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Home Inspection: What Buyers Need to Know Before Going Under Contract

A home inspection is your best protection in a real estate transaction. Here's what to expect and how to use the results.

Rick Villa

Rick Villa

July 21, 2024 · 5 Point Capital

The home inspection is one of the most important steps in buying a home — and one of the most misunderstood. Here’s what to know before your inspection day.

What Does an Inspector Actually Check?

A licensed home inspector examines the visible and accessible systems of a home:

Structure: Foundation, framing, roof Mechanical: HVAC systems, water heater Electrical: Panel, wiring, outlets Plumbing: Pipes, fixtures, drainage Exterior: Siding, drainage, grading Interior: Walls, ceilings, windows, doors

What they don’t do: Open walls, move furniture, inspect inside pipes, or check for pests (that’s a separate termite inspection).

Should You Be There?

Absolutely yes. Walking through with your inspector gives you context that a written report can’t provide. You’ll learn how your specific home’s systems work, what needs maintenance, and which issues are serious vs. cosmetic.

Understanding the Report

Inspectors flag items as “safety concerns,” “major defects,” “minor defects,” and “maintenance items.”

Safety concerns and major defects are worth negotiating over — or reconsidering the purchase.

Minor defects and maintenance items are normal in any home and shouldn’t tank a deal.

A 200-item inspection report sounds alarming. But if 190 items are minor maintenance issues and 10 are cosmetic, that’s actually a clean inspection.

What to Request in Negotiations

After inspection, you can:

  1. Request repairs before closing
  2. Request a price reduction
  3. Request a seller credit at closing
  4. Walk away (within your inspection contingency)

In competitive markets, some buyers forgo the inspection contingency to strengthen their offer — but this is a risk. We always recommend at minimum doing a pre-offer inspection walk-through if available.

Typical Inspection Costs

Inspections typically run $400–$700 depending on home size. Worth every penny.

We can recommend trusted inspectors throughout Orange County and the surrounding areas.

Have questions about your situation?

Rick offers free, no-obligation consultations. Get personalized advice for your specific loan or home.