🏠 The Home Inspector’s Guide - Audubon Home Inspections

7 Days to Understanding Your Home Inspection and and the report.

You’re an Informed Buyer!

Armed with knowledge, you’ll make confident, smart decisions

Understanding Your Inspection Report

Within 24-48 hours after the inspection, you’ll receive a detailed report. Here’s how to read it and put it into perspective:

High priority and safety concerns – Life safety issues requiring immediate attention – electrical hazards, structural problems, carbon monoxide risks

Major defects – Significant issues affecting home function or value – roof problems, HVAC failures, foundation concerns

Repairs/general maintenance – Items needing attention but not urgent – minor leaks, worn components, maintenance items

Monitor/Maintain – Items to watch or maintain – normal wear, minor cosmetic issues, routine maintenance reminders

💡 How to Prioritize: Focus your negotiation energy on big ticket items like high priority and safety concerns. Don’t sweat every defect or imperfection item – that’s why you have an inspection contingency and negotiation period. Pick your battles wisely.

The Negotiation Framework

After reviewing your report, you have several options:

Option 1: Request Repairs

Best for: Safety issues, major defects that affect habitability

How it works: Seller hires contractors to fix issues before closing

Pros: Issues resolved before you move in

Cons: You don’t choose the contractor; work must meet your approval

Option 2: Request Price Reduction

Best for: Multiple issues, aging systems, or when you want to choose contractors

How it works: Purchase price reduced by estimated repair costs

Pros: You control repairs and contractor selection

Cons: You handle coordination and timing of repairs

Option 3: Request Closing Credit

Best for: Items you’ll address over time

How it works: Seller provides money at closing for specific repairs

Pros: Cash in hand for repairs; flexible timing

Cons: May affect loan terms; limited by lender rules

Option 4: Accept As-Is

Best for: Minor issues, hot markets, or properties priced accordingly

How it works: Proceed with no changes

Pros: Smooth transaction; good seller relations

Cons: You’re responsible for all repairs

Option 5: Walk Away

Best for: Deal-breakers, undisclosed major issues, total repair costs exceeding budget

How it works: Exercise inspection contingency to cancel contract

Pros: Get earnest money back; avoid problematic property

Cons: Back to house hunting; lost time and inspection costs

My Negotiation Script Template

Here’s a professional, effective way to present your requests:

💡 Sample Request Letter:

“After completing the home inspection on [date], we identified several items requiring attention. We remain interested in the property and request the following:

Priority 1 – Safety/Major Issues (Must be addressed):
• Electrical panel replacement (FPE panel) – Est. $2,500
• Foundation crack repair with structural engineer evaluation – Est. $4,000
• Active roof leak repair with documentation – Est. $800

Priority 2 – Significant Items (Request credit):
• 18-year-old HVAC system – Request $3,500 credit
• Water heater (12 years old) – Request $1,200 credit

Total Request:$7,300 in repairs + $4,700 credit = $12,000

We’re flexible on how these are addressed and open to discussing a combination of repairs and price reduction. Please respond within 3 business days.”

What Sellers Typically Agree To

Based on my experience, here’s what usually happens:

Safety issues: 90% of sellers will address these – it’s legally smart for them
Major structural/systems: 70-80% negotiable, especially with documentation
Aging systems: 50-50 – depends on market and pricing
Cosmetic/minor items: Rarely addressed unless part of larger package

⚠️ Market Reality Check: In hot seller’s markets, you may have less leverage. In buyer’s markets, you have more room to negotiate. Your real estate agent can guide you on local norms. Remember: you can only negotiate on items found in the inspection – you can’t use it to renegotiate the entire deal.

Red Flags That Should Make Think About Walking Away

Some issues are so serious, walking away is the smartest choice:

Significant foundation failure requiring $30,000+ repair
Active mold throughout home with unknown source
Knob-and-tube or aluminum wiring throughout with seller refusing to address
Multiple major systems at end of life (roof, HVAC, water heater, panel) totaling $40,000+
Extensive undisclosed damage suggesting seller dishonesty
Structural issues from poor additions or unpermitted work
Severe termite or pest damage to structural components

Trust your gut. If the inspection reveals more problems than expected and you’re feeling overwhelmed, it’s okay to walk away. Your earnest money is protected during the inspection period for exactly this reason.

Final Wisdom from 16 Years of Inspections

💡 My Best Advice:

Every home has issues.Don’t expect perfection. Focus on safety and major systems.
Knowledge is power.The inspection isn’t meant to kill the deal – it’s information to make smart decisions.
Budget matters.Be honest about what you can afford to fix after closing.
Get specialist opinions.When I recommend a structural engineer or HVAC tech, please listen.
Read the full report.Don’t just skim the summary – understanding details helps negotiations.
Ask questions.Call me after you read the report. I’m here to clarify and guide.
Think long-term.A well-maintained older home often beats a poorly-maintained newer one.
Use licensed contractors.Get proper estimates from licensed, insured professionals.
Document everything.Keep all inspection reports, estimates, and communications.
Stay calm.This is a big decision, but you’ve got this!

Your Home Maintenance Checklist

Once you close on your home, keep it in great shape with regular maintenance:

Monthly

✓ Test GFCI outlets
✓ Check for leaks under sinks
✓ Clean range hood filter

Every 3 Months

✓ Replace HVAC filters
✓ Test smoke/CO detectors
✓ Clean gutters
✓ Check caulking around tubs/showers

Twice Yearly

✓ Service HVAC system (spring and fall)
✓ Inspect roof and attic (do not walk on roof)
✓ Check foundation for cracks
✓ Clean dryer vent

Annually

✓ Pest inspection
✓ Chimney cleaning (if applicable)
✓ Test sump pump
✓ Inspect weatherstripping
✓ Service garage door opener

You’re Ready!

You’ve now completed the 7-day home inspection bootcamp. You understand:

What inspectors look for and why
Major red flags in every home system
How to prepare mentally and financially
How to react and negotiate effectively
When to dig deeper and when to walk away

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