The results of a home inspection can make or break a home sale, especially if buyers are unsure of the items listed in the report. They may panic when they see a long list of repairs.
“No home is perfect,” says Adam Long, president of HomeTeam Inspection Service, which has more than 200 offices nationwide. “Every home has some safety concerns or issues that may need to be addressed — some right away, some later. But ultimately, every home has problems, and every problem can be solved. It’s up to the buyer, seller and agent to decide.”
A home inspection provides a visual review of the home’s structure and major components, including plumbing and electrical systems, Long says. Home inspectors provide a written summary of the inspection and should inform the client of everything they find, explain it, and answer any questions. “They’re not there to scare the homebuyer,” he says. “They may find that some items need to be replaced, or they may be budgeted for replacement later or used to renegotiate the price.”
Decoding potential red flags
These larger inspection items may raise concerns for buyers, but there may be no cause for concern.
structural or fundamental problems
A home that starts to move or settle improperly can cause major problems later. A home inspector will look for any signs of structural problems, noting even seemingly small cracks in a concrete slab or on interior walls. “They may tell you to just keep an eye on it to make sure it doesn’t get bigger or expand,” Long says. “But if it’s a horizontal crack with a bulge, they may advise you to have it checked out right away by a foundation expert.”
Inspectors may also point out issues such as misaligned or stuck doors and windows, as well as sagging or leaning floors, which could indicate a potential foundation problem. By being proactive about foundation issues, homeowners may be able to avoid more expensive problems later on. For example, repairing a simple crack can cost as little as $500, but more extensive foundation repairs can run $10,000 or more, according to HomeAdvisor’s 2023 cost data.
Price: The average cost of foundation repair nationwide is between $2,175 and $7,823, but costs can vary widely depending on the damage.
Aluminum wires
A home inspector will likely determine if aluminum wiring, which is often found in homes built between 1965 and 1973, is present. Homes today are wired using copper, and aluminum wiring has been found to deteriorate faster than copper. Aluminum is prone to overheating, which can create a fire hazard. “People who have lived in a home for 50 years, or people who haven’t had a home inspection on previous moves, may not even know they have it,” says Long. “That doesn’t mean the home will catch fire, but it does increase the chances that it will.”
Many insurance companies will not insure homes with aluminum wiring, so inspectors may advise buyers to talk to their insurance agent. Rewiring a home can be expensive, but buyers can explore other possible solutions, such as using specialized connectors or applications, to make aluminum wiring safer.
Price: The national average cost to rewire a home is $16,000.
Dated electrical panels
Home inspectors check electrical panels, where all the wiring in a home is gathered and distributed. One common problem they find is when two branch wires of a circuit are connected to the same breaker—there’s only supposed to be one—which can cause the breaker to trip repeatedly. “That’s easy to fix,” Long says.
Inspectors will also check the type of panel installed and may recommend replacing it. For example, older Zinsco and Federal Pacific electrical panels, installed from the 1950s to the 1980s, have been linked to fire hazards caused by circuit breakers failing over time. Some insurance companies may not insure homes with these panels.
Price: The national average cost to replace and install an electrical panel is $2,400.
plumbing problems
Inspectors may notice things ranging from minor to major in a home’s plumbing. “Most plumbing issues are minor, like a loose hose or a leaky faucet,” says Long. “It’s not a red flag, but it’s important because you don’t want a small leak to become a larger leak and then, later, lead to mold.” Inspectors may also notice polybutylene plastic supply pipes, which were commonly used between 1978 and 1994, Long says. They have a higher rate of leaks or plumbing line failure than more modern pipe materials.
Inspectors are likely to notice polypropylene pipes as well as cast iron and galvanized pipes, which are prone to corrosion. Long says these pipes don’t necessarily need to be replaced, but homebuyers will need to make that decision. “They’re not used in newer homes, but they are used in older homes,” Long says. Copper is used today and has a longer lifespan than some other materials that homeowners might need to consider replacing after 40 or 60 years, he adds.
Price: The national average price for replacing plumbing supply pipes is $1,500 to $15,000, depending on the size of the home and the type of pipes installed.
floor joists
Many homes have attic logs or floor joists. Home inspectors will point out any rotting wood in these areas. They’ll also note whether the homeowner has done anything to the logs or floor joists that might compromise the stability of the home. Homeowners and remodelers may cut into floor joists — the horizontal structures between the joists that help distribute the weight of the home — when installing plumbing. “They may think it’s okay to cut a little crack in the wood, but the floor joists provide support,” says Long. Later, this can lead to cracks in walls, unstable or slanted floors and structural damage.
Price: The national average cost to repair floor joists is $12,500, but costs vary depending on the extent of the damage and the type of joist. Expect to pay $100 to $2,000 per joist.
Heating, Ventilation and Air Conditioning Systems
Many homes run on natural gas, and inspectors will evaluate the heat exchanger and the color of the flame, such as whether it’s reddish-yellow or blue. “If it’s not blue, it could indicate a bad fuel-air ratio,” Long says, indicating a possible sign of a cracked heat exchanger. That could eventually cause the furnace to stop working, need to be replaced, or even cause a possible carbon monoxide leak.
Price: The national average price for an HVAC replacement is $5,000 to $12,000.
Safety issues
Inspectors look for potential safety issues in the home and will report anything they find, even if it’s relatively minor. “Home inspectors look for tripping hazards, from cracks in the driveway or steps leading into the home to missing or loose handrails,” says Long. “They’ll report these hazards, but they’re usually easy to fix. They won’t cause a fire or flood, but they can cause injuries in the home.” Inspectors will also document the presence of smoke alarms and carbon monoxide detectors. “Many older homes, in particular, may not have carbon monoxide detectors or lack the appropriate amount of smoke detectors” to comply with today’s building codes, says Long.
Exchange places
Outside, home inspectors will not only check the roof, but also the home’s drainage systems. They’ll check to see if water is flowing away from the foundation, basement, or crawl space. They’ll look for gutters that aren’t adequate, or that may be overflowing and not large enough for the roof. “Gutters direct water away from the foundation,” Long says. “If the gutters are feeding water out and back toward the house, some sort of pipe may be needed to direct it away from the house.”
Long says he often discovers issues where homeowners have added landscaping that inadvertently redirects water toward the foundation. Over time, that can cause water to seep into cracks inside the home. “These issues tend to be easy to fix but may need to be addressed” to prevent future damage, Long says.
Price: The national average price for gutter installation ranges from $624 to $1,705.
Don’t panic
After receiving a full report from a home inspector, buyers may be concerned about certain items that were uncovered and ask the seller to fix each one. But Long says the report is an overview of the home and all its components. Some items may require further investigation by a professional — such as an electrician or foundation expert — and some may be flagged for future maintenance.
“Everything is fixable, and none of these items should be deal-breakers,” Long emphasizes. “They may just need to be reviewed further if they’re noted in the home inspection report, and they may be potential points for further negotiation.” Either way, a home inspection gives buyers the opportunity to move into home ownership with a complete picture of what they’re buying.
