Home Inspection
A professional visual examination of a property's physical condition covering structure, systems, and safety, typically conducted before a real estate closing.
What is Home Inspection?
A home inspection is a non-invasive, visual examination of a residential property's accessible components conducted by a licensed or certified home inspector. The inspector evaluates the structural elements (foundation, framing, roof), major systems (electrical, plumbing, HVAC, water heater), and safety features (smoke detectors, carbon monoxide detectors, handrails) and delivers a written report documenting conditions and deficiencies. Home inspections are distinct from appraisals: an appraisal determines market value, while an inspection assesses physical condition. Most purchase contracts include an inspection contingency giving buyers a specified period (typically 7–14 days) to have the home inspected and, if significant defects are found, to request repairs, a price reduction, a seller credit, or exit the contract with earnest money returned. Home inspections typically cost $300–$600 depending on property size and location and last 2–4 hours. Inspectors are not required to evaluate everything—cosmetic issues, interior of walls, and code compliance are generally outside scope.
Example
A buyer's inspector examines a 1970s colonial home and discovers: (1) an aging HVAC system with an estimated 2–3 years of remaining life, (2) evidence of previous water infiltration in the basement, and (3) outdated aluminum wiring in the panel. The buyer uses the inspection report to negotiate a $12,000 seller credit toward HVAC replacement and waterproofing, with the seller also agreeing to rewire two circuits. Without the inspection contingency, the buyer would have had no recourse for these undisclosed pre-existing conditions.
Source: Consumer Financial Protection Bureau — Home Inspections