A home inspection is one of the most important steps in buying a home. Skipping it, or not knowing what to look for in the report, can lead to expensive surprises after closing. Here is what a good inspection covers and which problems should make you seriously reconsider the purchase.
What a Home Inspector Actually Checks
A licensed home inspector examines the visible and accessible components of the home. This includes the roof, gutters, and chimney; foundation and structure; exterior walls and grading; electrical panel and wiring; plumbing system and water heater; HVAC system (heating and cooling); insulation and ventilation; doors, windows, and interior walls; and the basement or crawl space.
Issues That Are Negotiating Points
Many inspection findings are normal wear and can be negotiated. These include minor roof repairs, older but functional HVAC systems, outdated electrical outlets, slow drains, and cosmetic cracks in drywall. You can request credits or repairs for these items without walking away.
Red Flags That Should Pause or End the Deal
Foundation problems: Significant cracks in the foundation, doors that stick and will not close properly, or floors that slope significantly can indicate major structural issues. Repairs can easily run $10,000 to $50,000 or more.
Active water intrusion: Water stains on ceilings or walls, mold growth, or moisture in the basement or crawl space can indicate ongoing leaks or drainage issues. Mold remediation is expensive and incomplete fixes will cause recurring problems.
Knob and tube wiring or aluminum branch circuit wiring: These old electrical systems are fire hazards and may require a full rewire, which can cost $8,000 to $20,000 or more.
Polybutylene pipes: These pipes were widely used from the 1970s to 1990s and are known to fail unexpectedly. Many insurance companies refuse to insure homes with them.
Evidence of pest infestations: Termite damage, carpenter ants, or rodent infestations can cause serious structural damage and require both pest treatment and structural repair.
Failed or near-end-of-life roof: A full roof replacement typically costs $8,000 to $20,000 depending on the size and materials.
What to Do With the Inspection Report
Read the entire report, not just the summary. Your agent can help you identify which items to request as repairs, which to request as credits, and which are serious enough to consider a price renegotiation or walking away entirely. You are protected by your inspection contingency during this period.