Three words that carry a lot of weight in a negotiation — here's exactly what each one is telling you.
Every finding on your inspection report gets a rating, and those three words carry more weight than most buyers realize when it comes time to negotiate. Here's what each one actually means — and doesn't.
The item is functioning as intended at the time of inspection. This doesn't mean brand new or perfect — a 15-year-old roof with no active leaks and no visible wear beyond normal aging still passes. Pass means "no action needed beyond normal maintenance," not "flawless."
The item works right now, but it's aging, marginal, or showing early wear that's worth tracking. A water heater at 10 years, an HVAC condenser with a slightly weak temperature differential, a slow bathroom drain — these are Monitor items. They're not emergencies, but they're also not "set it and forget it." Budget for service or eventual replacement.
This is the category that matters most in a negotiation. Flagged means there's a safety, code, or functional concern that should be evaluated or corrected by a licensed professional — an electrical panel with heat discoloration, missing GFCI protection in a wet location, active leak evidence. These are the items most likely to become repair credits or seller-paid fixes.
A report with several Monitor and even a couple of Flagged items isn't a "bad house" — it's an accurate one. Almost every home built more than a decade ago has something in each category. The rating system exists so you can prioritize, not so you can panic.
Flagged items are your strongest negotiating position — they're clear, professional-recommended, and usually have a defined repair path. Monitor items are worth mentioning but rarely worth fighting over; they're more useful for your own budgeting than for a credit request. Pass items generally aren't negotiable at all, and shouldn't be.
Every report comes with a clear legend and photo documentation for every Monitor and Flagged item.
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