The Home Inspection
The Home Inspection
A home inspection is a methodical examination of a property's major systems—roof, structure, HVAC, plumbing, electrical, and windows—performed by a licensed third-party. It reveals deferred maintenance and defects but does not guarantee you'll catch every problem or that cosmetic issues are worth walking away over.
Key takeaways
- A thorough inspection takes 2–3 hours and costs $300–$600; it's one of the best investments you'll make in the home-buying process.
- Inspectors check foundation, roof, HVAC, electrical, plumbing, insulation, and windows but typically do not assess cosmetics, code compliance, or pest damage.
- A detailed inspection report lists defects by severity and estimated repair cost; use this to negotiate with the seller.
- Many issues found in inspections are maintenance deferred, not deal-breakers; a 40-year-old roof is normal, not catastrophic.
- Attending the inspection and asking questions teaches you the home's systems and gives you confidence in the report.
What the inspection covers: major systems
A standard home inspection examines the major systems that affect the home's livability and structural integrity. These typically include:
Foundation and structure. The inspector checks for cracks in the foundation, settling, water intrusion in the basement or crawl space, and structural damage. A small vertical crack is common and usually not serious. Horizontal cracks, widening cracks, or cracks paired with interior wall damage can signal a failing foundation—a major expense to repair.
Roof and attic. The inspector walks the roof (if safe) or views it from the ground, checking for missing shingles, rot, flashing gaps, and inadequate ventilation. They also check the attic for proper insulation and signs of water damage. A roof with 20+ years of life remaining is typically acceptable; a roof nearing the end of its 25–30 year lifespan will need replacement within a few years.
HVAC systems. The inspector tests the furnace and air conditioner for operation, checks ductwork for leaks, and assesses age and maintenance. A well-maintained 10-year-old HVAC system is fine. A 20-year-old furnace is on borrowed time and may fail soon, requiring a $5,000–$10,000 replacement.
Electrical system. The inspector checks the main panel, verifies adequate grounding, and tests outlets for proper polarity and grounding. They note the presence of aluminum wiring (a fire hazard, more common in 1960s–1970s homes) and outdated panels like Federal Pacific or Zinsco (also fire risks). Code violations don't automatically mean the system is unsafe, but they may require remediation.
Plumbing. The inspector checks for leaks, water pressure, drain function, and pipe material. They note whether the home has copper, galvanized steel (prone to corrosion), PVC, or PEX piping. Galvanized steel plumbing in a 50-year-old home is nearing end-of-life and may need replacement. A slow drain in the master bath might be a simple clog; slow drains throughout the house suggest a failing main line, an expensive repair.
Windows and doors. The inspector checks for proper operation, seals, and rot in wooden frames. Broken seals in double-pane windows are common and cosmetic—the insulating value is lost, but the window remains functional. Rotted window frames need replacement.
Insulation and ventilation. The inspector checks visible insulation in the attic and crawl space, notes any asbestos materials, and assesses ventilation adequacy. Homes built before the 1980s often have inadequate insulation by today's standards but typically meet code for their era.
What the inspection does NOT cover
Home inspections are not exhaustive. Several important areas fall outside the standard scope:
Pests and termites. A standard inspection does not check for termites, carpenter ants, or rodents. If the home is in a high-termite region, order a separate termite inspection (often $100–$300). Some sellers will provide a termite letter as part of the sale, showing the home is pest-free or noting existing damage.
Code compliance. An inspector may note that a room lacks a required bedroom egress window or that an outlet placement violates code, but they're not performing a comprehensive code audit. Many homes built 30+ years ago don't meet today's electrical or construction codes. This is usually not a showstopper unless the issue is extreme (e.g., knob-and-tube wiring).
Environmental hazards. Standard inspections don't test for radon, asbestos, lead paint, or mold. If the home was built before 1980, lead paint is likely present—this is disclosed, but an inspection doesn't test for it. Radon testing requires a separate, multi-day test kit ($150–$300). Mold is noted if it's visible, but a full mold assessment requires a specialized inspector.
Cosmetics. Paint quality, carpet wear, appliance function, and aesthetic condition are not inspection priorities. These are observations the inspector may mention, but they're not defect categories.
Septic and well systems. If the property is on septic and well, a standard inspection checks the visible tank and well head but not the tank's structural integrity or water quality. Specialized septic and well inspections cost extra.
Interpreting the report: prioritize severity
A thorough inspection report is 20–50 pages with photos. It lists findings by system and often categorizes them as "safety concern," "major defect," "minor defect," or "maintenance item."
A safety concern—active electrical hazards, structural instability, or missing guardrails—is a legitimate reason to renegotiate or walk away. A major defect—a roof that's actively leaking, a furnace that doesn't heat, a foundation crack with active water intrusion—is significant and needs a seller credit or repair.
A minor defect—a loose outlet cover, a single cracked pane, a door that sticks—is annoying but not costly. A maintenance item—the gutters need cleaning, the AC filter is dirty, the water heater is old—is expected upkeep in any home.
Don't treat every defect equally. A $500 repair to a gutter or a $3,000 furnace replacement is factored into the home's price and market value. A $50,000 foundation repair or $25,000 roof replacement is material and should trigger renegotiation.
Using the report to negotiate
Once you receive the inspection report, you have a window (usually 3–5 days) to request the seller address items. Typical requests take three forms:
Repair request. You ask the seller to hire a contractor and fix specific items before closing. Sellers often resist this because they lose control over contractor quality and cost. Also, the repair must be inspected before closing to verify it was done properly, adding time.
Credit request. You ask for a dollar amount to be credited at closing, which you'll use to hire your own contractor post-closing. A $10,000 credit for roof repair, for example, means your down payment and closing costs are reduced by $10,000—the lender finances the difference, and you handle repairs yourself.
Price reduction. You request the purchase price be lowered by the estimated repair cost. This is the cleanest approach: the property appraises and finances based on the new price, and you own the repairs and contractor relationships.
Sellers are most likely to accept a credit or price reduction. Repair requests should be reserved for items that are truly urgent—a leaking roof, a non-functional furnace—or items that would require re-inspection.
Attending the inspection: what to ask
The best inspections include the buyer. Go to the property while the inspection is underway. Ask the inspector to explain systems, walk you through findings, and clarify the severity of issues. A good inspector will:
- Show you the main water shutoff and electrical panel.
- Explain the age and remaining lifespan of major systems.
- Distinguish between maintenance deferred and actual defects.
- Answer questions about repair costs and urgency.
This education is invaluable. Many first-time buyers don't know where the water shut-off is or how to change an HVAC filter—the inspection is your chance to learn. It also builds confidence in the report and the inspector's credibility.
The cost of inspection and when to order
A typical home inspection costs $300–$600, depending on the home's size and age. It's worth every cent. The inspection contingency means you can cancel the deal if major defects emerge, making the inspection cost irrelevant if you walk away.
Order the inspection immediately after the offer is accepted. This maximizes your contingency window and allows time to negotiate repairs or credits before moving to the next stage (appraisal and underwriting).
If the home is older or in a region prone to specific hazards, add specialized inspections:
- Radon test: $150–$300, 3–5 days.
- Termite inspection: $100–$300, same-day.
- Septic inspection: $300–$500 if applicable.
- Well water test: $200–$400 if applicable.
These add cost but prevent unpleasant surprises. A home with high radon or a failing septic tank can be worthless if you can't remediate the issue.
Process: From inspection to repair request
Related concepts
Next
Once you've passed the inspection phase, the lender orders an appraisal. This independent assessment determines whether the home is worth what you offered to pay—and what happens if the bank disagrees with your price.