Short answerA home inspector may flag safety items, worn out systems, water problems, and older materials. On most Southern Indiana houses that means electrical issues like missing GFCI protection, roof and gutter wear, aging furnaces and water heaters, grading and basement moisture, and handrails. Houses built in the 1960s and 1970s add aluminum wiring, older panels, and lead paint questions.
What does a home inspector actually look at?
A home inspector looks at what can be seen and safely reached on the day of the inspection: the roof, structure, exterior, electrical, plumbing, heating and cooling, insulation and ventilation, and the interior. Home inspectors in Indiana are licensed by the state, and the minimum standards they work to are set by the Home Inspectors Licensing Board.
Three things are worth knowing before you read any report.
- It is not pass or fail. The report describes conditions. The buyer decides what matters to them.
- It is visual. Inspectors do not open walls or take things apart. That is why reports often say "recommend evaluation by a licensed electrician" or "by a structural engineer." That sentence means "go find out," not "this is broken."
- It is not a code inspection. Your house was built to the rules of its day. An inspector may still flag something that was normal in 1975 because it is a safety upgrade today.
What do inspectors flag on almost every house?
These come up on houses of every age, new construction included. Most are normal wear. A few are true safety items. The table sorts them so you know which is which.
| What gets flagged | What it usually means | Real risk |
|---|---|---|
| Missing GFCI protection near water (kitchen, baths, garage, outside) | Older wiring rules did not require it. Inexpensive to add. | Safety item, usually simple |
| Open junction boxes, missing cover plates, double tapped breakers | Small electrical workmanship items, often from past do it yourself work | Safety item, usually simple |
| Roof wear, lifted or missing shingles, flashing gaps | Normal aging, or a roof near the end of its life | Low to high, depends on age and leaks |
| Gutters, downspouts, and soil sloping toward the house | The most common cause of a wet basement or crawlspace | Medium, cheap to prevent and expensive to ignore |
| Furnace, air conditioner, or water heater near or past typical life | Still working, but budget for replacement | Usually a budget item, not a safety item |
| Water heater relief valve without a proper discharge pipe | An easy fix that also shows up on government loan appraisals | Safety item, simple |
| Missing or loose handrails, uneven steps, deck connections | Fall hazards, also flagged by FHA, VA, and USDA appraisers | Safety item |
| Smoke and carbon monoxide detectors missing or old | Cheap and expected | Safety item, simple |
| Moisture stains, past leaks, signs of mold | Could be old and dry, or active | Depends on whether it is still wet |
| Foundation cracks or a bowed basement wall | Most hairline cracks are shrinkage. Movement or bowing needs a specialist. | Low to high, a specialist decides |
Full detail on each system lives in the Home Condition Reference, for example electrical, roofs, water and grading, and foundations.
What may an inspector flag on a 1970s house?
This era gets its own section because it is so common in Southern Indiana. In recent local MLS sales I track, the typical home sold was built in 1973, and more than half were built before 1978. On top of the everyday items above, a 1960s or 1970s house may draw these:
Aluminum branch wiring
Some homes built or expanded between 1965 and 1973 were wired with aluminum instead of copper. The risk is at the connections, where aluminum can loosen and overheat. The Consumer Product Safety Commission recognizes specific permanent repairs, and a licensed electrician should evaluate it. Some insurers ask about it, so buyers will too. More on aluminum wiring.
Original or older electrical panels
Federal Pacific Stab Lok and Zinsco panels were common in this period, and many inspectors flag them for evaluation or replacement. Even a good panel from this era may be undersized for today's kitchen and laundry loads, and the outlets may be two prong and ungrounded. More on these panels.
Lead paint
Any house built before 1978 may have lead based paint. That brings a federal disclosure requirement when you sell, and it changes how painting and repair work must be done. It also matters to FHA appraisers, covered below. More on the lead disclosure rule.
Asbestos in older materials
Vinyl floor tile, sheet flooring backing, some siding, and pipe or duct wrap from this era may contain asbestos. EPA's guidance is that material in good condition is usually best left alone. It becomes a problem when it is sanded, cut, or torn out. Testing and removal are jobs for licensed specialists. More on asbestos.
Plumbing and drains
Some houses from this period still have galvanized steel supply pipe, which narrows from the inside and lowers water pressure over time, and cast iron drain lines that can crack or rust through. A sewer camera scope is the way to see the main drain. Galvanized pipe and sewer scoping.
Water at the foundation
Block basement walls and crawlspaces from this era show their age through water stains, efflorescence (white mineral deposits), and in some cases horizontal cracking or bowing. The fix usually starts outside with gutters and grading. Bowing walls need a structural evaluation before anyone prices a repair.
Everything that is now 50 years old
Windows, doors, attic insulation levels, bath fans that vent into the attic, and any decks or additions built since. None of these is unusual for the age. Buyers expect them. The goal is that nothing on the report is a surprise to you.
The 1970s seller guide goes deeper on this era. Other eras have their own guides: before 1940, 1940 to 1959, 1980s, 1990s, 2000s, 2010s, and since 2020.
What do FHA, VA, and USDA appraisers flag?
In recent local MLS sales I track, about a third of buyers used an FHA, VA, or USDA loan. Those appraisals look at safety, security, and soundness, and they can require repairs before the loan closes. The items that overlap most with inspection reports are these.
- Peeling or chipping paint on a house built before 1978. HUD's FHA handbook tells the appraiser to note it and require repair under federal lead rules.
- Missing handrails, unsafe steps, and trip hazards.
- A roof with little remaining life or active leaks.
- Heat, electricity, and water that are not on or not working at the appraisal.
- Exposed wiring and other electrical hazards.
- Well and septic testing on rural homes, which varies by program and county.
Each program has its own rules, and lenders can add their own. See what FHA, VA, and USDA appraisers flag for the program by program detail.
Should I repair it, give a credit, price it in, or disclose it?
Every finding fits one of four paths. This is how I sort them with sellers.
| Finding | Usual best path | Why |
|---|---|---|
| Small safety items (GFCI, cover plates, detectors, relief valve discharge, handrails) | Repair before listing | Cheap to fix, and they make a report look worse than the house is. Several also block government loans. |
| Peeling paint on a pre 1978 house | Repair before listing using lead safe practices | FHA buyers cannot close without it, and it shows up in listing photos. |
| Furnace, air conditioner, water heater, or roof near end of life but working | Price it in, or credit if asked | Buyers expect age. Replacing a working system rarely returns its full cost. |
| Aluminum wiring, an older panel, or a failed system | Get a licensed trade quote, then repair or credit | A real number in hand turns a scary line in the report into a math problem you control. |
| Water in the basement or crawlspace | Fix the cause (gutters and grading) and disclose what you know | Cheap prevention often solves it. Hidden water is what kills deals. |
| Foundation movement, possible asbestos, radon | Specialist first, then decide | These need a qualified opinion before anyone can price them honestly. |
| Cosmetic wear | Price it in | Buyers discount for it whether you fix it or not. |
Whatever you decide, anything you know about goes on the Indiana seller disclosure form. The math behind these choices is on the repair, credit, or price reduction page, and what to fix before listing covers the prep in order.
What does it cost to fix the common findings in Southern Indiana?
These are planning estimates, not bids, and the actual cost depends on the house. Items marked W come from Wardmark Property Operations pricing dated June to September 2026. I own Wardmark Property Operations, and you are always free to use any contractor you choose. Items marked P are published Indiana cost estimates gathered in November 2026 for work Wardmark does not price, and the source is listed under the table. Local contractors may price differently.
| Item | Planning estimate | Source |
|---|---|---|
| GFCI or AFCI protection | $120 to $400 per location | W |
| Small electrical repair package (diagnosis plus several items) | $400 to $1,200 | W |
| Electrical panel replacement, 100 to 150 amp | $1,400 to $2,400 | W |
| New 200 amp service | $1,900 to $2,600 | W |
| Aluminum wiring connector repair, whole house | $2,000 to $8,000 | P (1) |
| Smoke detector | $77 battery to $146 hardwired, each | W |
| Water heater replacement, 40 gallon tank | $1,490 to $1,860 | W |
| Furnace replacement | $3,800 to $7,500 | W |
| Furnace and air conditioner together | $8,500 to $14,500 | W |
| Roof leak repair | $150 to $1,050 | W |
| Roof replacement, asphalt shingle | About $5,600 to $19,400 in Indiana, averaging about $7,400 | P (2) |
| New seamless gutters | $1,200 to $4,500 | W |
| Grading correction | $500 to $5,000 | W |
| Crawlspace sump pump, basin, and vent fan | About $3,250 on a recent job | W |
| Basement interior drain tile and sump system | $3,000 to $7,000 | P (3) |
| Railing replacement | $800 to $4,000 | W |
| Exterior paint, single story | $2,500 to $6,500 | W |
| Chimney mortar repointing | About $1,200 to $1,350 on recent jobs | W |
| Radon mitigation system | $800 to $2,000 | P (4) |
| Sewer line replacement, open trench | $80 to $180 per foot | P (5) |
| Septic tank pumping | $250 to $500 | P (6) |
| Well pump replacement | $1,200 to $3,000 | P (7) |
| Asbestos testing or removal | Licensed specialist quote only |
Published estimate sources, gathered November 2026: (1) AJ Long Electric, aluminum wiring remediation pricing for COPALUM and AlumiConn repairs; no Indiana specific source was found, so treat this range as a starting point. (2) This Old House, Cost of a Roof Replacement in Indiana, updated May 2026. (3) AskDoss, Basement Waterproofing Cost in Indiana, 2026. (4) Indiana radon mitigation cost guides, 2026 (Radon Directory; Radon Ready Guide). (5) Summers Plumbing Heating and Cooling, Central Indiana sewer line pricing, 2026. (6) NeedSeptic, Septic Tank Pumping Cost in Indiana, 2026. (7) Summers Plumbing Heating and Cooling, Indiana well pump replacement pricing.
Should I get my own inspection before I list?
Sometimes. A pre listing inspection removes surprises and gives you time to get real quotes. The tradeoff is that anything it finds becomes something you know, and Indiana's disclosure form asks about what you know. A free condition walk is a lighter first step. It is a REALTOR® and contractor evaluation, not a home inspection. The pros and cons are laid out on should I get a pre listing inspection.
What do I have to disclose?
Indiana law generally requires sellers of homes with one to four units to complete the Seller's Residential Real Estate Sales Disclosure form about the known condition of the property, and to give it to the buyer before an offer is accepted. Homes built before 1978 also need the federal lead based paint disclosure, the EPA pamphlet Protect Your Family From Lead in Your Home, and a chance for the buyer to test for lead. If you are unsure whether something needs to be disclosed, ask a real estate attorney. How the Indiana disclosure form works.
What John sees in the field
The items that cost sellers the most in a negotiation are rarely the big ones. They are the pile of small electrical items: missing GFCI outlets, open boxes, a double tapped breaker. Each one costs very little to fix, but a page full of them tells a buyer the house was not cared for, and the repair request grows to match.
When a basement or crawlspace has water, the cause is usually outside. I look at the gutters, downspouts, and the slope of the yard before anyone talks about waterproofing. A few hundred dollars of drainage work done before listing often prevents a much bigger request later.
Frequently asked questions
Does a home inspection pass or fail a house?
No. An Indiana home inspection reports the condition of the systems the inspector can see and reach. There is no pass or fail. The buyer decides what matters to them, and the purchase agreement sets how repair requests are handled.
Do I have to fix everything on the buyer's inspection report?
No. A repair request is a negotiation under your purchase agreement. You can agree, offer a credit, adjust the price, or decline, and the buyer then has the choices their contract gives them. Lender required repairs on FHA, VA, and USDA loans are a separate question.
Is a 1970s house harder to sell?
Not by itself. Buyers expect some age related items. What slows a sale is a surprise, such as aluminum wiring, a recalled panel, or water in the basement found late in the deal. Knowing what is there before you list keeps those items from turning into a renegotiation.
Do I have to disclose what a pre listing inspection finds?
Indiana's Seller's Residential Real Estate Sales Disclosure form asks about conditions you actually know about. Once you learn about a defect, it is known. Ask a real estate attorney how that applies to your situation before you decide.
Will an FHA appraiser care about peeling paint?
On a house built before 1978, yes. HUD's FHA handbook tells the appraiser to note defective paint and require repair under federal lead rules. Lead safe work practices apply to that repair.
Should I test for radon before I list?
EPA recommends testing every home, and Indiana counties fall in EPA radon Zones 1 and 2. Many buyers add a radon test to their inspection, so knowing your number early lets you plan instead of react.
Is aluminum wiring a deal breaker?
Not automatically. It is a real fire risk at the connections, and some insurers ask about it. A licensed electrician can evaluate it, and the Consumer Product Safety Commission recognizes specific permanent repairs. Most deals that hit aluminum wiring are settled with a repair or a credit.
Keep reading
Want to know what a buyer's inspector may find before they do?
Book a free pre listing condition walk. I walk the house with you, point out what inspectors and FHA, VA, and USDA appraisers tend to flag, and give you planning ranges so you can decide what to fix, credit, price in, or disclose.
Book a condition walkOr call or text (812) 525-5489, or email john@yourpropertynegotiator.com.
The condition walk is a REALTOR® and contractor evaluation, not a home inspection, and it does not replace one. If you have already signed a listing agreement with another agent, please take these questions to your agent.
Written by John Long, REALTOR®, 1 Percent Lists Indiana Real Estate. Working contractor who has priced hundreds of home inspection repair requests. Former labor relations negotiator for a major manufacturer and U.S. Coast Guard veteran.
John Long, REALTOR® · 1 Percent Lists Indiana Real Estate · (812) 525-5489 · yourpropertynegotiator.com
This page is general information, not a substitute for a professional home inspection, and not legal, tax, insurance, or lending advice. Ask a real estate attorney about contracts and disclosure, a CPA about taxes, your lender about loan rules, and a licensed inspector or tradesperson about your house. Nothing here guarantees a sale price, net proceeds, repair cost, payment, timeline, appraisal, inspection result, or loan approval. Cost figures are planning estimates, not bids. I own Wardmark Property Operations LLC, a contracting company. You are always free to use any contractor you choose.