What Is a Home Inspection and Should You Get One?

Most people buy a home only a handful of times in their lifetime, which means seeking professional advice is important even for the most highly educated and sophisticated repeat buyers as well as first-time buyers. A home is typically the biggest purchase an individual makes, which is why a home inspection can be one of the most important steps in the homebuying process.

A home inspection provides you with a clear, objective picture of the home you’re buying before you’re committed to it. In addition, a home inspection typically costs a fraction of the purchase price of a home.

Keep in mind that lender and market requirements vary — this guide covers general practices. Your banker or real estate agent can help you understand the specific steps and expectations in your area.

What Is a Home Inspection?

A home inspection, which is requested and paid for by the buyer, is a detailed assessment of a property’s condition performed by a licensed professional. Home inspectors are trained to visually examine the major systems, components and appliances in a home to evaluate their condition. While the primary focus of a home inspection is safety for homeowners, their families and guests, a home inspector typically also flags items that may need maintenance, repairs or replacing, as well as items that will impact the home value.

Unlike an appraisal, which determines the market value of a property for a lender, a home inspection is a non-invasive evaluation of the condition and safety of a home. A home inspection typically takes two to four hours for a single-family home. After the home inspection, the home inspector will provide an inspection report to the buyers.

What Does a Home Inspector Check?

Home inspectors are trained third-party professionals who review multiple components of a house to check for deferred maintenance and safety hazards. An inspection typically includes:

• Structural components. A licensed professional home inspector will examine the home’s foundation, walls and framing for cracks, leaks, moisture or other indications of a structural defect.
• Fire safety. A home inspector will test smoke detectors and carbon monoxide detectors and flag any visible fire hazards.
• Roof and attic. Your home inspector should look at the roof to evaluate its condition and age and look for signs of damage. In addition, the inspector will look in the attic for signs of leaks, the condition of insulation and whether the space is properly vented.
• HVAC systems. The home inspector should examine and test the home’s heating, ventilation and air conditioning to be sure they are functioning properly and to evaluate their age and potential replacement timeline.
• Plumbing. The home inspector should test your water heater, water pressure, pipes, faucets, showers, sinks and toilets and look for slow drainage and leaks.
• Electrical systems. While a home inspector can’t go inside your walls, they can check your wiring, outlets, grounding and electrical panels to make sure everything is in working order.
• Appliances. The home inspector will check that all appliances work.
• Interior. An inspector checks that all windows and doors work and are properly sealed and inspects floors and ceilings for signs of leaks or other damage.
• Additional spaces. If the home has an accessible attic, crawlspace and basement, the inspector can look for moisture, leaks, mold, structural damage and signs of pests in those areas.
• Exterior. The inspector will examine your landscaping, make sure gutters and downspouts drain away from the house, and look for signs of pests and structural damage.

Throughout the inspection, the home inspector will flag visible signs of mold, water damage, inadequate drainage, faulty wiring or pests.

What Inspectors Do Not Check

While that’s a long list of items a home inspector examines, there are still a few things that home inspectors don’t check, such as:

• Cosmetic defects. A home inspector won’t report on issues such as faded paint or worn carpet unless it’s a hazard to the health and safety of buyers or has a significant impact on the home value.
• Special features. Home inspectors won’t inspect a swimming pool, hot tub, solar panels, indoor air quality or a fireplace since those require specialized tools or training.
• Areas requiring an invasive inspection. Home inspectors can’t cut into walls or inspect underground pipes to examine those areas of a home.
• Issues requiring special certifications: If the home you want to buy has a septic system, you’ll need to hire someone with specialized experience to inspect it. Other issues such as mold, termites, radon, lead paint and asbestos also require specialized inspections.

Still, if during the review of a property a home inspector notices signs of something such as a potential electrical issue, mold or pest damage, the inspector can recommend that the buyers hire someone to investigate the issue further.

How Much Does a Home Inspection Cost?

A home inspection typically costs between $300 and $500 for a standard single-family home. Larger homes, older properties or homes with additional structures may cost more to inspect since they can require more time.

Since a home inspection costs a tiny fraction of the cost to buy a home and catching even one significant issue can save thousands of dollars on repair costs, the return on investment can be significant. That return is even more valuable if the inspector finds an issue so costly or hazardous that the buyers decide not to purchase the home.

Unlike other costs of purchasing a home that are paid as part of the closing costs, buyers pay the inspector’s fee at the time of inspection.

Is a Home Inspection Required?

A home inspection is not legally required as part of a home purchase, but it is strongly recommended for every buyer no matter what type of loan they plan to use to finance their purchase or even if they’re buying with cash. A home inspection protects the buyer from purchasing a home that will require a significant investment to repair. Buyers benefit by gaining knowledge about the details of the home they want to buy, including insights into how to maintain the property once they own it.

In highly competitive housing markets, some buyers waive a home inspection to strengthen their offer. However, the risk of skipping a home inspection can be very high: buyers would have little or no recourse if they discover a property requires expensive and unexpected repairs to make it safe and livable. They could lose their deposit if they back out of their non-contingent offer.

What Is an Inspection Contingency?

When you make an offer on a home, an inspection contingency clause in the purchase agreement allows you to cancel the contract or renegotiate it based on the home inspection findings. The contingency period typically gives you seven to ten days from the accepted offer to schedule and complete the inspection. If a home is listed “as-is,” this means the sellers are not making any guarantees about the property condition and won’t make any repairs. However, you can still ask to have the home inspected before you make an offer on an “as-is” home to evaluate its condition.

In a highly competitive market, buyers sometimes choose to waive a home inspection, but there are other options that offer some protection. For example, you can ask the sellers if they will allow a quick pre-offer inspection, which is typically a 30-minute overview by a home inspector looking for major defects. That way, you can decide not to make an offer at all if the home needs extensive repairs. Another option is to request a home inspection contingency that would only cover major issues rather than less costly repairs.

If you have a traditional home inspection contingency, you have several options if the inspector flags any issues. You can proceed with your offer as-is, request that the seller make repairs, request a price reduction or walk away from the contract. The sellers may choose to negotiate about paying for repairs, but the home inspection contingency allows you to get your deposit back if the contract falls apart based on the home inspection report.

Home Inspection vs. Appraisal: What’s the Difference?

When you meet with a lender and get preapproved for a loan, your lender will walk you through the steps to buying a home. While a home inspection and an appraisal are typically both part of the  homebuying process, your lender requires an appraisal. A home inspection is not legally required for most conventional loans.

An appraisal, which is required by the lender and typically paid for as part of the buyer’s closing costs, establishes the market value for the home. An inspection evaluates the condition and safety of the house and is paid for upfront by the buyer.

Both appraisal and home inspection are part of the homebuying process, but appraisals are conducted by licensed appraisers and inspections are conducted by licensed home inspectors.

What Happens After a Home Inspection?

Once the home inspector delivers the report — typically within 24 to 48 hours of the inspection — review it carefully before your contingency window closes. The report will categorize findings by severity, from safety hazards to routine maintenance items. Share the report with your real estate agent and, if needed, a contractor who can give you repair cost estimates. From there, you can decide whether to proceed as-is, request repairs or a price reduction, or walk away from the purchase and recover your deposit.

Tips for Getting the Most Out of Your Inspection

Preparing for your home inspection starts with finding a professional home inspector. Typically, real estate agents recommend one or more inspectors they trust. Once you’ve scheduled an inspection, the following steps can help you get the most value from the appointment.

• Make a list of questions and concerns, particularly if you notice anything that you want the inspector to pay special attention to, such as possible water damage or a visible crack in a wall.
• Attend the inspection. Your inspector will usually walk you through findings in real time, give you valuable insight into potential issues, and maintenance tips.
• Be aware of the dates in your purchase agreement and read the full report before the contingency window closes.
• Understand the difference between a serious structural issue and routine maintenance – and ask the inspector if you’re not sure.
• Ask about special inspections such as for termites, radon or mold that are required in some locations or may be recommended if you’re considering an older home.