A home inspection is one of the most important steps in the homebuying process — and one of the easiest to underestimate. Skipping or waiving it to make an offer more competitive can cost you tens of thousands of dollars in surprise repairs after closing. Here’s what a home inspection covers, what to expect, and how to use it to your advantage.
What a home inspection is
A home inspection is a professional evaluation of a property’s physical condition, conducted by a licensed inspector before the sale is finalized. The inspector examines the home from roof to foundation and produces a written report documenting every issue found — from minor maintenance items to serious structural or safety problems. It typically takes 2–4 hours and costs $300–$600 depending on home size and location. It is paid by the buyer and is separate from the appraisal ordered by the lender.
What the inspector examines
- Roof: Condition of shingles, flashing, gutters, and signs of leaks
- Foundation and structure: Cracks, settling, water intrusion, framing integrity
- Electrical system: Panel condition, wiring type, grounding, GFCI outlets
- Plumbing: Pipe condition, water pressure, water heater, drainage
- HVAC: Heating and cooling system age, condition, and function
- Insulation and ventilation: Attic insulation, moisture issues, ventilation adequacy
- Windows and doors: Sealing, operation, signs of water damage
- Basement and crawl space: Moisture, mold, structural issues
What inspectors don’t cover
A general home inspection has limits. Inspectors are not required to test for radon, mold, lead paint, asbestos, or pests — these require separate specialized inspections. They also don’t inspect inside walls, underground pipes, or behind finished surfaces. For older homes or properties in specific regions, budget for additional specialized inspections: radon testing ($150–$300), sewer scope ($100–$300), and pest inspection ($75–$150) are commonly recommended.
How to choose a good inspector
Don’t automatically use the inspector your real estate agent recommends without doing your own research — agents sometimes refer inspectors they have relationships with. Look for inspectors certified by ASHI (American Society of Home Inspectors) or InterNACHI. Check reviews independently, ask for a sample report, and confirm they carry errors and omissions insurance. A thorough inspector who finds problems is worth far more than a quick inspector who clears the house.
How to use the inspection report
After the inspection, you have several options. You can request that the seller repair specific items before closing. You can ask for a price reduction to cover the cost of repairs yourself. You can accept the home as-is if issues are minor. Or, if serious problems are found, you can walk away entirely — assuming your contract includes an inspection contingency. Never waive the inspection contingency without fully understanding the risk you’re taking on.
Red flags that should give you pause
- Foundation cracks with horizontal movement or significant displacement
- Evidence of active water intrusion in basement or crawl space
- Knob-and-tube or aluminum wiring in older homes
- HVAC systems over 15–20 years old needing replacement
- Roof at or near end of life (typically 20–25 years for asphalt shingles)
- Signs of mold, especially in HVAC systems or behind walls
- Structural modifications done without permits
The inspection in a competitive market
In hot seller’s markets, some buyers waive the inspection contingency to make their offer more competitive. This is a significant risk — not a routine negotiating move. A middle-ground approach: offer to do an inspection for informational purposes only, without the right to request repairs, while retaining the right to walk away for major structural or safety issues. This signals seriousness to the seller while protecting you from catastrophic surprises.
Disclaimer: This article is for informational purposes only and does not constitute legal or real estate advice. Inspection requirements and practices vary by location. Always work with licensed professionals when purchasing a home.