Glossary

Inspections

What Does “Inspections” Mean in Real Estate?

Breaking Down the Term “Inspections”

In real estate, an inspection is a professional, visual assessment of a property’s condition conducted before a sale closes. Licensed inspectors examine structural elements, mechanical systems, and safety features without dismantling components. Their goal is to identify defects, safety hazards and maintenance needs so buyers, sellers and investors can make informed decisions.

Why Real Estate Inspections Matter to Buyers, Sellers & Investors

Inspections provide transparency and peace of mind for all parties. Buyers learn about hidden issues—from foundation cracks to faulty wiring—and can negotiate repairs or price adjustments. Sellers can perform pre-listing inspections to fix problems proactively and speed up closing. Investors rely on thorough reports to estimate renovation costs and potential rental income, protecting their bottom line.

Common Types of Real Estate Inspections

General Home Inspection: Scope & Checklist

A General Home Inspection covers major components: roof, foundation, HVAC, plumbing, electrical, walls, windows and doors. Inspectors verify system operation, look for leaks, corrosion or code violations, test safety devices and note cosmetic concerns. A typical session lasts 2–3 hours and yields a comprehensive report.

Pest & Termite Inspection: Protecting Your Investment

Pest and termite inspections focus on wood-destroying organisms, rodents and insects. Certified technicians use visual checks and moisture meters to detect infestation, damage or conducive conditions. Early detection helps buyers avoid structural rot and costly eradication, while sellers can treat and certify a property as pest-free.

Radon, Mold & Environmental Inspections

Environmental assessments cover radon gas, mold, lead paint, asbestos and other hazards. Radon tests run 48 hours; mold inspections involve air and surface sampling. These specialized inspections ensure indoor air quality meets safety standards and reveal hidden health risks.

Sewer Scope, Structural & Specialty Inspections

Sewer scope inspections use video cameras to inspect lines for blockages or breaks. Structural inspections delve deeper into load-bearing elements, chimneys and retaining walls. Other specialties include swimming pool, fireplace, septic system and irrigation evaluations—each tailored to unique property features.

The Inspection Process Step-by-Step

Who Orders and Pays for Inspections?

Typically, the buyer orders and pays for inspections. Buyers choose licensed professionals and schedule assessments during the agreed inspection period. Sellers may commission pre-listing inspections at their expense to address issues before marketing.

Setting Your Inspection Period & Contingency Deadlines

The inspection period is a contractual window—often 7–10 days after ratification—during which buyers conduct inspections and review reports. Buyers use an inspection contingency to negotiate repairs or credits. Missing these deadlines can forfeit the right to request repairs.

Attending the Inspection: Roles of Buyer, Seller & Agent

Buyers are encouraged to attend inspections to ask questions and see issues firsthand. Sellers typically vacate the property but may provide access and utilities. Agents coordinate appointments, facilitate communication and help interpret findings.

Inspection Contingencies Explained

How an Inspection Contingency Protects the Buyer

An inspection contingency allows buyers to back out or renegotiate if significant defects arise. It ensures buyers aren’t bound to purchase a home with unknown, expensive problems and offers leverage in repair negotiations.

Negotiating Repairs, Credits or Price Reductions

After reviewing the inspection report, buyers submit a repair request or credit demand. Sellers can agree, counteroffer or refuse. Common asks include roof repair, electrical upgrades or mold remediation. Credits let buyers handle repairs post-closing.

What Happens If the Seller Refuses to Make Repairs?

If sellers refuse to address major defects, buyers can either accept the property “as is,” walk away under the contingency clause or renegotiate the purchase price. Legal guidance may be required for complex disputes.

Costs, Timeline & Budgeting for Inspections

Average Fees by Inspection Type

General home inspections range from $300–$500. Pest/termite checks cost $75–$150. Radon tests run $100–$200. Sewer scopes: $100–$250. Environmental and specialty inspections vary widely based on location and complexity.

Mandatory vs. Optional Inspections

Lenders often require specific inspections—such as termite in certain regions—but most are optional. Buyers should weigh risk tolerance, property age and known regional issues when selecting additional inspections.

Factoring Inspections into Your Closing Schedule

Plan sufficient time for scheduling, report delivery and negotiations. Delays can push closing dates. Aim to finalize all inspections and repair negotiations at least a week before your target closing.

Interpreting Your Inspection Report

Common Findings & Severity Ratings

Reports categorize issues as major, moderate or minor. Major defects (e.g., foundation settlement) need urgent attention; moderate (e.g., worn shingles) can wait but affect value; minor (e.g., paint peeling) are mostly cosmetic.

Deal-Breakers vs. Minor Cosmetic Issues

Deal-breakers include structural damage, mold infestations or code violations. Cosmetic issues—dings, worn carpeting or outdated fixtures—rarely impact safety and are negotiable at the buyer’s discretion.

When to Order Follow-Up or Specialist Inspections

If a report flags complex systems—like electrical panels or septic tanks—order a licensed specialist for a deeper evaluation. Follow-up inspections quantify repair costs and clarify scope before closing.

Real World Application

Fictional Scenario: The Johnsons’ First Home—Using an Inspection Contingency to Negotiate Repairs

The Johnsons found a 1990s bungalow listed at $350,000. Their home inspection revealed a leaky roof, outdated wiring and minor termite damage. They submitted a contingency request: $5,000 credit for roof replacement, rewiring and pest treatment. The seller agreed to a $4,500 credit. The Johnsons closed confident they avoided hidden expenses.

Frequently Asked Questions About Inspections in Real Estate

Who Hires and Pays for the Home Inspector?

The buyer typically hires and pays the home inspector. Sellers may pre-inspect to boost buyer confidence.

How Long Is the Inspection Period?

Inspection periods vary by contract but usually span 7–10 days after the purchase agreement is signed.

Can I Negotiate After Receiving the Report?

Yes. Buyers submit a repair request or credit proposal within the contingency window. Sellers can accept, counter or decline.

Do I Need to Attend in Person?

While optional, attending offers real-time insights. If unavailable, agents can attend on your behalf, but questions are best asked firsthand.

How Do Inspection Results Affect My Mortgage or Insurance?

Severe defects can trigger lender-required repairs before funding. Insurance companies may refuse coverage or charge higher premiums for properties with unresolved hazards like mold or outdated electrical systems.

Michael McCleskey