Understanding Your Home Inspection Report

Introduction

You've just received your home inspection report—a document that might be 30-50 pages long with hundreds of observations, photos, and recommendations. It can feel overwhelming! This guide will help you make sense of your report and determine which issues truly matter.

The Structure of an Inspection Report

Most professional inspection reports follow a similar structure:

1. Summary of Major Concerns: The most important findings upfront

2. System-by-System Evaluation: Detailed observations organized by home system

3. Photos and Descriptions: Visual evidence of issues

4. Recommendations: Suggested actions and timeframes

Understanding Severity Levels

Not all findings are equal. Most reports categorize issues by severity:

Safety Hazards (Red Flag/Urgent)

These issues pose immediate danger and require prompt attention:

• Exposed electrical wiring or faulty electrical panels

• Gas leaks

• Structural instability

• Carbon monoxide risks

• Severe mold growth

• Active water leaks damaging structure

Action: These should be addressed before closing or be deal-breakers if the cost is prohibitive.

Major Defects (High Priority)

Expensive repairs or replacements needed soon:

• Roof nearing end of life or with significant damage

• HVAC system not functioning properly

• Foundation issues

• Major plumbing problems

• Inadequate insulation causing high energy costs

Action: Strong negotiation points. Request repairs, price reductions, or credits.

Minor Defects (Medium Priority)

Issues that need attention but aren't urgent:

• Minor plumbing leaks

• Missing GFCI outlets

• Worn weatherstripping

• Minor cosmetic damage

• Routine maintenance items

Action: Can often be DIY projects or routine maintenance.

Maintenance Items (Low Priority)

Regular upkeep to prevent future problems:

• Caulking touch-ups

• Gutter cleaning

• Filter replacements

• Weatherstripping

Action: Note for your maintenance schedule.

💡 Pro Tip:

Focus your negotiations on safety hazards and major defects. Don't let minor issues distract from the big-ticket items. Sellers expect some findings and may be annoyed by requests to fix every minor issue.

Common Report Sections Explained

Structural Components

Covers foundation, framing, walls, floors, and ceilings. Key concerns:

• Foundation cracks or movement

• Structural damage or modifications

• Floor levelness

• Wall cracks

Exterior

Includes siding, trim, doors, windows, and drainage:

• Siding condition and proper installation

• Window and door operation and sealing

• Grading and drainage issues

• Deck and porch condition

Roofing

One of the most expensive systems to replace:

• Remaining useful life

• Missing or damaged shingles

• Flashing condition

• Ventilation adequacy

Remember: A roof rated with "5-7 years remaining life" isn't defective—it's information for your budget planning.

Plumbing

Water supply, waste removal, and fixtures:

• Pipe material and condition

• Water pressure

• Leaks

• Water heater age and condition

• Drainage functionality

Electrical System

Critical for safety and functionality:

• Panel capacity and condition

• Wiring type and condition

• GFCI/AFCI protection

• Grounding

• Code compliance

HVAC Systems

Heating and cooling equipment:

• Age and expected lifespan

• Operational status

• Maintenance history

• Efficiency ratings

• Proper sizing for home

Interior

Living spaces, floors, walls, ceilings:

• Surface conditions

• Door and window operation

• Stairway safety

• Fireplace and chimney

Interpreting Inspection Language

"Recommend evaluation by a specialist"

This means the issue is beyond the scope of a general inspection. Budget for additional inspections by:

• Structural engineers (foundation issues)

• Licensed electricians (electrical concerns)

• HVAC technicians (heating/cooling problems)

• Roofers (significant roof damage)

"At or near the end of its useful life"

The system still works but will need replacement soon. Plan accordingly in your budget.

"Recommend monitoring"

The issue isn't critical now but should be watched. Take photos and check periodically for changes.

"Recommend repair by a qualified professional"

DIY won't cut it. Hire a licensed contractor to ensure proper, safe repairs.

What to Do After Receiving Your Report

Step 1: Read the Summary First

Focus on major concerns highlighted at the beginning. These are the issues that matter most.

Step 2: Prioritize Issues

Create three lists:

1. Must Fix Before Closing: Safety hazards and major defects

2. Negotiate: Significant repairs or price adjustments

3. Plan For Later: Minor issues and maintenance items

Step 3: Get Repair Estimates

For significant issues, obtain quotes from licensed contractors. This gives you concrete numbers for negotiations.

Step 4: Consult Specialists

For major concerns (foundation, structural, electrical), hire specialists for detailed evaluations. Their reports provide:

• Exact cause of problems

• Detailed repair recommendations

• Accurate cost estimates

• Timeline for repairs

Step 5: Negotiate Strategically

Your options:

• Request repairs: Ask seller to fix specific issues before closing

• Request price reduction: Lower purchase price by estimated repair costs

• Request credits: Get money at closing to handle repairs yourself

• Walk away: If issues are too severe or seller won't negotiate

Negotiation tips:

• Focus on safety and major systems

• Be reasonable—don't nickel and dime over minor items

• Prioritize items that affect habitability or safety

• Consider market conditions and seller motivation

Step 6: Create a Maintenance Plan

Use the report to:

• Schedule regular maintenance (HVAC servicing, gutter cleaning)

• Plan for future replacements (roof in 5-7 years, water heater in 3-5 years)

• Budget for upcoming expenses

• Set reminders for periodic checks

Common Questions

Should I walk away if the report has many findings?

Not necessarily. Most homes have some issues. Focus on cost and severity. Major structural or safety issues warrant reconsideration, but minor maintenance items are normal.

Can I use the report to negotiate?

Absolutely. It's one of the report's main purposes. Request repairs, price reductions, or closing credits based on findings.

What if the seller refuses to fix anything?

You can:

• Proceed as-is if you're comfortable

• Negotiate price reduction instead of repairs

• Request credits at closing

• Walk away if issues are too significant

How long is the inspection report valid?

Inspection reports are snapshots of the home's condition on that specific day. Conditions can change. If there's a long delay between inspection and closing, consider a re-inspection.

Should I attend the inspection?

Yes! Being present allows you to:

• Ask questions in real-time

• Understand issues better

• Learn about home maintenance

• See problems firsthand

• Build rapport with inspector

Understanding Photos in Your Report

Quality reports include photos showing:

• Context shots: Where the issue is located

• Close-ups: Detailed view of the problem

• Comparative photos: Normal vs. problematic conditions

• Safety hazards: Clear documentation of dangerous conditions

Photos are invaluable for:

• Showing contractors what needs repair

• Negotiating with sellers

• Future reference

• Insurance claims

Red Flags in Reports

Be extra concerned if you see:

• Multiple major systems failing simultaneously

• Evidence of unpermitted work

• Signs of hidden damage (fresh paint over cracks, new carpet in moisture-prone areas)

• Deferred maintenance across the entire property

• Safety hazards that were concealed

These suggest bigger problems or neglectful ownership.

Making Your Decision

After reviewing your report, ask yourself:

1. Are there safety hazards? If yes, they must be addressed.

2. What's the total estimated repair cost? Is it within your budget?

3. Are there signs of ongoing issues? (Water damage, foundation movement)

4. Is the seller willing to negotiate? Can you reach a fair agreement?

5. Do you still love the home? Are the issues worth dealing with?

If repair costs exceed 10-15% of the purchase price, or if there are multiple major systems failing, seriously consider walking away.

The Bottom Line

Your inspection report is a powerful tool—use it wisely. Don't panic over every finding, but don't ignore serious issues either. Focus on safety, major systems, and structural integrity. Minor cosmetic issues and routine maintenance are normal.

Remember: The goal isn't to find a perfect home (they don't exist), but to understand what you're buying and negotiate fairly based on the home's true condition.