A home inspection is the closest look you will get at a house before it becomes yours. A tour shows you what the seller wants you to see; an inspector looks at the roof, the structure, the plumbing, the electrical system and the heating and cooling equipment, then writes down what is working, what is worn out and what needs attention. For a first-time buyer, it is also the best education in how a house works.
Inspection or appraisal: you usually need both
They are easy to confuse. An appraisal is ordered by the lender and estimates the home’s market value, so the lender knows the house is worth the loan. A home inspection is your choice and is about condition. The Consumer Financial Protection Bureau’s advice is simple: they are different, and you generally need both. Our guide to The Home Appraisal Explained: What It Is and What to Do If It Comes In Low covers the appraisal side.
Book it right away
Most contracts give you a limited number of days to inspect and respond. The CFPB recommends scheduling the inspection as soon as possible after you choose a home. If the general inspection turns up something that needs a specialist, such as a roofer, a structural engineer, a sewer scope or a pest inspection, you need time left on the clock to book it and still meet your deadline.
Choosing an inspector who works for you
You want an independent inspector who is accountable to you. If an inspector is paid by someone else, or only gets paid if the sale closes, there is a risk that problems get underplayed. Licensing rules vary, and in some areas inspectors are not required to be licensed at all, so do a little homework:
- Ask for references from recent clients.
- Check your state or county licensing authority where one exists, and the Better Business Bureau.
- Ask for a sample report to see how detailed and readable it is.
- Ask what is included and what is not, such as roof walking, sewer lines or outbuildings.
- Confirm when you will receive the report.
On inspection day
Go if you can. Being there makes the report far easier to understand, and you can ask questions on the spot: how serious is this, how urgent, roughly what kind of repair is it. Bring a notebook, wear clothes you do not mind getting dusty and let the inspector work. Ask them to show you the main water shut-off, the electrical panel and the furnace filter. You will need to know where these are on your first day as an owner.
Tip: Ask the inspector to separate safety issues, items that need repair soon, and normal wear. Reports can run dozens of pages, and that sorting is what helps you decide.
Reading the report
Almost every report has a long list of findings, and that is normal for any house, new or old. Focus on three groups: anything about safety, such as electrical hazards or gas issues; big-ticket items, such as the roof, foundation, sewer line, heating and cooling; and signs of water where it should not be. Cosmetic items and small maintenance tasks are part of owning a home and rarely worth negotiating over.
Your options after the inspection
| Option | When it fits | Keep in mind |
|---|---|---|
| Ask the seller to repair | Clear, specific problems that a contractor can fix before closing | You do not control who does the work or how well |
| Ask for a credit or lower price | Repairs you would rather manage yourself | Lenders may limit how credits are used |
| Accept as is | Only minor findings | Budget for the items anyway |
| Cancel | Serious problems, such as a cracked foundation, and an inspection contingency in your contract | Follow the contract’s deadlines and notice rules exactly |
Depending on your contract and local market conditions, the seller may or may not agree to repairs. If your contract is contingent on a satisfactory inspection and you are not satisfied, you have the right to cancel the sale without penalty, as long as you act within the contract’s terms.
When the lender gets involved
Some loan programs require the property to meet certain standards. If the appraisal notes that major repairs are needed, such as a new roof, the lender can require them to be done before closing, or ask that money be set aside in a special account to pay for them right after closing. That can affect your timeline, so share serious inspection findings with your lender early.
Do not skip it
In a competitive market it is tempting to waive the inspection to make your offer stand out. For most first-time buyers, that is a risk not worth taking. The inspection is your protection against buying a home with serious defects you could not see. If you need a stronger offer, shorten the inspection period instead of removing it. Next step: The Home Appraisal Explained: What It Is and What to Do If It Comes In Low.