Chapter 9: The Real Estate Agent’s Guide to Inspections
When it comes to buying or selling a home, few moments cause as much anxiety as inspection day. Reports arrive thick with technical jargon and alarming language, and it’s easy for new agents (or even seasoned pros) to panic right alongside their clients. But with a bit of understanding, you can learn to read these reports with confidence, helping your clients separate the true red flags from the “fix-it-someday” notes.
Understanding the Nature of Inspections
It’s important to remember one key fact about inspectors: they are liable for their written word. Because of that, they tend to err on the side of caution — often assuming the worst-case scenario to protect themselves from potential lawsuits. The result? Reports can sound far more dire than reality.
While some items will require immediate attention, many others can safely wait. The key is knowing how to distinguish between the two. Experience helps, but so does learning the language of inspections. Look up unfamiliar terms, ask questions, and over time, you’ll develop an instinct for which repairs are urgent and which are simply maintenance notes.
How to Read a Pest Control (Termite) Report
Most “termite” reports are actually broader assessments of where water intrusion might damage a home’s structure. In many regions, termites, beetles, and other wood-boring pests thrive in damp environments, so the two issues are often interconnected.
Treatment typically involves applying specialized chemicals to kill pests and protect the wood. The reports may sound urgent — but remember, not every issue requires immediate fumigation or replacement. Context matters: is the damage active or historical? Is it structural or surface-level? These are key distinctions when advising your clients.
How to Read a Contractor’s Report
Contractors and general inspectors typically review several main systems within a home:
Roof
Electrical
Plumbing
Grounds and Exterior
Heating, Cooling, and Ventilation
Interior
Drainage
Garage
While each inspection is unique, understanding the fundamentals of each category will help you interpret findings and guide your clients through next steps.
Roof
Lifespan: Sloped roofs (usually shingle) last 25–30 years, while flat roofs last about 15–20.
Materials: Flat roofs may use bitumen or other coverings; workmanship greatly impacts longevity.
Flashing: Galvanized steel that directs water away from vulnerable areas—essential, inexpensive, and often missing.
Gutters & Downspouts: Should be clear and functional to keep water from pooling near the foundation.
Grounds & Drainage
Grading: Land that slopes toward the home can direct water into the foundation.
Drainage Systems: A French drain (around $10,000) is the premium solution; a sump pump (around $3,000) is a simpler option that handles smaller issues.
Retaining Walls: Structural walls must include steel reinforcement; decorative ones can be wood or stone.
Exterior
Windows: Critical for keeping water out. Older windows may leak, potentially causing structural or foundation issues. Replacement can be costly depending on quantity.
Siding, Porches, Decks, and Stairs: Look for dry rot, moisture intrusion, and code-compliant handrails.
Doors: Should open and close easily; uneven or sticking doors may indicate foundation shifts.
Foundation
Materials: Newer concrete includes rebar; older foundations often do not. Brick foundations may be solid but require inspection of mortar condition.
Structural Elements: Mud sills, studs, posts, and beams all play critical roles. Steel beams offer superior stability but come at a higher cost.
Seismic Reinforcement: In earthquake-prone regions, shear walls (often plywood) provide essential lateral support.
Efflorescence: The white mineral deposits on concrete indicate moisture movement—an inspector can determine if it’s historical or ongoing.
Attic
Inspectors look for water stains, insulation, and overall ventilation. Water intrusion from roof leaks often shows up here first.
Electrical Systems
Panels: Circuit breakers are preferred over old fuse boxes. Federal Pacific panels are considered unsafe.
Amperage: 100 amps is acceptable, though 200 is ideal for modern homes.
Wiring: “Knob and tube” wiring, though often still functional, can complicate insurance coverage. Consult a professional if it appears in a report.
Outlets: Hot wires, reversed polarity, or two-pin outlets are common minor issues—easy fixes that can wait if necessary.
Plumbing
Supply Lines: Modern systems use copper; old galvanized pipes can restrict flow and reduce pressure.
Waste Lines: Older lines (clay or cast iron) can crack or clog with roots. New PVC or ABS lines are durable and preferred. A camera inspection is recommended during escrow.
Water Heaters: Standard units typically last 10–15 years; replacement costs about $5,000. Tankless options are higher-end but more efficient.
Heating
Most systems use forced air and last around 20 years. Corrosion is the main sign of failure. Other types include radiant, baseboard, and older gravity furnaces—many still functional despite their intimidating appearance.
Fireplaces
Always have chimneys and flues inspected and cleaned before use. Inspectors will also confirm that chimneys are properly anchored to the home.
Doors & Windows
Ensure they open, close, and seal properly. Doors with dry rot or improper trimming are common findings. Basement doors should technically be fire-rated, though this is rarely enforced.
Kitchen
Inspectors check:
Appliances, disposals, and dishwashers
Water intrusion around sinks
GFCI (ground-fault circuit interrupter) outlets near water sources
Bathrooms
Reports cover leaks, drainage, toilet stability, and fixture functionality. Even small leaks can lead to costly water damage if ignored.
Garage
Automatic doors are tested for proper operation and safety reversal mechanisms. Older models often lack this feature and may be flagged.
Final Thoughts
Inspection reports can feel overwhelming, but knowledge brings clarity. As an agent, your role is to help your clients interpret — not panic. Learn the basics, ask questions, and know when to call in specialists. Over time, you’ll develop the confidence to turn inspection day from a source of stress into a point of empowerment — for you and your clients.