Home Inspection

A home inspector performs a visual, non-invasive examination of accessible areas of the property. Standard inspection items include: (1) Structural: foundation, basement walls, floors, roof structure, attic; (2) Exterior: siding, windows, doors, grading, drainage, driveway; (3) Roofing: condition, flashing, gutters, chimneys; (4) Plumbing: water supply, drains, water heater, fixtures; (5) Electrical: panel, wiring, outlets, GFCI protection; (6) HVAC: furnace, AC, ductwork, ventilation; (7) Insulation: visible insulation and ventilation in attic; (8) Interior: ceilings, walls, floors, stairs, doors. Inspectors do NOT inspect behind walls, underground, or anything not visually accessible. Specialty inspections (radon, mold, sewer scope, chimney) are separate. See ASHI — Home inspector qualifications.

Home inspection fees vary by property size, location, and inspector: (1) Standard single-family home: $300–$600 in most US markets; (2) Large homes (4,000+ sq ft): $500–$900; (3) Condos: $200–$400 (smaller, no exterior); (4) Older homes (pre-1950): often $400–$700+ due to complexity; (5) Canada: typically $400–$700 CAD for a standard home. Add-ons: radon testing ($100–$200), mold screening ($200–$400), sewer scope ($100–$250), chimney inspection ($100–$300), well/septic ($200–$400). The total with add-ons can reach $700–$1,200+. Always a worthwhile investment — finding a $10,000 defect for $500 is outstanding value. See CFPB — Should I get a home inspection?

In competitive markets, some buyers waive the home inspection contingency to make their offer more attractive. This is a significant risk: (1) You have no recourse for undisclosed defects discovered after closing; (2) A major defect (foundation failure, faulty wiring, mold, roof failure) can cost $20,000–$100,000+ to remediate; (3) Lenders won't require an inspection, but Fannie/Freddie and FHA appraisers flag obvious material defects that could affect financing. Alternatives to full waiver: (a) Pre-offer inspection: inspect before submitting an offer — more logistically complex but fully informed; (b) Information-only inspection: waive contingency rights but still get an inspection for your knowledge; (c) As-is offer with reduced price: price reflects known risks. See ASHI — American Society of Home Inspectors.

A home inspection itself is not a lender requirement for conventional mortgages — it's a buyer protection tool. However: (1) FHA and VA loans: appraisers are required to flag material safety and structural defects (broken stairs, missing handrails, exposed wiring, active roof leaks) — if flagged, repairs may be required before closing; (2) Inspection contingency: if you have a standard home inspection contingency, major defects found in the inspection can allow you to renegotiate price, require repairs, or withdraw; (3) Post-inspection price reductions: buyers frequently use inspection findings to negotiate a credit or price reduction — lenders must re-approve any changes in purchase price above a certain threshold; (4) Major defects can affect appraisal: if the inspector finds and documents significant issues, appraisers may note them, affecting value. See how to handle a low appraisal.

Home inspection regulation in Canada varies by province: (1) British Columbia: home inspectors must be licensed under the Home Inspector Licensing Regulation; (2) Alberta: licensing required under the Real Estate Act; (3) Ontario: the Home Inspection Act (2017) requires mandatory licensing — CMRAO oversees home inspector licensing (not yet fully in force for all provisions); (4) Other provinces: regulation varies — some have voluntary membership bodies (OntarioACHI, CAHPI). In competitive Canadian markets (Metro Vancouver, Toronto), pre-offer home inspections have become common — buyers inspect before submitting offers because sellers often reject offers with home inspection conditions. CMHC-insured mortgages do not require a home inspection, but it is strongly advised for buyer protection. See CMHC — Home buying guidance.