Reviewing Your Home Inspection Report & Next Steps
Once the inspection report comes back, take the time to review it thoroughly. Don’t be alarmed if it’s 30+ pages long with more than 25 “issues”—this is typical. In fact, I’ve never seen an inspection report without at least some repairs needing attention.
However, it’s essential to distinguish between minor cosmetic repairs—like tightening a loose cabinet hinge or patching small drywall imperfections—and major concerns—such as sewer backup or foundation issues.
Remember, the home inspection is for your information as a buyer—not a to-do list for the seller. Our focus should be on structural issues, safety defects, and non-working appliances/mechanicals.
How to Read Your Inspection Report
Here are some key steps to help you evaluate the report efficiently:
- Pay close attention to electrical, plumbing, roof, foundation, and water intrusion issues, as these can be expensive to repair.
- If certain issues are concerning, you may want to bring in specialists such as a structural engineer, sewer inspector, electrician, or pest expert. These additional inspections will be at your expense.
- Create three lists:
- Must-fix items: Issues you want the seller to address, or you’re unwilling to proceed with the purchase.
- Prefer-to-fix items: Issues you’d like fixed but wouldn’t walk away over.
- Buyer responsibility items: Small concerns you’re comfortable handling yourself.
- Send me your list—I’ll review it and offer feedback to ensure you're asking for the right repairs without over- or under-negotiating.
- Decide between repairs vs. credits—You can request either repairs or a closing-cost credit to cover repairs after closing. For example, if we negotiate a $2,000 inspection credit, it will be deducted from your closing costs, meaning you bring $2,000 less to closing—leaving you funds to complete repairs yourself.
Important Considerations
The most critical items in an inspection report fall into three categories:
- Safety issues
- Structural concerns
- Non-working essential components (e.g., appliances, HVAC, plumbing, etc.)
What shouldn’t be included: cosmetic fixes, such as paint touch-ups or gutter cleaning. No home—unless it’s new construction—will be perfect. If small imperfections are a deal-breaker, new construction may be a better fit.
Submitting the Inspection Notice & Negotiating Repairs
Once we finalize a strategy, we must submit our Inspection Notice by the deadline. This document outlines:
- Items we are dissatisfied with based on the inspection.
- Actions we request from the seller—either repairs or a closing credit.
From there, we’ll enter negotiations with the seller’s agent, typically lasting two to seven days, depending on what was agreed upon in the Buy Sell Agreement.
Finalizing Repairs & Walkthrough
If an agreement is reached, the seller must complete all repairs before the final walkthrough. The receipts proving the work was completed should be provided to us in advance.
If we are unable to reach an agreement, you have the right to cancel the contract and receive a refund of your earnest money.
Additional Protection: Home Warranty
As part of the inspection negotiations, we can ask the sellers to provide a one-year home warranty to cover unexpected repairs. Let me know if you’d like us to request this! Click here to read more about home warranties.
