Step 10: Reading the Inspection Report

Reading Your Inspection Report

Once the inspection report comes back, you need to review it thoroughly. Don’t be surprised if it’s 30 + pages long with more than 25 “issues” that need to be repaired. This is typical. We’ve never seen an inspection report that didn’t have at least 5 items that needed repair. However, there is a big difference between small mainly cosmetic repairs such as needing to recaulk a shower or repair a broken microwave handle and large issues such as sewer back up in the basement. Remember, the home inspection is an informational report for you, the buyer, not a to-do list for the seller. We should only be concerned about structural issues, safety defects, or appliances/mechanical not working.


Therefore, here are our tips for reading the inspection report:

1. Pay particular attention to issues relating to the electrical, plumbing, roof, foundation, or water intrusion issues as these can be big-ticket items to repair.

2. If there are any big-ticket items that are concerning to you, decide if you want to have additional inspections performed. For instance, we can bring in a structural engineer, a sewer inspector, an electrician, a pest inspector, etc. If you want to bring in additional inspectors, you’ll be responsible for paying their fees.

3. Make a list of items you feel the seller must repair or you’re not willing to go through with the transaction.

4. Make a second list of items you’d like the seller to fix, but would be willing to still close on the house without the seller fixing.

5. Make a third list of the items you’re OK with fixing yourself or feel don’t really need to be fixed.

6. Once you’ve done this, call me and I will review it with you and suggest changes if you’re leaving out an expensive repair, not asking for enough, asking for too much, etc.

7. Keep in mind that you can ask the sellers to repair items or provide a credit for you to fix the items after closing. Credits go towards your closing costs. For instance, if we negotiate a $2,000 inspection credit that amount would come directly off your closing costs. Therefore, you’d bring to closing $2,000 less than originally expected. That way you have that $2,000 to do needed repairs after the closing.

8. Remember that the things on the inspection report which are important are:

  • Safety issues

  • Structural issues

  • Working components such as appliances that are not working.

We should NOT be asking for the paint to be touched up, the gutters to be swept out, etc. Unless you are buying new construction, no home is going to be perfect. If you want a perfect home, buy new construction. If you aren’t buying new construction, then we need to accept the house with its cosmetic flaws or find a new house. Remember, we are concerned with safety issues and things not working.

Once we’ve agreed on a strategy, I will negotiate the inspection repairs with the seller’s agent. If there are only a few minor issues that need to be fixed, the negotiation will probably go quickly. However, if contractors or trade people need to be brought in to give estimates, expect the inspection negotiations may take 3 – 7 days. It is best to hang tight and be patient at this time.

If we are able to come to an agreement with the sellers, then the repairs need to be completed by the final walk-through with receipts proving the work was done sent to us ahead of time. If we are not able to come to an agreement, you have the right to cancel the contract instead and get a refund of your earnest money.

Keep in mind, as part of the inspection negotiations we can also ask the sellers to provide a home warranty for the first year. Click here to read more about home warranties. Let us know if you’d like me to ask the sellers to provide a home warranty as part of the inspection negotiations.

Questions? Call me at 253-988-8252


Quick Link to: Step 11 – Time to Stop Spending