Real Estate Home Inspections 101

Home inspections are one of the most consequential steps in any real estate transaction. As an agent, you won't be conducting them — but you'll be guiding your clients through the results, the negotiations, and the decisions that follow. Knowing what inspectors look for, what common findings mean, and how to help clients respond is a skill that separates capable agents from great ones.

Every transaction you'll close will include an inspection. Here's what to know before you're in the room.

What Is a Home Inspection?

A home inspection is a thorough evaluation of a property's condition, performed by a certified inspector before a sale closes. The inspector's job is to assess the home's structure, systems, and components and flag anything that's damaged, non-functional, or potentially unsafe. The resulting report becomes one of the most important documents in the transaction — and one you'll need to know how to read and explain to your clients.

What Does an Inspector Actually Check?

Inspectors work through the property systematically, starting outside and moving in. Here's what a standard inspection covers:

Exterior

The inspector evaluates the foundation, roof (tiles, flashings, and gutters), exterior walls, windows, doors, driveways, landscaping, fencing, and drainage. Structural integrity issues flagged here can be significant negotiating points, so pay attention to how they're categorized in the report.

Interior Systems and Components

Inside, the inspector tests electrical and plumbing by flipping switches, running faucets, and flushing toilets. They verify the electrical panel looks sound and check for wiring concerns. Every system and appliance that conveys with the home gets evaluated — dishwashers, built-in microwaves, garbage disposals, furnaces, air conditioners, water heaters, and smoke and CO2 detectors. Ductwork, fireplaces, and chimneys are also on the list.

Garage and Attic

The inspector checks fire safety in the garage, evaluates garage door alignment, and assesses ventilation and insulation in both the garage and attic. Inadequate insulation and ventilation are common findings and worth knowing how to explain to clients.

What Does a Home Inspection Cost — and Who Pays?

A standard single-family home inspection typically costs between $300 and $500, though location, property size, and add-ons like pool or termite inspections can push that number higher.

In most transactions, the buyer pays for the inspection. But as with most things in real estate, it's negotiable. Some buyers and sellers split the cost, and occasionally sellers cover it entirely — particularly in slower markets where they want to signal confidence in the property's condition. Your job is to understand the norm in your market and advise your clients accordingly.

How Do Repairs and Concessions Work?

When repair requests come in, sellers have three options: handle the repairs themselves, hire professionals to do it, or offer a concession — a credit applied at closing to help the buyer cover repair costs independently. Each approach has tradeoffs, and your role is to help your client understand them.

Concessions are often the cleaner path, especially when repairs involve subjective decisions like finishes or materials. The seller avoids the hassle of sourcing contractors and making design choices, and the buyer gets to control the outcome. Knowing when to push for repairs versus a credit is one of the more nuanced negotiation skills you'll develop as your career progresses.