What is a home inspection?
A home inspection is a detailed assessment of a property's condition conducted by a licensed professional. While typically not required, it's a standard step in the home-buying process. Home inspectors review the condition of an entire structure, including the foundation, roof, walls, floors, ceilings, and plumbing and electrical systems, to identify any potential defects or deferred maintenance.
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How do home inspections work?
A licensed home inspector inspects a home on behalf of a prospective buyer. As a buyer, a home inspection is your chance to ensure that the property is safe and sound and has no significant defects that you'll have to pay to repair later. The purpose of a home inspection is to give prospective buyers (and their lenders) an objective evaluation of the property and identify existing or potential issues that need attention.
When does a home inspection typically happen?
The home inspection occurs after the seller accepts the offer but before the contract is final. There is often a home inspection contingency period, which typically lasts for a certain timeframe, such as between ten days and two weeks. During this period, the buyer can get the home inspected to help inform their decision about whether to go ahead with the purchase.
Are home inspections required?
Home inspections are generally not required, but the National Association of Realtors (NAR) highly recommends them. In a hot real estate market, buyers can be tempted to waive the home inspection contingency, thinking it will make their offer more appealing. Results from the 2022 REALTORS confidence index survey show that 24% of buyers waived the inspection contingency, up from 19% from the previous year. However, the home inspector's report is a source of valuable information about the inner workings of the house, and skipping a home inspection could cost you in the future.
What is the importance of an inspection?
A home inspection can help you avoid buying a home with significant repairs, structural or systems problems, or safety hazards. Many deal-breaking issues that a home inspection might reveal are not ones you can detect alone. If you allow your excitement about a particular house to cloud your judgment and forego a home inspection, you may regret it later when costly repairs add up. Those repairs could have been caught by a home inspection and fixed by the seller before completing the sale.
Pro tip:
A home inspection is also your chance to get the seller to repair the defects identified in the inspector's report, extend a credit to cover the repairs or reduce the price. Once you buy the house, you are responsible for repairing those defects out of your pocket.
What is included in a home inspection?
Throughout the home inspection process, a home inspector looks for defects in the structure, systems, and safety aspects of the house. The inspector thoroughly examines the various parts of the property, including:
Structural components
Exterior
Roofing
Plumbing
Electrical systems
HVAC (Heating, Ventilation, and Air Conditioning)
Interior
Appliances
Attic and crawlspace
Depending on the size of the home, an inspection could take two to four hours, or more. After the inspection, the inspector will deliver a detailed report to the client, including their findings. The report will detail any deficiencies, safety concerns, or potential repairs the house may need. Learn more about what's included in a home inspection.
What do home inspections not include?
Home inspectors are licensed to inspect homes on behalf of buyers and issue a report. However, there are things that home inspectors are not allowed to do, and their reports do not cover, including:
Refer the homeowners to a company that will make the repairs they have uncovered in the report
Inspect an unsafe home with safety hazards present
Testing for the presence of hazardous materials such as asbestos, radon, lead paint, and methane or mold
Indoor air quality testing
Spaces behind the walls
Chimneys
Insulation
Sheds or other outbuildings
Swimming pools or hot tubs
If you think you’ll need a deeper inspection on any of the above, you will likely need to find a specialized contractor.
What issues can cause a failed home inspection?
Some of the problems mentioned below are the most significant red flags in a home inspection and can cause a home to fail an inspection:
Inadequate surface grading and drainage
Structural failures, foundation or wall cracks, leaking roof
Electrical problems, flickering lights, outlets that aren't grounded
Plumbing problems: running toilet, slow drains
Malfunctioning furnace or HVAC system
Inadequate maintenance
Mold associated with water leaks
Evidence of pests
What can the buyer do if the home inspection reveals major issues?
If the inspection report reveals that repairs are needed, you can negotiate with the seller about who should make or pay for the repairs. If the seller does not agree to pay for the repairs, and you have a home inspection contingency in your contract, you may have the right to cancel the sale without penalty if you're unsatisfied with the inspection results. In such a case, you may also get your deposit back.
When hiring a home inspector, it’s important to ask questions up front, check their credentials and customer reviews. Learn more about how to choose a home inspector.
Other home inspection FAQs
Who orders the inspection when buying a home?
The buyer is responsible for choosing and hiring the home inspector in the initial stage of a real estate purchase agreement.
Who pays for home inspection—buyer or seller?
The buyer selects and pays for the home inspection for their benefit because the report will reveal the property's true condition.
How much does a home inspection cost?
Home inspection costs vary throughout the U.S. Realtor.com quotes Claude McGavic of the National Association of Home Inspectors (NAHI), who said that the average price of a home inspection for a single-family home would generally run between $300 to $500, but the price will depend on your location, the size of your home, and what you want the inspector to cover.
Can I do my own home inspection?
No. You cannot conduct a home inspection of the home you are considering buying as it would defeat the purpose of getting an unbiased, knowledgeable assessment from a licensed, experienced professional. Most states in the U.S. require home inspectors to be licensed. The American Society of Home Inspectors (ASHI) has a directory of all the state regulations governing home inspection requirements.
What's the difference between a home inspection and a home appraisal?
While you, as the prospective buyer, pay for both, a home inspection assesses the structural and safety condition of the house. A mortgage lender will require a home appraisal to assess the market value of the home.
What is a home inspection vs. home insurance inspection?
Your homeowners insurance company may request a home insurance inspection before issuing or renewing a policy. The scope of a home insurance inspection can range from an inspector driving by and possibly snapping photos or a full interior and exterior inspection of the property.
Private home inspection vs. city inspection?
A private home inspection refers to the typical residential home inspection process. A city home inspection is a certificate of compliance or property maintenance inspection. Depending on where you live, your local town or city government may require a property inspection before you can offer it for sale.
Once you have completed the home inspection process, you may have questions about the closing process, or how to buy homeowners insurance if you’re purchasing for the first time. Progressive can help protect your new purchase.
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