Home inspection: what gets checked, what doesn’t, and how to read the report

What a general inspection covers

A licensed home inspector visits the home, typically with you and your agent, and produces a written report. They’re looking for visible, current issues with the major systems. They don’t open walls, run camera scopes through pipes, or test for things they can’t see.

• Structural

  Foundation, framing, basement/crawl space, attic. Cracks, water intrusion, settlement, sagging beams.

• Roof

  From the ground or with a ladder if safe. Shingle condition, flashings, gutters, attic ventilation, signs of leaks. Most inspectors won’t walk a steep or wet roof.

• Electrical

  Panel, breakers, wiring at visible points, GFCI/AFCI protection, smoke detectors, exterior outlets. Tests a sample of switches and outlets.

• Plumbing

  Visible supply and drain lines, water heater, fixtures, water pressure, drain function, signs of past or current leaks.

• HVAC

  Furnace, AC, heat pump function (when temperatures allow). Will report ages from manufacturer tags but isn’t a full HVAC service inspection.

• Exterior & grading

  Siding, trim, drainage, walkways, decks. Looks for slope toward foundation, soft wood, ground-water issues.

• Interior

  Floors, walls, ceilings, doors, windows, attic access, stairs, railings. Looks for water damage, mold-like staining, and safety hazards.

• Built-in appliances

  Tests range, oven, dishwasher, microwave, garbage disposal — that they turn on. Not a deep diagnostic.

What a general inspection does NOT cover

These need separate specialty inspections. None of them are included in the standard $500 fee. Some are required by your loan, some by your insurance, and some are smart but optional.

• Sewer scope

  A camera pushed through the main sewer line to detect breaks, root intrusion, or bellies. ~$200–$400. Strongly recommended on any home over 30 years old or with mature trees on the lot.

• Termite / wood-destroying-organism (WDO) inspection

  ~$75–$200. Required by VA and USDA loans; usually required by lenders in certain states. Termites cost $5k–$50k to remediate.

• Radon test

  ~$150. EPA recommends every home be tested. Radon is a radioactive gas; mitigation systems run $800–$2,500 if levels are high.

• Mold inspection

  Only if visible water damage or musty smells suggest a problem. ~$300–$600 plus lab fees.

• Lead-based paint test

  Federal law requires sellers to disclose known lead paint in homes built before 1978. You can pay for additional testing (~$300) if you’re concerned.

• Asbestos test

  Common in homes built before 1980 (popcorn ceilings, pipe insulation, certain floor tiles). ~$300–$1,000 depending on samples.

• Pool / spa inspection

  Specialty inspector for the pump, filter, plumbing, surface. ~$150–$300. Pool repairs can run into 5 figures.

• Chimney inspection

  Level-1 visual is often included in a general inspection. Level-2 (interior camera) is ~$200–$400 and recommended on older homes.

• Septic inspection

  For homes on septic instead of municipal sewer. Includes pumping the tank and inspecting the drain field. ~$300–$600.

• Well water test

  For homes on well water. Tests for bacteria, nitrates, lead, and pH. Required by some loans. ~$150–$300.

How to read the report

A typical inspection report is 30–60 pages. It’s organized by system (roof, electrical, plumbing) and most rate findings as:

• Safety hazard — fix before move-in. Examples: double-tapped breaker, missing GFCI in bathroom, trip hazard on stairs.
• Major defect — significant cost or impact. Examples: failed roof, unrepaired foundation crack, dead AC compressor.
• Maintenance item — common wear-and-tear, lower priority. Examples: caulk that needs reapplying, gutters need cleaning.
• Cosmetic — note for awareness. Drywall dings, paint touch-ups.

Read the entire report. Inspectors put the important stuff in the body, not the summary. Issues described in passing — "minor staining noted at attic decking" — sometimes translate to "a leak you haven’t fixed yet."

Negotiating off the inspection

Once you have the report, you have three negotiation tools. Within your inspection contingency window, pick one (or combine).

• Repair request

  List specific items you want the seller to fix before closing. Pros: clear, easy. Cons: seller picks the contractor (often cheapest). Quality varies.

• Credit toward closing costs

  Seller credits you the estimated repair cost at closing. Pros: you pick your own contractor and timeline; you decide whether to fix it now or live with it. Cons: capped by lender (usually 3–6% of price; varies by loan type and LTV).

• Price reduction

  Seller drops the price by the estimated repair cost. Pros: lowers your loan amount, lowers your monthly payment. Cons: smaller benefit than the same dollar amount at closing in many cases.

For most buyers, a closing-cost credit is the cleanest tool. You keep cash in your pocket, you control the repair, and the lender doesn’t need to re-evaluate the price.

What to do if findings are deal-breakers

Sometimes the inspection turns up something you didn’t sign up for: failed septic, foundation movement, electrical that needs to be replaced. If you’re still in the inspection contingency window, you have three options:

1. Walk away. Notify the seller in writing within your contingency period. Earnest money returns to you. The contract is dead. Move on.
2. Negotiate hard for a major credit or repair. Some sellers will meet you partway to keep the deal alive, especially if the home has been on the market a while.
3. Accept the home as-is at the original price. Only if you fully understand the cost and you’re going in with eyes open.

Common questions