How to Read Your Home Inspection Report

If you’re getting ready to buy a home, you most likely have a long to-do list. A home inspection is one of the most important steps in the home-buying process. The goal is to help you make a wise financial decision about the property you’re interested in based on its condition. Understanding a home inspection report is critical if you’ve had a home inspection before or are new to the process.

Here is a detailed guideline to help you understand how to read a home inspection report and take the right steps following a home inspection.

1. Start with reading your home inspection report summary page

The summary page is a brief overview of your home inspection report that describes the condition of your home and outlines areas of concern. The summary page reviews all major issues and other important features of your home inspection.

2. Review areas of concern

If your summary page lists any areas of concern, start there before moving forward. The summary will typically tell you which page number the concerns are located on, so you can skip to the page you want to read from here.

3. Read the entire home inspection report thoroughly

After reading the most important sections of your home inspection report that outline areas of concern, go over other pages. It is important that you read the entire report thoroughly to get a good understanding of your home’s condition.

4. Ask questions

If you have any questions, reach out to your home inspector. This is especially important if you are doing a home inspection for the first time and are unfamiliar with the process.

5. Determine how to proceed with home buying

Depending on the outcome of your home inspection, you can either proceed with your home buying or selling process or pause. If your home inspection report outlines specific areas of concern or calls for repairs, you must consult your realtor before moving forward.

6. Schedule additional services

Remember, home inspectors are limited by laws regarding what services and advice they can provide. If your home inspection report calls for repairs, you will need to schedule additional services to take care of everything before you can buy or sell your home.

Tips for reading your home inspection report

Here are a few pointers that will help make reading and interpreting your home inspection report easier:

If possible, arrange to be with the home inspector on the day of the inspection so you can ask questions and get more details about any issues they might find.
Focus on the report’s summary page since it typically highlights any major concerns — along with repairs suggested by the inspector.
Use the summary page to point you to more detailed information within the report, including any photos the inspector took.
Take your time to thoroughly read the report to ensure you don’t miss anything. It’s also a good idea to let your realtor take a look at it.
Make sure you ask the inspector questions before they leave the home. Most home inspectors are happy to answer questions or go into more detail, but they’re only available to ask on the inspection day.

The most important things on the report are the electrical and plumbing systems, roof, foundation, and any indications of water damage or mold.

What is included in a home inspection report?

Once the home inspector is finished, you’ll receive a report for review. Here are some things that are included in a home inspection report and a few things that aren’t typically covered in a standard home inspection.

Roof – The report will tell you the condition of the roof, including gutters, downspouts, flashings, skylights, chimneys, and the roofing material.
Ventilation & insulation – Your report should include how well the attic, foundation, and crawl spaces are insulated and how well everything is ventilated.
Exterior – Your home inspection checklist and report should include information about the condition of the exterior, such as vinyl siding or paint, windows, walkways, driveways, exterior stairs, decks, and exterior doors.
Structure – The home inspector should indicate the current condition of the basement, foundation, or crawlspace and should include information about any cracks, signs of water penetration, foundation movement, and other structural concerns.
Cooling & heating – Check your report to find out the HVAC system’s condition, including the thermostat’s condition and location and what type of system is used in the home.
Plumbing – This is one of the most thorough parts of a home inspection and should include information about the home’s water main and shut-off valves, pipes, and plumbing, the water heater, all toilets, sinks, tubs, and showers, as well as all drains and waste systems.
Electrical – Read your report carefully to find out about the electrical main panel, all light fixtures and outlets, smoke and carbon monoxide detectors, and the home’s wiring system.
Doors & windows – The report will also include basic information about all doors, windows, flooring, walls, ceilings, and stairs. The inspector will confirm that all stairs have a proper railing and that all other components are properly sealed and/or in safe, good condition.

What’s not included in a home inspection report

Your home inspection report likely won’t include information about the swimming pool, septic system, mold, radon, pests, or asbestos. These items are important, but you’ll need to hire a separate inspector for an additional fee if they cause concern.

How to identify red flags in a home inspection report

Now that you know how to read your home inspection report, you can identify areas of concern. Some reports are color-coded to make reading and translating each section easier. The green color indicates everything is fine, blue represents a minor concern, yellow means a moderate concern, and red translates to a major concern needing repair.

Here are additional areas that you should pay attention to when reading your home inspection report:

Look for words like “end of life” when referring to appliances, the air conditioning system, or even the roof. This term means that items are older, and it might be time to replace them soon.
Check the results of the roof inspection since roof repairs can be particularly expensive. If the inspector noted that the roof is old or damaged, you may want to add a repair or replacement clause in your contract negotiations.
If the presence of water in a basement is noted, it’s a red flag that should be addressed with the seller since water can indicate a damaged structure or the presence of mold.
Notes referring to structural issues are major red flags that can often make or break a sale.
Be aware of possible safety issues notated on your report. For example, loose railings and stairs can be a major problem, and it could even cause your lender to reconsider funding the loan if the issue isn’t addressed before closing.

Reading home inspection report terminology

Home inspectors use many special terms and acronyms when completing a report. Here are some important terms you should be familiar with to know what they mean to you.

INSP = Inspected, functioning properly – no repair needed

Repair = Further evaluation recommended/needed. OR Repair/replacement required.

N/A = Not applicable, present, or Inspected

Now that you have your home inspection report, what’s next?

Once your home inspection is complete, where do you go from here? Here’s what to remember before you make an offer or sign a contract.

If only a few repairs are needed, your real estate agent may ask the seller to make them and provide you with a receipt or proof of completion. Alternatively, you can ask for a credit toward your closing costs and make the repairs yourself once you move in.
Many buyers use the home inspection to negotiate the asking price. If the repairs are plentiful, you can offer lower to make up for the cost.
In some cases, the damages might be so severe that it’s best to back out of the deal altogether. Consult with your Realtor if you think the home needs too much work, or it could become an expensive — or even dangerous — endeavor for you later on.
If the inspection looks good, you can celebrate and move forward with your offer.

How to read a home inspection report: bottom line

Buying a house is an exciting experience, but it’s important to do your due diligence to ensure you’re getting the best property possible. A home inspection will ensure you’re aware of any potential problems that might cause major headaches later.

Take time to read your home inspection report thoroughly and understand all the points outlined in it. If the report comes out clean, you can move into your new and forever home with peace of mind, knowing that it’s a solid structure with no major problems.

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