Getting a home inspection when you buy a house helps ensure that you're making a financially sound purchase.
You aren't required to schedule a home inspection, but doing so can ultimately save you a lot of money — especially if it uncovers major issues with the property.
Definition of a home inspection
When you get a home inspection, a professional inspector visits the property to assess its condition and put together a detailed report. It will reveal potential problems with the home and its components. A home inspection report does not tell you the value of the home.
A home inspector can let you know if they notice signs of water damage or if the furnace is past its expected lifespan, for example.
They'll also look for things that might not immediately be obvious to a layperson but could cost you big bucks or jeopardize your safety. This is why, even though you're not required to hire an inspector, it's highly recommended.
Importance of home inspections in homebuying
A home inspection can prevent you from buying a home that has major issues. Sometimes, inspectors will uncover problems that require expensive repairs, like a bad foundation or significant water damage.
If you have an inspection contingency in your purchase contract, you can renegotiate or back out if the inspection uncovers something you don't want to deal with.
What does a home inspection cover?
Structural components
The inspector will evaluate the condition of a home's structural components, including:
- Foundation
- Ceilings, floors, and exterior and interior walls
- Doors and windows
They'll tell you about the overall appearance of these components and whether anything needs to be repaired (or may need to be repaired in the near future). They may also note if the amount of wear and tear makes sense for the age of the components, or if it looks like something hasn't been properly cared for or if external elements may be making the component age faster.
Electrical systems
Your inspector should also take a look at the home's basic electrical components. This means testing outlets and switches, evaluating the age and condition of the electric panel, and inspecting visible wiring for defects.
Plumbing systems
They'll also test the home's plumbing components, including toilets, showers and baths, and sinks. This includes ensuring that the water pressure and temperature are appropriate and that there aren't any noticeable leaks.
They should also evaluate the condition of any exposed pipes. They may make you aware of the type of pipe used and common issues that are associated with the material.
Heating and cooling systems
The inspector will look at the systems that provide the home with heat, air conditioning, and ventilation. This includes the units themselves as well as any exposed ductwork.
They'll determine the age of any heating or cooling units and whether they appear to work. Your inspector should also let you know if any of these components may need to be replaced soon.
Roof and attic
If it's safe to do so, the inspector may go on the roof to get an up-close look and note its condition. They'll also try to access the attic if the home has one and look for proper insulation and things like water damage or areas where animals could get in.
Basements and crawl spaces
They will also evaluate the condition of the home's basement or crawl space (as long as it's safely accessible). They'll look for things like water damage and signs of structural issues.
Finding a trustworthy home inspector
Your real estate agent will likely have recommendations for reputable inspectors in the area. You can also ask friends, family, and neighbors who have recently bought a home for recommendations.
Regulations around home inspectors vary by state, and not every state requires inspectors to be licensed. If your state does require licensing, you can search for licensed home inspectors online through your state government's website. You can also see if your state has standards around what an inspector has to include in their reports.
Some organizations offer certification for home inspectors, like the International Association of Certified Home Inspectors, which requires inspectors to take an online exam, complete code of ethics and standards of practice courses, and submit four mock inspection reports. Members of the American Society for Home Inspectors are required to adhere to a code of ethics.
You can search on these organizations' websites to find inspectors near you. The website HomeAdvisor also has a tool to find an inspector.
Remember, cheaper isn't necessarily better. If you're considering hiring an inspector, ask if they can provide you with a sample inspection report so you can see how detailed their work is and what their inspections include.
What to expect during the home inspection
Once the seller has accepted your offer, schedule an inspection as quickly as you can. If you have an inspection contingency in your purchase contract, you may only have a certain number of days to complete your inspection. The inspection contingency is what allows you to back out of the purchase based on the results of the inspection.
The earlier the inspection gets done, the more time you have to request repairs or negotiate the price, if necessary.
It's highly recommended that you attend the home inspection, although not required. Walking through with the inspector gives you the chance to ask any questions and see problems for yourself. Plus, an inspector can teach you things about the home that are important to know, like how to change the air filters in the HVAC unit or where the home's main water shutoff valve is located.
A home inspection typically takes a couple of hours, but it varies. Larger homes take longer to inspect.
Reading your home inspection report
Don't be alarmed if the inspector finds a lot of minor problems with the home. If an inspection comes back with zero issues, your inspector probably wasn't very thorough.
A good inspector will tell you all the things, big and small, that need to be taken care of. Many of the issues included in your report will likely be easy and affordable fixes you may be able to do yourself, such as re-caulking the windows.
If there are major issues with the home, the inspector will flag that in the report.
How to prepare for a home inspection
For sellers: Tips to prepare your home
As a seller, you know how important it is to present your home in the best possible light, and that remains true for the buyer's home inspection.
This doesn't mean trying to hide defects; laws vary by state, but you may be required to disclose known issues, and hiding problems could put you at risk of a lawsuit.
You should, however, make sure your house is clean and well-maintained ahead of the home inspection.
For buyers: How to get the most out of the inspection
To get your money's worth, it's best to be present for the inspection and go through the house with your inspector. Bring a notebook so you can take notes, and don't be afraid to ask any questions that come to mind during the inspection.
Common issues uncovered during inspections
Minor vs. major issues
Every house is going to have minor issues. Houses age over time, their components wear down, things break unexpectedly. These are the realities of homeownership.
For example, you may learn during your inspection that the home's electric panel is outdated and a known fire risk. Or maybe the soil isn't properly graded around your home, allowing water to run toward the foundation. These can be annoying things to take care of, but they aren't necessarily worth walking away from an otherwise successful home deal.
Deal breakers in home inspections
You might want to consider backing out of the contract if the inspection turns up issues that are going to be extremely costly or stressful to deal with.
Common reasons for buyers to back out after an inspection include foundation issues or widespread mold damage. These are problems that, depending on the severity, can end up costing upward of $10,000 to address.
However, before you walk away, it could be worth talking with a contractor or two to get an idea of how much a repair could cost. Then you can weigh the cost of the repair against the cost of backing out and looking for another home.
Specialized home inspections
Depending on the property, you may need to bring in some additional professionals to take a closer look at certain aspects of the home.
Home inspectors can typically give you a pretty good general overview of the state of a home and its components, but they aren't experts in every area. They may recommend having a specialist come in to take a closer look at certain things.
Some common types of specialized home inspectors you may need to hire include:
- Pest inspector if you notice signs of an infestation, or if your mortgage requires it (like with some VA loans)
- Structural engineer to inspect the foundation or diagnose potential issues
- Electrician to inspect the home's electrical systems
- Asbestos abatement professional if you or your inspector suspect the home has asbestos
- Plumber to complete a sewer scope or septic system inspection
- Pool inspector if you're buying a house with a pool
Negotiating or backing out after a home inspection
Negotiating repairs and price adjustments
In some cases, problems that the inspector finds can be used to renegotiate your contract with the seller. You may ask the seller to take care of the repairs ahead of your move-in date, lower the price, or offer seller credits, which go toward your closing costs.
Depending on the repairs needed and your local housing market, a seller might not be inclined to negotiate with you. When the real estate market favors sellers, you're less likely to be successful when asking for smaller repairs or fixes to cosmetic issues. This is because it will likely be easy for them to find other buyers willing to fix these problems on their own.
But if it's a bigger repair that could prevent them from selling at all, they might be more inclined to work with you.
When to walk away from a deal
If you can't come to an agreement with the seller and you can't afford to deal with the problem yourself, you'll likely need to back out of the purchase.
As long as you have an inspection contingency and are still within the inspection period, you're allowed to walk away if the inspection uncovers issues with the home that you aren't comfortable taking on. This means you'll be able to keep your earnest money deposit.
Home inspection vs. appraisal
Home appraisers assess the value of a home. An inspector won't make notes about the value, but they'll tell you about its condition.
A home appraisal takes place when you apply for a mortgage and determines how much the mortgage lender will let you borrow to purchase the home.
Both appraisals and inspections take place after the seller has accepted your offer, but before closing.
How much does a home inspection cost?
A typical home inspection costs between $296 and $424, according to HomeAdvisor. The cost varies by company and size of the home. You'll pay the inspector the day they come to the house, after they've completed the process.
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Home inspection FAQs
How many days after the home inspection does the buyer have to back out?
A buyer may only have a few days after the home inspection to decide whether they want to proceed with the purchase or not. Their contract will stipulate how long they have.
When do you pay for the home inspection?
You'll pay for the home inspection as soon as it's completed.
What does a home inspector look for?
Home inspectors look for both minor and major issues with a property, including its structural components, electrical systems, heating and cooling systems, and more.
What does a home inspection include?
During a home inspection, your inspector will assess the condition of the home and all its components, inside and out. Once they've completed their inspection, they'll write up a report for you detailing all the potential issues with the property.
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