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Sheila Fitzgerald/Shutterstock April 12, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Jennifer Bradley Franklin is a multi-platform journalist and author, often covering finance, real estate and more. Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Jeffrey L. Beal, president of Real Estate Solutions, has 40 years' experience in multiple phases of the real estate industry. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Bankrate logo Editorial integrity
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Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. When you’re spending a large chunk of money on a home, it’s wise to make sure you know exactly what you’re getting into. That’s why a plays a lead role in the real estate transaction. But deciphering a home inspection’s findings can be tricky. If you’re in the process of , here’s what you can expect to see on the house’s inspection report, and what to watch for.
What s in a home inspection report
Once you’ve made an offer on a home and the seller has agreed to it, a certified, licensed home inspector will take a look at the property. The inspector will create a report about its condition, and any issues that could affect its safety or value. “Your inspection report is going to be quite thorough, covering a wide range of systems and components in the home,” explains Nick Gromicko, founder of the International Association of Certified Home Inspectors (InterNACHI), based in Boulder, Colorado. If the inspector uncovers any issues in the home or on the property, those will be explained in the report, likely with photos of the problem, Gromicko says. Think of the home inspection report as an opportunity to find out about any potential problems with a property.
Typical things a home inspector looks at
Here are what parts of the home, at minimum, you can expect to be evaluated by a home inspector, according to InterNACHI. These will be included in most home inspection reports: Exterior, including the siding or other covering material; eaves and soffits; doors and windows; driveways, stairs or steps and walkways; deck or porch; drainage, grading and retaining walls Roof, including the material it’s made of, chimneys, gutters and skylights Basement, foundation and structure Attic and any crawlspaces, including insulation and ventilation Ventilation in bathrooms, kitchen and laundry room Electrical, HVAC and plumbing systems Interior, including doors, windows, landings and stairs Fireplaces Garage doors A home inspector may assess other areas beyond this list, so you might also see mention of the appliances in the kitchen, for instance. All of these details serve to inform you, the buyer, and can help you determine whether you’d like to proceed with the purchase — especially if major issues crop up.
What a home inspection report looks like
To get an idea of what a home inspection report might look like, see InterNACHI’s .
Red flags to watch for in a home inspection report
A red flag spotted in the home inspection can help you avoid a potential money pit. Water damage is a big one: “Water is not just an issue of things getting wet; water causes mold, and that is a health issue,” Gromicko notes. Here are some red flags to watch out for: Water intrusion: “Inspectors need to be on the lookout for evidence of previous flooding and roof leaks, or an indication that a flood or leak is likely to happen,” explains Bonnie Heatzig, a real estate agent with Douglas Elliman in Boca Raton, Florida. “Look for stains on the ceiling or floor. [Likewise] in states susceptible to earthquakes, check for cracks in the foundation, walls and ceilings.” Previous storm damage: Consider also whether the area you’re buying a home in is prone to natural disaster or intense storms, and what the resulting damage has been or may be in the future. Don’t hesitate to ask the seller if there were insurance claims related to storm damage, and, if so, get copies of these claims and any other paperwork documenting subsequent repairs. Pest infestation: Unwelcome critters in the home can be expensive to get rid of, and potentially damaging. Electrical issues: Electrical problems are often expensive to repair — but it’s crucial to do so, because an electrical issue could lead to a fire. How to negotiate repairs
Once you receive the home inspection report, go over it in detail with your real estate agent and, ideally, a . Don’t be afraid to ask the inspector about anything that needs clarification. Look into the repair costs for each item spotted by the inspector. The inspection typically won’t reveal how much it would cost to repair a problem — it’s usually up to you to find a contractor and get estimates. A like Repair Pricer, which can translate an inspection report into an itemized list of prices, can help you estimate repair costs. If major problems reveal themselves, your agent or attorney can negotiate with the seller to make repairs before closing, even if you’re in a and don’t necessarily have the upper hand. Your agent or attorney can help you with negotiations and advise you on the best strategy. “If you uncover issues that concern you during the inspection, there are easy ways to resolve most issues,” Heatzig says. Solutions include “negotiating a seller concession to the buyer, holding a portion of the proceeds in an escrow account to be used post-closing to rectify any problems and, if necessary, delaying the closing until the issues are resolved.” Bottom line
A home may look flawless on the surface, so it’s important to give the home inspection report its due and really understand all of the information in it. Knowing what you’re buying, and negotiating repairs if possible, can help you avoid costly surprises later on, and give you realistic expectations. “Our inspectors have, at times, found so many defects in a house that the repairs would cost more than the sale price of the entire home,” says Gromicko. “You don’t want to purchase a lemon,” adds Heatzig. “Nothing would be more devastating than spending a lot of your savings and committing to a mortgage only to encounter issue after issue once the keys are in your hands.” SHARE: Jennifer Bradley Franklin is a multi-platform journalist and author, often covering finance, real estate and more. Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Jeffrey L. Beal, president of Real Estate Solutions, has 40 years' experience in multiple phases of the real estate industry. Related Articles