What to Look for During a Home Inspection (And What to Walk Away From)

You've found the home. Your offer was accepted. You're excited — and maybe a little terrified. Now comes one of the most important steps in the entire homebuying process: the home inspection.

A professional home inspection is your opportunity to pull back the curtain on a property and see what's really going on behind the walls, under the floors, and above the ceiling. It can confirm your confidence — or reveal problems that could cost you tens of thousands of dollars after closing.

At Goree & Thompson, we've seen buyers saved by thorough inspections and others blindsided by issues they didn't know to look for. This guide gives you the complete picture — what inspectors check, what issues are manageable, and which ones mean you should pack up and walk away.

What Is a Home Inspection — and What It Isn't

A home inspection is a visual examination of a property's accessible systems and components, conducted by a licensed inspector. It typically takes 2–4 hours for an average-sized home, and you should be present for every minute of it.

What a home inspection covers:

• Structural components — foundation, framing, walls, floors, ceilings, roof

• Roofing — materials, gutters, flashing, chimneys, skylights

• Electrical system — panel, wiring, outlets, breakers, grounding

• Plumbing — pipes, water heater, fixtures, drainage, water pressure

• HVAC systems — heating, cooling, ventilation, ductwork

• Exterior — siding, grading, drainage, driveway, deck, garage

• Interior — windows, doors, stairs, insulation, attic, basement

What a home inspection does NOT cover:

• Behind walls, under flooring, or inside pipes (not a destructive inspection)

• Pests or termites — requires a separate pest inspection

• Radon, mold, asbestos, or lead paint — require separate specialty inspections

• Septic systems or wells — require dedicated inspections if present

• Swimming pools — usually a separate inspection add-on

Pro Tip: Don't just get the standard inspection. For older homes or HUD properties, budget $800–$1,500 for a full suite including radon, sewer scope, mold screening, and pest inspection. The extra $300–$500 you spend upfront can save you $30,000+ in surprises post-closing.

What to Look for in Every Major Area

🏗️  Foundation and Structure

Severity Level: 🔴 CRITICAL — Non-negotiable to evaluate carefully

• Horizontal cracks in the foundation walls — often indicate lateral soil pressure and serious structural movement

• Stair-step cracks in brick or block walls — can signal differential settling

• Bowing or leaning basement walls — potential for collapse, extremely costly to fix

• Uneven or sloping floors — may indicate foundation settling or compromised joists

• Doors and windows that stick or won't close properly — classic sign of foundation movement

• Gaps between walls and ceilings — especially if consistent across multiple rooms

💡 Vertical hairline cracks in poured concrete foundations are common and usually cosmetic. Horizontal cracks, stair-step cracks, or cracks wider than 1/4 inch should be evaluated by a structural engineer before proceeding.

🏠  Roof

Severity Level: 🔴 HIGH — Roof replacement is one of the costliest repairs

• Missing, curling, or buckling shingles — signs of aging or weather damage

• Granule loss on asphalt shingles — indicates shingles are nearing end of life

• Sagging areas or visible daylight in the attic — structural or decking issue

• Damaged or improperly installed flashing around chimneys, skylights, and valleys

• Clogged or damaged gutters — can cause water intrusion and foundation issues

• Moss or algae growth — indicates moisture retention that shortens roof life

💡 Ask the inspector for an estimate of remaining roof life. A roof with 3–5 years left is a negotiating point, not necessarily a deal-breaker — but you need to price that cost into your offer.

⚡  Electrical System

Severity Level: 🔴 HIGH — Electrical issues are a fire and safety hazard

• Federal Pacific or Zinsco electrical panels — known fire hazard, flagged by inspectors and insurers nationwide

• Aluminum wiring (in homes built 1965–1973) — higher fire risk without proper connectors

• Double-tapped breakers — two wires connected to one breaker, a code violation

• Ungrounded outlets (two-prong) — especially in kitchens, bathrooms, and garages

• Missing GFCI protection near water sources — required by code in wet areas

• DIY or unpermitted wiring — unauthorized work is a safety and insurance risk

• Overloaded panel or insufficient amperage for modern electrical demands

💡 Electrical panel replacements run $2,000–$4,500. Rewiring an entire home can cost $8,000–$20,000+. These aren't automatic deal-breakers, but they must be fully priced into your budget and negotiation.

🚿  Plumbing

Severity Level: 🟡 MODERATE TO HIGH — Depends on scope of issues

• Polybutylene pipes (gray plastic, common 1978–1995) — prone to failure and often uninsurable

• Active leaks under sinks, around toilets, or at the water heater

• Low water pressure throughout the home — may indicate supply line issues or hidden leaks

• Slow drains or gurgling sounds — signs of partial blockage or venting issues

• Water stains on ceilings or walls — evidence of past or current leak

• Water heater age and condition — most last 10–15 years; near end of life is a negotiating point

• Corroded or galvanized steel pipes in older homes — rust buildup restricts flow and can fail

💡 Always order a sewer scope inspection for homes over 20 years old. A $150–$350 camera inspection of the main sewer line can reveal tree root intrusion, collapsed pipe, or bellying — issues that can cost $3,000–$15,000 to repair.

🌡️  HVAC (Heating, Ventilation & Air Conditioning)

Severity Level: 🟡 MODERATE — Age and condition determine urgency

• Age of the system — furnaces last 15–20 years, AC units 10–15 years; near end of life affects value

• Unusual noises, burning smells, or failure to heat/cool properly

• Dirty or clogged filters and ductwork — indicates poor maintenance and possible air quality issues

• Cracked heat exchanger — a furnace component that, when cracked, can leak carbon monoxide into the home

• Inadequate insulation or ductwork leaks — increases energy costs significantly

• Window units being used instead of central air — may indicate missing or broken HVAC

💡 Ask the seller for service records on the HVAC system. A well-maintained 12-year-old furnace is very different from a neglected 8-year-old one. If the system is near end of life, get a replacement quote and use it in negotiations.

💧  Water Intrusion and Moisture

Severity Level: 🔴 HIGH — Moisture leads to mold, rot, and structural damage

• Efflorescence (white chalky deposits) on basement walls — indicates water seepage through the foundation

• Musty odors in basement, crawlspace, or attic — strong indicator of mold or moisture accumulation

• Staining or discoloration on ceilings and walls — active or past water intrusion

• Soft, spongy, or discolored wood in attic or crawlspace — signs of rot and possible mold

• Negative grading around the foundation — soil sloping toward the house directs water into the basement

• Evidence of water in the crawlspace — standing water or vapor barrier damage

💡 If the inspector flags moisture, spend the extra $200–$600 on a professional mold inspection before proceeding. Mold remediation can range from $1,500 for a small area to $30,000+ for widespread contamination behind walls.

🏡  Exterior and Drainage

Severity Level: 🟡 MODERATE — Often negotiable but important to catch

• Damaged or deteriorating siding — allows moisture intrusion and pest entry

• Wood rot around windows, doors, eaves, and deck framing

• Improper grading — ground should slope away from the foundation at 6 inches over 10 feet

• Damaged or aging deck — check for rot, missing ledger bolts, and structural integrity

• Driveway and walkway cracks — usually cosmetic, but large heaving cracks near the foundation can indicate movement

• Garage door safety features — auto-reverse function is required by code

💡 Exterior wood rot is common and often more visible post-offer than during the initial showing (especially if the home was freshly painted). Ask your inspector to probe all painted wood surfaces — a screwdriver that sinks in indicates rot underneath.

🛋️  Interior Systems and Finishes

Severity Level: 🟢 LOW TO MODERATE — Often cosmetic or inexpensive to address

• Windows that don't open, close, or lock properly — security and energy efficiency issue

• Fogged double-pane windows — seal failure, affects insulation; replacement per window is $150–$400

• Sticking interior doors — may indicate foundation settling or humidity-related swelling

• Damaged or missing handrails on stairs — safety code issue, inexpensive to fix

• Non-functioning exhaust fans in bathrooms and kitchen — ventilation and moisture control

• Evidence of rodent activity — droppings, chewed wires, or gnaw marks

• Attic insulation levels — inadequate insulation increases energy costs significantly

💡 Don't let a long list of minor interior items frighten you. A report with 25 small items (dripping faucet, sticking window, missing outlet cover) is far less concerning than a report with 3 major structural findings.

The Walk-Away List: When to Seriously Consider Canceling

Not every problem in an inspection report is a reason to walk away — but some absolutely are. Here are the issues that warrant a very hard conversation with your agent and possibly a decision to exit the contract:

01  🏗️  Major Foundation Failure

Why it's serious: Foundation issues can threaten the entire structural integrity of the home. Horizontal cracks, bowing walls, and significant settling can cost more to repair than the home is worth — and may make financing impossible.

Potential cost: $20,000 – $100,000+ depending on severity

What to do: Get a structural engineer's assessment before deciding. If the engineer confirms major failure, walk away unless the seller agrees to a substantial price reduction that covers full remediation.

02  🦠  Widespread Mold Behind Walls or in the HVAC System

Why it's serious: Mold that has infiltrated wall cavities, the HVAC system, or the structural framing is extremely difficult and expensive to fully remediate. It can cause serious health issues and may return if the underlying moisture source isn't corrected.

Potential cost: $10,000 – $50,000+ for extensive remediation

What to do: A small isolated patch of surface mold is negotiable. Mold discovered inside walls, in the HVAC ductwork, or covering large portions of a crawlspace or attic is a serious red flag.

03  🔥  Active Knob-and-Tube or Severely Compromised Electrical Wiring

Why it's serious: Homes with active knob-and-tube wiring (common pre-1950) or severely deteriorated wiring are a fire hazard. Many insurers will refuse to write a policy on a home with active knob-and-tube, making financing nearly impossible.

Potential cost: $15,000 – $30,000+ for full rewiring

What to do: If the rewiring cost plus your purchase price exceeds market value, the deal no longer makes financial sense. Many lenders will not fund a loan on a home with active knob-and-tube wiring.

04  💧  Collapsed or Severely Compromised Sewer Line

Why it's serious: A collapsed main sewer line is a hidden disaster. Sewage backup inside the home, tree roots that have fully infiltrated the line, or a bellied pipe requiring full replacement under the foundation can mean massive excavation costs.

Potential cost: $5,000 – $25,000+ for main line replacement

What to do: This is why sewer scope inspections are non-negotiable for older homes. Always scope the sewer on any home built before 2000.

05  ☣️  Unpermitted Major Additions or Structural Changes

Why it's serious: If a seller added a room, finished a basement, or made structural changes without permits, those additions may not meet code — and YOU inherit that liability at closing. Lenders may refuse to finance homes with significant unpermitted work.

Potential cost: $5,000 – $40,000+ to bring up to code or demolish

What to do: Request all permits for any additions or major renovations. If permits can't be produced, have a contractor assess the cost to remediate before closing.

06  🪨  Asbestos in Deteriorating Condition

Why it's serious: Asbestos in intact, undisturbed condition (floor tiles, pipe insulation) can sometimes be safely encapsulated. But asbestos that is deteriorating, crumbling, or in areas that will be disturbed during renovation (popcorn ceilings, duct wrap) requires professional abatement.

Potential cost: $2,000 – $30,000+ depending on scope

What to do: Have any suspected asbestos-containing materials tested before closing, especially in homes built before 1980. Encapsulation may be acceptable; disturbed or widespread asbestos typically is not.

Issues to Negotiate, Not Walk Away From

Most inspection findings fall into the "negotiate" category rather than the "walk away" category. Here's how to handle the most common negotiable issues:

🔧  Aging Roof (5–10 Years of Life Remaining)

An aging roof isn't an immediate emergency — but it's a real and approaching cost. Use it as leverage to negotiate a price reduction or seller credit.

💡 Request a roofing contractor's written estimate and ask the seller for a credit equal to the replacement cost. Many sellers will agree rather than risk losing the deal.

🌡️  Older HVAC System

A functioning but aging furnace or AC unit is a negotiating chip, not a deal-breaker. Get a replacement quote and use it in your request.

💡 Ask for a home warranty as part of the deal — it typically covers HVAC systems and can be purchased for $400–$700/year. This protects you for the first 1–2 years of ownership.

🚿  Water Heater Approaching End of Life

Most water heaters last 10–15 years. An aging unit is inexpensive to replace ($1,000–$2,500) and easily negotiated.

💡 Either ask for a seller credit in the amount of replacement, or request the seller replace it before closing as a condition of the sale.

🪟  Minor Repairs and Deferred Maintenance

A long list of small items — dripping faucets, sticking windows, missing GFCI outlets, broken door hardware — is normal in any home and not cause for alarm.

💡 Rather than demanding each item be fixed, request a single lump-sum credit. This is faster, simpler, and gives you the flexibility to make repairs on your own schedule after closing.

🐛  Pest or Termite Evidence (No Active Infestation)

Past evidence of pests, or minor current activity, can usually be treated before or after closing. A full active infestation is more serious.

💡 Request a professional pest treatment as a condition of closing. If there is structural damage from termites, get a contractor's assessment and negotiate accordingly.

Inspecting HUD Homes: Special Considerations

If you're purchasing a HUD home — as Goree & Thompson specializes in — the inspection process has some important differences:

• HUD homes are sold strictly as-is. HUD will not make repairs, negotiate repair credits, or reduce the price based on inspection findings.

• You CAN still inspect. You have the right to conduct a full inspection before submitting your bid. Use this information to decide whether to bid, and at what price.

• HUD condition codes matter. Properties are listed as Insured (IN), Insured with Escrow (IE), or Uninsured (UI). UI properties have significant issues — budget accordingly.

• Price your repairs into your bid. On an as-is property, the inspection tells you what you're really paying. If the home needs $25,000 in repairs and is listed at $180,000, bid to reflect that.

• FHA 203(k) loans are your friend. If you love the home despite needed repairs, the FHA 203(k) rehabilitation loan lets you finance both the purchase and renovation costs in a single mortgage.

Goree & Thompson's team can help you interpret HUD property condition codes, estimate repair costs, and structure a bid that reflects the true value of the property — not just the list price.

Frequently Asked Questions

Should I be at the home inspection in person?

Absolutely — never skip it. Being present allows you to ask the inspector questions in real time, see issues firsthand rather than just reading about them in a report, and understand the true severity of each finding. Plan for 2–4 hours and come with a notepad and questions.

Can the seller fix issues found during inspection?

Yes, in a traditional sale you can request the seller make repairs, provide a credit, or reduce the price. Sellers are not legally required to agree — and in competitive markets, some won't. Having an experienced agent negotiate on your behalf makes a significant difference in what you can achieve from an inspection finding.

What if the inspector misses something?

Licensed inspectors carry Errors & Omissions (E&O) insurance to protect against missed items. However, inspections are visual and non-invasive — inspectors can only report on what they can see. That's why specialty inspections (mold, sewer, radon) are so important for catching what a standard inspection can't.

How do I find a good home inspector?

Look for inspectors certified by ASHI (American Society of Home Inspectors) or InterNACHI (International Association of Certified Home Inspectors). Ask for sample reports — a quality inspector provides detailed, photo-documented reports. Avoid inspectors recommended exclusively by the listing agent, as a conflict of interest may exist.

Do I need an inspection on a new construction home?

Yes — always. New construction is not immune to defects. Common issues include improper grading, missed insulation, plumbing leaks, and HVAC installation errors. A third-party inspector looking out for your interests — not the builder's — is essential even on brand-new homes.

Home Inspection Day Checklist

Bring this checklist to your inspection:

• ✅  Arrive at the start and plan to stay the full 2–4 hours

• ✅  Bring a notepad and write down anything the inspector highlights verbally

• ✅  Take your own photos of any issues — supplement the inspector's report

• ✅  Test every outlet, switch, faucet, and window you can access

• ✅  Run every appliance included in the sale (stove, dishwasher, garbage disposal)

• ✅  Check the attic and crawlspace yourself if accessible and safe

• ✅  Ask the inspector to explain severity — not all flagged items are equal

• ✅  Ask about remaining useful life on roof, HVAC, and water heater

• ✅  Request specialty inspections on the spot if inspector notes any concerns (moisture, pests, older electrical)

• ✅  Review the written report thoroughly within 24 hours and discuss findings with your agent

An Experienced Agent Makes All the Difference at Inspection Time

Knowing what to look for is only half the battle. Knowing how to respond — whether to negotiate, walk away, or proceed with confidence — is where a skilled agent earns their value.

At Goree & Thompson, we've guided buyers through hundreds of inspections. We know which issues are manageable, which are red flags, and how to negotiate effectively when the report comes back with findings. Whether you're buying a traditional listing or a HUD home, we're in your corner every step of the way.

📞 Contact us today for a free consultation — before your next inspection, not after.

👉 Visit us at: www.goreeandthompson.com