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)

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.