Home Inspection Guide: What to Expect, Red Flags, and How to Use the Report

A home inspection is the single most important step between making an offer and [closing on a house](/blog/homebuying-closing-process). It's your chance to find out what's actually going on with the property before you're legally and financially committed.

Skipping an inspection — or not understanding the results — is one of the most expensive mistakes a first-time buyer can make. A $400–$600 inspection can save you from $10,000, $50,000, or even $100,000+ in surprise repairs.

Here's how the process works, what inspectors look for, and the red flags that should make you think twice.

What Is a Home Inspection?

A home inspection is a visual, non-invasive examination of a home's major systems and structural components. A licensed home inspector walks through the property — inside and out — and documents the condition of everything from the roof to the foundation.

Key word: visual. Inspectors look at what's accessible and visible. They don't tear open walls, dig up foundations, or dismantle systems. That's why some problems can hide even after a thorough inspection.

A standard inspection covers:

Structural components (foundation, framing, floors, walls, ceilings, roof)
Exterior (siding, trim, grading, drainage, driveways, walkways)
Roof (covering, flashings, gutters, chimneys, skylights)
Plumbing (pipes, fixtures, water heater, water pressure)
Electrical (panels, wiring, outlets, switches, GFCI protection)
HVAC (heating system, cooling system, ductwork, thermostat)
Interior (windows, doors, floors, walls, stairs, railings)
Insulation and ventilation (attic, crawlspace)
Fireplaces and chimneys
Garage (door, opener, structure)
Kitchen appliances (basic function check)

What an Inspection Does NOT Cover

Standard inspections have limitations. These items typically require separate, specialized inspections:

Termite/pest inspection: Often required by lenders, but it's a separate inspection by a pest control company ($75–$150)
Radon testing: Radon is an invisible, odorless gas that causes lung cancer. Testing costs $150–$300 and is strongly recommended in areas with known radon issues
Mold testing: Inspectors may note visible mold, but lab testing for mold species and air quality is separate ($300–$600)
Sewer line/scope: A camera inspection of the main sewer line ($150–$400). Highly recommended for homes over 25 years old
Well and septic: If the home isn't on municipal water/sewer, these inspections are essential ($300–$600 each)
Lead paint: Required disclosure for homes built before 1978, but testing is separate
Asbestos: Inspectors may note suspect materials but can't confirm without lab testing
Pool/spa inspection: Separate specialty inspection ($150–$300)
Structural engineering: If the inspector finds concerning structural issues, they'll recommend a structural engineer ($300–$800)

Ask your inspector which add-on services they offer. Many can bundle radon testing, sewer scoping, or pest inspections for a discount.

How Much Does a Home Inspection Cost?

Typical costs:

Home Size	Inspection Cost
Under 1,000 sq ft	$300–$400
1,000–2,000 sq ft	$400–$550
2,000–3,000 sq ft	$500–$650
3,000+ sq ft	$600–$800+

Prices vary by region, home age, and inspector experience. Older homes, larger homes, and homes with extra features (pool, septic, well) cost more to inspect.

The buyer pays for the inspection. It's your inspector, working for you, protecting your interests. Never let the seller choose or pay for the inspection — that creates a conflict of interest.

How to Choose a Home Inspector

Not all inspectors are equally thorough. Here's how to find a good one:

Credentials to Look For

Licensed in your state (most states require licensing)
Certified by a professional organization (ASHI — American Society of Home Inspectors, or InterNACHI — International Association of Certified Home Inspectors)
Insured with errors and omissions (E&O) insurance
Experienced — at least 200–300 inspections completed

Questions to Ask Before Hiring

How many inspections have you completed?
What does your inspection include?
How long will the inspection take? (A thorough inspection of an average home takes 2–3 hours. Be wary of anyone who promises to be done in an hour.)
Can I attend the inspection?
What format is the report? (Look for detailed reports with photos, not handwritten checklists.)
When will I receive the report?
Do you offer additional services (radon, sewer scope, etc.)?

Where to Find Inspectors

Ask your real estate agent for recommendations (but consider getting a second recommendation independently)
ASHI inspector search: ashi.org
InterNACHI inspector search: nachi.org
Online reviews (Google, Yelp) — look for detailed positive reviews that mention thoroughness

What Happens During the Inspection

Attend If You Can

You have the right to attend the inspection, and you absolutely should. Following the inspector through the home gives you:

A real-time education about the home's systems and condition
The chance to ask questions on the spot
Context that a written report can't fully capture
Understanding of which issues are serious vs. cosmetic

Plan to be there for the full inspection (2–3 hours for an average home). Wear comfortable shoes — you'll be walking, climbing, and crawling.

What the Inspector Does

A good inspector follows a systematic process, typically starting outside and working in:

Exterior: Walk around the property looking at grading (does water flow away from the foundation?), siding condition, window and door frames, decks, porches, and visible foundation.

Roof: Inspect from the ground with binoculars or by climbing onto the roof. Check shingles, flashing around chimneys and vents, gutters, and downspouts.

Attic: Check insulation levels, ventilation, roof decking condition from the inside, and any signs of leaks or pest activity.

Structure: Examine the foundation (from accessible areas like the basement or crawlspace), framing, and any visible structural components.

Plumbing: Run all faucets, flush all toilets, check for leaks under sinks, inspect the water heater, check water pressure, and note pipe materials.

Electrical: Open the main panel, check for proper wiring, test outlets (including GFCI outlets), verify smoke detectors, and note the amperage of the service.

HVAC: Run the heating and cooling systems, check the furnace/heat pump age and condition, inspect ductwork, and change/check filters.

Interior: Open and close windows and doors, check for cracks in walls and ceilings, test light switches, run appliances, and look for signs of water damage.

Crawlspace/Basement: Look for moisture, mold, pest damage, foundation cracks, and plumbing/electrical issues.

Red Flags: What Should Worry You

Every home has issues. A 30-page inspection report full of findings is normal. The key is distinguishing between minor maintenance items and major red flags.

Deal-Breaker Red Flags

These issues are expensive to fix and can affect the home's safety, livability, or structural integrity:

Foundation Problems

Horizontal cracks in block foundations (indicates lateral pressure — serious)
Stair-step cracks wider than 1/4 inch
Significant bowing or leaning walls
Uneven floors (more than 1 inch slope over 15 feet)
Repair cost: $5,000–$100,000+

Major Roof Issues

Roof at end of life (curling, missing, or crumbling shingles throughout)
Multiple layers of shingles (indicates previous cheap repairs)
Active leaks or widespread water staining in the attic
Sagging roof lines
Replacement cost: $8,000–$25,000+

Extensive Water Damage or Mold

Water stains on ceilings and walls throughout the home
Musty odors in basement or crawlspace
Visible mold covering large areas (more than 10 square feet)
Standing water in crawlspace
Remediation cost: $2,000–$30,000+

Major Electrical Problems

Knob-and-tube wiring still in use (pre-1950s homes)
Federal Pacific or Zinsco electrical panels (known fire hazards)
Aluminum branch circuit wiring (1960s–1970s homes — fire risk at connections)
Extensive DIY electrical work without permits
Rewiring cost: $8,000–$20,000+

Serious Plumbing Issues

Polybutylene pipes (PB pipes, gray plastic, used 1978–1995 — prone to sudden failure)
Cast iron drain pipes with significant deterioration
Main sewer line problems (root intrusion, bellied pipe, deteriorated sections)
Repair/replacement cost: $3,000–$25,000+

Environmental Hazards

High radon levels (above 4.0 pCi/L — mitigation costs $800–$1,500, so this is fixable)
Asbestos in deteriorating condition
Lead paint in poor condition (particularly concerning with young children)
Underground oil tank (removal and remediation: $5,000–$50,000+)

Serious but Negotiable Issues

These are significant but typically fixable. Use them as negotiating leverage:

HVAC system near end of life (15–20 years old): $5,000–$12,000 replacement
Water heater past expected lifespan (10–15 years): $1,000–$3,000
Missing or inadequate insulation
Grading issues directing water toward foundation
Deck structural concerns
Window or door replacement needed

Normal Wear and Tear (Don't Panic)

These show up on almost every inspection report and are routine:

Minor caulking needed around windows or tubs
Weatherstripping replacement on doors
Small nail pops or hairline cracks in drywall
GFCI outlets needed in kitchen/bathroom (easy upgrade)
Minor grading improvements
Gutter cleaning or repair
Cosmetic issues

How to Use the Inspection Report

Review the Full Report

The inspector will deliver a detailed report, typically 30–80 pages with photos, within 24–48 hours. Read the entire thing, not just the summary.

Categorize the Findings

Sort issues into three buckets:

Safety hazards and structural issues — these are non-negotiable. They need to be addressed.
Major systems nearing end of life — use these as negotiating points.
Maintenance and cosmetic items — these are your responsibility as the new homeowner. Don't ask the seller to fix these.

Negotiate Repairs or Credits

You have several options:

Ask the seller to make repairs before closing. Best for safety items and simple fixes. Be specific about what you want done and by whom (licensed professionals, not the seller's buddy).
Ask for a price reduction. If the roof needs replacing in 2 years, ask for a reduction reflecting that cost.
Ask for a closing credit. The seller gives you money at closing to handle repairs yourself. This gives you control over the work.
Accept the home as-is. If the issues are minor or already reflected in the price.
Walk away. If the inspection reveals deal-breaker issues and the seller won't negotiate, your [inspection contingency](/blog/contingencies-explained) lets you exit the contract and get your [earnest money](/blog/earnest-money-explained) back.

What NOT to Do

Don't ask the seller to fix 30 minor items. Focus on the big stuff. Nickel-and-diming the seller over cosmetic issues can torpedo a deal.
Don't skip the inspection to make your offer more competitive. In hot markets, some buyers waive the inspection contingency. This is extremely risky, especially for first-time buyers.
Don't rely solely on the seller's disclosure. Sellers may not know about problems, and some aren't fully honest.

[Appraisal Process Explained](/blog/appraisal-process-explained)
[Buying At Auction Guide](/blog/buying-at-auction-guide)
[Buying Condo Vs House](/blog/buying-condo-vs-house)
[Buying Duplex Live In One Side](/blog/buying-duplex-live-in-one-side)
[Buying Foreclosure Guide](/blog/buying-foreclosure-guide)

Frequently Asked Questions

Should I get a home inspection on new construction?

Absolutely. New homes have defects too — sometimes significant ones. Municipal building inspections check for code compliance, not quality. A third-party inspection catches things like improper grading, HVAC installation issues, missing insulation, and construction defects that code inspectors miss.

What if the seller refuses to make repairs?

You have three options: accept the home as-is (if you're comfortable with the issues), negotiate a lower price or closing credit instead, or use your inspection contingency to walk away.

Can I do my own home inspection?

You can walk through the house yourself, but a professional inspector has training, experience, and tools (thermal cameras, moisture meters, gas detectors) that you don't. Paying $500 for professional eyes is one of the best investments in the homebuying process.

How long is an inspection report valid?

There's no official expiration, but conditions change. If your closing is delayed by more than 60–90 days, consider a re-inspection. If the home has been vacant for an extended period, a new inspection is wise.

Should I attend the inspection or just read the report?

Attend. The report is important, but being there gives you context, lets you ask questions, and helps you understand the home you're buying in a way that photos and text can't capture.

What if the inspection finds something major after I waived the inspection contingency?

If you waived the contingency, you generally can't use inspection findings to back out of the contract without losing your earnest money. This is why waiving the inspection contingency is risky. In some cases, you may still have legal recourse if the seller failed to disclose known defects.

Bottom Line

A home inspection isn't about finding a perfect house — no house is perfect. It's about understanding what you're buying so you can make an informed decision and negotiate fairly.

Hire a qualified inspector, attend the inspection, read the full report, and focus your negotiations on safety issues and major systems. Everything else is just homeownership — and you'll get used to it.

Home Inspection Guide

Key Takeaways