Home Inspections: What They Check, What They Miss, and Red Flags to Watch For

What Is a Home Inspection and Why It Matters

A home inspection is your moment to understand exactly what you're buying. This knowledge is power, and it protects one of your biggest investments.

A home inspection is a 2-4 hour examination of a property by a licensed professional who checks the condition of major systems and structures. It costs $300-$700 depending on the home's size and your area. The inspector is working for you, not the seller, so they have no reason to hide problems.

This inspection is your insurance policy. Without it, you could close on a home with a foundation problem you didn't know about, and then you own that $15,000 repair. With an inspection, you learn about problems before you commit, and you have the right to ask the seller to fix it, lower the price, or you can walk away.

Your purchase contract sets how many days you have to get an inspection, often 7 to 10 days after your offer is accepted. If the inspection finds serious problems, you can use this time to renegotiate with the seller or back out of the deal. Once that time is up, you lose your inspection contingency, which means you're stuck with whatever you find later.

Here's the important distinction: a home inspection is not the same as an appraisal. The appraiser works for your lender and determines the home's market value. The inspector works for you and determines the home's condition. You need both, and they serve completely different purposes.

What Home Inspectors Actually Check

Home inspection standards are governed by state laws and professional organizations. While inspectors focus on different things, here's what a thorough inspection typically covers:

Structural Components

The inspector will look at the foundation, checking for cracks, water seepage, settling, or shifting. They'll examine the framing (the bones of the house) and look for rot, water damage, or pest damage. They might crawl under the house into the crawlspace or basement to get a closer look. Foundation repairs can run $3,000-$25,000+, so this is critical.

Roofing and Gutters

They'll use binoculars or a ladder to inspect the roof from the ground or roof surface. They're looking at the condition of shingles, checking for rust or deterioration, looking for leaks or damaged flashing (where roof sections meet). A roof replacement costs $8,000-$20,000, so knowing the age and condition is crucial. Most asphalt shingle roofs last 15-25 years.

Exterior and Siding

They'll examine siding, trim, windows, doors, decks, and patios. They're checking for rot, pest damage, weathering, and water intrusion. They'll look at the grading around the house—does water drain away from the foundation or toward it? Poor grading causes moisture problems that can cost $3,000-$10,000 to fix.

Interior Spaces

They'll walk through every room, opening windows and doors, checking for water stains, pest evidence, mold, or deterioration. They'll look at walls, ceilings, and floors for signs of damage. They'll test light switches and outlets to make sure they work.

Plumbing System

The inspector will check for leaks under sinks, inspect visible pipes for corrosion or damage, test water pressure, and make sure drains work. They might run water in multiple fixtures at once to see if water pressure drops. They can't see inside walls, so they can't detect hidden leaks, but they can spot what's visible. Plumbing repairs range from $200-$500 for a simple fix to $5,000-$15,000 if you need new main lines.

Electrical System

They'll check the electrical panel, test outlets for proper grounding, look for exposed wiring or fire hazards, and verify that the home has adequate electrical capacity. They won't open walls or crawl into attics to inspect wiring, but they can see problems at outlets and the main panel. Rewiring a house costs $8,000-$15,000.

HVAC (Heating, Ventilation, and Air Conditioning)

They'll test your heating and cooling systems to see if they work properly. They'll note the age and condition of the furnace and air conditioner. A new furnace costs $4,000-$8,000. A new air conditioner costs $3,500-$7,000. If both need replacing, you're looking at $8,000-$15,000.

Water Heater

They'll check the age, capacity, and condition of your water heater. They'll look for leaks or corrosion. Most water heaters last 8-12 years. A replacement costs $1,200-$2,500.

Kitchen and Bathrooms

They'll check cabinets, countertops, sinks, toilets, and showers for function and damage. They're not grading your aesthetic preferences—they're looking for functionality and water damage.

What Home Inspectors Do NOT Check

This is just as important as knowing what they check. There are things home inspectors are specifically not responsible for inspecting:

Pest Inspections

Home inspectors don't test for termites, bed bugs, or other pests. If you're in an area with termite problems (like much of the South and Southwest), get a separate pest inspection for $100-$300. This is required by lenders in some states.

Radon, Lead, and Mold Testing

These require specialized testing, not a standard home inspection. Radon testing costs $150-$300. Lead paint testing costs $200-$500. Mold testing costs $300-$700. If you're concerned about any of these, order them separately.

Pool and Spa Inspections

If the home has a pool, get a separate pool inspection for $200-$500. Pools can be expensive to maintain and repair.

Wood-Destroying Insect Inspections

In some states, this is required by law. In others, it's optional. Ask your lender if it's required for your loan.

Septic System Inspections

If the home is on a septic system instead of municipal sewer, get a separate septic inspection for $300-$500. A septic system repair costs $3,000-$25,000+.

Well Water Testing

If the home uses well water, get the water tested for bacteria and contaminants. This costs $150-$300. A well repair or replacement costs $3,000-$10,000.

Reading Your Inspection Report

After the inspection, you'll get a detailed report—usually 20-40 pages with photos. It will list every finding, from major concerns to minor wear and tear. Here's how to read it:

Priority Levels

Most reports categorize findings as "Critical," "Major," "Minor," or "Cosmetic." Critical and Major items need attention before you close. Minor items are things that should be addressed eventually. Cosmetic items are things like old paint or landscaping.

Photos and Descriptions

Each finding includes a photo and description. Read these carefully. If something says "water stain on ceiling," that could mean the roof leaked once (cosmetic) or the roof has an ongoing leak (critical). The description should clarify.

Cost Estimates (If Included)

Some inspectors include estimated repair costs. Use these as a starting point but get quotes from contractors for major repairs. An inspector's $3,000 roof estimate might actually be $8,000 from a real roofer.

Don't Panic About Minor Issues

Every home has minor issues. Outlets are loose. Caulk is cracked. Doors squeak. These are normal wear and tear. Focus on the big-ticket items: foundation, roof, HVAC, plumbing, and electrical.

Common Inspection Findings and What They Mean

Water Damage and Leaks

Water stains on ceilings, walls, or crawlspace indicate past or present moisture problems. A stain with no visible source might mean the roof leak has been fixed, but the damage remains. If the stain is wet or growing, the leak is ongoing. Water damage to the foundation is critical. Water damage to drywall is usually cosmetic (rip out the drywall, paint, move on—$200-$500).

Foundation Issues

Small cracks in concrete are common and cosmetic. Horizontal cracks or cracks that are actively growing are concerning and might indicate foundation settling. If the inspector finds foundation problems, hire a structural engineer for a second opinion ($400-$600). A minor foundation repair costs $1,000-$3,000. A major one costs $10,000-$25,000+.

Roof Age and Condition

If the inspector says the roof is 10 years old and has 10-15 years of life left, that's fine. You don't need to replace it. If the roof is 20+ years old or has missing shingles and leaks, you'll need a replacement soon. Ask the seller for a repair estimate or a credit for the future replacement.

Old Electrical Panel

Older homes might have a 100-amp or 150-amp service. Modern homes have 200-amp service. If your home has low amperage and you want to add a hot tub or EV charging station, you'll need an electrical upgrade ($1,500-$3,000). But if you're not planning major upgrades, you're fine.

Knob-and-Tube Wiring

This is really old wiring from the 1920s-1950s. It's not safe and most insurance companies won't insure homes with it. If the inspector finds knob-and-tube, you'll need to rewire—expect $8,000-$15,000. Ask the seller to do it before closing.

No GFCI Outlets in Kitchen and Bath

Modern electrical code requires GFCI (ground-fault circuit interrupter) outlets in kitchens and bathrooms. If your home doesn't have them, the inspector will note it. Installing them costs $150-$500 and is a minor fix.

Outdated Plumbing (Galvanized Steel or Polybutylene)

If your home was built before 1990, it might have galvanized pipes. These corrode over time and reduce water pressure. Replacement costs $4,000-$15,000 depending on the home's size. If your home was built 1978-1995, it might have polybutylene pipes, which were later found to be defective. These fail prematurely and many insurance companies won't insure homes with them. Replacement is expensive—$8,000-$20,000. Ask the seller to replace them or offer a large credit.

Asbestos

Homes built before 1980 often contain asbestos in insulation, floor tiles, or pipe wrap. Asbestos is not dangerous if it's not disturbed. If the inspector finds asbestos and you're planning renovations, get a professional abatement—costs $5,000-$15,000. If you're not renovating, you can leave it and note it for when you eventually sell.

Mold

A small amount of mold (like on a bathroom ceiling) is cosmetic and normal. Black mold or extensive mold indicates moisture problems. Get a professional mold assessment ($300-$700) and ask the seller to address the moisture source. Mold remediation costs $2,000-$10,000.

Deal-Breakers vs. Fixable Problems

Likely Deal-Breakers (Stop Here and Walk Away)

• Active foundation cracks or settling that a structural engineer confirms is serious
• Knob-and-tube wiring that hasn't been fully replaced
• Severe plumbing issues (failed main lines, extensive polybutylene)
• Extensive mold indicating serious moisture problems the seller won't fix
• Evidence of past flooding or ongoing water intrusion the seller can't address
• Severely compromised roof that will need replacement within 1-2 years
• Evidence of termite or pest damage the seller won't address

Serious But Potentially Fixable (Negotiate Hard)

• HVAC system over 15 years old (needs replacement soon—$8,000-$15,000)
• Water heater over 10 years old (needs replacement soon—$1,200-$2,500)
• Roof over 20 years old (needs replacement soon—$10,000-$20,000)
• Minor foundation cracks (cosmetic unless growing)
• Old plumbing that still works but might need eventual replacement
• Outdated electrical panel (200-amp service is standard, 100-amp is tight but workable)

Cosmetic Issues (You Can Live With These)

• Old or peeling paint
• Worn flooring (you can replace it later)
• Outdated cabinets or countertops
• Broken door handles or loose fixtures
• Caulk that needs resealing
• Loose outlets or switches
• Damaged drywall (easy to patch)
• Overgrown landscaping or dead trees

How to Negotiate Repairs After Inspection

Once you have your inspection report, you have several options:

Option 1: Ask the Seller to Make the Repairs

Create a list of repairs you want done. Prioritize the big-ticket items: roof, HVAC, foundation. Skip the cosmetic stuff. The seller hires a contractor, the work is done before closing, and you verify the work. This is good for you because the work is covered by the contractor's warranty.

The downside: the seller might hire the cheapest contractor, and the quality might not be ideal. You might also lose negotiating leverage if the seller refuses.

Option 2: Ask for a Credit Toward Repairs

You ask the seller to give you a credit of, say, $5,000 at closing that you'll use toward roof repairs. Your lender deducts this from what they're lending to you. You hire your own contractor and the work is done after closing. This is good because you control the quality and contractor.

The downside: you're responsible for the work now, not the seller. If the contractor does poor work, you're stuck with it.

Option 3: Renegotiate the Price

You ask the seller to lower the price by the cost of repairs. So instead of asking for $5,000 credit, you ask the price to drop from $280,000 to $275,000. This works if you're still getting a good deal at the lower price. Your lender re-appraises at the new price, and everyone moves forward.

Option 4: Walk Away

If the repairs are too expensive or the seller refuses to negotiate, you can back out. Your earnest money is returned because you invoked your inspection contingency. Yes, you lose the time and $500-$600 in inspection costs, but you avoid a bad purchase.

The Negotiation Process

Your agent sends a formal request for repairs or credits based on the inspection report. The seller has typically 3-5 days to respond. They'll accept your request, counter with a lower credit amount, or refuse. If they counter, you decide whether to accept their offer or counter again. This back-and-forth usually resolves in 1-2 weeks.

Here's the psychology: sellers know that inspection reports create leverage for buyers. They expect you to ask for something. They've usually budgeted for some negotiation. If you ask for repairs on every cosmetic issue, they'll blow you off. If you ask for repairs on the three big-ticket items, they'll likely negotiate. Be strategic.

What to Ask Your Inspector

When your inspector is at the house, ask these questions:

• "How old is this [roof/HVAC/water heater/etc.] and how much longer will it last?"
• "Is this water damage active (ongoing leak) or past damage that's been fixed?"
• "What's the most expensive thing you're finding in this home?"
• "Is there anything about this house that concerns you?"
• "What additional inspections would you recommend?"
• "Can you show me how to identify if the roof leak gets worse?"
• "Are these issues something I need to fix before moving in, or can they wait?"

Special Inspections to Consider

Pest Inspection (Termites, Bed Bugs, etc.)

Cost: $100-$300. Recommended if: you're in a termite-prone area (Southeast, Southwest, California). Your lender might require it.

Radon Testing

Cost: $150-$300. Recommended if: radon levels are high in your area. Your real estate agent knows if this is common. Radon is a colorless, odorless gas that increases cancer risk. It's easily fixed with a radon mitigation system ($800-$2,500).

Lead Paint Testing

Cost: $200-$500. Required if: the home was built before 1978 and you're getting an FHA loan. Recommended if: you have young children (lead poisoning affects developing brains). Lead abatement is expensive ($8,000-$15,000).

Mold Testing

Cost: $300-$700. Recommended if: you see visible mold or smell must/mildew. Your home inspector usually flags visible mold.

Septic Inspection

Cost: $300-$500. Required if: the home uses a septic system instead of municipal sewer. This is standard in rural areas.

Well Water Testing

Cost: $150-$300. Required if: the home uses well water instead of municipal water. Your lender usually requires this.

Structural Engineer Evaluation

Cost: $400-$800. Recommended if: the home inspector finds foundation cracks, serious settling, or structural issues. This is a second opinion from a specialist.

What to Do Next

• Schedule a home inspection within 7-10 days of your offer being accepted
• Attend the inspection and take notes or photos of items you want to understand better
• Request copies of the inspection report within 24 hours
• Call the inspector if anything in the report is unclear
• Get contractor quotes for any major repairs listed in the report
• Discuss the findings with your real estate agent and determine your negotiation strategy
• Request repairs, credits, or price reduction based on inspection findings
• Verify that requested repairs are completed properly before closing
• If serious issues are found, consider getting specialized inspections (pest, radon, mold, engineer evaluation)

Have questions about home inspections what they check, what they miss, and red flags to watch for? The team at Thrive.RealEstate is here to help — no obligation, no pressure. We believe everyone deserves expert guidance through life's biggest real estate decisions.