Home Inspection: What It Is and How It Works Definition A home inspection is a non-invasive examination of a property's condition and safety, typically conducted before a sale is finalized. Its purpose is to identify defects, safety hazards, and maintenance needs that could affect a home’s value or livability. What an Inspector Checks A qualified home inspector examines major systems and components, including:
Foundation, structure, roof and attic
Heating, ventilation and air conditioning (HVAC)
Plumbing, sewer and water systems
Electrical systems and wiring
Exterior elements (siding, windows, doors, decks)
Interior components (walls, ceilings, floors)
Signs of water, fire, or pest damage
Potential safety hazards (e.g., faulty wiring, missing handrails) Explore More Resources
How the Process Works
* Timing: Inspections are usually scheduled after a purchase agreement is signed. Buyers commonly include an inspection contingency (or due diligence period) in the contract to allow time for the inspection and review of the report.
* Who arranges and pays: The buyer typically hires and pays the inspector, though sellers may obtain a pre-listing inspection.
* Report and outcomes: The inspector delivers a written report listing defects and recommended repairs. Based on that report, the buyer can:
* Proceed with the purchase,
* Request repairs or credits,
* Renegotiate the price, or
* Cancel the contract if permitted by the contingency.
* Re-inspection: If the seller completes major repairs, the buyer can request a re-inspection to verify the work.
Specialized Inspections Some concerns require additional specialists and fees, such as:
Radon testing
Mold or asbestos inspection
Termite or pest inspection
Sewer line camera inspection
* Chimney or structural engineering assessments Inspection vs. Appraisal
* Home inspection: Evaluates condition and safety; ordered by the buyer to learn about physical issues.
* Home appraisal: Determines market value for the lender; ordered by the mortgage lender and used to set loan amounts. An appraisal is not a substitute for an inspection.
Costs and Practical Considerations
* Typical cost: Varies by region, home size and age; many inspections fall between about $200 and $500.
* Value: Compared with the total cost of buying a home, an inspection is relatively inexpensive and can reveal problems that would be costly later.
* Waiving an inspection: Skipping the inspection to make an offer more competitive is risky and may lead to unexpected expenses after closing.
Other Notes
* Seller pre-inspections: Sellers who obtain and disclose an inspection report before listing can address issues upfront and reduce surprises during negotiations.
* Delinquent loans: Lenders or servicers sometimes order inspections on properties in mortgage delinquency; consumer protection agencies have flagged improper or excessive charging practices in some cases.
Bottom Line A home inspection gives buyers a clearer picture of a property's condition and potential future costs. Including an inspection contingency and hiring a qualified inspector are important steps to protect your investment and avoid costly surprises. Explore More Resources