Real Estate Glossary > I > Inspection Definition

A thorough investigation of a home by a licensed inspector to discover any issues or repairs that need to be made before buying the home. Once an offer reaches mutual acceptance, the buyer's agent will provide a list of recommended inspectors and help the buyer schedule an inspector to go through every nook and cranny of the home to look for problems. Inspections usually cost around $500 – $800, depending on the market. Afterwards, buyers will have a chance to negotiate with the sellers to cover the costs of certain repairs or to ask for concessions. However, when putting in an offer on a REO (Real Estate Owned Home), buyers may want to schedule a "pre-inspection" before making an offer. Banks will usually include an "as-is" addendum with the Purchase and Sale Agreement, stating that the buyer can get an inspection but that the bank won't pay for any home repairs. In this case, getting the home inspected before making an offer may save a buyer a lot of hassle and money down the road. The buyer's agent should contact the listing agent to make sure all the utilities in the home are turned so the inspector can be thorough.

General inspections typically cover:

• Plumbing
• Electrical
• Foundation, wall, doors, windows, ceiling and floor structure
• Water heater, air conditioner, furnace functionability
• Issues with home appliances like the dishwasher and refrigerator

In some markets, inspections for termites/pests are handled separately from the general inspection and will be scheduled by the buyer's agent. The inspector may recommend that the buyers get additional inspections for the roof, sewage system, stucco, mold, radon and lead-based paint.