Real Estate and Construction Professionals: Home Inspection Tips (2025)

Most people don’t panic when they hear the words “home inspection.” They should.

In 2025, more than 86% of home inspections uncover issues. These can range from simple repairs to serious structural problems. In fact, 1 in 4 deals fall apart after the inspection report comes in. Even a single overlooked item can cost the buyer or seller $5,000 or more before closing.

The average home inspection takes 3 to 4 hours and covers hundreds of potential risk points. It’s not just a box to check. It’s the moment that can confirm a sale or send both sides back to the drawing board.

Most homes have issues. That’s why home inspections are always playing a big role in real estate. Buyers rely on them for peace of mind. Sellers use them to validate the property’s condition. Agents and contractors treat them as risk checkpoints that can either protect the deal or slow it down.

If you work in real estate or construction, you’ve likely asked what matters during an inspection. This guide covers what buyers care about, what holds up deals, and how to spot the problems that cost people the most in 2025.

Common Red Flags and Deal Breakers

Recent research shows that 88% of buyers in 2025 include a home inspection before finalizing their purchase, and 86% of those inspections uncover at least one issue that needs to be addressed.

Based on national inspection data, the most frequently reported deal-impacting issues include roof damage, electrical faults, plumbing leaks, foundation concerns, and moisture intrusion. These aren’t cosmetic repairs. They’re high-cost, high-risk problems that often reset the conversation.

1. Roof Problems

Roofing issues are flagged in about 20% of all U.S. home inspections. Inspectors commonly find missing shingles, soft spots, poor flashing, or signs of leaks. Many of these issues aren’t visible from the street and only show up during a close inspection of the attic or roof surface.

Because roof repairs are among the most expensive line items, buyers often push back hard when they’re flagged. Sellers can avoid surprises by documenting roof age and recent maintenance.

Damaged roofs reduce insulation effectiveness, leading to higher heating and cooling energy use, and subsequently increasing monthly energy bills.

In states like Pennsylvania, where heating and cooling costs are substantial, a damaged roof can significantly impact energy bills. See average utility costs by state.

For homeowners or sellers preparing for inspection, working with a trusted roofing contractor is essential. Especially in states with fluctuating climates and aging housing stock.

For homeowners in the Northeast, especially in Pennsylvania, American Remodeling Enterprises is the roofing company to trust. As a leading roofing company serving Eastern and Central Pennsylvania, they provide full roof replacements and new installations backed by lifetime warranties. Headquartered in Schuylkill Haven, PA, their team helps both sellers and buyers address roofing issues early, ensuring smoother inspections and fewer deal disruptions.

Nationwide, the key is the same: partner early with a qualified local roofer to avoid delays, reduce surprises, and keep the transaction moving forward.

2. Electrical Issues

Roughly 18.7% of inspections uncover electrical problems, often in homes built before modern code standards. Common concerns include outdated panels, exposed wiring, double-tapped breakers, or DIY additions that were never permitted.

These problems are dangerous. Buyers often request licensed electrician verification or demand repairs before closing. In some cases, these issues can hold up financing if they’re flagged as fire hazards or code violations.

3. Plumbing Defects

About 13.6% of inspections call out plumbing issues. These range from active leaks under sinks to water stains around toilets, sagging drain lines, or signs of corrosion in older galvanized pipes.

Water-related problems can lead to further damage. If left unresolved, they increase the risk of mold, warping, or flooring deterioration. Buyers who see moisture concerns may ask for a licensed plumber’s report or use it to justify a lower offer.

4. Foundation Cracks

Structural movement is less common but more serious when it’s found. Around 8.9% of inspections document cracks, gaps, or signs of shifting in the foundation. Many of these issues appear in crawl spaces or basements, where buyers may never look without a professional.

Small cracks may be cosmetic, but wider or stair-step cracks can indicate settling drainage problems, or long-term instability. When these appear on a report, buyers often pause or request an engineer evaluation before moving forward.

5. Moisture Intrusion

Moisture problems show up in roughly 8.5% of inspections. This includes soft drywall, musty smells, condensation in windows, or discoloration near plumbing walls. Inspectors may use thermal cameras or moisture meters to confirm hidden dampness.

Mold, mildew, and long-term humidity can affect both the structure and the air quality of a home. These findings are often paired with recommendations for remediation or air-quality testing, and they tend to make buyers more cautious about the property’s condition overall.

If You’re Selling Your Home

Buyers aren’t just looking at your countertops or staging — they’re scanning for signs of care. If the HVAC unit is buried in storage, the attic access is locked, or light fixtures don’t work, the inspection starts on the wrong foot. You don’t need to renovate, but you do need to remove excuses.

The smartest way to prepare for a home inspection is to walk through your property like an inspector. Don’t just clean — test everything. Run faucets. Flip light switches. Check for leaks under sinks. Verify smoke detectors are working. If something feels questionable, fix it or document what you’ve already addressed. Most red flags aren’t hidden behind drywall — they’re visible to anyone paying attention.

Inspectors will focus on critical systems. That includes the roof, foundation, HVAC, electrical panel, attic, water heater, and all visible plumbing. Make sure these areas are accessible, functioning, and free of obvious defects.

To get the home truly inspection-ready:

• Unlock attic doors, crawlspaces, utility closets, and electrical panels.
• Replace burned-out light bulbs and clear clutter around mechanical systems.
• Secure pets, and make sure inspectors can easily move through every room.
• Leave out service records for major systems, like your HVAC or roof.
• Make sure pilot lights are lit and GFCI outlets are operational.

Pre-listing inspections are also becoming more common. Sellers who take this step can identify issues early, resolve them on their own timeline, and head off surprise negotiations later. It’s not about hiding flaws — it’s about removing unnecessary doubt.

While home inspections don’t technically have a pass or fail, sellers can absolutely derail a deal by being unprepared or evasive. If an inspector senses that key systems are off-limits or that recent “fixes” cover up deeper problems, it sets the tone for mistrust.

If the report turns up something serious — like roofing problems or electrical hazards — the best move is to get a licensed contractor’s quote and be ready to either repair the issue or credit the buyer fairly. For smaller concerns, offering a closing credit can keep negotiations smooth and help buyers feel like they’re getting a win.

Whatever you do, don’t ignore the findings. Respond with receipts, photos, or documentation where possible. 

If You’re Buying The Home

Most buyers today are skipping the clipboard and showing up with questions instead. And that’s a good thing. Being present for the inspection means you’re part of the process. You’ll gain insight into the home’s systems and start to understand what’s normal versus what needs attention.

Good inspectors will point out everything, from loose railings to older plumbing. It’s your job to focus on the items that carry long-term implications, like foundation movement, water intrusion, roof age, or outdated panels. Cosmetic issues are rarely the deal-breakers.

If you hear terms like “recommend further evaluation” or “monitor over time,” ask for clarity. Many of those items can be managed, but knowing what’s serious and what’s not will help you decide how to respond to the report.

If You’re the Real Estate Agent

The inspection report is one of the most common points where deals stall. But experienced agents know how to get in front of it. By helping sellers prepare early and managing buyer expectations, agents can prevent delays and reduce emotional reactions to what’s often a very standard report.

One of the most valuable things you can do is walk the home like an inspector before it ever hits the market. Fix the simple things, flag the bigger ones, and have a short list of local professionals ready to respond if something unexpected pops up.

Your clients will thank you for keeping everything calm, clear, and actionable.

Understanding the Inspection Report

The inspection report is often where expectations and reality collide. For buyers, it can confirm peace of mind or raise serious concerns. For sellers, it can feel like a scorecard. And for agents, it becomes a roadmap for what happens next.

Most modern inspection reports follow a consistent layout. The summary typically highlights urgent issues or items recommended for further evaluation. After that, you’ll find sections on roofing, structure, electrical, plumbing, HVAC, and interior components.

Don’t be alarmed by the total number of findings. It’s common to see 25–50 line items, even in well-maintained homes. The goal is not to check everything off — it’s to understand which findings carry cost, safety risk, or functional impact.

Instead of reacting to every issue, buyers and agents should focus on three categories:

• Health or safety concerns: exposed wiring, gas leaks, structural movement, mold, or water intrusion
• High-cost repairs: roof damage, HVAC failure, foundation settling, or plumbing replacements
• Lender-sensitive issues: GFCI protection, smoke detectors, visible code violations

Sellers should be ready to address or negotiate around these points. In hot markets, buyers may accept certain issues in exchange for favorable pricing. In slower markets, unresolved red flags can derail deals entirely.

Use the Report to Negotiate Smartly

For buyers, the inspection is about gaining clarity. A strong agent can help identify which items are worth pushing for and which ones may be accepted as-is. It’s also important to understand the seller’s context. If a seller is already under contract on their next home or has addressed the most critical concerns, pushing too hard on minor fixes may backfire.

Sellers should review the report with their agent and determine which items to address, credit, or leave open to discussion. Repairing a few high-visibility items can go a long way in rebuilding buyer confidence.

What Not to Do:

• Don’t assume every issue needs a professional quote before you respond. Start by clarifying the severity with your agent.
• Don’t rely solely on the inspection summary. Sometimes, critical context is buried deeper in the full report.
• Don’t ignore findings marked as “monitor.” These may not be urgent now, but they could become costly down the road.

A well-managed inspection report doesn’t end the deal — it strengthens it. The key is knowing what the report says, how to act on it, and when to bring in specialists to keep everyone on the same page.

Post-Inspection Strategy and What Happens Next

The inspection is done, but the outcome of the deal often hinges on what happens next. This stage is where negotiations reset. Everyone involved needs to make quick, strategic decisions based on what the report revealed.

• Buyers: The best inspection responses are focused. Instead of reacting to everything, focus on what changes the value or function of the home. Major roof repairs, HVAC failure, or electrical safety issues are worth addressing. Hairline drywall cracks or chipped tiles probably aren’t. If the home still fits your goals, decide what’s worth negotiating and where you’re flexible. In many cases, a credit at closing is more useful than asking the seller to schedule repairs.
• Sellers: Inspection findings don’t need to derail your deal. What matters is how you respond. Review the buyer’s requests carefully. If they’re reasonable, act quickly. If they’re excessive, respond with facts, past receipts, contractor opinions, or photos that provide context. You don’t need to agree to everything. But you do need to show that you’re taking it seriously.
• Agents: This is where agents step up. That means preparing your client’s expectations, spotting negotiation opportunities, and coordinating any third-party opinions when needed. Your job is to keep everyone focused on solutions that make sense for both sides.

Impact of Tariffs

The 2025 tariff expansions significantly impact the U.S. housing market, with effects rippling through construction costs, home prices, and buyer behavior. Here’s how:

• Increased Construction Costs: The National Association of Home Builders (NAHB) reports that new tariffs have added approximately $10,900 to the cost of constructing a typical new home. This surge is attributed to tariffs on essential building materials like steel, aluminum, and Canadian lumber, which now faces a 14.5% tariff.
• Affordability Challenges: With the average new home price nearing $460,000, these additional costs exacerbate affordability issues. NAHB analysis indicates that for every $1,000 increase in home price, over 115,000 households are priced out of the market.
• Market Slowdown: Despite a 17% annual increase in active listings, pending home sales dropped by 3.5% in April 2025, marking the steepest monthly decline since August 2023. Economic uncertainty, driven by tariff-induced inflation and high home prices, is causing buyers to hesitate.
• Strategic Responses: Some retailers, like Home Depot, are mitigating the impact by diversifying their supply chains and maintaining steady prices, while others, like Walmart, have indicated potential price increases due to tariffs. This divergence affects consumer choices and, by extension, the housing market dynamics.

Home inspections are becoming more critical as buyers seek to avoid unforeseen costs.

Frequently Asked Questions

What should I do if the seller already had an inspection done?

Review the seller’s inspection report, but consider hiring your inspector for an unbiased assessment. This ensures all findings are up-to-date and impartial.

What’s the difference between a home inspection and an appraisal?

An appraisal determines the home’s market value for the lender, while an inspection assesses the physical condition of the property for the buyer. Both are important but serve different purposes.

Do I need an inspection for a brand-new home?

Yes. New homes can have issues like improper installations, code violations, or incomplete work. An inspection ensures everything is up to standard before you move in.

Can inspection issues affect my mortgage approval?

Absolutely. Some loan types, especially FHA, VA, and USDA, require that safety and habitability issues be resolved before closing. Problems like exposed wiring, structural instability, or broken heating systems can delay or block financing until fixed.

Conclusion

Home inspections in 2025 are shifting from a technical formality into a deal-making weapon, and the numbers prove it. Inspection reports are evolving. With more homes being renovated for resale, inspectors are digging deeper. They’re calling out improper installations, incomplete repairs, and surface-level upgrades that hide real issues underneath. Mold and moisture warnings are up this year, found in over 8% of inspections. Even in homes that appeared freshly flipped. These aren’t just minor notes. Many of those findings lead to walkaways or demands for second opinions before deals continue.