California is a strong buyer-disclosure state, but disclosure is not the same as inspection. Sellers tell you what they know; inspectors tell you what they find. Here is how the inspection process works and how to use it.
What sellers provide up front
In most Bay Area transactions, the seller assembles a disclosure package before offers: a Real Estate Transfer Disclosure Statement (TDS), a Seller Property Questionnaire (SPQ), a Natural Hazard Disclosure report, a preliminary title report, HOA documents if applicable, and frequently pre-listing pest and general property inspection reports. Read all of it — twice.
Inspections buyers order
- General home inspection: a top-to-bottom visual review of structure, roof, attic, foundation, drainage, plumbing, electrical, heating, and built-in appliances.
- Pest / wood-destroying organism inspection: termites, fungus, dry rot — extremely common in older Bay Area homes.
- Sewer lateral inspection (camera scope): critical in San Francisco and older East Bay neighborhoods, where clay sewer lines fail and replacement can cost five figures. Some cities require a compliant lateral at sale.
- Specialty inspections as warranted: foundation engineer, roofer, chimney, drainage specialist, and — in hillside areas — geotechnical review.
Timing
In a competitive market, serious buyers do much of this before writing an offer, during open houses or a pre-offer inspection window, so they can shorten or remove the inspection contingency and still know what they are buying. If you keep an inspection contingency, you complete inspections during that period (often around 17 days, but negotiable).
Reading the report
Every inspection report has scary-sounding language. Focus on:
- Safety items: electrical hazards, gas issues, structural concerns.
- Big-ticket systems: roof, foundation, drainage, sewer, seismic.
- Patterns: multiple signs of deferred maintenance often mean more lurking behind the walls.
Get bids for anything significant so you know real numbers, not worst-case guesses.
Almost every home has an inspection list. The question is whether the price already reflects it — and whether you can live with what's on it.
Your options after inspection
If you have a contingency and find material problems, you can request repairs, request a credit or price reduction, or cancel and recover your deposit. Sellers in strong markets often decline repair requests — which is exactly why doing your homework before the offer matters.