Q&A: Does the Home Inspection Happen Before or After the Offer?

Reader question: “We will be purchasing our first home in early 2024. My question has to do with the home inspection and offer process, and the timing of those two things. Does the home inspection usually happen before or after the offer is made to the seller?”

Short answer: While the home buying process can vary from one buyer to another, it usually follows a certain series of steps. In most cases, the inspection happens after the offer has been accepted by the seller. This is a logical sequence of events for both the home buyer and seller, and you’ll soon see why.

The Inspection Usually Happens After the Offer

It’s possible to inspect a home before making an offer to buy it. You would just need permission from the homeowner / seller, in order to schedule the inspection and give the inspector access to the property.

But that’s not how it works in a typical home buying scenario.

In most cases, the buyer’s inspection will take place after they have made an offer and the seller has accepted it. We will examine the reasons why this makes sense in a moment. But first, let’s take a look at the events that lead up to the home inspection.

What happens before, during, and after the inspection:

1. The buyers find a property that meets their needs and falls within their budget.
2. They make an offer to purchase the home, using a standard real estate purchase agreement document.
3. The seller accepts the buyer’s offer, agreeing to the price and other terms that were written into the contract.
4. The two parties will then sign the real estate purchase agreement, and the deal moves forward.
5. At this point, home buyers often schedule an inspection to learn more about the true condition of the property they are buying.
6. The inspector will examine many aspects of the property, including the roof, foundation, electrical system, plumbing, windows and doors, insulation, and more.
7. The inspector will give the buyer a detailed report that includes their findings and any problems they discovered that might require fixing. They typically do not provide cost estimates.
8. If any issues are discovered, the home buyers will decide whether they want to (A) ask the seller to repair them prior to closing, or (B) buy the home as-is and make their own repairs.
9. If the buyers decide they no longer wish to purchase the home based on the findings, they could use an inspection contingency to back out of the deal.

You’ll notice that the home inspection takes place after the offer has been accepted, not before. This sequence makes the most sense for both the buyer and seller. So let’s explore it from both perspectives.

Advantages for the Home Buyer

As the buyer in a real estate transaction, you will be the one paying for the home inspection. They typically cost somewhere between $300 and $500, on average.

But they can exceed that range for larger and more complex properties, or in markets that have a shortage of licensed inspectors.

As a buyer, you don’t want to spend hundreds of dollars for an inspection until you’re sure the seller is going to accept your offer. That’s why it makes sense to make the offer first.

Having the home inspection take place after the offer but before closing gives the home buyer a chance to back out of the deal, possibly by using a contract contingency.

When buying a house, you have the opportunity to write certain contingencies into your purchase offer. These are conditions that must be met in order to complete the sale.

Contingencies give you a way to back out of the contract if a certain situation arises, like an unsatisfactory home inspection. They also allow you to recover your earnest money deposit, to avoid a financial loss.

But this kind of “contingency clause” must be written into the contract at the start. This is another reason why it’s logical to conduct the inspection after the offer is accepted.

From the Seller’s Perspective…

In a typical real estate transaction, the homeowner won’t allow the inspection to take place until after they have accepted the offer. And it’s easy to understand why, if you put yourself in their shoes.

The home inspection is somewhat invasive for the seller. In most cases, the sellers will leave the premises so the inspector can do what he or she needs to do uninterrupted. They also have to grant the inspector access to the house or else use a lockbox.

Most sellers will only go through this process once they have accepted what they feel is a reasonable offer from a qualified and serious buyer.

If they reversed the process, and allowed for a home inspection before the offer, they might be having an inspector examining their home for no reason. Maybe the buyer comes in with a low offer, which the seller then turns down. In that scenario, the inspection would waste the time of everyone involved.

You should also know that home inspections are optional.

We strongly encourage buyers to have a home inspected before purchasing it. That’s the best way to learn about the true condition of the property. But the law does not require these inspections. They’re entirely optional, and some buyers choose to skip this process entirely.

But if you do choose to have the home inspected, it will likely take place after the offer — not before.

Seven Things to Take Away From This

Here are seven important points you should take away from this guide:

1. Home inspections are optional for buyers but may be worth considering.
2. They typically cost somewhere between $300 and $500, but this can vary.
3. The inspection usually happens after the seller accepts the buyer’s offer.
4. Inspectors examine the roof, foundation, electrical, plumbing, and more.
5. The inspector provides a detailed report on the property’s condition.
6. Buyers can ask for repairs, accept the home as-is, or walk away from the deal.
7. A contingency clause can protect your deposit if you back out of the deal.

Disclaimer: The home buying process can vary from one transaction to the next, for a variety of reasons. Because of this, portions of this guide might not apply to your particular situation.