WHAT IS A HOME INSPECTION?

During the home-buying process, a formal inspection occurs when an independent, licensed professional conducts an onsite examination to determine the property’s condition. During the examination, the inspector will look for any damage and hazards to the property while reviewing the condition of the HVAC unit and other home systems. The homebuyer should expect to pay the inspector at the time of inspection, with costs averaging between $300 to $450.

The inspection is an important phase of the closing process for all parties involved, especially the homebuyer. Typically, your real estate agent will find an inspector and arrange for the meeting, which usually lasts between one and two hours. You are encouraged to attend the inspection so you can ask questions as each area of the home is reviewed. After the inspector finishes their assessment, you’ll receive a written report with a detailed explanation of their opinion of the property and any damage found.

While inspections are not usually required, they are strongly recommended so you can fully understand the condition of the property you are purchasing and any issues that could become problematic in the future. All of this information is designed to provide homebuyers with all the information needed to make an informed decision about purchasing their first home.

Although similar, property appraisal and inspection have different purposes and processes during the closing phase of homebuying.

Additional reading

• What are closing costs?
• Home Appraisal

Calculators

• How much will I save by increasing my mortgage payment?