Understanding the results of your home inspection is just as important as having the inspection done, and it’s not as complicated as you may think.
Home inspections are a well-established part of real estate transactions, and this is for good reason. However, many individuals may find themselves overwhelmed with the home inspection report itself; depending on the state and size of the home, as well as which inspection company is used, these reports can range from about a dozen pages to nearly 100.
“A home inspection report may seem like a lot to take in, but if you understand how to read it and what you need to look for, you can quickly find the information you need to make an informed decision,” said Adam Long, president of HomeTeam Inspection Service. “At HomeTeam, our inspectors use a tablet throughout the inspection, so the report can be delivered digitally with a quick turnaround and in an easy-to-access format. Even after the report is delivered, many inspectors are more than happy to provide additional context to you or your real estate agent.”
Who Needs a Home Inspection?
A home inspection protects everyone involved in a real estate transaction.
Sellers should consider a pre-listing home inspection, which can help them to understand the true state of the home and make an informed decision regarding any repairs that may need to be completed before listing, what a fair listing price will be and what should be disclosed to a potential buyer.
On the flip side, a buyer can schedule a home inspection after making an offer on a home. If the seller accepts an offer that includes a home inspection contingency, buyers are able to ensure that they are not unknowingly buying a home that will require major repairs in the near future, and they may be able to use the contents of a home inspection report to negotiate the deal.
What Is Included in a Home Inspection Report, and How Should It Be Read?
A home inspection report contains a few key sections: basic information about the home itself, an assessment of the major systems and components of the home, photos of any identified problems and a summary of the entire inspection. Some people prefer to read the summary first as a primer of sorts, allowing for a baseline understanding before they dive into the nitty gritty details of the assessment section.
The assessment section typically outlines the systems and components of the home that have been inspected along with some sort of rating or code that indicates the state of the specific item.
Inspectors typically use the following indicators in their reports:
- I: This item has been inspected.
- NI: This item was not inspected.
- NP: This item was not present or not accessible.
- S: This item poses a safety concern.
- R: This item requires a repair.
- D: This item has a defect and will require a repair or alteration.
These codes are generally applied to the following items or areas of a home:
- Foundation
- Basement
- Floors
- Ceilings
- Attic
- Roof
- Walls
- Insulation
- Windows
- Doors
- HVAC systems
- Plumbing systems
- Electrical systems
As you read through the assessment section, you’ll likely want to keep an eye out for items marked S, R or D, but reading through the status of each item inspected will give you a complete understanding of the overall condition of the home.
For items that have been marked as potentially problematic, many inspectors will include photos. Referencing these provides even more information regarding the exact issue, and you can use this knowledge to collaborate with your real estate agent and the other party in the transaction to adjust the purchase agreement as needed.
Finally, the summary provides an outline of the major issues identified during the inspection, and it can be accompanied by a rating that indicates the overall state or “grade” of the home.
“You should be prepared to approach your home inspection report with confidence, but don’t hesitate to ask questions, either,” added Long. “Many inspectors and real estate agents have been in the industry for years and are well-versed in this process. They can guide you through next steps, whether that’s evaluating the market and adjusting your listing accordingly, reaching out to the professionals for a repair or negotiating your offer with the seller.”
