Melbourne Home Hunters Foot Hefty Inspection Bills, Sparking Calls for Vendor-Paid Reports

In the fiercely competitive Melbourne property market, prospective buyers are routinely spending thousands of dollars on building and pest inspections, only to repeatedly miss out on homes. This costly cycle is fuelling a growing debate: should the financial burden shift from buyer to seller?

The issue was highlighted by local buyer Toshi, who reportedly spent over $3,000 on multiple inspections during his search. Like many, he faced the bitter reality of paying for due diligence, then losing the property at auction, forcing the process to begin again with the next bid.

Advocates for reform argue that a vendor-provided inspection report, made available to all interested parties, would create a more transparent and efficient market. “It would level the playing field,” says a Carlton-based buyer’s advocate. “Every bidder would have the same information, reducing wasted expenditure and allowing for more informed bidding, especially at auction.”

However, many local agents and vendors are resistant. They contend that mandating seller-funded reports adds upfront sales costs and could introduce liability concerns. Critics also suggest a pre-purchased report might lack the thoroughness of one commissioned by a personally engaged buyer.

The practice of vendor-paid reports is already common in some Australian states and for certain commercial properties. As Melbourne’s housing market continues to demand significant financial commitment from bidders, the call for this shift is gaining volume, positioning it as a potential key issue for consumer protection advocates in Victoria’s real estate sector.