Seller Fixes Before Settlement
Make it a settlement requirement. Best when the issue jeopardises finance or insurance, or needs specialist work.
Path 3 — DIY & Budget
Seller won't budge. You buy as-is, scope the works, and fund repairs yourself. Needs at least two quotes and a 20–30% contingency.
Evidence pack
2–3 itemised quotes (scope, labour, materials, GST). Precise numbers beat round numbers in negotiation.
Accept, split, or hold firm — driven by comps, the scope of work, and your bank's lending tolerance.
Accept, split, or hold firm — driven by comps, the scope of work, and your bank's lending tolerance.
Variation to purchase price
Any price reduction is documented as a variation. Other terms of the contract stay unchanged.
Angus Grayson, LLB
Building report issues are the single most common reason first home buyer contracts wobble. This playbook is the one I wish I'd had in front of me when I was a junior lawyer — it gets straight to the three decisions that matter.
Send me the guide.
The wrong response to a building report can cost you the property, the deposit, or tens of thousands in repairs. Pick the right path early.
Before you download.
Does a bad building report kill the deal?
Almost never — unless the issue is uninsurable (serious weathertightness, major structural, title-linked). Most building reports surface fixable issues.
What if the bank won't lend on the property as-is?
Path 2 (seller fixes before settlement) is the only option that preserves the deal. Path 1 requires the bank to accept the current condition.
How long do I have to negotiate?
Whatever the building report condition window says — usually 10–15 working days from signing. Don't let it lapse.
Can I use this playbook at auction?
No — auction contracts are unconditional. This playbook is for conditional contracts where a building report condition exists.