Building and pest inspection reports are designed to be clear, but the terminology used can still feel confusing — especially if you’re reading one for the first time. Words like average, minor defect or major defect can sound alarming without proper context.
This guide explains the most common building report terms, what they actually mean, and how inspectors use them, so you can confidently interpret your report and make informed decisions.
Key Takeaways
- Building report terminology is relative to similar properties of the same age and type.
- “Average” is a common and normal condition rating.
- Minor defects are expected in most homes and are often cosmetic.
- Major defects require attention but don’t always mean a property is unviable.
- Understanding terminology helps reduce unnecessary concern and supports better decisions.
- Inspectors are available to explain findings and provide clarity.
Why understanding report terminology matters
Misinterpreting inspection terminology can cause unnecessary stress or poor decisions. Many buyers assume certain terms indicate serious problems when, in reality, they often reflect what’s typical for a property’s age and construction type.
Understanding how inspectors use these terms helps you distinguish between normal wear and tear, maintenance issues, and genuine structural or safety concerns.
We’re always happy to explain our reports and findings if you have any questions, but if you want some context as to what is considered average, poor, low or high in relation to condition reports, read on for some standard definitions.
Building Report Terminology
Most inspection report terms are in relation to well-maintained buildings of a similar age and style to the one inspected;
Low / Typical / High – the level or frequency of major/minor defects expected for a well maintained home of similar age and type.
Average
This refers to the inspector’s opinion regarding the overall condition of the building when compared to homes of similar age and type. So;
Below average – means the property has been poorly maintained and is likely to require significant renovation work to get it to a suitable living standard.
Average – the condition of the home was as expected, there were some defects present but they’re reasonable for a home of this age. It has been maintained to a reasonable level.
Above average – there were less significant defects in the home compared to what you’d expect for a building of this type and age. It may only require minimal to no rectification work.
Defects
In your report defects are things that either need, or could do with some repairs, depending on their extent and what condition you want to raise the home to, should you make a purchase.
Defects are categorised based on their impact on safety, function and the likelihood of deterioration. Understanding this distinction helps buyers prioritise what needs urgent attention and what can be managed over time.
Minor defects – any defect other than a major defect is considered minor, and usually not individually reported on. They will usually be mentioned in the overall assessment of the home (below, above or average condition), such as minor blemishes, corrosion, weathering, cracks, unevenness, de-silvering of mirrors etc.
Major/significant defects – Major or significant defects are issues that affect safety, structural performance or essential functionality, or that may worsen if left unaddressed. These defects typically require building works, specialist assessment or prompt repair.
What inspection terminology does not mean
- “Average” does not mean unsafe
- “Minor defects” does not mean the property is poor quality
- A list of defects does not automatically make a property a bad purchase
- Older homes almost always have more noted defects than newer ones
Inspection reports are tools for informed decision-making — not pass/fail assessments.
Take a look at some of our sample reports to see these terms used in context.
If you’re looking at buying a home in Sydney, make sure you get a building and pest inspection before making a purchase. Contact us on 1300 337 447 or book online today.
Frequently Asked Questions
Does “average condition” mean a bad property?
No. Most properties are rated as average. It simply means the condition is typical for a home of that age and type.
Are minor defects something to worry about?
Usually not. Minor defects are common and often cosmetic or maintenance-related.
What counts as a major defect in a building report?
Major defects affect safety, structure or function, or are likely to worsen if not repaired.
Should I speak to the inspector if I’m unsure about the wording?
Yes. Inspectors can explain findings and help you understand what requires action.
