What Is Home Inspection?
A home inspection is a licensed home inspector's evaluation of a property's structure, roof, HVAC, electrical, plumbing, and safety issues. You schedule it during the inspection contingency period—usually 7–14 days after contract acceptance. The inspector produces a written report with findings. Major issues can trigger renegotiation: request repairs, a credit, or walk away. It's part of due diligence and protects you from buying a money pit. The appraisal (for the lender) is separate—it values the property, it doesn't inspect condition.
A home inspection is a professional evaluation of a property's condition—structure, systems, and safety—conducted before you close, typically during the inspection contingency period.
At a Glance
- What it is: A professional evaluation of a property's physical condition.
- Why it matters: Reveals hidden defects before you're stuck with them.
- Key detail: Schedule during the inspection contingency—you have a deadline to complete it.
- Related: Inspection contingency, due diligence, appraisal.
- Watch for: Inspections are visual—they don't find everything. Sewer scope and pest inspection are separate.
How It Works
Scope. A home inspector examines the structure, roof, foundation, HVAC, electrical, plumbing, and visible systems. They look for safety hazards, code issues, and deferred maintenance. They don't tear into walls or guarantee everything works—it's a visual, non-invasive evaluation.
Timing. You schedule the inspection within your inspection contingency period—often 7–14 days. Attend if you can—you'll learn more from the walkthrough than from the report alone. The report is usually delivered within 24–48 hours.
Report. The inspector documents findings with photos and descriptions. They categorize issues by severity. Major items (foundation, roof, HVAC failure) can justify repair requests, credits, or walking away. Minor items (cosmetic, small fixes) are for your awareness.
Next steps. If you find major issues, you can: (1) request repairs, (2) request a credit at closing, (3) accept as-is and proceed, or (4) invoke the inspection contingency and walk. The seller can agree, refuse, or negotiate.
Real-World Example
Memphis 3-bed, $142,000 contract.
You hire a home inspector—$425. Report: roof has 5–7 years left (not immediate), HVAC is 18 years old (near end of life), electrical panel is outdated (potential fire hazard), foundation has minor settling (no structural concern). Estimated repairs: $8,500 for HVAC, $2,200 for panel upgrade. You request a $6,000 credit. Seller counters $3,500. You accept. At closing, you get $3,500 off the price. You replace the HVAC 14 months later for $7,200—the credit helped, but you still absorbed the rest.
Pros & Cons
- Reveals hidden defects before you own them.
- Gives you leverage to negotiate repairs or credits.
- Part of due diligence—informed decision-making.
- Inspection contingency lets you walk if the findings are deal-killers.
- Costs $350–600+ depending on property size.
- Visual only—doesn't catch everything (sewer, pests, mold may need separate inspections).
- Sellers may prefer offers that waive inspection in competitive markets.
Watch Out
- Execution risk: Don't waive the inspection to win an offer unless you can afford major surprises. One bad roof or foundation can wipe out years of cash flow.
- Modeling risk: Factor inspection findings into your numbers. A $15,000 HVAC replacement affects your cash-on-cash return.
- Compliance risk: Some states require licensed inspectors; others don't. Hire a qualified professional.
Ask an Investor
The Takeaway
A home inspection evaluates a property's condition before you buy. Schedule it during the inspection contingency. Use the report to negotiate repairs or credits—or walk if the findings are deal-killers. Don't skip it to win a competitive offer unless you're prepared for the risk.