How to Read a Home Inspection Report: What's Serious and What's Not
Your report is long and every line says "recommend evaluation." Most of it is routine. A few items can change the deal. Start with how serious each kind of finding is, browse them by system, or jump to the lookup at the bottom and type in the line that worries you.
I'm Wes Johnston, a Realtor with Trueblood Real Estate in Fishers. Before real estate I earned a construction engineering management degree from Purdue and spent about ten years designing custom homes and running their construction in Hamilton County. I'm not a home inspector, electrician, plumber or engineer, and this isn't a substitute for one. It's how I explain these findings to my own clients. Sources are linked as you go.
The short version: sort the report into four piles. Safety hazards get fixed no matter what. Major repairs (roof, foundation, sewer, HVAC, panels, old wiring and pipe) are where you negotiate and where you call a specialist before your deadline. Moderate items are fair game for a credit. Minor and routine items are homeowner maintenance; asking for all of them usually costs you more goodwill than it's worth.
- 01Which home inspection findings are serious?
- 02Common inspection findings by system
- 03What should I ask the seller to fix after a home inspection?
- 04Is it better to ask for repairs or a credit?
- 05Which follow-up inspections should I order before my deadline?
- 06What problems are common for the age of the house?
- 07I'm selling. Should I get a pre-listing inspection?
- 08What does this line on my inspection report mean?
Which home inspection findings are serious?
Inspectors flag everything, and they're supposed to. The report is not ranked for you, so here is how I sort it:
| Pile | What goes in it | What to do |
|---|---|---|
| Safety hazard | Shock, fire, carbon monoxide and fall hazards: a bootleg ground, aluminum wiring connections, a cracked heat exchanger, water heater venting, a bad deck ledger or guardrail, certain panel brands. | Fix before move-in, whoever pays. These belong on the repair request. |
| Major repair | Expensive systems and structure: roof at end of life, horizontal foundation cracks, sewer line defects, galvanized or polybutylene pipe, knob-and-tube wiring. | Get a specialist out during the inspection period. This is where the real negotiation happens. |
| Moderate | Real repairs that won't sink the house: wet basement from bad grading, attic mold, crawl space vapor barrier, an aging furnace or water heater. | Repair request or credit. Price it with a quote, not a guess. |
| Minor / routine | Maintenance: caulk, loose handrails, a missing downspout extension, a double-tapped breaker, filters, a cracked outlet cover. | Usually fix it yourself after closing. Don't spend negotiating goodwill here. |
The age of the item matters as much as the item. A 22-year-old furnace that runs fine is a budget line, not a defect. The topic pages give typical life spans with their sources.
Common inspection findings by system
Electrical7
- GFCI outlets: missing, not working or won't resetModerateMissing, failed or won't reset. A real safety item that's usually a cheap fix.
- Double-tapped breakerMinor / routineTwo wires under one screw. What it means and what an electrician does about it.
- Federal Pacific (Stab-Lok) panelsSafety hazardWhat the CPSC actually said, the insurance problem, and whether it's a deal breaker.
- Zinsco and Sylvania panelsSafety hazardBreakers that can burn at the bus. Why inspectors say replace the panel.
- Ungrounded outlets, open grounds and reversed polarityModerateThree-prong outlets with no ground, and hot and neutral swapped.
- Aluminum wiringSafety hazard1960s and 70s branch wiring, and the connection repairs the CPSC recommends.
- Knob-and-tube wiringMajor repairPre-1940s wiring, the insurance question, and what a rewire costs.
Structure & water3
- Foundation cracks: which ones matterDepends on what's foundHairline, stair-step, horizontal and bowing walls, sorted by how much to worry.
- Water in the basement, efflorescence and sump pumpsDepends on what's foundWhere the water comes from, and why the fix is usually outside.
- Crawl space moisture, vapor barriers and wood rotModerateWhat a wet crawl space does to a house, and the fixes from cheap to full encapsulation.
Roof & attic2
- Roof findings: age, hail damage, flashing and missing shinglesDepends on what's foundHow to tell a roof repair from a roof replacement, and how insurance fits in.
- Mold on attic rafters and roof sheathingModerateUsually a ventilation or bath-fan problem, not a roof leak. Here's how it gets fixed.
Heating, cooling & plumbing5
- Furnace and AC findings: age, cracked heat exchangers, R-22Depends on what's foundWhat 'near the end of its life' really means for your budget.
- Water heater findings: age, TPR valve, expansion tank, ventingModerateThe handful of water heater notes inspectors write most often.
- Galvanized pipesMajor repairLow water pressure, rusty water, and what repiping an older house costs.
- Polybutylene pipeMajor repairGray plastic supply pipe from 1978 to the mid-1990s, insurance and the expired class action.
- Sewer scope findings: roots, bellies, cracked and clay pipeMajor repairThe buried line a standard inspection can't see, and a repair that can run into the thousands.
Pests, wood & other5
- Termites and wood-destroying insects in IndianaModerateWhat a WDI report says, treatment, and when the damage matters.
- Chimney and fireplace findingsModerateCracked crowns, missing liners, and why inspectors recommend a Level 2.
- Deck findings: ledger flashing, joist hangers and railingsModerateHow decks fail and which notes are about safety.
- Asbestos and lead paint in older homesDepends on what's foundWhere they show up in pre-1980 Indiana houses and when they matter.
- Well and septic inspections in IndianaDepends on what's foundBuying outside city water and sewer: what to test and what fails.
Air quality1
- Radon test results and mitigationModerateSeven of the eight counties around Indianapolis are in EPA's highest radon zone.
What should I ask the seller to fix after a home inspection?
Ask for the things that matter: safety hazards, major systems that aren't working or are failing, structural and water issues, and anything your lender or insurer will require. Leave out cosmetic items and normal wear. A focused list gets a yes more often than a long one, and sellers read a 40-item request as a renegotiation.
Make every item specific: what, where (the report page), who does it (a licensed contractor in that trade), and proof (an invoice before closing). "Seller to have a licensed roofer repair flashing at the chimney noted on page 12 and provide an invoice" leaves no room for a handyman patch.
Timing is set by your purchase agreement. My guide to the Indiana inspection period covers the deadlines and what you can ask for.
Is it better to ask for repairs or a credit?
My usual answer: credit for anything you'd want done your way, repairs for safety items and anything the lender needs fixed before closing.
- Repairs make sense when the item is a hazard, when the lender or appraiser will flag it, or when it's small and specific. The risk is quality: the seller picks the cheapest contractor because it isn't their house anymore.
- A credit lets you pick the contractor and the materials, and you can bundle the work. Loan programs limit how much the seller can credit toward your costs, so ask your lender how much room you have before you write the number.
- A price reduction lowers your loan and your property taxes over time, but it doesn't put cash in your hand for the repair.
When I look at a repair request, I think about who's going to do the work and how I'd check it. A roof flashing repair or a sewer spot repair is hard for a buyer to verify after the fact. If the work is buried, behind a wall or on a roof, I'd rather have the money and hire the contractor myself.
For safety items like a cracked heat exchanger or a water heater venting problem, I don't want to wait until after closing. Those get fixed before anyone moves in.
Which follow-up inspections should I order before my deadline?
A home inspection is a visual check of the whole house. When it finds something outside that scope, the report says to bring in a specialist. Do it inside your inspection period, because once the deadline passes, the leverage is gone.
| If the report says or you see | Call | Read |
|---|---|---|
| Horizontal crack, bowing wall, sloping floors | Structural engineer (licensed PE) | Foundation cracks |
| Older home, big trees, slow drains | Plumber with a sewer camera | Sewer scope |
| Furnace or AC near end of life, CO concern | HVAC contractor | Furnace and AC |
| Roof age or damage | Roofer | Roof findings |
| Wood-burning fireplace | Chimney sweep for a Level 2 | Chimney and fireplace |
| Mud tubes, damaged wood, VA loan | Licensed pest inspector (WDI) | Termites |
| Any house in central Indiana | Certified radon tester | Radon |
| Private well or septic | Well and septic inspectors | Well and septic |
What problems are common for the age of the house?
The year a house was built tells you a lot about what's likely on the report. This is the cheat sheet I use:
| Built | What shows up most |
|---|---|
| Before about 1940 | Knob-and-tube wiring (used from about 1880 into the 1940s, per InterNACHI), galvanized supply pipe, clay or cast iron sewer lines, unlined chimneys, lead paint, asbestos pipe wrap. |
| 1940s to 1970s | Galvanized pipe, fewer outlets and no GFCIs, ungrounded outlets, problem panel brands, single-strand aluminum wiring (about 1965 to the mid-1970s, per the CPSC), asbestos floor tile, block foundations. |
| 1978 to 1995 | Polybutylene supply pipe (installed from 1978 to mid-1995, per InterNACHI). Lead paint is far less likely after 1978, when the federal disclosure rule's cutoff applies (EPA). |
| 1990s to 2000s | Original roofs, furnaces, AC units and water heaters reaching the end of their life, bath fans vented into the attic, grading that has settled toward the house. |
| Newer than about 2010 | Builder punch-list items, grading and downspouts, attic insulation gaps. Check the builder warranty before you pay for anything. |
Building new? Inspections still matter, at pre-drywall and before closing. See new construction vs. resale.
I'm selling. Should I get a pre-listing inspection?
For older homes, homes with known issues, or any house where a surprise would blow up the deal, I think it's worth it. You find out what a buyer's inspector will find, on your own schedule, and you decide what to fix, what to price in and what to disclose. A buyer who sees a recent inspection and receipts tends to ask for less.
Two things to know. Anything you learn becomes something you know, so it may belong on the Indiana seller's disclosure. And you don't have to fix everything; see what to fix before selling for what pays back.
What does this line on my inspection report mean?
Now that you know how the piles work, here are common findings in the words inspectors tend to use. Each one has its own page with what causes it, what it costs to fix (with sources), and how it usually gets handled in a deal.
55 common findings
| The report says | How serious | What it means |
|---|---|---|
| No GFCI protection at kitchen / bath / garage / exterior outlets | Moderate | Outlets in wet areas aren't shock-protected. Cheap fix. Read more |
| GFCI did not trip when tested | Moderate | The safety outlet is there but has failed. Replace it. Read more |
| Outlet inoperable / GFCI would not reset | Minor / routine | Usually a tripped GFCI elsewhere or a worn-out device. Read more |
| Double-tapped breaker / multiple conductors under one lug | Minor / routine | Two wires on a breaker made for one. Electrician adds a pigtail. Read more |
| Double-tapped neutral in panel | Minor / routine | Two neutrals under one screw on the neutral bar. Small fix, worth doing. Read more |
| Federal Pacific (FPE) Stab-Lok panel | Safety hazard | A panel brand with a reliability history insurers dislike. Plan to replace. Read more |
| Zinsco / Sylvania panel | Safety hazard | Older panel brand with known breaker problems. Usually replaced. Read more |
| Pushmatic / split-bus / fuse panel | Moderate | Old equipment. Often fine for now, but insurers and buyers ask. Read more |
| Open ground / ungrounded three-prong outlet | Moderate | Three holes, no ground wire behind it. GFCI is the common fix. Read more |
| Reversed polarity | Moderate | Hot and neutral swapped at the outlet. Quick electrician fix. Read more |
| Bootleg ground | Safety hazard | Someone faked a ground with a jumper. Fix it right. Read more |
| Single-strand aluminum branch wiring | Safety hazard | 1965 to mid-1970s wiring. Connections need proper repair. Read more |
| Knob-and-tube wiring observed | Major repair | Pre-1940s wiring. Insurance and capacity issues; rewire is common. Read more |
| Vertical / hairline crack in foundation wall | Minor / routine | Usually concrete shrinkage. Seal it and watch it. Read more |
| Stair-step cracking in block foundation | Moderate | Settlement or pressure. Get it measured and evaluated. Read more |
| Horizontal crack / bowing or inward movement of wall | Major repair | Soil pressure pushing the wall. Structural engineer, before the deadline. Read more |
| Recommend evaluation by a structural engineer | Major repair | The inspector saw something beyond a home inspection's scope. Do it now. Read more |
| Efflorescence on basement walls | Minor / routine | White mineral salt left by water. Moisture is getting through. Read more |
| Evidence of past water intrusion / water staining | Moderate | Water got in at some point. Find out when and why. Read more |
| Downspouts discharge near foundation / negative grading | Minor / routine | Roof water dumped at the house. The cheapest wet-basement fix there is. Read more |
| Sump pump older / no battery backup / no check valve | Minor / routine | Pump near end of life or no backup. Inexpensive upgrade. Read more |
| Vapor barrier missing, torn or incomplete in crawl space | Moderate | Ground moisture rising into the house. Usually a modest fix. Read more |
| Standing water in crawl space | Major repair | Drainage problem below the house. Fix the water first. Read more |
| Wood rot / microbial growth on floor joists | Moderate | Moisture damage under the floor. Probe it and price the repair. Read more |
| Roof covering near end of service life | Major repair | Budget for a roof. Get a roofer's opinion on how many years. Read more |
| Granule loss / hail damage / bruised shingles | Moderate | Wear or storm damage. Could be an insurance claim. Read more |
| Missing, lifted or damaged shingles | Minor / routine | Spot repair, usually. Read more |
| Flashing deficiencies / improper flashing | Moderate | A frequent leak point. Roofer repair. Read more |
| Multiple layers of roofing | Moderate | A second layer over the first. Next roof costs more to tear off. Read more |
| Microbial growth / dark staining on roof sheathing or rafters | Moderate | Attic condensation, usually from venting or air leaks. Read more |
| Bath fan / dryer vents into attic | Moderate | Moist air dumped into the attic. Extend it outside. Read more |
| Blocked soffit vents / inadequate attic ventilation | Minor / routine | Attic can't breathe. Baffles and vent work. Read more |
| Furnace / AC near or beyond typical service life | Moderate | It works today. Budget for replacement. Read more |
| Possible cracked heat exchanger / elevated CO | Safety hazard | Carbon monoxide risk. HVAC contractor, right away. Read more |
| AC uses R-22 refrigerant | Moderate | Older refrigerant that's no longer produced. Repairs cost more. Read more |
| Water heater beyond typical life / signs of corrosion | Moderate | Plan to replace it. Read more |
| TPR valve discharge pipe missing or improper | Safety hazard | The relief valve has no proper drain line. Cheap, important fix. Read more |
| No expansion tank | Minor / routine | Pressure has nowhere to go on a closed system. Small add. Read more |
| Backdrafting / improper venting at water heater | Safety hazard | Exhaust can spill into the house. Fix before move-in. Read more |
| Galvanized supply piping / low water pressure | Major repair | Old steel pipe rusting from the inside. Repipe eventually. Read more |
| Polybutylene (PB) supply piping | Major repair | Gray plastic pipe from 1978 to the mid-1990s with a failure history. Read more |
| Active leak at drain / supply | Moderate | Water where it shouldn't be. Plumber repair. Read more |
| Recommend sewer scope | Depends on what's found | The inspector can't see the buried line. A camera can. Read more |
| Root intrusion / belly / offset joint in sewer line | Major repair | Buried-pipe damage. Can be cleaning or can be digging. Read more |
| Evidence of wood-destroying insects / mud tubes | Moderate | Termites, now or before. Get a WDI inspection. Read more |
| Chimney crown cracked / masonry deterioration | Moderate | Water is getting into the chimney. Mason repair. Read more |
| Recommend Level 2 chimney inspection | Depends on what's found | Standard at a sale. A sweep runs a camera up the flue. Read more |
| Flue liner missing or damaged | Safety hazard | The chimney's inner pipe is gone or cracked. Reline before use. Read more |
| Deck ledger not properly attached / flashing not visible | Safety hazard | How the deck holds onto the house. Worth checking closely. Read more |
| Guardrail too low / balusters too far apart | Safety hazard | Fall hazard by today's standards. Carpenter fix. Read more |
| Missing joist hangers / improper fasteners | Moderate | Deck framing shortcuts. Usually inexpensive to correct. Read more |
| Suspected asbestos-containing material (pipe wrap, tile, vermiculite) | Depends on what's found | Common in older homes. Leave it alone or test before disturbing. Read more |
| Pre-1978 home: lead-based paint possible | Depends on what's found | Normal for the age. Matters for chipping paint and remodels. Read more |
| Recommend well water testing / septic inspection | Depends on what's found | Private water and sewer aren't part of a standard inspection. Read more |
| Radon level at or above 4.0 pCi/L | Moderate | Above the EPA action level. Mitigation system. Read more |
Don't see your line? Send it to me with the address and I'll tell you how serious it looks.
Why a Realtor Who Built Houses Reads Reports Differently
A home inspection report runs dozens of pages, and almost every item ends with "recommend evaluation by a qualified professional." That wording is there for the inspector's protection. It doesn't tell you which items are a quick fix and which ones change the deal.
I spent about ten years designing houses and running their construction before I sold them. When my clients get their report, we go through it together and sort it into what to ask for, what to take as a credit, what to just fix yourself later, and what needs a specialist before the inspection deadline. If you're buying or selling in central Indiana, I'm happy to do the same for you.
Construction engineer turned Realtor. Straight answers before you sign.
Send Me the Page That Worries You
Tell me the address and the finding. I'll tell you how serious it looks from a builder's point of view and how it usually gets handled in a deal.
Send a MessageWhat's Your Home Worth?
Selling an older home? Start with a realistic price based on recent local sales.
Send Me the Line From Your Report
Paste the finding and the address. I'll tell you how serious it looks from a builder's point of view and how it usually gets handled in a deal.
General guidance from a Realtor with a construction background. Hire the licensed trade for the diagnosis and the fix.
General information from a Realtor with a construction background, not legal or engineering advice. Each linked page cites its own sources and cost data. Severity labels are my general guide; the condition of the specific house decides.