You've found a home you love and your offer has been accepted—but before you celebrate, there's a critical step that could save you from buying a money pit. The home inspection is your opportunity to understand exactly what you're buying, from the roof down to the foundation. What looks perfect during a casual walkthrough might hide problems that cost tens of thousands to fix.
A home inspection isn't a pass/fail test. Nearly every home—even new construction—has issues that show up in the report. The question is whether those issues are minor maintenance items, reasonable repairs you can negotiate, or deal-breakers that should make you walk away. Understanding what inspectors look for helps you interpret the report and make informed decisions.
What Home Inspectors Examine
A standard home inspection covers the major systems and structural components of the house. Inspectors spend two to four hours going through the property methodically, testing systems and looking for signs of problems both obvious and subtle.
The roof is one of the most expensive components to replace—typically $10,000 to $30,000 or more depending on size and materials. Inspectors check the age and condition of shingles, look for missing or damaged materials, examine flashing around chimneys and vents, and check for signs of leaks in the attic below. A roof with five good years left is very different from one that needs immediate replacement.
The foundation supports everything above it, and problems here are often the most expensive to fix. Inspectors look for cracks (vertical cracks are usually less concerning than horizontal ones), signs of settling or movement, water intrusion, and proper drainage around the perimeter. Foundation issues can range from cosmetic to catastrophic.
The electrical system matters for both safety and insurability. Inspectors check the electrical panel for proper wiring, look for outdated systems like knob-and-tube or aluminum wiring, test outlets for proper grounding, and identify any code violations. Some older electrical systems can be insurance deal-breakers or require expensive upgrades.
Plumbing inspection covers water supply lines, drain lines, water heater, and fixtures. Inspectors look for the type of pipes (some materials like polybutylene have known failure rates), check water pressure, look for leaks, and assess the water heater's age and condition. Hidden plumbing problems can cause significant water damage over time.
The HVAC system (heating, ventilation, and air conditioning) gets a thorough check including age, condition, and functionality. Inspectors run the systems to ensure they're working, check filters and ductwork, and note any efficiency concerns. Replacing an HVAC system typically costs $5,000 to $15,000.
Red Flags That Warrant Serious Consideration
Foundation problems top the list of concerning findings. While hairline vertical cracks are often just normal settling, horizontal cracks, stair-step cracks in brick, doors that won't close properly, or uneven floors can indicate structural movement that's expensive to address. Foundation repairs can range from $5,000 for minor fixes to $50,000 or more for major stabilization.
Water intrusion is another serious concern. Signs include staining on ceilings or walls, musty odors, visible mold, efflorescence (white mineral deposits) on basement walls, or a sump pump that runs constantly. Water problems rarely get better on their own and can lead to mold, rot, and structural damage.
Roof issues beyond normal wear deserve attention. Multiple layers of shingles (indicating past cover-ups rather than proper replacement), sagging rooflines, damaged decking visible in the attic, or extensive flashing problems suggest significant investment ahead.
Outdated electrical isn't just inconvenient—it can be dangerous and uninsurable. Knob-and-tube wiring, undersized electrical panels (less than 100 amps for modern needs), aluminum branch wiring, or Federal Pacific panels are all red flags that may require expensive upgrades.
Using the Inspection Report
Every inspection report looks alarming at first glance. A typical report might list dozens of items, from major concerns to minor maintenance recommendations. Your job is to separate the critical issues from the cosmetic ones.
Focus on three categories: safety hazards that need immediate attention, major systems nearing end of life, and structural concerns. A loose toilet and some missing caulk aren't reasons to renegotiate—but a failing HVAC system or evidence of termite damage certainly are.
After reviewing the report, you typically have three options: proceed as planned, negotiate repairs or credits with the seller, or exercise your inspection contingency and walk away. In competitive markets, buyers sometimes waive inspection contingencies to strengthen their offers—but this carries significant risk. If you do waive, at least get a pre-offer inspection to know what you're committing to.
When negotiating based on inspection findings, focus on items the seller likely didn't know about and that affect safety or major systems. Asking for $500 off because of peeling paint makes you look unreasonable; asking for a credit to address electrical safety issues is fair.
Attend the inspection yourself. Walk through with the inspector and ask questions. Seeing issues firsthand—and understanding their severity—is far more valuable than just reading about them in a report. A good inspector will explain what's serious and what's just routine maintenance.