Closing Phase 4

Home Inspection Checklist: What Inspectors Look For

8 min read Updated 2026-02-06

A home inspection is your opportunity to discover what's really going on with a property before you're legally bound to buy it. For $300-$500, you get a professional assessment that could save you from a $50,000 foundation repair. 86% of inspections find issues requiring repair. The average repair negotiation is $14,000.

Why Inspections Are Non-Negotiable

Never waive the inspection, even in competitive markets. What $300-$500 can reveal: Foundation cracks ($10,000-$50,000), roof damage ($15,000-$25,000), electrical hazards, plumbing problems ($5,000+), failing HVAC ($5,000-$15,000), hidden water damage and mold ($3,000-$50,000+).

What Inspectors Check

  • Foundation and Structure - cracks, levelness, water damage
  • Roof and Attic - condition, age, ventilation, leaks
  • Electrical System - panel, wiring type, safety
  • Plumbing - water heater, pipes, pressure, drains
  • HVAC - furnace/AC age and condition
  • Interior - walls, ceilings, floors, windows, doors
  • Exterior - siding, grading, drainage

Structural Red Flags

  • Horizontal cracks in foundation (indicates structural failure)
  • Stair-step cracks in brick/block foundations
  • Bowing or buckling foundation walls
  • Sagging or uneven floors
  • Doors and windows that stick or won't close

Water Damage Red Flags

  • Stains on ceilings or walls
  • Musty or moldy smell
  • Warped or buckling flooring
  • Peeling paint or bubbling drywall
  • Standing water in crawl spaces

Questions to Ask the Inspector

  • Which issues are safety concerns?
  • What needs to be fixed right away vs. can wait?
  • What's the approximate cost to repair this?
  • Do I need a specialist to evaluate further?
  • How old does this roof/water heater/HVAC appear?

Negotiating Repairs

After inspection, you have three options: Ask the seller to make repairs, request a credit or price reduction, or accept as-is. Sellers are most likely to fix safety issues. Request repairs be done by licensed professionals with receipts.

When to Walk Away

  • Major foundation problems (potential $50,000+ repairs)
  • Mold throughout the home (chronic moisture issues)
  • Unpermitted major work (you inherit liability)
  • Seller refuses all negotiations on $20,000+ in repairs

Inspection Day Checklist

  • Foundation - visible cracks or damage
  • Roof condition - missing/damaged shingles
  • Gutters and downspouts
  • Electrical panel - condition and age
  • GFCI outlets where required
  • Water heater - age and condition
  • Water pressure adequate
  • All drains working
  • HVAC - age and condition
  • Signs of water damage
  • Smoke/CO detectors present

Key Takeaways

  • 86% of inspections find issues - this is normal
  • $300-$500 inspection can save you from $50,000+ problems
  • Average repair negotiation after inspection is $14,000
  • Never waive inspections, even in competitive markets
  • Horizontal foundation cracks and widespread mold are deal-breakers

Your Next Steps

  1. Schedule inspection within your contingency period (usually 7-10 days)
  2. Attend the inspection in person if possible
  3. Review report carefully and categorize issues
  4. Get contractor quotes for major items before negotiating

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