Definition: A professional evaluation of a home’s condition and safety before purchase.
Explanation: A home inspection helps buyers identify potential issues such as structural damage, faulty wiring, plumbing leaks, or roofing problems. While a seller is not always required to fix issues, buyers can use the inspection report to negotiate repairs or request a price reduction. Failing to conduct a home inspection can result in unexpected repair costs after purchasing the home.
Example: A home inspection reveals termite damage and a water leak. The buyer uses this information to negotiate a $4,000 reduction in the purchase price to cover future repairs.