closing

home inspection

A home inspection is a visual, non-invasive examination of a property's condition by a professional inspector, typically covering the structure, roof, plumbing, electrical, heating and cooling systems, and other major components. It is usually ordered and paid for by the buyer during an inspection contingency period. The report helps the buyer decide whether to proceed, negotiate repairs or credits, or cancel. Inspector licensing requirements vary by state.

Exam tip
An inspection is not an appraisal: it assesses condition, not value. Buyers should be advised to get one even when the seller provides disclosures.
Example
A buyer's inspection reveals a $6,000 furnace problem; under the inspection contingency the buyer negotiates a $6,000 credit at closing.

Related terms & state variants

Sources

Source verification pending. Confirm current requirements with your state regulator.

Last verified: 2026-10-23