Raising the Standards: Why Greater Transparency Could Benefit Both Buyers and Sellers

There has been growing discussion in Victoria around a proposal that could require sellers to provide building and pest inspection reports before a property is listed for sale.

At Price & Co. Real Estate, this is a conversation we welcome.

For some time, we have advocated for greater transparency in property transactions, including the idea that buyers should have clearer information about a property’s condition before making one of the biggest financial decisions of their lives.

Much of the discussion around this reform has focused on the benefit to buyers — and rightly so. Under the current system, buyers often pay for multiple building and pest inspections during their property search, sometimes spending significant amounts before successfully purchasing a home.

However, there is another side to this conversation that deserves equal attention.

Greater transparency can also benefit vendors.

In the current system, defects are often discovered late in the process, sometimes after a buyer has already made an offer or entered into a contract subject to inspection.

When a major issue is identified at that stage, the result can be disruptive:

• Buyers may withdraw from the purchase
• Negotiations can reopen unexpectedly
• Vendors may be forced to reduce their price
• A sale can collapse entirely

This can be frustrating and costly for everyone involved.

If building and pest reports were available before a property is listed, vendors would have the opportunity to identify any significant issues early.

That creates several advantages.

Firstly, it allows sellers to address problems proactively — repairing defects before buyers even inspect the property.

Secondly, it reduces the likelihood of surprises during negotiations, which can destabilise a transaction.

And finally, it gives buyers greater confidence that the property has been presented transparently from the outset.

In many cases, identifying and resolving issues early can help protect the value of a property, rather than having problems discovered later that lead to renegotiation or a loss of buyer confidence.

Of course, as with any reform, the detail of how the system works will matter greatly.

Several important questions will need to be addressed if this approach is introduced in Victoria:

• Why is the proposed implementation date early 2027?
• Will the building and pest inspection industry be further regulated?
• Will inspection reports be standardised so they are easier for buyers to interpret?
• How long will reports remain valid once issued?
• If a major defect is identified and subsequently repaired, what evidence will be required to demonstrate the issue has been resolved?
• Would a new inspection report need to be commissioned after significant repairs?

These practical considerations will determine whether the reform delivers the transparency it intends to achieve.

However, the broader principle is clear.

When buyers have better information and sellers have the opportunity to address issues early, the result is a more stable and confident transaction process.

At Price & Co. Real Estate, we support initiatives that raise the standards of the industry and improve confidence for both buyers and sellers.

Because when transparency improves, the entire market benefits.

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Price & Co. Real Estate