First-Time Buyers

Home Inspection Guide: What It Covers and How to Negotiate

By Aritz Boveda · Published October 21, 2026
Fact-checked against primary sources on October 21, 2026

A standard home inspection is a visual check of a home’s structure and major systems: roof, foundation, plumbing, electrical, heating and cooling. It doesn’t test for radon, look inside sewer lines or hunt for termites, so those are separate add-ons you order when the house or the area calls for them. Most general inspections cost a few hundred dollars, and the report is your best tool for asking the seller to fix problems or lower the price.

A home inspection isn’t required by law. HUD’s buyer notice for FHA loans makes the point bluntly: an appraisal is not an inspection, and FHA can’t pay for repairs or buy the house back if you find problems after closing.

What a standard inspection covers

Most inspectors follow a published standard of practice, such as those from InterNACHI or ASHI, and many states set their own. The InterNACHI standard describes a visual examination of the readily accessible systems and components of a home, not a technically exhaustive one. In practice, the inspector walks through and reports on:

Plan to be there. Walking through with the inspector teaches you more than the report alone, and you can ask what’s urgent and what’s normal wear.

What it doesn’t cover

The standard spells out exclusions, and they matter as much as the checklist. A general inspector usually won’t report on:

• Anything hidden or not readily accessible: inside walls, under carpet, behind stored boxes.
• Code compliance or the remaining lifespan of systems.
• Mold, radon, lead paint, asbestos and other environmental hazards.
• Pests such as termites, rodents or insects.
• The sewer line beyond what’s visible.
• The home’s market value. That’s the appraiser’s job, and the appraisal works for the lender, not you.

Many inspectors offer some of these as paid add-ons. Others will refer you to a specialist.

Add-on inspections worth considering

Radon. The EPA recommends fixing a home if the level is 4 picocuries per liter (pCi/L) or higher, and says levels below that still carry some risk. Short-term tests for a sale run at least 48 hours with windows and doors kept closed, and the EPA recommends a certified tester. If the result is at or above 4 pCi/L, ask about a follow-up test, and make sure your contract lets you act on the result.

Sewer scope. The camera looks for root intrusion, cracks, offsets and collapsed sections. It’s the one major system a general inspection can’t see into, and replacing a damaged line can mean digging up the yard.

Termites. VA loans generally require a wood-destroying insect report in areas the VA rates at moderate to very heavy termite risk. Ask your lender early whether your loan needs one, so it fits inside your deadlines.

What a home inspection costs

Costs depend on the home’s size and age and on local prices. HomeAdvisor reports that most general inspections fall between $296 and $424, with an average of about $343. Add-ons cost extra, and larger or older homes usually cost more. Get a quote in writing, and choose an inspector on experience and a sample report rather than price alone.

How to use the findings to negotiate

The CFPB suggests making your offer contingent on a satisfactory inspection, so you can back out or renegotiate without losing your earnest money. Once the report arrives, sort it into three groups:

1. Safety and major defects: active roof leaks, foundation movement, electrical hazards, failing heating. These are where you negotiate.
2. Near-term replacements: an old water heater or a furnace near the end of its life. Worth raising, especially if the listing didn’t disclose them.
3. Minor items and normal wear: loose handrails, dripping faucets, worn caulk. Asking for these usually costs goodwill and gains little.

Then choose what to ask for:

• Repairs before closing. The seller fixes the problem. Ask for receipts and licensed contractors, and check the work at your final walk-through.
• A credit at closing. The seller pays part of your closing costs, and you handle the repair yourself. Lenders cap these credits; on Fannie Mae conventional loans for a primary residence, the limit runs from 3% to 9% of the price depending on your down payment, and FHA, VA and USDA loans set their own limits.
• A lower price. This reduces your loan amount and down payment rather than your cash at closing.
• Walking away, if the problems are bigger than the house is worth to you and you’re still within the contingency period.

Worked example

On a $350,000 home, the inspection turns up a roof needing repair, a 15-year-old water heater and several ungrounded outlets. The buyer gets contractor quotes:

The buyer asks for a $12,000 credit and the seller counters at $8,000. That’s about 2.3% of the price, below even the lowest Fannie Mae cap of 3%, and less than the $9,128.50 in closing costs from our closing costs example, so the full credit can be used. The buyer accepts and pays the remaining $4,000 of repairs after moving in. Written quotes made the request easy to justify; a vague list of “issues” would have been easy to dismiss.

Inspection day checklist

• Book the inspector as soon as your offer is accepted; contingency periods are short.
• Order radon, sewer scope or termite inspections at the same time if you need them.
• Make sure utilities are on and the attic, panel and crawl space are reachable.
• Attend, take notes and photos, and ask what’s urgent.
• Get contractor quotes for major items before your deadline.
• Send your repair or credit request in writing through your agent.
• Confirm agreed repairs at the final walk-through, with receipts.

For the rest of the process from offer to keys, see our home buying timeline.