Banks may also request a builder's report and a moisture test on homes built between 1990-2004, or with monolithic cladding.
Co-director of Building Surveying Services (BOP) Graeme Blissett, who has been a building inspector for 12 years, understood the costs associated with buying a property "got quite expensive" but said those buyers prepared to forgo a builder's report needed to consider how much money they had and the risk they were prepared to put it at.
"When the hammer falls, you've bought that property," he said.
Most properties he inspected had non-compliant work or faults which would cost the new buyer more than the cost of his report.
While buyers may be bypassing a builder's report in today's "frenzied" market, the same may not apply when the time came to re-sell the property, he said.
Mr Blissett, who is also president of the New Zealand Institute of Building Inspectors, said the industry was unregulated - something the association was working to change.
It was important to check that a building inspector was experienced and had full weather-tightness insurance.
In the busy property market, it was also becoming increasingly common for vendors to pay for a builder's report, which they could then present to potential buyers, he said.
Eves group auction manager Grant Child said it was tough for those buyers missing out on multiple properties at auction. "We feel for them. There's absolutely no two ways about it," he said.
However, those who were choosing to avoid auctions may find themselves in a worse position putting forward one of multiple undisclosed offers on a property.
Bidding at a competitive auction also gave buyers confidence they were buying a property in demand, which could be good for resale in the future, he said.
Mr Child said Eves encouraged vendors to provide a copy of the LIM report and a current builder's report to buyers faced with high pre-purchase costs and short timeframes.
Simple steps like this, if taken by the vendor, would increase the level of buyer interest and the potential number of buyers who might bid on their property.
However, lawyers' fees were unavoidable. "There is no way around getting their solicitor to cast their eye over the certificate of title." A lot of buyers saved money by taking a knowledgeable friend to the council to look at the building file or through the property pre-auction.
Buyers often considered the age of the home, materials used and obvious evidence of alterations when deciding whether to get a builder's report.
"Each situation is judged on its own merits," he said. "Buyers need to weigh up the risks."
Those who did not wish to pay could also take the chance that a property did not sell at auction and make a conditional offer to the vendor if it was passed in.
Potential buyers should attend open homes and discuss the level of interest with their agent before making such a decision, Mr Child said. "There's no silver bullet for these people."
Harcourts managing director Simon Martin said by choosing to consider only homes with advertised prices, buyers would miss out on 80 per cent of the property for sale at present.
"It's probably a worse situation to an auction, to be honest, because it's like a tender. You don't know what the others are offering."
His company made a copy of the LIM report available to potential bidders, which cut down on costs. "It's just pointless having every buyer go and buy a LIM report," he said.
However, he strongly recommended bidders get an independent property inspection on any property they intended to buy. This was just a cost of purchase and one worth absorbing on a large property investment.
"It's unfortunately how it is. There's no easy way to do it."
Buyers could ask an inspector to look at specific areas and speak with them personally about the findings of the report, he said.
