What Is a Home Inspection?
A home inspection is a systematic, non-invasive visual examination of a house’s physical condition performed by a trained inspector. It evaluates major systems and components — foundation, roof, structure, HVAC (heating/cooling), plumbing, electrical, and visible evidence of water, pest, fire, or other damage — and produces a written report describing defects, safety concerns, maintenance items, and recommended repairs or further evaluation.
Key takeaways
– A home inspection focuses on condition and safety, not market value.
– Buyers usually arrange inspections after signing a purchase agreement and include an inspection contingency.
– Inspectors produce a written report; results may lead to repair requests, renegotiation, or cancellation.
– Appraisals (required by lenders) are separate — they determine market value.
– Typical inspection cost in the U.S. is commonly in the $200–$500 range, though it varies by region and property size.
How a Home Inspection Works
1. Timing and contingency
– Inspections are typically scheduled after a purchase agreement is signed. Buyers commonly include an inspection (or due-diligence) contingency that gives them time to inspect and respond.
2. Scope
– The inspector performs a visual assessment of structural components and major systems. They check for safety hazards, code issues, and signs of damage or deferred maintenance. The inspection is not destructive — walls or floors are not opened unless otherwise agreed.
3. Report
– The inspector delivers a written report (often with photos) listing defects, safety issues, and recommendations. The report may note items to monitor (cosmetic or expected wear) versus material defects.
4. Buyer decisions
– Based on the report the buyer can: accept the property as-is; request seller repairs or a price concession; ask for a re-inspection after repairs; order specialized inspections; or terminate under the contingency.
Important considerations
– Inspectors are generalists: they identify problems and recommend specialists (structural engineers, electricians, plumbers) for in-depth testing.
– A standard inspection is not the same as specialized tests for asbestos, lead paint, mold, radon, sewer lines, or pests; those are ordered separately and cost extra.
– Buyers should attend the inspection when possible — it’s an opportunity to learn about home systems and maintenance.
– Contracts should clearly state the length of the inspection contingency and the process for negotiating repairs.
Home Inspection vs. Appraisal
– Purpose: Inspection evaluates condition and safety; appraisal determines market value for the lender.
– Who hires/controls it: Buyer hires the inspector; the lender orders the appraisal (and typically the appraiser is independent of the buyer/seller).
– Presence: Buyers usually attend inspections; appraisals are often done without buyer attendance.
– Outcome: Inspection may trigger repair negotiations; appraisal affects how much a lender will finance.
Do You Need a Home Inspection?
Yes — for most buyers, an inspection is strongly recommended. It’s relatively inexpensive compared with the total transaction and can reveal costly or dangerous issues you wouldn’t discover by walk-through alone. Exceptions might include some cash purchases where the buyer accepts full risk, or if the buyer is getting a freshly inspected and warranted new-construction warranty (but even then, inspections are useful).
What Happens When a Home Inspector Finds Something Wrong?
– Minor issues: Cosmetic repairs or maintenance items may be accepted by the buyer or negotiated.
– Major or safety issues: Buyer can request repairs, price reduction, escrow for repairs, or cancel under the contingency.
– If seller agrees to make repairs: Buyer can request a re-inspection to verify work or require proof (invoices, permits).
– If problems suggest further risk: Buyer may order specialty inspections (structural engineer, pest control, sewer camera, radon, mold) to quantify scope and cost.
What Is a Home Appraisal and Why It’s Different
– An appraisal is a valuation performed to protect the lender’s interest, using comparable sales, size, location, condition, and market trends to estimate value. It’s not intended to identify all safety or maintenance issues. If an appraisal comes in below the contract price, the buyer and seller must renegotiate or the buyer must make up the difference in cash or terminate depending on financing terms.
What Does a Home Inspection Cost?
– Typical range: Nationwide estimates commonly put inspections around $200–$500, with averages (per Redfin) near $336; actual cost depends on region, home size, age, property type, and scope.
– Add-on tests: Specialized inspections (radon, termite, sewer scope, mold, lead, asbestos) are extra, typically priced per test.
– For delinquent mortgages: Lenders or servicers sometimes order periodic inspections and may pass small fees to homeowners (reported $10–$50). The Consumer Financial Protection Bureau (CFPB) has warned about unlawful “junk fees” where servicers charged for inspections not actually performed or to incorrect addresses.
Practical Steps — For Buyers
1. Include an inspection contingency in your purchase agreement. Specify the contingency period and negotiation timeline.
2. Find a qualified inspector:
– Ask your agent for recommendations, check state licensing requirements, and review credentials (e.g., ASHI, InterNACHI certifications).
– Read sample reports to ensure clarity and thoroughness.
3. Schedule and attend the inspection:
– Plan 2–4 hours depending on property size. Bring a list of questions. Observe operation of systems (furnace, water heater, appliances) and take notes.
4. Review the written report carefully:
– Distinguish safety and major defects from routine maintenance. Decide what you want the seller to address.
5. Negotiate repairs or credits:
– Be specific about which items you want remedied; for major repairs you can request repair receipts, permits, or a re-inspection by the original inspector.
6. Order specialized inspections if indicated (radon, sewer scope, pest).
7. If you agree to seller repairs, confirm how and when they’ll be completed and whether a re-inspection is required before closing.
Practical Steps — For Sellers
1. Consider a pre-listing inspection:
– Finding and fixing issues proactively can speed sale and reduce renegotiation later.
2. Disclose known defects:
– Many jurisdictions require sellers to disclose known material problems. A pre-listing inspection helps you complete disclosures accurately.
3. Prepare documentation:
– Provide maintenance records, permits, warranties, and receipts for replaced systems or repairs to reassure buyers.
Practical Steps — What to Ask or Look For on Inspection Day
– Ask the inspector to:
– Walk you through major systems (HVAC, electrical panel, plumbing).
– Point out maintenance items you’ll need to address soon.
– Explain severity, probable causes, and recommended next steps for any defects.
– Look for signs of:
– Water intrusion or stained ceilings/walls, uneven floors, cracks in foundation, roof damage, unsafe electrical wiring, outdated or inadequate HVAC, plumbing leaks, evidence of pests, or mold.
Specialized Inspections to Consider
– Radon testing (required or recommended in many areas).
– Termite/pest inspections.
– Mold or air quality testing if moisture or odor concerns exist.
– Sewer camera/scope for older sewer lines.
– Chimney inspection, pool inspection, or well/water quality testing as needed.
– Structural or engineering evaluation if serious foundation or structural concerns appear.
The Bottom Line
A home inspection is a vital, relatively low-cost step in most home purchases that reveals the condition and safety of a property’s structure and systems. Buyers should plan inspections into their purchase process, attend when possible, and use the inspector’s report to make informed decisions — negotiate repairs, request specialty testing, or walk away when warranted. Sellers can benefit from pre-listing inspections to reduce surprises during escrow. Appraisals are separate and focus on value for lending purposes.
Sources
– Investopedia — “Home Inspection” (source URL provided)
– Consumer Financial Protection Bureau — Supervisory Highlights, Junk Fees Special Edition, Issue 29, Winter 2023 (discussion of inspection fees)
– Redfin — “How Much Does a Home Inspection Cost?” (pricing guidance)
If you want, I can:
– Draft sample inspection contingency language for your purchase contract.
– Provide a printable checklist to take to an inspection.
– Help find inspection credential standards and state licensing rules for your state. Which would you like?