Buying Process
Last updated: Jan 20257 min readHome Inspection Guide
What inspectors look for, red flags to know, and how to use the report in negotiations
A home inspection is your last clear look at a property before you're legally bound to it. A $400–$600 inspection can save you from a $40,000 surprise. Here's how to make the most of it.
1What a Home Inspector Checks
Inspectors examine the home's major systems and structure:
Structure & Foundation:
Major Systems:
Interior:
Structure & Foundation:
- Foundation cracks, settlement, water intrusion
- Roof condition, age, flashings, and gutters
- Attic insulation and ventilation
Major Systems:
- Electrical panel, wiring, outlets, and GFCI protection
- Plumbing: pipes, water heater, drainage
- HVAC: furnace, AC, ductwork, age, and efficiency
Interior:
- Windows and doors for proper operation and sealing
- Floors, walls, and ceilings for damage or moisture
- Basement or crawl space for water intrusion
2Red Flags That Matter Most
Some findings are cosmetic; others can derail a deal or cost serious money:
High Priority (renegotiate or walk away):
Moderate Priority (get credits or seller repair):
Low Priority (cosmetic, plan for it):
High Priority (renegotiate or walk away):
- Foundation cracks or active settling
- Knob-and-tube or aluminum wiring throughout
- Active roof leaks or significant damage
- Evidence of mold in HVAC or throughout walls
- Failed septic system or main sewer line issues
Moderate Priority (get credits or seller repair):
- HVAC system over 15 years old
- Water heater over 10 years old
- Single-pane windows throughout
- Evidence of past water intrusion (staining, efflorescence)
Low Priority (cosmetic, plan for it):
- Peeling paint, worn carpet, dated fixtures
- Minor gutter issues, caulking failures
- Dripping faucets, running toilets
3How to Use the Report in Negotiations
An inspection report is a negotiating tool, not a reason to panic:
Strategy 1: Request repairsAsk the seller to fix specific items before closing. Best for issues with safety implications (electrical, roof leaks, HVAC failure).
Strategy 2: Negotiate a price reductionGet contractor estimates for the repairs you'll do yourself. Ask for a credit at closing equal to the estimated cost.
Strategy 3: Walk awayIf the inspection reveals systemic problems — foundation, major structural, pervasive mold — and the seller won't negotiate, this is what the inspection contingency is for. Use it.
Practical tip: Don't ask sellers to fix every item on a 30-page report. Pick your top 3–5 items. Sellers become less cooperative when buyers try to renegotiate everything.
Strategy 1: Request repairsAsk the seller to fix specific items before closing. Best for issues with safety implications (electrical, roof leaks, HVAC failure).
Strategy 2: Negotiate a price reductionGet contractor estimates for the repairs you'll do yourself. Ask for a credit at closing equal to the estimated cost.
Strategy 3: Walk awayIf the inspection reveals systemic problems — foundation, major structural, pervasive mold — and the seller won't negotiate, this is what the inspection contingency is for. Use it.
Practical tip: Don't ask sellers to fix every item on a 30-page report. Pick your top 3–5 items. Sellers become less cooperative when buyers try to renegotiate everything.
Pro Tips
- Always attend the inspection in person — the verbal walkthrough is more valuable than the report
- Ask the inspector to prioritize: what would stop you from buying vs. what's normal wear
- Hire a licensed inspector, not one recommended by the listing agent
- Budget 1% of purchase price annually for maintenance regardless of inspection results