• A home inspection is a professional evaluation of a home’s physical condition.
  • Home inspections are often ordered by homebuyers to determine the condition of a property before finalizing their purchase, but they can also be purchased by sellers who want to be aware of the property’s condition before listing it for sale. 
  • If the buyer is not satisfied with the home’s condition following the inspection, they can renegotiate the purchase to reflect the property’s condition or potentially walk away from the deal. 

Getting a home inspection can be a valuable step in the home-buying process. It empowers buyers to make informed decisions and avoid purchasing homes that may require more repairs than they are willing or able to make. 

At the same time, early home inspections can help sellers uncover potential maintenance issues and fix them to add value to their property before listing it for sale. 

Whether you’re buying or selling, understanding what a home inspection is and how it affects real estate transactions can help you navigate your next deal with clarity and confidence.

What Is a Home Inspection?

A home inspection is an assessment of the physical condition of a property, as determined by a licensed home inspector.[1] Inspections are often ordered as part of real estate transactions to make sure the buyer is aware of the condition of the property they’re purchasing. Sellers may also order an inspection before listing the property for sale (called a pre-inspection) to be fully aware of any potential maintenance issues that could come up during the sale. 

What Is the Purpose of a Home Inspection?

The primary purpose of a home inspection is to make sure parties with an interest in the property are aware of the property's condition and any visible physical defects.

For home buyers and sellers, home inspections can serve more specific purposes:

  • Assisting buyers in purchase negotiations. Homebuyers can use the results of the inspection to renegotiate the terms of the purchase offer, perhaps requesting repairs be made before closing, asking for a financial concession so they can make the repair themselves, or reducing the purchase price.
  • Giving buyers a legitimate means to cancel the purchase. Homebuyers can also use the results of a home inspection to walk away from a deal. Most purchase offers contain an inspection contingency that allows the buyer to terminate the purchase contract without penalty if they are not satisfied with the results.[1]
  • Meeting requirements for certain mortgage loan types. Homebuyers may need to order an inspection to confirm that the property meets minimum property standards for government-backed mortgage loans, like FHA loans, VA loans, and USDA loans.[2,3,4]
  • Giving sellers a preview of what buyers are likely to learn from the inspection. Home sellers can order pre-inspections before the property is listed for sale. This can warn the sellers of potential issues so they can address them before the property is listed or at least be aware of any potential sticking points before listing. 

What To Expect During a Home Inspection

A home inspection typically proceeds as follows:

  1. The inspection is ordered. This is often done by the homebuyer (or their real estate agent, acting on their behalf). If the seller is interested in a pre-inspection, they typically order the inspection themselves. 
  2. The home inspection is scheduled. The timeline depends on the inspector’s schedule. Available inspectors may be able to schedule an inspection within a day or two, while busier inspectors may need a week or two.    
  3. The inspector physically evaluates the property. This process can often be completed in just a couple of hours. Larger homes or properties with multiple outbuildings (garages, sheds, etc) may take longer. The inspector needs access to all structures on the property, including attics, basements, and crawl spaces. No one is required to be present at the inspection. However, buyers and their real estate agents often choose to be present when they order the inspection so they can take a closer look at the home and ask questions. Sellers may choose to be present when they order a pre-inspection. Sellers generally do not attend inspections ordered by the buyer — instead, they offer buyers the space to candidly discuss the property with their inspector and agent. 
  4. The inspector provides a written inspection report. Typically provided within a day or two following the inspection, this report details the inspector’s findings. The report belongs to the party who ordered the inspection. For example, if the buyer (or their agent) orders the inspection, the seller is not entitled to a copy. However, the buyer may wish to share the report, in whole or in part, with the seller to support any renegotiation attempts based on the findings.
  5. The buyer can reopen negotiations, accept the property as-is, or potentially walk away from the deal. If the buyer is concerned about items on the inspection report, they might ask for repairs before closing, financial assistance so they can make repairs after closing, or a lower purchase price. Or they can accept the results and move forward with the purchase as planned. In some cases, there are too many concerns for the buyers to work through, and they choose to cancel the purchase agreement and look for another property.     

Who Typically Pays for the Home Inspection?

In most cases, the homebuyer pays for the home inspection.[1] However, if the seller orders a pre-inspection, they may pay for it themselves. 

How Much Do Home Inspections Cost?

The price of home inspections varies depending on factors like location and property size. In most cases, standard home inspections cost somewhere between $296 and $424.[5]

What Do Home Inspectors Do?

Home inspectors conduct a thorough evaluation of the physical condition of a property, including the house, any outbuildings, and any additional improvements (such as driveways or fencing). 

What Is Typically Covered in a Home Inspection?

The home inspector thoroughly examines all visible and accessible areas of the property, focusing on potential problems, safety concerns, and building code violations. Here's a list of items typically included in the assessment:

  • The roof. The inspector checks the roof's overall condition, looking for signs of leaks, damaged or missing shingles, and general wear.
  • The foundation. The structural support is examined for cracks, settling, or any indicators of weakness.
  • Electrical systems. Outlets, panels, and wiring are inspected to ensure everything is safely grounded and up to code.
  • Plumbing. Pipes, water heaters, and drainage systems are assessed for leaks, corrosion, water pressure, and proper operation.
  • The HVAC system. Heating, air conditioning, and ventilation units are tested for performance and signs of neglect or needed maintenance.
  • The attic and insulation. The inspector looks for adequate insulation and ventilation while checking for water stains or visible pest activity.
  • Windows and doors. These are tested for smooth operation, proper sealing, and any drafts or leaks.
  • Appliances. Appliances included in the sale are tested to confirm working condition.
  • Walls and ceilings. Surfaces are checked for water damage, cracks, and structural red flags.
  • Floors. The inspector notes any unevenness, cracking, or damage to the flooring throughout the home.
  • Basement and crawl spaces. These areas are examined for issues like dampness, visible pest activity, and foundational concerns.
  • The exterior. Siding, gutters, downspouts, decks, patios, and other outdoor features are reviewed for damage or needed repairs.
  • Drainage. The inspector makes sure water flows away from the house to prevent pooling, leaks, or foundation problems.
  • Safety features. Smoke detectors, carbon monoxide detectors, and other essential safety systems are checked to ensure they’re in place and operational.

What Is Typically Excluded from Home Inspections?

Home inspectors typically don’t cover the following:

  • Plumbing interiors and sewer/septic systems
  • The presence of mold, asbestos, radon, or lead
  • Pest activity that is not evident with a visual inspection
  • Special features like pools, fireplaces, or wells
  • Anything that is not accessible (issues hidden inside walls or pipes) 

What Is Documented in the Inspection Report?

The inspection report documents all of the inspector’s findings. It includes both major and minor findings, and it's meant to give a full, transparent picture of the home's condition. 

The report typically includes:

  • Detailed notes about each part of the home.
  • Photographs of problem areas or components that may need repair or further evaluation.
  • Descriptions of any defects.
  • Suggestions for further inspection if the inspector couldn't access something or believes a specialist should evaluate it.

This can be overwhelming for buyers or sellers hoping for a “clean” report. It’s important to remember that no home is perfect. Many defects can be fixed quickly and inexpensively, and some defects may not even need to be addressed. 

Red Flags and Failing Inspection

The term “failing inspection” is used when a property either doesn’t meet the buyer’s standards to proceed with the deal or doesn’t meet the minimum property standards for the loan type the buyer is using. This can lead to the deal falling through. 

The biggest red flags in a home inspection are those that are difficult and/or expensive to remedy. These include: 

  • Structural issues
  • Water damage or intrusion
  • A deteriorated roof 
  • Plumbing concerns, including outdated piping, corrosion, or persistent leaks
  • Electrical system problems, like old or unsafe wiring, overloaded panels, or improper installations
  • Poor drainage or grading
  • Signs of pest activity

How To Find a Home Inspector

Your real estate agent may be able to recommend qualified inspectors based on their industry connections and experiences with multiple professionals. You can also get referrals from family and friends or look online for inspectors with solid reviews from satisfied customers. 

Before hiring an inspector, make sure they hold an active professional license by checking with your state’s licensing board.[1]

The Bottom Line

Home inspections offer critical insights to help buyers and sellers make informed real estate decisions. Whether you’re buying your first home, upgrading, downsizing, purchasing a rental property, or selling a house, investing in a home inspection can give you peace of mind and even provide negotiation leverage.