The Complete Home Inspection Guide: What to Inspect, What Red Flags Mean, and How to Negotiate Repairs

When needed: Foundation cracks, sagging floors, wall bulges, settlement concerns

Cost: $500-$1,000

Duration: 2-3 hours

Report: Engineering assessment with repair recommendations and cost estimates

Value: Determines if structural issues are cosmetic vs. catastrophic

When needed: Evidence of wood-destroying insects, older homes, visible wood damage

Cost: $100-$300

Duration: 1 hour

Report: Infestation location, severity, treatment cost

Value: Required by many lenders; identifies hidden structural damage

When needed: Homes > 30 years old, drainage issues noted, tree roots near sewer line

Cost: $250-$400

Duration: 1-2 hours

Process: Camera inserted through cleanout to view sewer line

Value: Identifies clogs, cracks, root intrusion, collapsed pipes ($5,000-$15,000 to replace)

When needed: Property has chimney(s), especially if used for wood/pellet burning

Cost: $150-$300 (Level 1); $300-$600 (Level 2 with camera)

Duration: 1-2 hours

Report: Condition of flue, liner, cap, structural integrity

Value: Identifies fire hazards and costly repairs ($2,000-$8,000 for relining)

When needed: Property has septic system (required in MA: Title V inspection)

Cost: $500-$800

Duration: 2-3 hours

Process: Pump out, visual inspection, load test

Value: Failing septic = $15,000-$30,000 replacement

When needed: Property has private well

Cost: $200-$500 (bacteria, nitrates, lead, arsenic, PFAS)

Duration: Sample collection 30 min; lab results 3-5 days

Value: Identifies contamination requiring treatment systems ($1,000-$5,000)

When needed: Homes built before 1980, especially if renovations planned

Cost: $400-$800 (3-5 samples)

Duration: 1 hour (sample collection); 3-5 days (lab results)

Value: Identifies asbestos locations; abatement costs $5,000-$30,000

When needed: Musty smell, visible mold, water damage history, health concerns

Cost: $400-$800 (includes air/surface sampling)

Duration: 1-2 hours (sample collection); 3-5 days (lab results)

Value: Identifies mold types and extent; remediation costs $500-$6,000+

ASHI Certified (American Society of Home Inspectors) — gold standard

InterNACHI Certified (International Association of Certified Home Inspectors) — reputable

Massachusetts Home Inspector License — legally required in MA

Avoid: Uncertified inspectors or those with only online certificates

Minimum: 5 years, 500+ inspections

Preferred: 10+ years, 1,000+ inspections

Ask: 'How many inspections have you performed?' 'How long have you been licensed?'

Required: $500,000-$1,000,000 coverage minimum

Ask: 'Do you carry E&O insurance? What's your coverage limit?'

Why it matters: Protects you if inspector misses major defects

Request: Sample report before hiring

Look for:

40+ pages with detailed descriptions

Clear photos of defects

Safety issues highlighted prominently

Specific recommendations (not vague 'monitor' advice)

Red flag: 10-page reports with minimal detail

Preferred: Additional certifications in:

Structural evaluation

Electrical systems

Plumbing systems

HVAC

Radon testing (NRPP certified)

Check: Online reviews (Google, Yelp, Angie's List)

Ask: Real estate attorney or buyer's agent for recommendations

Red flags:

Multiple reviews mentioning 'missed major issues'

Consistently late or rushed inspections

Poor communication

Will inspector:

Walk property with you after inspection?

Explain findings in person?

Answer questions after report delivery?

Avoid: Inspectors who drop off report and disappear

Poses immediate risk to occupants

Examples:

Exposed electrical wiring

Gas leaks

Structural instability

Active roof leaks

Carbon monoxide risks

Action: Address before occupancy or walk away

Costly repairs required (typically $5,000+)

May worsen if not addressed

Examples:

Foundation cracks with movement

Roof near end of life (1-3 years)

HVAC system failure imminent

Electrical panel defects

Significant water intrusion

Action: Get contractor quotes, negotiate repairs or credit

Repairs needed but not urgent ($500-$5,000)

Normal wear and tear for age of home

Examples:

Minor plumbing leaks

Worn weatherstripping

Damaged siding (isolated areas)

Gutters needing cleaning

Minor foundation cracks (< 1/4")

Action: Budget for repairs within first year; may negotiate if many items

No functional impact, appearance only

Examples:

Paint chips

Minor drywall cracks

Worn caulking

Loose doorknobs

Action: No action needed; budget $50-$500 for DIY fixes

Most inspectors include executive summary

Lists all safety and major concerns

Focus here first — these are the items that matter most

Read full descriptions and view photos

Understand why each is a safety concern

Determine if seller must fix before closing

For each major concern:

What's the problem?

Why does it need repair?

What happens if not fixed?

Ballpark cost? (inspector may estimate)

Get contractor quotes for items > $5,000

These are your Year 1-2 maintenance list

Add up estimated costs

Budget accordingly or negotiate if total > $10,000

CRITICAL: Inspector shows you issues in person

Ask questions:

'Is this normal for a home this age?'

'How urgent is this repair?'

'What's a reasonable cost estimate?'

'Would you buy this house?'

Inspectors are more candid in person than in written reports

Horizontal cracks = pressure from soil

Stair-step cracks in block foundation

Accompanied by: sagging floors, sticking doors, wall separation

Repair cost: $10,000-$50,000+ (foundation stabilization, piers, underpinning)

Risk: Progressive failure; structural collapse in extreme cases

Visible sag in roofline or ridge

Indicates: undersized rafters, rot, settlement, or snow damage

Repair cost: $15,000-$40,000+ (roof rebuild, structural reinforcement)

Risk: Roof collapse; water intrusion; increased repair costs over time

Indicates: Foundation settlement, rotted sill plates, or structural failure

Repair cost: $8,000-$30,000 (leveling, foundation repair)

Risk: Progressive worsening; affects everything built on top

Additions without proper permits or inspections

May not meet building codes

Repair cost: $5,000-$20,000 (retroactive permits, code compliance)

Risk: Liability; resale issues; insurance may not cover

Outdated wiring from pre-1940s

Fire hazard — no ground wire, insulation deteriorates

Many insurers refuse coverage or charge 2-3x premium

Repair cost: $8,000-$15,000 (full rewire for 2,000 sq ft home)

Walk away unless: Seller rewires before closing

Aluminum expands/contracts more than copper = fire risk

Repair cost: $2,000-$5,000 (pigtail every connection) OR $8,000-$15,000 (full rewire)

Risk: 55x more likely to reach fire hazard conditions than copper

Known fire hazards — breakers fail to trip

Repair cost: $2,000-$4,000 (panel replacement)

Risk: Electrical fires; insurance issues

No ground wire = shock risk, can't use 3-prong appliances

Repair cost: $3,000-$8,000 (rewire or GFCI protection)

Water stains on ceilings/walls with moisture present

Indicates: Roof failure, flashing issues, or structural damage

Repair cost: $5,000-$20,000 (roof replacement or major repair)

Risk: Mold, rot, structural damage, immediate habitability issue

Standing water, efflorescence (white powder on walls), moisture

Indicates: Poor grading, failed drainage, high water table, foundation cracks

Repair cost: $5,000-$20,000 (waterproofing, drainage, sump pump)

Risk: Mold, structural damage, unusable space

Visible mold on multiple surfaces

Indicates: Long-term moisture problem, possible hidden damage

Repair cost: $5,000-$15,000+ (remediation + source repair)

Risk: Health hazards, hidden structural rot

Average lifespan: Furnace 15-20 years, AC 10-15 years

Replacement cost: $5,000-$12,000 (furnace); $4,000-$8,000 (AC)

Discovered via sewer scope

Replacement cost: $5,000-$15,000 (depending on length and access)

Structural wood members compromised

Repair cost: $5,000-$20,000+ (treatment + structural repair)

Additions, electrical, plumbing work without permits

Risk: Must bring to code; resale and insurance issues

Cost: Varies widely; can be $10,000-$50,000+

Asbestos in multiple locations

Abatement cost: $15,000-$30,000+ (whole-house)

Risk: Health hazard if disturbed; limits renovation options

Best for: Safety hazards, items requiring immediate attention

Process:

Provide inspection report to seller

Request specific repairs (not 'fix everything')

Seller hires contractors

You re-inspect before closing to verify completion

Pros:

Cons:

Best for: Major repairs you want to control contractor selection

Process:

Get contractor quotes for repairs

Request credit at closing equal to repair cost

Use credit to pay contractors after closing

Pros:

Cons:

Best for: Cash buyers or when seller won't do repairs/credits

Process:

Get contractor quotes

Request price reduction equal to repair costs

Close at lower price

Pros:

Cons:

Focus on safety hazards and major systems (> $5,000)

Provide contractor quotes (evidence-based requests)

Be reasonable — don't ask seller to fix cosmetic items

Prioritize items (safety first, then major systems)

Give seller options (repairs OR credit OR reduction)

Set response deadline (48-72 hours)

Be prepared to walk away if unreasonable safety hazards

Ask seller to fix every single item in 60-page report

Include minor/cosmetic items (< $500)

Make vague requests ('Fix everything noted')

Request both repairs AND price reduction (pick one)

Expect seller to fix items typical for home's age

Accept seller promises without verification

Skip re-inspection after seller repairs

Book inspector within 24-48 hours of P&S signing

Request earliest available slot (don't wait until day 12)

Confirm you can attend inspection walkthrough

Attend in person (take notes, ask questions)

Inspector reviews findings at end (most important part)

Request report delivery within 24 hours

Read summary and major concerns carefully

Identify items requiring specialized inspections

Identify items requiring contractor quotes

Schedule structural engineer (if foundation/structural concerns)

Schedule sewer scope (if drainage issues or home > 30 years)

Schedule pest inspection (if wood damage noted)

Schedule any other specialized testing

For all major repair items (> $5,000)

Get at least 2 quotes per item (validation)

Document quote details (scope, cost, timeline)

Compile repair request with quotes and report excerpts

Submit to seller via listing agent

Request response within 48 hours

Seller responds with acceptance, counteroffer, or rejection

You counter if necessary

Agree on resolution or prepare to walk away

If agreement reached: Remove inspection contingency

If no agreement: Exercise contingency, walk away, recover deposit

Don't miss deadline — lose contingency rights after day 14