Inspection vs. appraisal
These get confused. The appraisal determines the home's value for the lender. The inspection is for the buyer — a deep dive into the home's condition so you know what you're buying. Hire your own inspector; don't rely on the lender's appraiser.
A typical inspection costs $400–$700 and takes 2–4 hours. You should attend — walk through with the inspector, ask questions, and learn the home.
What inspectors check
Structure
Foundation, walls, framing, roof structure. Looking for cracks, settling, sagging, water damage.
Roof and exterior
Roof age and condition, gutters, downspouts, siding, paint, drainage. Roofs are expensive — knowing the remaining lifespan matters.
Plumbing
Pipe materials, water pressure, drain function, water heater age, signs of leaks. Galvanized or polybutylene pipes are red flags (replacement is expensive).
Electrical
Panel condition and amperage, GFCI outlets in wet areas, knob-and-tube wiring (old homes), grounding, visible wiring. Federal Pacific or Zinsco panels are known fire hazards and a major red flag.
HVAC
Furnace and AC age, condition, function. Average lifespan is 15–20 years — units near end of life mean budget for replacement.
Insulation and ventilation
Attic insulation depth, ventilation, signs of moisture or pest activity.
Interior
Doors, windows, walls, ceilings, floors, stairs. Moisture stains, cracks, sticking doors, soft spots in floors.
Appliances
Built-in appliances (range, dishwasher, garbage disposal) tested for basic function. Refrigerator and washer/dryer often excluded.
Basement / crawl space
Water intrusion, cracks in foundation walls, moisture, pest activity, sump pump function.
Attic
Insulation, ventilation, leak signs, framing condition, evidence of pests.
Common findings (and what they mean)
- Old roof. Estimate cost of replacement; negotiate with seller or budget for it.
- HVAC near end of life. Same as above — plan for $5,000–$15,000 in 1–5 years.
- Active leaks. Always negotiable. Seller fixes or credits.
- Outdated electrical. Especially Federal Pacific or Zinsco panels — major safety issue.
- Mold. Always investigate further. Could be cosmetic or could be a serious moisture problem.
- Foundation cracks. Hairline = normal. Anything wider than 1/8" = consult a structural engineer.
- Pest activity. Termites, rodents, carpenter ants. Often a deal-killer in severe cases.
Specialized add-on inspections to consider
- Sewer scope. Camera inspection of the sewer line. Replacements run $5,000–$25,000. Common on homes built before 1970.
- Radon test. Required in some areas, recommended everywhere. Mitigation is $1,000–$2,500 if needed.
- Termite (WDI) inspection. Required for VA loans, recommended elsewhere.
- Mold testing. If the inspector flags moisture concerns.
- Lead paint test. Pre-1978 homes.
- Asbestos. Pre-1980 homes with original insulation, flooring, or HVAC ducts.
Negotiating findings
Most contracts give the buyer 7–14 days after inspection to either accept the home as-is, request repairs/credits, or cancel.
- Repairs. Seller fixes the issue before closing.
- Credits. Seller credits you cash at closing so you can fix it yourself.
- Price reduction. Seller drops the purchase price.
Credits are often the cleanest — you control the work and the contractor.
What inspections don't cover
- Anything inaccessible (behind walls, under fixed appliances)
- Code compliance (separate inspection if needed)
- Appraisal / market value
- Cosmetic preferences
- Future predictions ("will the AC last?" — only educated guesses)
Buying a home and want a second opinion on inspection findings?
We see hundreds of inspection reports a year. Reach out and we'll tell you what's normal vs. what's a real concern.