All About Home Inspections: What Buyers and Sellers Need to Know

The home inspection is one of the most important steps in any real estate transaction — and one of the most misunderstood. Whether you're buying or selling, understanding what the inspection process involves, what inspectors look for, and what happens afterward will help you navigate it with confidence.

What Is a Home Inspection?

A home inspection is a professional, visual evaluation of a property's condition conducted by a licensed home inspector. The inspector examines the major systems and components of the home and produces a written report detailing their findings — including defects, safety concerns, and items that may require repair or further evaluation.

In California, home inspectors are not state-licensed, but reputable inspectors are typically certified through organizations like ASHI (American Society of Home Inspectors) or CREIA (California Real Estate Inspection Association).

What Does the Inspector Look At?

A standard home inspection covers the visible and accessible components of the property, including:

• Roof: Condition of shingles, flashing, gutters, and fascia
• Foundation and structure: Visible cracks, settlement, drainage
• Electrical system: Panel, wiring, outlets, GFCI protection
• Plumbing: Water pressure, pipes, drains, water heater
• HVAC: Heating and cooling systems, ductwork, filters
• Windows and doors: Function, seals, condition
• Attic and crawl space: Insulation, ventilation, signs of moisture or pests
• Interior: Walls, ceilings, floors, stairs, fireplace

Inspectors document what they observe — they do not perform destructive testing or move furniture and personal belongings. Items that are not visible or accessible are not included in the report.

Important note for condo and HOA buyers: When purchasing a condo or a property within a homeowners association, the inspection scope is often more limited than it would be for a single-family home. Exterior elements — including the roof, building envelope, common area structures, and shared systems — are typically the HOA's responsibility, not the individual unit owner's. As a result, inspectors will generally not inspect these areas, since the buyer has no ownership or control over them. The inspection instead focuses on the interior of the unit: walls, ceilings, floors, plumbing fixtures, electrical within the unit, HVAC serving the unit, and any exclusive-use areas like a balcony or patio. Buyers of condos should review the HOA's financials and reserve study to understand whether the association has adequate funds to address deferred maintenance on the building's shared components.

Common Findings in Los Angeles Homes

LA's housing stock is older in many neighborhoods, and the region has specific conditions that inspection reports frequently flag:

• Deferred maintenance on older roofs, plumbing, and electrical systems
• Absence of earthquake strapping on water heaters
• Galvanized or older plumbing in pre-1970s homes
• Substandard electrical panels (Federal Pacific, Zinsco, or fuse boxes)
• Drainage and grading issues on hillside properties
• Evidence of past water intrusion, particularly in basements and lower levels
• Pests and dry rot, especially in older wood-frame construction

Move-In and Move-Out Inspections for Landlords

Inspections aren't just for buyers and sellers. Landlords rely on detailed move-in and move-out condition reports to establish a documented baseline at the start of a tenancy — and to accurately assess damage (versus normal wear and tear) at the end. If you own a rental property, especially one managed remotely, a professional move-in inspection is one of the most important tools for protecting your security deposit rights. See our guide on managing a rental property remotely for more on how landlords handle inspections and turnovers without a full property management company.

The Pre-Listing Inspection: A Smart Seller Move

Most inspections are ordered by buyers as part of their due diligence. But sellers can also order a pre-listing inspection before going on the market — and there are real advantages to doing so.

A pre-listing inspection allows you to:

• Identify and fix issues before buyers discover them
• Price the home accurately, knowing its condition
• Reduce the likelihood of surprises derailing escrow
• Demonstrate transparency to buyers, which builds trust and reduces demands for credits

If you're preparing your home for sale, a pre-listing inspection is one of the most useful tools available — particularly for older properties where unknown issues are more likely.

What Happens After the Inspection Report?

Once the buyer's inspector delivers the report, the buyer has several options depending on their contract contingency:

• Request repairs: The buyer submits a request for the seller to fix specific items before closing.
• Request a credit: Instead of repairs, the buyer asks for a price reduction or closing cost credit to address the issues themselves after closing.
• Accept as-is: The buyer acknowledges the findings and proceeds without requesting anything.
• Cancel: If the findings are severe enough, a buyer with an inspection contingency can cancel the contract and recover their deposit.

Which direction the negotiation goes depends on the severity of the findings, market conditions, and how motivated both parties are to close.

What Inspections Don't Cover

A general home inspection does not include:

• Pest/termite inspection (typically a separate report)
• Sewer scope (highly recommended for older properties)
• Mold testing
• Pool and spa inspection
• Chimney inspection
• Geological or soils reports

In many LA transactions, buyers order several of these specialized inspections in addition to the general inspection, particularly for older homes or properties in hillside areas.

City Presale Inspections Are Different

It's worth noting that city-required presale reports — such as the City of Los Angeles 9A Report — are completely separate from a buyer's home inspection. These are ordered by the seller, not the buyer, and focus on city permit records and code compliance rather than physical condition. See our guide to LA County cities with presale inspection requirements for more on those.