Home Inspections: What to Expect, Red Flags, and Negotiating Repairs
The short answer
- Attend your inspection in person to understand issues in context
- Focus negotiations on structural, safety, and system issues — not cosmetics
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Why this matters
The home inspection is one of the most important steps between your accepted offer and closing. It is your chance to understand exactly what you are buying — the good, the bad, and the potentially expensive. Here is how to get the most out of it.
What the Inspector Checks
A general home inspection covers the structure (foundation, framing, roof), systems (electrical, plumbing, HVAC), exterior (siding, grading, drainage), and interior (windows, doors, floors, walls). The inspector is looking for safety hazards, defects, deferred maintenance, and components nearing the end of their lifespan. A home inspection is not a building-code inspection, so ask the city or county about permits if you see additions or converted spaces. A typical inspection takes two to four hours for a single-family home. You should attend if possible — seeing issues in person gives you context that photos in a report cannot.
What an Inspection Does Not Cover
A general inspector reports only on what is visible and accessible. They will not move furniture, open walls, or dig into the yard, so hidden problems can stay hidden. When the report flags something outside the general inspector's scope, bring in a specialist — a roofer, a structural engineer, a sewer-line camera inspection, or a licensed pest inspector. In California, the wood-destroying pest inspection is usually a separate report from the general inspection, and it sorts findings into Section 1 (active infestation or damage) and Section 2 (conditions likely to lead to it). Do not panic at the length of the report. A long list with dozens of items is normal for a perfectly livable home — most entries are maintenance notes, not dealbreakers.
Red Flags That Matter
Not everything in an inspection report is a dealbreaker. Focus on structural issues (foundation cracks, sagging rooflines), water damage and evidence of mold, electrical panel problems (especially Federal Pacific or Zinsco panels), plumbing issues (polybutylene pipes, sewer line problems), and HVAC systems past their expected life. These are expensive to fix and affect livability. In California, also get homeowners insurance quotes while your contingency is still open — roof age, wildfire risk, and some older electrical panels can limit which insurers will write a policy, and some buyers end up pairing the California FAIR Plan with a separate policy. Cosmetic issues like scuffed paint or a loose doorknob are not worth negotiating over — save your leverage for what matters.
Read the Seller's Disclosures Alongside the Report
Sellers must disclose known material defects — problems that affect the home's value or safety. In California, most sellers do this on a Transfer Disclosure Statement (TDS), usually with a Seller Property Questionnaire (SPQ) and a Natural Hazard Disclosure report. If you receive the TDS after you have signed the contract, state law gives you three days after in-person delivery, or five days after mailing, to cancel. Compare the disclosures with the inspection report and look for gaps. "Unknown" checked on nearly everything is a red flag from someone who lived in the home for years. Recent repairs to the foundation, roof, or plumbing with no explanation deserve questions. Any history of water intrusion, mold cleanup, or foundation work is worth a specialist's look. Disclosures cover only what the seller knows, and some sales, such as certain foreclosures and court-supervised sales, are exempt from parts of the requirement — so they are a starting point, never a substitute for your inspection.
Negotiating Repairs vs. Credits
After the inspection, you can ask the seller to make repairs, provide a credit at closing, or reduce the price. Each has trade-offs. Seller repairs put the seller in charge of who does the work, so ask for licensed contractors, permits where required, and receipts. A credit lowers the cash you bring to closing, is capped by your loan program, and leaves you paying for the work later. A price reduction lowers the price and the loan. Focus on health and safety issues and expensive systems, not cosmetic fixes. A long list of small items can make a seller less willing to negotiate on the ones that matter.
How to Build Your Repair Request
Sort the findings into three groups. Safety hazards — electrical problems, gas leaks, active leaks, or mold — belong on the request. Major systems near the end of their life, like an old roof or furnace, are worth negotiating. Cosmetic and routine maintenance items stay off the list. Your agent sends the request to the listing agent, so be specific about what you are asking for and attach the inspector's photos and comments for each item. If you ask for a credit, know that it lowers the cash you bring to closing — it is not a check you can hand to a contractor — and your loan program limits how large a seller credit can be. Expect a counteroffer. Sellers often agree to some items and push back on others, and the goal is a fair resolution before your contingency deadline.
When to Walk Away
If the inspection reveals major structural defects, extensive water damage, or environmental hazards that the seller will not address, walking away may be the right call. Your inspection contingency gives you the right to cancel and seek the return of your earnest money, as long as you cancel in writing before you remove that contingency. In California, the standard purchase agreement sets a default investigation period that you can change in your offer, so know your date. This is exactly what contingencies are for. Better to lose the cost of an inspection than to inherit a foundation problem you cannot afford to fix.
Everything to remember
- Attend your inspection in person to understand issues in context
- Focus negotiations on structural, safety, and system issues — not cosmetics
- Repairs, credits, and price cuts each have trade-offs — a credit lowers your closing cash and is capped by your loan program
- Your inspection contingency protects you — cancel in writing before its deadline if major issues are found
- Compare the seller's disclosures with the inspection report — gaps between them are worth asking about
- A long report is normal — bring in specialists for anything outside the general inspector's scope
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