Home Inspection Rating Systems Explained

Common Rating Systems

Different inspection companies use different terminology. Here are the most common rating systems you'll encounter, mapped to equivalent meanings.

Four-Tier Systems

The most common structure uses four levels: Satisfactory, Monitor, Repair, and Safety Concern. This system balances simplicity with meaningful differentiation.

Some companies use color coding alongside words. Green for satisfactory, yellow for monitor, orange for repair, red for safety. The visual system helps buyers scan reports quickly.

Three-Tier Systems

Simpler systems combine categories. You might see: Acceptable, Marginal, and Deficient. Or: Good, Fair, Poor. These systems sacrifice nuance for clarity.

In three-tier systems, "marginal" or "fair" typically combines what four-tier systems split between monitor and repair. Pay close attention to the text descriptions, since the category alone tells you less.

Five-Tier Systems

Some inspectors add granularity. A five-tier system might include: Excellent, Good, Fair, Poor, and Failed. Or: Satisfactory, Minor Defect, Major Defect, Safety Hazard, and Not Functional.

More tiers mean more precision, but also more complexity. These systems work best for buyers who want detailed information and aren't overwhelmed by nuance.

Rating Level Definitions

Regardless of the specific words your inspector uses, these definitions apply to the underlying concepts.

Satisfactory / Acceptable / Good

The component is performing its intended function. It may not be new or perfect, but it works correctly and shows wear appropriate for its age.

A 15-year-old roof with no leaks and several years of expected life remaining would rate as satisfactory. So would a furnace from 2010 that heats the home effectively. Working as designed, even if not new.

Satisfactory items require no action. They're documented for completeness, not concern.

Monitor / Marginal / Fair

The component is currently functional but shows signs that could lead to future problems. Observation over time is recommended.

Examples include hairline cracks that haven't moved, minor staining that might indicate past moisture, aging systems approaching end of expected life, and wear patterns that haven't yet affected performance.

Monitor items don't need immediate repair. They need periodic checking so you can catch changes early. Budget planning may be appropriate for items nearing end of life.

Repair / Deficient / Poor

The component is not performing correctly or has a condition requiring correction. Action is needed, though timing varies by severity.

Some repairs are urgent. A leaking pipe needs immediate attention. Other repairs are less time-sensitive. A door that doesn't latch properly should be fixed, but not today.

Repair items are candidates for negotiation with sellers. Get contractor quotes to understand actual costs before requesting credits or repairs.

Safety Concern / Hazard / Unsafe

The condition poses potential risk to occupants. This is the most serious rating and typically requires correction before or immediately after occupancy.

Safety items include: missing smoke or carbon monoxide detectors, electrical hazards like exposed wiring or double-tapped breakers, gas leaks, trip hazards, improper venting of combustion appliances, and structural instability.

Safety concerns always appear on the summary page. They're not negotiable in the sense of "should we fix this?" They must be addressed. The only question is who pays and when.

Not Functional / Failed

The component doesn't work at all. This appears in five-tier systems as distinct from "repair" to indicate complete failure rather than diminished performance.

A furnace that won't ignite is not functional. An HVAC system that runs but produces weak output needs repair. The distinction matters for understanding severity and likely repair costs.

How to Use Ratings Effectively

Ratings are tools for prioritization. Use them to sort findings into action categories.

Triage Your Report

Start by counting items in each category. A report with 40 satisfactory items, 8 monitor items, 3 repair items, and 1 safety concern tells a very different story than one with 10 satisfactory, 5 monitor, 15 repair, and 8 safety concerns.

The absolute numbers matter less than the distribution. More repair and safety items means more work and potentially more negotiation.

Focus on Summary Items First

Items rated repair or higher typically appear on the summary page. Start there. These are the findings the inspector flagged as most significant.

Monitor items may or may not appear on summaries depending on the inspector's style. Satisfactory items almost never appear unless they include notable observations.

Don't Ignore Context

Ratings are starting points, not final answers. A "repair" rated item might be a $50 fix or a $5,000 project. The rating tells you action is needed but not the scope.

Read the descriptions and look at photos. A repair item with a photo showing a minor issue is different from one showing extensive damage. Let the rating guide your attention, then let the details guide your response.

Rating Comparison Table

This table shows how different terminology maps across rating systems:

Questions to Ask Your Inspector

If you're unsure about ratings in your report, ask:

What rating system do you use? (Get familiar with their specific terms)

For this specific item rated X, what would make it a higher or lower rating? (Understand the thresholds)

Which monitor items concern you most? (Get their professional judgment on priorities)

For repair items, is this urgent or can it wait? (Understand timing expectations)

Good inspectors welcome these questions. The report is meant to inform you, and clarification helps achieve that goal.