Home Inspection Checklist & Guide

Back to our main guide: The Ultimate First-Time Home Buyer Checklist.

Why You Should Never Waive a Home Inspection

In highly competitive real estate markets, buyers are often tempted to waive the home inspection contingency to make their offer more attractive to sellers. As a first-time home buyer, this is one of the most dangerous financial risks you can take. A home inspection is your only opportunity to discover hidden, potentially ruinous defects before you are legally bound to purchase the property.

A professional home inspection typically costs between $300 and $500. This is a small price to pay to avoid buying a house with a failing foundation, a roof at the end of its life, or outdated, hazardous electrical wiring. The inspection report not only protects you from buying a "money pit," but it also serves as a critical negotiation tool. If significant issues are found, you can ask the seller to make repairs, request a credit toward your closing costs, or, if the problems are too severe, walk away from the deal entirely.

What the Inspector Will Check

A licensed home inspector will examine the physical structure and major internal systems of the house. You should plan to attend the inspection. Following the inspector around allows you to ask questions and learn where key components, like the main water shutoff valve and the electrical panel, are located.

Red Flags and Deal Breakers

Every house, even new construction, will have some issues listed on the inspection report. Minor things like a running toilet, a missing outlet cover, or peeling paint on a deck are normal wear and tear and usually aren't worth fighting over. However, certain "red flags" are extremely expensive to fix and should cause you to seriously reconsider the purchase.

Foundation Issues: Horizontal cracks in the foundation, bowing walls, or doors and windows that won't close properly are signs of major structural failure. Foundation repairs can easily exceed $10,000 to $20,000.

Severe Water Damage and Mold: Water is a house's worst enemy. Look for extensive water stains on the ceiling, a musty smell in the basement, or visible mold. Water intrusion usually points to a failing roof, poor exterior grading, or serious plumbing leaks.

Old or Hazardous Wiring: Homes built before the 1950s may have knob-and-tube wiring, while homes built in the 60s and 70s might have aluminum wiring. Both are fire hazards and can make it difficult or impossible to get homeowners insurance without a complete (and costly) electrical rewiring.

A Failing Roof: An asphalt shingle roof generally lasts 15 to 25 years. If the inspector notes that the roof is at the end of its life, is missing multiple shingles, or has active leaks, you are looking at an immediate replacement cost of $8,000 to $15,000 or more.

How to Negotiate After the Inspection

Once you receive the 30-to-50 page inspection report, don't panic. Sit down with your real estate agent to categorize the issues into three buckets: safety hazards, major defects, and minor cosmetic issues.

You should absolutely ask the seller to address safety hazards (e.g., exposed wiring, missing smoke detectors) and major defects (e.g., a broken HVAC system, active leaks). You can ask them to complete the repairs before closing using licensed contractors, or you can ask for a "credit" (a reduction in the sale price or money toward closing costs) so you can hire your own contractors after you move in. Buyers often prefer the credit, as it ensures they control the quality of the repair work.

Do not nitpick the seller over minor issues like a loose doorknob or a torn window screen. If you provide a laundry list of trivial demands, the seller may become defensive and refuse to negotiate on the major issues.