First-Time Buyer

The Home Inspection Process Explained

What home inspectors check, how to read the report, which issues are deal-breakers, and how to negotiate repairs effectively.

Nesterfy Editorial February 1, 2025 12 min read beginner

The home inspection is your best opportunity to understand exactly what you're buying. A thorough inspector will evaluate hundreds of systems and components in 2–4 hours and provide a detailed written report. Here's how to make the most of this critical step.

What a Home Inspector Evaluates

  • Roof: Age, condition of shingles, flashing, gutters, fascia
  • Attic: Insulation, ventilation, signs of moisture or pest intrusion
  • Foundation: Cracks, settlement, drainage around the perimeter
  • Structural elements: Walls, floors, ceilings, visible framing
  • Electrical: Panel age and capacity, wiring type, grounding, GFCI protection
  • Plumbing: Pipe materials, water pressure, drainage, water heater age
  • HVAC: Heating and cooling systems, ductwork, filters, age and condition
  • Windows and doors: Operation, seals, weather stripping
  • Exterior: Siding, grading, driveways, decks, fences
  • Interior: Walls, ceilings, floors, stairs, fireplaces
What Inspectors Don't Cover

Standard inspections don't include: radon testing, mold testing, sewer scope, termite/pest inspection, oil tank testing, or pool inspections. These require separate specialists and are often worth the additional $50–$400 each.

Major Red Flags vs. Normal Findings

Every inspection report will have a long list of items — that's normal. Focus on what's significant:

SeverityExamplesYour Action
Major — walk or renegotiateFoundation failure, active water intrusion, knob-and-tube wiring, HVAC near end of lifeRequest repair credit or seller fix, or walk away
Moderate — negotiateOld roof (15+ years), aging water heater, minor drainage issuesRequest repair credit or price reduction
Minor — accept or askLoose outlets, sticking doors, caulking neededDIY or ask for small credit
Maintenance itemsDirty filters, weatherstripping, minor cosmetic issuesPlan to address after closing

How to Negotiate After the Inspection

You have three main options after receiving the inspection report:

  1. Request repairs: Ask the seller to fix specific items before closing. Sellers often prefer to use their own contractors (which may mean lower-quality work). Use this for safety or habitability issues.
  2. Request a credit: Ask for a dollar amount off the purchase price or as a closing cost credit. This gives you control over the repair quality and contractor. Generally preferred for most issues.
  3. Walk away: If the issues are too significant or the seller won't negotiate, you can terminate the contract and receive your earnest money back (if you have an inspection contingency).
Attend the Inspection

Always attend the home inspection in person. The inspector will walk you through findings in real time, show you how to maintain the home's systems, and help you understand severity. This knowledge is invaluable even after you move in.

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