Put yourself in the driver’s seat during your buying process
A home inspection report is a document that details any issues in your home.
Home inspections are important for buyers and sellers—but for different reasons.
Standard components include the heating system, roof, foundation, HVAC, and pests.
Issues like mold, foundation cracks, and damaged roofs are home inspection red flags.
When you buy or sell a house, you’ll likely encounter a home inspection report. You’ll hire a local home inspector who will inspect your house and provide you with a written report of their findings. Since this document can inform you on a number of different issues, it’s important to understand how to read the entire report. As a result, you’ll be able to make more informed decisions as either a buyer or seller.
What is a home inspection, and why do you need one? When you make any big purchase, it’s important to do your due diligence to ensure you’re making a good investment—especially if it’s something pre-owned. There’s no better example of this than homes, which can have all kinds of problems you’ll probably want to know about before making a deal. There are three general types of inspections, and each is important for different reasons.
As a seller, you might opt to get a pre-listing home inspection, which gives you an idea of any problems the home might have. This lets you make any essential repairs and set your price accordingly, probably making for a much smoother sale later on. Pre-listing inspections are optional, but they’re very common among sellers.
Buyers often get home inspections as a condition before closing on a home purchase. This gives them a chance to have an objective party inspect the property for any problems. Armed with the knowledge in a home inspection report, the buyer can get a sense of what they’ll be in for if they decide to buy the home.
If any major problems are discovered, such as a shifted foundation, pest infestation, or any of the other many things that fail a home inspection, the report can provide negotiating power and possibly bring the price of the home down.
Another inspection type is new home building inspections. These check that a new build is up to code and allow you to double-check the work of the many contractors and companies that work together on a new property.
After a home inspection, your inspector will provide you with a document that details issues and their levels of severity. In essence, it’s a summary of issues requiring attention/action and the potential consequences. While each report may differ to some extent, there are some standard components in a home inspection report.
In the first few pages, you can expect your home inspection report to cover general information, including:
Your address and type of home
Who was present at the inspection
Information about the state’s standards for home inspection
Weather conditions during the inspection
The home’s year of construction
Definitions of industry terms
The size of the home
This section may also mention any limitations in the inspection, which usually refers to having a lack of (or no) access to certain areas.
To make things easier for you, the home inspector usually provides a key that explains what each element in the report signifies. The key will encompass letter codes that denote a component’s condition.
Most home inspection report keys will include the following codes:
I: Inspected—an item that was inspected
NI: Not inspected—an item that wasn’t inspected
NP: Not present—an item that wasn’t present (usually because it wasn’t accessible)
S: Safety concern—an item that is a safety concern
R: General repair—an item requiring a repair
D: Defect—a non-functioning item that needs a repair or alteration
An inspector will focus on the main systems in your house and their conditions, and the report will cover major home components including:
Heating system
AC
Plumbing system
Electrical system
Roof Attic
Insulation
Walls
Ceilings
Floors
Windows
Doors
Foundation
Basement
Note that in some cases, your inspector may not be able to access certain areas if they’re inaccessible or if it’s unsafe. For instance, if you have an extremely damaged or steep roof, the inspector may not be able to access the area for safety reasons.
You can expect to see pictures of damaged items, issues, or defects in your home inspection report. These photos can be helpful to the buyer when they’re reviewing the report before negotiating prices.
In some cases, you may see a photo that has funky colors—don’t worry, this is normal! Often, inspectors will use thermal imaging to examine your house, and the photos are useful for illustrating issues that may be difficult to see, such as moisture issues, ventilation problems, or faulty electrical components.
Your home inspection report will include a summary of the issues—which is usually located in the last few pages—and a rating that indicates a general grade on your home’s condition. You’ll also be able to check the codes (e.g., inspected, safety concerns, etc.) that have been assigned to each individual component. This is a great way to get a broader view of a home’s overall condition. Pay special attention to anything marked as “end of life” (especially appliances and other expensive features), as these will likely need to be replaced in the near future.
It’s important to note that some components or areas of the property may not be covered in your inspection report. By being an informed buyer (or seller), you’ll understand that your work might not be done after the inspection, and in turn, you make better decisions through this process.
Some areas that home inspection reports generally don’t cover include:
Pest control
Septic system information
Areas behind the walls
Toxic mold
Air quality
Radon gas testing
Lead-based paint testing
Asbestos testing
If you suspect there may be issues that aren’t covered, you should contact a professional contractor who specializes in that specific type of home inspection. These might include plumbing inspectors, roof inspectors, chimney inspectors, or electrical inspectors.
While some issues—such as faulty light switches or broken window seals—are minor and not causes for immediate concern, there are certain red flags to look out for when reading a home inspection report. It’s also a good idea to add these issues to your list of questions to ask during your home inspection to ensure you understand the risks and the steps you can take to fix them.
In certain situations, mold and mildew in a home may be a minor issue. If mold is simply the product of neglect, oftentimes, you can clean it to solve the issue. On the flip side, sometimes mold is more serious.
For instance, if the mold has developed due to inadequate ventilation or excessive moisture, you’ll likely have more work to do, such as getting new windows or replacing your ventilation. Since mold can cause health issues such as serious allergic reactions, it’s important to have mold properly removed as soon as possible.
A poor foundation can result in structural problems such as uneven flooring, drywall cracks, and crooked doors. A home inspection report indicating an inadequate home foundation suggests that you may have an expensive repair on your hands in the future.
The roof is your home’s first line of defense against the elements, so ensuring it’s in good shape is vital. A home inspector might discover damaged or missing shingles, disconnects between the roof cover, structure, and exterior walls, or any spots on the roof that leak water and heat. These can be costly repairs, so it’s a great idea to get as much information from your inspector as possible before going ahead with a home purchase or sale.
A working HVAC system keeps your home cool in summer and warm in winter, but it also ensures your safety through good air quality. Malfunctioning HVAC systems can be a big hassle to deal with, and a seriously damaged unit might even open you up to health risks like carbon monoxide poisoning. Plus, quality HVAC repairs and maintenance tend to be fairly expensive. Choose a qualified home inspector or specialized HVAC inspector to check this system.
You may not even want to think about termites (the ick factor), but if you’re buying a new home, it’s important to do so. Termites are not something to ignore since they can cause serious long-term damage to your home’s structure and foundation. If you’re seeing this unfortunate issue on your home inspection report, it’s in your best interest to hire a termite remover.
Your home inspection cost can vary greatly depending on the type of inspection(s) being done, the size of the home being inspected, and the going rate of home inspections in your area. Generally speaking, a standard home inspection will run you between $280 and $400. This price might go down for smaller homes and may rise if you need any specialized inspection services.
A home inspector is only required to give a copy of their report to the party who hired them. This means that only a seller would receive a copy of a pre-listing inspection report, while only the buyer receives a report for pre-purchase home inspections. You can choose to share this report with the other party, but this isn’t a common practice. As a seller, you would typically only get a sense of the most significant inspection discoveries when you receive a request for repair from the buyer.
How long the home inspection takes can vary greatly depending on the size of the home and the type of inspections being done—the same goes for receiving the final home inspection report. Some inspectors are busier than others, so it may take a little longer. Generally speaking, however, you can expect to receive the report within 1-2 business days after the inspection.
Inspectors working for the seller on pre-listing inspections can present a conflict of interest, so standard home inspections are usually hired and paid for by the buyer. If the buyer has some negotiating power, they might request that the seller cover the cost (by taking it off the asking price), but this varies on a case-by-case basis. When it comes to home appraisal costs and pre-listing inspections, the seller will naturally have to pay, as these are done before the home is left up for sale.
Except in the case of mandatory home repairs, it’s very negotiable when deciding who has to pay for issues discovered in a home inspection. Buyers might ask that the seller makes the repairs as a condition for the sale, but it’s most common for the buyer to use the repair costs as a reason to lower the asking price. However, hot real estate markets sometimes mean that the seller will refuse the repair—many speculative buyers are happy to take on a new property with flaws and all.
