Due Diligence 101: The Independent Building Inspection

Due Diligence 101: The Independent Building Inspection

September 28, 2026

The importance of the INDEPENDENT Building Inspection

“The biggest purchase of your life should never rely on someone else’s agenda,” warns building inspection industry leader, Michael Heathcote.

Michael Heathcote, a leading independent building inspector with over 40 years of experience in the construction industry is issuing a strong warning to property buyers across Australia: do not rely on real estate agent-supplied pre purchase building and pest inspections, especially those sourced through websites selling ‘second-hand’, cheap reports.

“There is a growing and deeply concerning trend,” says Mr Heathcote, “where buyers are offered inspection reports that have been ordered or endorsed by the very agents selling the property. This is a clear conflict of interest.”

These reports are frequently arranged by or through the selling agent using online services that promote fast, low-cost reports. While convenient, they may not be in the best interests of the buyer.

house for sale in Melbourne

The Dangers of Collusion

Michael Heathcote is the Owner and Principal Inspector at Building Masters Inspections, a network of independent qualified inspectors that inspect houses across Melbourne and country areas.  Mr Heathcote is passionate about ethics in an industry which is unregulated, and fraught with unethical behaviour and collusion.

He says there is increasing evidence in the industry that some of these reports are the result of collusion between agents and inspectors, leading to “soft reports”—documents that deliberately downplay or omit serious structural or pest-related issues to avoid jeopardising the sale.

“We know this is going on, because I have been approached by agents seeking to partner with my business with the promise of on-going referrals. I don’t agree with it, my only concern is to provide my clients with an honest, independent opinion about the property,” Mr Heathcote says.

“In some cases, we’ve re-inspected properties where the agent’s report describes only minor defects, only to find major termite damage, leaking roofs, and structural defects,” Mr Heathcote explains. “An agent would never share a report with a potential buyer that would jeopardise the sale of a property – this is yet another conflict of interest demonstrated here.”

“In addition, the reports we provide our clients are exclusively for their use. We do not re-sell our inspection reports to others interested in the same property as this would be detrimental to the interests of the client. It could significantly reduce their negotiating power and we just don’t agree with it.”

“I urge buyers to always seek your own, independent inspection,” Mr Heathcote said.

Your Due Diligence Is Your Responsibility

Buyers must understand that once the sale is finalised, any hidden problems become theirs to deal with—legally, financially, and emotionally. The few hundred dollars saved by not commissioning an independent report could cost tens of thousands down the line.

“This is the biggest financial decision most people will ever make. It should be backed by independent, impartial advice—not a checkbox exercise orchestrated by those with a vested interest in the sale,” Mr Heathcote said.

What Can Buyers Do?

  • Always commission your own independent building and pest inspections.
  • Choose an inspector with no affiliations to real estate agents or report sales platforms.
  • Ask direct questions and review past examples of the inspector’s reports.
  • Take the time to understand what you’re buying—don’t let urgency or sales pressure cloud your judgement.

“When it comes to protecting your future, cheap shortcuts aren’t worth the risk. Make sure you engage an independent, qualified inspector to provide you with a report you can depend on.”

If you’d like to know more about obtaining an independent building inspection that you can trust, send us an enquiry and we’ll be in touch with a custom quote.

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