The burden of pre-sale building and pest inspections would shift from prospective buyers to sellers under legislation the Victorian Labor government plans to table in 2027 if it wins re-election in November.
Under the proposal, sellers would be required to organise and pay for the reports before putting a property on the market, with the reports to be made available to all potential buyers.
Currently, most buyers arrange and pay for their own inspections while competing for the same property, at costs that can snowball if they miss out at auction or negotiations fall through.
Building and pest inspection reports can cost between $500 and $600 combined, according to research from the Consumer Policy Research Centre cited by the state government.
About half of all buyers pay for multiple inspections before buying a home, while one in six pay for seven or more at a cost of up to $4200, the research found.
Inspections can be pivotal in purchasing decisions, with 11 per cent of buyers having decided not to place an offer after viewing a report.
Despite their make-or-break nature, about one in six homebuyers are going in blind, purchasing a property without an inspection often due to cost.
"The status quo isn't working. Some buyers spend thousands on multiple reports. Some roll the dice and go without," Premier Jacinta Allan said.
"When you buy a car, the seller pays for the roadworthy. It should work the same way when you look for a home."
The government plans to consult with industry stakeholders and its counterpart in the ACT, the only jurisdiction where owners are required to pay for inspections reports.
There vendors must arrange pest and building inspection reports three months before a sale except for certain kinds of properties including new builds.
The reports must meet certain standards and vendors can recover the costs from a successful purchaser after a contract is signed.
The Allan government's proposal will include safeguards to prevent low-quality reports and conflicts of interest while buyers would still be entitled to commission their own reports.
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