How to Read a Home Inspection Report Without Panicking

You get the report back and it's 40 pages long, full of photos, red flags and words like "deficiency." It's easy to panic. Don't. Every house has a list, even brand-new ones. The trick is knowing which items matter.

01First, know what the report is

A home inspection is a visual check of the house's major systems and structure on one day. It isn't:

• A code inspection.
• A guarantee.
• A look inside walls, under floors or anything the inspector can't reach.

Most inspectors follow a standard of practice and report what they see. Many items in the report are routine.

02Sort everything into four buckets

Go through the report with a highlighter, or make a list:

1. Safety issues

Fix these no matter what. Examples:

• Missing or failed smoke and CO alarms
• Exposed wiring, missing outlet covers, no GFCI protection where it's required
• Gas leaks or venting problems with a furnace or water heater
• Missing handrails, unsafe decks or stairs
• Signs of carbon monoxide risk

2. Big-ticket items

The expensive stuff. These are what you negotiate over:

• Roof at the end of its life or leaking
• Foundation or structural problems
• Major plumbing problems (failing sewer line, old supply pipes)
• Electrical panel problems or outdated wiring
• A furnace, AC or water heater near the end of its life
• Water intrusion in the basement

3. Things to keep an eye on

Items that aren't urgent but will need attention in the next few years: an aging water heater, a roof with a few years left, worn caulking.

4. Maintenance and minor items

Most of the report: loose door handles, a dripping faucet, a missing downspout extension, peeling paint. These are normal homeowner chores.

03"Recommend further evaluation"

When the inspector writes "recommend evaluation by a licensed electrician (or roofer, plumber, structural engineer)," it means they saw something outside their scope. Take it seriously, and get the specialist out before your inspection contingency runs out. A sewer camera inspection, an HVAC check or a structural engineer's report can turn a vague concern into a real number.

04Ages and life expectancy

Many reports list the age of the roof, furnace, AC and water heater. Old isn't the same as broken, but it tells you what to budget for. A 20-year-old furnace might work fine for years, or quit next winter.

05Using it to negotiate

Use the report to ask for:

• Repairs before closing.
• A credit at closing so you can fix it yourself.
• A price reduction.

Focus on the safety and big-ticket items. Asking the seller to fix every small item rarely goes well. Get repair quotes so your requests have real numbers. See the inspection contingency.

06Questions to ask your inspector

• Which three things would you fix first?
• Is this a typical issue for a house this age?
• What would you have looked at more closely if you could?

Most inspectors are glad to walk you through the report.

07After you move in

Keep the report. It's a to-do list and a maintenance guide for your first few years. Start with the safety items, then plan the big ones.

For more, see what goes into a comprehensive home inspection report.

Photo: FEMA - 32429 - FEMA inspector inside an Ohio home. by John Ficara, Public domain.

Related: How a Home Inspection Can Make or Break a Buyer’s Dream Home