How to Read Your Home Inspection Report

By Michael Franco

July 06, 2025

Whether you're buying your first home or selling one you’ve outgrown, the home inspection process can feel overwhelming — especially when that inspection report lands in your inbox. These reports are often dozens of pages long, filled with technical language, symbols and checklists. But learning how to read a home inspection report is one of the most important steps in making informed real estate decisions.

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Here's how to make sense of the document, what to watch for and how to use the information to prioritize repairs or negotiate next steps.

What Is a Home Inspection Report?

A home inspection report is a detailed written summary created by a licensed home inspector after a visual evaluation of a property. The inspector walks through the home and assesses major systems and components — including the roof, foundation, HVAC, plumbing and electrical systems — to identify any potential problems. The report provides a snapshot of the home's current condition and is used to help buyers, sellers and agents make informed decisions.

Most reports include photos, descriptions and recommendations for repairs or further evaluation. While a report won’t guarantee that a home is problem-free, it helps uncover issues that could affect safety, value or livability.

Understanding the Layout and Language

Home inspection reports are typically divided by category or area of the home. You might see sections titled “Roofing,” “Exterior,” “Plumbing,” “Electrical,” “Interior,” and “Structural Systems.” Each section will include comments from the inspector about that specific part of the home and whether any concerns were noted.

Alongside the descriptions, inspectors often use symbols, checkboxes or color-coded highlights to help you understand the severity of each finding. Here are a few common terms and what they usually mean:

  • “Satisfactory” or “Good Condition” means the item appears functional and doesn't require immediate attention.

  • “Marginal” or “Fair Condition" means there may be signs of wear or aging, but it’s not yet a major concern.

  • “Poor Condition” or “Deficient” means the item is damaged, non-functional or may present a hazard.

  • “Safety Hazard” represents a potential threat to occupants and should be addressed as soon as possible.

  • “Recommend further evaluation” means the inspector has noted an issue that falls outside their expertise and recommends a specialist take a closer look.

Some reports use red, yellow and green color codes to signify severity. Red usually means major issues or safety problems. Yellow signals concerns that need monitoring or minor repairs. Green means all looks good.

What Should You Be Looking For?

As you review your report, pay close attention to any references to water intrusion, foundation cracks, roof damage, electrical problems or structural movement. These are more than cosmetic — they could signal larger issues that are expensive to repair.

Be especially mindful of:

  • Signs of water in basements or crawl spaces

  • Active roof leaks or missing shingles

  • Electrical wiring problems or outdated breaker panels

  • Foundation cracks wider than 1/4 inch

  • Evidence of mold or mildew

  • Rusted or corroded plumbing pipes

  • Windows and doors that don’t open or close properly

Also keep an eye out for any mention of the words “immediate repair,” “replacement needed,” or “major problem.” These are likely areas that should be prioritized after the inspection.

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Red Flags: Which Issues With Your House Deserve the Most Attention?

Not all home inspection findings are created equal. Cosmetic blemishes like chipped paint or a cracked floor tile may not need to hold up your decision. But bigger red flags — like a failing HVAC system or structural problems — should never be ignored.

In general, focus your attention on:

  • Safety issues, such as faulty wiring, loose railings or missing smoke detectors

  • Major systems, including the heating, cooling, electrical and plumbing components

  • Structural integrity, such as foundation issues, sagging floors or roof concerns

  • Signs of moisture, like damp insulation, water stains or warped wood

These types of findings may affect your ability to secure financing, increase future repair costs or even influence your decision to move forward with a purchase.

What to Do After Reading the Home Inspection Report

Once you’ve reviewed the report, it’s time to plan your next steps. If you’re buying a home, talk with your real estate agent about the possibility of negotiating repairs or asking for a price reduction based on the inspection findings. You may also want to bring in specialists (like a structural engineer or plumber) for additional assessments.

If you're the seller, a pre-listing inspection can help you fix problems ahead of time and avoid last-minute surprises. Either way, use the report as a tool to prioritize home repairs, plan for future maintenance or renegotiate terms.

Remember: No home is perfect, not even new construction. The key is understanding the report’s contents so you can make informed, realistic decisions.

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