Why Every Buyer in Austin Should Get a Home Inspection

A home is one of the largest (if not the largest) investment you can make and a home inspection is the best way to protect yourself from buying a terrible investment. In competitive housing markets—where buyers often face multiple-offer situations and fast-moving deals like we saw during the pandemic—there’s growing pressure to waive contingencies, especially the home inspection because the seller doesn’t want the buyer to be able to back out for any reason. But skipping an inspection isn’t just risky—it’s financially reckless.

At LendFriend Mortgage, we work with hundreds of buyers annually, and we’ve seen firsthand how a well-executed inspection can protect your investment, improve your negotiation position, and even uncover deal-breaking issues that would never be visible during a walk-through. We’ve also seen how waiving an inspection can end with a financial nightmare – like finding out your new construction home has traces of toxic mold all throughout the home right after purchasing. Whether you're purchasing a 1930s Hyde Park bungalow, a 2006-built home in Circle C, or a brand-new construction in Easton Park, a professional home inspection should be a non-negotiable part of your due diligence.

What Is a Home Inspection, and Why Does It Matter?

A home inspection is a visual examination of a property’s physical structure and systems—from the roof and foundation to the HVAC and electrical panels. In Texas, licensed inspectors follow standards set by the Texas Real Estate Commission (TREC), but thoroughness varies greatly between professionals.

The goal isn’t to guarantee perfection, but to reveal hidden issues that could affect safety, performance, or long-term value. These are not always dramatic problems—think aging water heaters, improper drainage, faulty GFCI outlets—but they add up. Without this layer of protection, you’re essentially buying blind.

Here’s a good example, a client was under contract for a $670,000 home in Northwest Austin was ready to waive inspection to beat other offers. We advised against it. The inspection revealed aluminum branch wiring—a safety hazard that has been linked to a higher risk of electrical fire and requires thousands in updates to meet code. The buyer leveraged this report to negotiate a $7,500 seller credit and still closed on time.

Are Home Inspections Still Necessary on New Construction?

A home inspection is always required regardless of the age of the home. Just because they’re a large corporation or a reputable builder, doesn’t mean they aren’t prone to mistakes (or cutting corners to deliver a project on budget). Builders often work fast and delegate work to subcontractors. Mistakes can slip through, especially in a labor-constrained market like Austin. Common issues include reversed wiring, uninsulated attic spaces, missing flashing, or improperly installed HVAC systems.

In Texas, new builds are not required to undergo municipal inspections beyond code compliance—and those city inspections rarely dive as deep as a third-party inspector. We recommend two inspections for new builds:

• Pre-drywall Inspection – before insulation and sheetrock go up.
• Final Inspection – just before closing, when systems are operational.

Another example: A buyer in Leander purchasing a brand-new home discovered, via third-party inspection, that the main water line was leaking under the driveway, which would have long term impacts on the foundation. Not only did the builder fix the leak, but they also fixed two incorrectly wired outlets before closing.

How to Choose the Right Home Inspector in Austin

Not all inspectors are created equal. A great one will be part technician, part detective, and part educator—someone who walks you through the home’s condition without alarming you unnecessarily.

Credentials Matter

In Texas, all inspectors must be licensed by TREC. But go further: look for certifications from ASHI (American Society of Home Inspectors) or InterNACHI. Ask how many homes they’ve inspected in the Austin area specifically, and whether they carry Errors & Omissions insurance.

Ask for a Sample Report

A high-quality inspector will offer a sample report that’s thorough, photo-documented, and written in plain English. Reports should clearly indicate which findings are cosmetic vs. structural or safety-related.

Tools of the Trade

Today’s best inspectors use thermal imaging, moisture meters, drones (for inaccessible roofs), and even sewer scopes (especially important in older Central Austin neighborhoods with clay or cast iron piping).

Pro Tip: If you’re working with a good realtor, they should be able to give you a few highly reputable names to call. But don’t rely on your real estate agent’s referral alone. While many agents recommend excellent inspectors, some may push fast, low-conflict pros to avoid derailing a deal. Vet independently.

Red Flags That Should Raise Serious Concern

Home inspections often reveal dozens of small issues, but certain problems stand out—either because they’re expensive to fix or because they suggest underlying systemic damage.

1. Foundation Movement

In Austin’s expansive clay soils, movement is common. Hairline cracks are often cosmetic, but wide gaps in walls, sloping floors, or doors that don’t close properly can point to foundation failure.

In one inspection in South Austin, a buyer discovered 2-inch differential settling in a pier-and-beam foundation. A structural engineer confirmed repairs would cost over $30,000. The buyer terminated under their inspection contingency.

2. Roof Age & Condition

Roof replacements in Austin typically run $10,000–$25,000 depending on size and materials. An inspector should walk the roof (or drone it) and evaluate flashing, shingles, drainage, and decking.

Look for signs of:

• Granule loss
• Soft spots
• Exposed nail heads
• Improper venting

3. Electrical Deficiencies

Many older Austin homes still have aluminum wiring, outdated panels (like Federal Pacific or Zinsco), or missing GFCI outlets. These can be fire hazards and insurance liabilities.

4. Plumbing Failures

Cast iron sewer lines (common in pre-1980 homes) degrade over time and often require full replacement. A sewer scope (optional but recommended) can detect root intrusion, bellies, or fractures.

What If the Inspection Finds Issues? Your Options as a Buyer

Most inspection reports come back with some issues—it’s normal. The question is how you respond. In Texas, inspection contingencies give you wide latitude to renegotiate or even walk away.

1. Negotiate Seller Repairs

You can request that the seller make repairs before closing. However, be cautious. Sellers often do the bare minimum—think handyman fixes rather than licensed contractors.

2. Request Price Reductions or Seller Credits

This is often preferable. Instead of trusting the seller to do the work, you negotiate a price reduction or closing cost credit and handle the repairs yourself post-closing.

For example, a LendFriend client buying in Round Rock used their inspection report to negotiate a $10,000 credit due to AC and roof concerns—funds that later covered both issues on their own terms.

3. Terminate the Contract

If the issues are severe and the seller refuses to negotiate, you can walk away and retain your earnest money—assuming your inspection window is still open (typically 7–10 days in Texas).

4. Proceed As-Is

If the issues are minor or cosmetic, you may choose to do nothing. Many buyers opt to accept small fixes if they’re comfortable with the risk.

Who Pays for the Home Inspection?

The buyer typically pays for the home inspection. In Austin, the average cost ranges from $375 to $600 for standard homes, depending on square footage and additional services (like sewer scopes or termite inspections). However, if you need to get a specialist to further inspect the roof or understand a potential mold problem, there will be additional costs.

It’s one of the most cost-effective investments you can make. A $475 inspection that reveals $7,000 in needed repairs isn’t a cost—it’s a windfall.

Is a Home Inspection Required for a Mortgage?

Technically, no. A home inspection is not required by most lenders. But don’t confuse this with an appraisal, which is required and serves a very different purpose. An appraisal confirms the home's market value for lending purposes but doesn’t assess condition in nearly the same depth.

That said, if the inspection reveals material issues that affect livability or safety (particularly roof and foundation issues), lenders will flag them as needing to be repaired before closing can take place.

What if You Waive the Inspection?

In multiple-offer scenarios, some buyers waive the inspection contingency to appear more competitive. This is risky—but not necessarily reckless—if done right.

At LendFriend, we often advise clients to still perform the inspection, even if they waive the contingency. That way, if the findings are severe, they can still exit the contract using other contingencies like:

• Financing Contingency (e.g., property no longer meets underwriting standards)
• Appraisal Contingency (if the issues lower the value)

FAQs

What are the 5 most important things inspected in a home?

1. Roof
2. Foundation
3. Electrical System
4. HVAC System
5. Plumbing

What often fails a home inspection?
Major issues like faulty wiring, foundation damage, roof leaks, or active water intrusion are common reasons a buyer backs out or demands major concessions.

What should sellers expect?
Sellers should prepare for nitpicky findings. Pre-inspections are optional but can help anticipate buyer objections. Major systems should be serviced in advance.

What’s on a home inspection checklist?
Inspectors will evaluate exterior siding, windows, grading, structural components, attic insulation, visible plumbing, HVAC function, electrical panels, outlets, and appliances.

Is a home inspection still necessary if I’m buying a home “as-is”?
Definitely. Buying a home "as-is" means the seller is not willing to make repairs or renegotiate based on inspection findings. But that doesn’t mean you should skip the inspection. In fact, it becomes even more critical because it helps you assess the true cost of ownership upfront.

Final Thought: It’s Not About Finding a Perfect Home—It’s About Buying With Eyes Wide Open

There’s no such thing as a flawless home. But a thorough home inspection empowers you to make an informed, strategic decision. It gives you options, leverage, and peace of mind—all of which are invaluable in a market as dynamic as Austin’s.

If you have any questions about the homebuying process, give us a call at 512.881.5099 or get in touch with me by completing this quick form, and I'll be in touch as soon as possible.