What Is Home Inspection?
A home inspection is a professional evaluation of a property's condition - structure, roof, plumbing, electrical, heating and other major components - typically done after an offer is accepted and before closing. The buyer hires the inspector, and the findings drive repair requests, credits or cancellation under an inspection contingency.
Home Inspection in plain English
A home inspector walks through the property and reports on the condition of the structure, roof, foundation, plumbing, electrical, heating and cooling, and other major parts, usually with photos and recommendations.
The inspector works for you, the buyer. The report is what you use to decide whether to ask for repairs or a credit, renegotiate the price or, under an inspection contingency, cancel.
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The home-buying timeline, step by step
A typical financed U.S. purchase. Open a step to see what happens, the money involved and the usual timing. Your contract sets the real deadlines.
A lender reviews your credit, income and assets and states how much it is prepared to lend.
Timing: Before you search; letters are often valid for about 60 to 90 days.
Terms: pre approval, dti, credit score
You compare homes against your budget, including taxes, insurance and HOA dues - not just the price.
Timing: As long as it takes.
Terms: piti, comparable sales
You propose a price, contingencies, deadlines and any seller concessions; the seller accepts, counters or rejects.
Timing: Responses usually come within a day or two.
Terms: counteroffer, contingency, seller concession
Both sides sign the purchase contract, which sets every deadline that follows.
Timing: Day 0 of the contract.
Terms: under contract, contingency
You pay the good-faith deposit to the neutral holder named in the contract.
Money: Often about 1% to 3% of the price, by local custom.
Timing: Usually within a few business days of signing.
Terms: earnest money, escrow
A home inspector checks the condition; you can negotiate repairs or credits, or cancel within the inspection contingency.
Money: Inspection fees are paid up front.
Timing: Commonly 7 to 14 days after signing.
The lender's appraiser estimates value. A low appraisal can create a gap you must cover or renegotiate.
Money: The appraisal fee is often paid at application.
Timing: Commonly 2 to 3 weeks after signing.
Terms: appraisal, appraisal gap, appraisal contingency
The lender verifies everything and issues conditions, then "clear to close". Avoid new debt or large unexplained deposits.
Timing: Runs in parallel with the steps above.
Terms: underwriting, clear to close, rate lock
You confirm the home is in the agreed condition and any repairs are done.
Timing: Usually within a day or two of closing.
Terms: final walkthrough
You sign the loan and transfer documents and pay cash to close; you receive the keys. The Closing Disclosure arrives at least three business days before.
Money: Cash to close is due, usually by wire.
Timing: Commonly 30 to 45 days after signing for a financed purchase.
Terms: closing, cash to close, closing disclosure
Timing ranges are common practice, not rules. Cash purchases can close in one to two weeks.
Why it matters
An inspection that finds a failing roof or furnace can change what the home is worth to you by thousands of dollars - but only if it happens before the contingency deadline, while you can still negotiate or walk away.
What it means for you
Who pays?
Usually the buyer.
When is it paid?
At the time of the inspection, before closing.
What buyers should know
Book the inspector as soon as the offer is accepted; contingency periods are short.
What sellers should know
A pre-listing inspection can surface issues early, so you can fix or price them in.
Common mistakes
- Skipping the inspection on a new or recently renovated home.
- Asking the seller to fix every minor item instead of focusing on safety and major systems.
- Missing the inspection contingency deadline.
- Not ordering specialist inspections (sewer line, radon, septic, wood-destroying insects) when the inspector recommends them.
Inspection vs. Appraisal
Assesses a property's physical condition — structure, systems, and major components — for the buyer's benefit.
Provides an opinion of a property's value for lending purposes, ordered by the lender to confirm the loan amount is justified.
Full comparison: Home Inspection vs Appraisal, with a worked example →
Home Inspection: frequently asked questions
Who pays for a home inspection?
The buyer, in most transactions. Sellers sometimes order their own pre-listing inspection, but it was done for them, not for you.
Can you fail a home inspection?
No. An inspection reports the home's condition; it does not pass or fail. What matters is how the findings affect your decision and negotiation.
Should I attend the home inspection?
Yes, if you can. Seeing issues in person and asking questions makes the report easier to understand and prioritise.
Related Terms
Where it fits
- Buying a home, Inspection: next, Radon Testing.
Recommended next step
Know which issues are deal-breakers before you read the report.
What to check before buying a house →Sources and review
No regulator defines this term; the page follows common industry practice.
Where this applies: United States. Some states license home inspectors and set report standards; inspection contingency terms come from the purchase contract.
Last reviewed: · Updated:
Examples use illustrative figures; rules of thumb are labelled as such. Rates, limits and program rules change - confirm current figures with your lender or a qualified professional.
This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.
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