Everything You Need to Know About Home Inspections

Buying a home often brings big-dollar surprises you’ll want to avoid. That’s where a home inspection comes in.

What Is a Home Inspection?

A home inspection is a detailed snapshot of a property’s visible condition before closing. A qualified inspector examines the home’s accessible areas and documents concerns in a written report. An inspection doesn’t estimate the home’s value. That’s an appraiser’s job. An appraisal protects the lender, while an inspection protects you.

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An inspection includes structural elements like the roof, foundation, basement or crawl space, attic, walls, windows, doors and insulation. Electrical, plumbing, heating and cooling systems are also part of a home inspection. It may include an examination of appliances and should report any evidence of termites, which is, you know, kind of important.

When the inspection is done, the home inspector will create a comprehensive written report (usually with photos) that lays out any minor and major issues with the home. They’ll typically email you the report that same day. If the report shows big problems, you can negotiate a lower price or ask the seller to take care of those issues before the home sale is complete.

What Is a 4-Point Home Inspection?

A four-point inspection is a limited inspection of a home’s roof, electrical, plumbing and HVAC systems. It’s often required by an insurance company when you’re insuring an older home.

Unlike a basic home inspection, a four-point inspection does not cover the whole property. A basic inspection also looks at areas like the foundation, attic, walls, windows, doors and insulation. If you’re buying a home, a four-point inspection should not replace a full home inspection.

Inspectors check each system for things like:

• Installation: Was it built and installed properly?
• Maintenance: Has it been kept in good working order and serviced, if necessary?
• Safety: Is it operating safely?
• Performance: Is it working the way it’s supposed to?

What Should Be on a Home Inspection Checklist?

A home inspection checklist covers the main areas of a home, from the shingles on the roof to the pipes in the crawl space. Your inspector will check many of the items below, but you should walk through the house with them and watch for these trouble spots too.

Exterior and Foundation

☐ Cracks in the foundation or bulging, bowing walls

☐ Soil that slopes toward the house instead of away from it

☐ Siding that’s cracked, rotted or pulling away

☐ Gutters and downspouts that are loose, clogged or dumping water next to the foundation

☐ Windows and doors with gaps, rot or broken seals

☐ Mud tubes, damaged wood or other visible signs of termites and wood-destroying insects

Roof

☐ Missing, curling or cracked shingles

☐ Sagging areas or soft spots

☐ Damaged flashing around the chimney, vents and skylights

☐ An older roof that may be nearing the end of its expected life

Attic

☐ Water stains on the roof deck or rafters

☐ Insulation that’s thin, damp or missing

☐ Droppings, nests or chewed wiring from pests

☐ Blocked vents

Crawl Space and Basement

☐ Pooled water, moisture or water stains

☐ Damaged supports, insulation or vapor barrier

☐ Musty smells, visible mold or signs of pests

Interior

☐ Stains on ceilings and walls that could signal a leak

☐ Large or growing cracks in walls and ceilings

☐ Floors that slope, feel soft, or squeak badly

☐ Doors and windows that stick or won’t latch

☐ Smoke and carbon monoxide detectors that are missing, expired or not working

Plumbing

☐ Leaks under sinks and around toilets, tubs and showers

☐ Slow or gurgling drains

☐ Low water pressure or discolored water

☐ A water heater that’s old, rusted or leaking

☐ A main water shutoff valve that’s hard to find, inaccessible or not working

Electrical

☐ A panel with rust, scorch marks or missing covers

☐ Outlets that don’t work, feel warm, or spark

☐ Missing or nonfunctioning GFCI outlets in the kitchen, bathrooms, garage and outdoor areas

☐ Aluminum wiring with unsafe or improper connections

☐ Flickering lights or breakers that trip often

HVAC

☐ An older furnace or air conditioner, or missing service records

☐ Rooms that don’t heat or cool evenly

☐ Dirty filters, rust or leaks around the equipment

☐ Ductwork that’s damaged or disconnected

☐ Strange noises or smells when the system starts up

Specialty Inspections to Ask About

☐ Radon test: Get one on any home purchase, especially if the home has a basement or crawl space or is in an area with high radon levels.

☐ Termite inspection: Consider one in termite-prone areas or if the general inspection finds signs of wood damage.

☐ Asbestos inspection: Consider one if you’re buying an older home and plan to renovate or notice damaged materials that could contain asbestos.

Want a copy to take with you? Download our free Home Inspection Checklist.

How Long Does a Home Inspection Take?

Most home inspections take two to four hours, depending on the size of the home and its features.² While basic home inspections are visual, they’re still thorough, covering attics, crawl spaces, rooftops and more.

Do Property Inspectors Need a License?

Licensing and certification requirements vary by state. Some states require inspectors to be licensed, while others don’t.

For example, in Tennessee, where Ramsey Solutions is based, inspectors must be licensed and meet specific requirements, including at least 90 hours of training and $500,000 in general liability insurance.³ Hawaii, meanwhile, has no statewide licensing requirement.

The National Home Inspector Examination (NHIE) is used by 35 states, including Tennessee, as part of their licensing requirements. Some states also require their own exams.⁴

And no, you can’t be your own home inspector. Sorry!

Let’s face it: A home inspection is one of those jobs best left to professionals. Few of us have the expertise to identify electrical, plumbing and structural problems. Combine that with the emotional factors behind buying a home, and it’s easy to see why potential home buyers aren’t the ones who should do the inspecting.

How Do I Find a Home Inspector?

Finding the best home or property inspector for you can be as simple as looking online. You’ll find that inspectors work either independently or as part of a larger inspection company. But as always, be sure to look through customer ratings to see what actual people think of these inspectors.

If you prefer a personal recommendation, ask around! Your friends and family might have someone on speed dial they’ve used in the past. So don’t be shy.

Your real estate agent might also be able to give you some home inspector recommendations. But always make sure to do your own research too. That way, you can avoid a bad situation with an unsavory home inspector. You don’t want an inspector who’ll ignore potentially dangerous problems just to make a buck. That would be bad.

If you want recommendations from your agent, make sure they give you at least three names to choose from. This leaves room for competition and finding the best fit without any hints of your agent possibly playing favorites.

No matter where you find your inspector, ask to see a sample report before you commit. It will show you how thorough the inspector is and what the report looks like. Also make sure the inspector is licensed where required, carries appropriate insurance, and has relevant experience. Ask how long the inspection will take, what it covers and whether you can attend.

Should I Be There During the Inspection?

Yes, if you can. You aren’t required to be there, but most real estate agents recommend attending. The inspector can explain issues as they find them and answer your questions on the spot. If you're there, you can also spot any areas the inspector can't access. Make sure they note those in the report, and ask your agent how to handle them.

Think of the inspection as an educational opportunity. Your new home doesn’t come with an owner’s manual like a toaster or a car does. The inspection can serve as a basic introduction to how your new home works, including where the meters, electrical panel and shutoff valves are.

How Much Does a Home Inspection Cost?

A basic home inspection typically costs around $400. For a 2,500–3,000-square-foot home, expect to pay about $300–500.⁵ Inspectors usually collect payment on the day of the inspection, but sometimes the fee is settled at closing along with your closing costs.

That estimate only covers a basic inspection. Larger homes, detached structures and certain locations can cost more because they take longer or require additional expertise. You may also need specialty inspections that aren’t usually included in a basic home inspection. For example, a radon test may require the inspector to collect a sample or bring in a specialist. Specialty inspections can add hundreds of dollars to your bill.

Here are common home inspections and their approximate costs:

Not every home needs every specialty inspection. Ask your inspector which ones make sense based on the home’s age, location and features.

Before you book, ask for an estimate based on the home’s square footage. Share as much detail as you can, including the home’s systems, any detached structures and any specialty inspections you want. If you’re buying an older home and plan to renovate, ask whether asbestos testing makes sense, especially if suspected materials are damaged or your renovation could disturb them.

Here’s the bottom line: The cheapest inspector isn’t always the best choice. An inspector who rushes through several appointments a day may not give the property the attention it deserves. It’s worth paying a little more for an experienced inspector who will do a thorough job.

Should You Skip the Home Inspection?

No. Never skip a home inspection. It’s one of the best ways to protect yourself when making such a major purchase.

The cost may be more than you planned for, and you might be tempted to save money by skipping it. But an inspection can uncover problems that could cost far more after closing. Think about it: Would you buy a car without looking under the hood to make sure it has an engine? Of course not.

New construction needs an inspection too. Builders are human, and mistakes or overlooked details can happen. A home inspection helps you make an informed decision before you commit.

What Are the 5 Biggest Home Inspection Red Flags for Buyers?

Five home inspection red flags that can signal expensive or safety-related problems are outdated electrical wiring, foundation damage, septic tank failure, water intrusion and mold.

1. Outdated Electrical Wiring

With today’s families using more gadgets than ever, it’s important to make sure your home’s electrical system isn’t past its prime. It might be time for an upgrade if your home inspector finds overloaded outlets or a panel that’s wired with too many circuits.

Pay close attention if aluminum wiring shows up on your home inspection report. It was used between 1965 and the mid-1970s instead of copper wiring, and it can create a fire hazard when connections overheat. Yikes!

What to do next: Have a licensed electrician evaluate the wiring and give you a repair quote. Then ask the seller to fix it or credit you the cost at closing.

2. Foundation Damage

Do you remember the parable about the wise man who built his house upon the rock? If there’s one lesson we learned from that story, it’s that your foundation counts! Every home experiences some degree of settling. A qualified home inspector can tell you when a seemingly minor crack spells major trouble. And watch out for bulging or bowing foundation walls, which are signs of structural weakness that can be expensive to repair.

What to do next: Bring in a structural engineer to tell you how serious the damage is and what it will cost to fix. If the repairs are major and the seller won’t cover them, walk away.

3. Septic Tank Failure

If your new home comes with a septic tank, make sure trouble isn’t bubbling below the surface. A failing septic tank can cost thousands of dollars to replace. That’s a (literally) stinky way to start life in your new home! Foul odors, slow or gurgling drains, and standing water are common symptoms of a septic tank that needs some TLC.

What to do next: Order a septic inspection and get a replacement quote if the system is failing. Ask the seller to repair or replace it before closing, or negotiate the price down to cover the cost. If they won’t budge, walk away.

4. Water Intrusion

Water’s usually a pretty good thing, but it can wreak havoc when it creeps into places it shouldn’t. Your home inspector should flag water stains and other signs of moisture problems, then recommend further evaluation when needed. A brown spot on the ceiling, for example, may indicate a faulty roof, while stains on basement walls can clue you in to drainage issues—and neither is a cheap fix.

What to do next: Ask the seller to have a roofer or plumber find the source of the water and fix it before closing. If no one can pinpoint the leak, walk away.

5. Mold

A home plagued by mold isn’t just gross—it can harm your health too. You can typically clean up areas of mold that cover less than 10 square feet on your own without breaking the bank.¹⁴ But extensive growth requires professional help. The cost of removing mold from crawl spaces, walls and ducts can easily be thousands of dollars, depending on the scope of the damage.

What to do next: Get a mold test and a written remediation quote from a professional. Ask the seller to pay for the cleanup or give you a credit, and walk away if the growth is widespread.

See a Red Flag in Your Home Inspection?

Just because your home inspector uncovers an issue doesn’t guarantee the seller will fix it. You decide whether to negotiate or walk away based on the severity of the issue, your budget and your contract.

Major issues are negotiation points. Work with your RamseyTrusted^® real estate agent to ask the seller for repairs, a credit at closing, or a lower price. Your contract states how long you have to back out after the inspection and what happens to your earnest money if you do.

Minor issues are different. A loose handrail or a dripping faucet probably isn’t worth a fight with the seller, but it still costs money to fix.

What Are the Top Home Inspection Tips for Sellers?

Sellers can protect their sale by getting a prelisting inspection and knowing which repairs are worth making.

If you’re selling your home, you may think home inspection red flags don’t apply to you. But while you may not be weighing the pros and cons of repairing items like potential buyers are, a surprise at that point in the process can wreck a deal. And after working so hard to attract buyers with a move-in-ready home, the last thing you want is to lose a sale because a buyer’s inspection turns up a red flag. So what’s a savvy seller to do?

Shawna Smith, a RamseyTrusted real estate broker in Louisville, Kentucky, offers some simple suggestions for surviving the home inspection with your pride—and price—intact.

1. Know what you’ve got before you go to market.

Surprises are great—just not when they show up on a home inspection. That’s why Shawna says it’s a good idea to get your own presale inspection before planting the For Sale sign out front, especially if your home is in questionable condition. A qualified inspector should perform a four-point inspection of the roof, HVAC, basic electrical and basic plumbing to avoid a lowball offer out of the gate.

“Make sure you keep good maintenance records on your mechanical, plumbing and electrical repairs, and you know the condition of your roof,” Shawna says. “The seller does have to either disclose or repair any issues found during the presale inspection, but it allows you to decide if you’ll price your home as is or make repairs to get it closer to market value.”

If your listing agent doesn’t offer a prelisting inspection option, be prepared to deal with costly repairs or lower the price in case the buyer’s inspection uncovers major issues. You may have to wait until you can afford to fix the problem areas before you can sell your home at the price you need.

2. Know when to fix your fixer-upper.

So, how do you know which repairs are necessary to close the deal? The buyer’s lender may require certain improvements for the sale to go through based on their loan and the value of your home. A seasoned real estate pro can help you make the call, but a few key areas take priority.

The same areas a home inspector evaluates—electrical, plumbing, roof and HVAC—are the ones you may have to prioritize when it comes to repairs.

“The electrical, plumbing, roof and HVAC should be in good working condition when a property is transferred,” Shawna says. “I always recommend hiring licensed professionals for these types of repairs so the buyers will feel confident about the condition of their new home.”

A major fix may feel out of reach if your money is tied up in equity, but you can still bring options to the table. You can work with your agent to gather a few professional quotes for the repairs so you can offer cash at closing or discount the sales price to cover the costs. Giving the buyer a choice is always a winning approach because they like having control over the outcome. It also shows you’re willing to meet them in the middle.

Who Should You Call for Advice After a Home Inspection?

Call a RamseyTrusted real estate agent. They’ll help you decide whether to negotiate repairs, ask for a credit, or walk away. They can also guide you through every other step of buying a house. Ready to move forward? We can connect you with top real estate pros in your local market.