The Real Estate Agent Told Me to Waive the Building and Pest Inspection. Should I?

You've found a house you love.

You've been to the open home twice, mentally arranged your furniture and already pictured yourself having coffee in the backyard.

Then the real estate agent calls.

“We've got another interested buyer. If you want to secure the property, you'll need to move quickly.”

And suddenly you're wondering whether you should skip the building and pest inspection to get the deal done.

My advice? Don't let FOMO make this decision for you.

What does a building and pest inspection tell you?

A building inspection helps identify problems with the property's condition, while a pest inspection looks for evidence of pest activity or damage, including termites.

Things like structural defects, moisture problems, drainage issues and timber damage aren't always obvious when you're walking through a beautifully styled home.

And that freshly painted wall? It might be completely innocent. Or it might be hiding something expensive.

A standard inspection won't uncover every possible issue, but it can help you understand what you're potentially buying.

Can I buy a house without a building and pest inspection?

Yes, you can.

BUT should you?! there's a difference between being allowed to do something and it being a good idea.

Imagine you're buying an $950,000 house in Sydney.

You skip the inspection because you're worried someone else will make an offer.

Three months after moving in, you discover a significant moisture problem that requires thousands of dollars in repairs.

Suddenly, saving a few hundred dollars on an inspection doesn't feel like such a great decision.

I'm not saying every property has hidden problems.

I'm saying you deserve the opportunity to find out before committing to one of the biggest purchases of your life.

What if the agent says I need to exchange contracts today?

This is where you need to understand the rules.

In NSW, most residential properties purchased by private treaty have a five-business-day cooling-off period after contracts are exchanged.

You may be able to arrange inspections during that period.

However, if you withdraw during the cooling-off period, you generally forfeit 0.25% of the purchase price.

On a $950,000 property, that's $2,375.

And if you're asked to waive the cooling-off period using a Section 66W certificate, you need to understand that you're giving up an important protection.

Speak to your solicitor or conveyancer before agreeing to anything.

What if I'm buying at auction?

This is even more important.

In NSW, there's generally no cooling-off period when you buy at auction.

That means your inspections, contract review and finance preparations should happen before you bid.

You don't want to win an auction on Saturday and discover on Monday that the property needs major repairs you hadn't budgeted for.

You can read the NSW Government's guide to buying property at auction.

What would I do if I were buying?

I'd ask for the contract and have my conveyancer review it.

I'd arrange the relevant inspections as early as possible.

If it's an apartment, I'd also want the strata records reviewed, because the condition and finances of the building matter too.

And I'd make sure my finance position was clear before making a commitment.

A home loan pre-approval doesn't guarantee the lender will approve every property you choose.

The property still needs to meet the lender's requirements, and your financial circumstances need to remain acceptable.

If you're not sure where to start with that side of things, I've written a guide on how to buy a home in Sydney.

So, should I waive the building and pest inspection?

I wouldn't recommend skipping an inspection simply because an agent wants you to move faster.

There may be situations where a buyer decides to proceed without one, but that should be an informed decision made with appropriate professional advice.

Not a decision made because you're scared of missing out.

The right property is important. But understanding what you're buying is just as important.

And remember, the real estate agent represents the seller.

That doesn't mean they're doing anything wrong by encouraging a quick sale.

It just means you need your own people looking after your interests.

Your conveyancer handles the legal side. Qualified inspectors assess the property's condition. And your mortgage broker helps you understand the finance.

Buying your first home in Sydney?

I'm Eshanee, founder of April Six Finance.

I help first home buyers and first time investors understand their borrowing options, navigate the finance process and make informed decisions before committing to a property.

If you've started looking at homes and you're not sure where to begin, book a chat with Eshanee by clicking here.

I'd love to help.

Any information or advice contained on the April Six Pty Ltd website is general in nature only and has been prepared without considering your individual personal objectives, financial situation or requirements. Before acting or relying on this information, you must consider the appropriateness of this information with regard to your individual circumstances and objectives.

Eshanee Collins is the founder of April Six, a Sydney-based mortgage broker for first home buyers and first-time property investors across Australia.

📱 0488 471 888 | @eshanee_thebroker | aprilsix.com.au