🔍 What Is a Property Inspection in Real Estate?

A Property Inspection is a thorough examination of a property's condition, typically conducted by a certified inspector. It evaluates the structure, systems, and components of a home or investment property.

📅 When and Why It’s Used in Real Estate

Property inspections are crucial before purchasing, selling, or renting out a property. Investors use them to:

• Identify structural or mechanical issues
• Assess repair costs and future maintenance needs
• Negotiate pricing based on property condition

Inspections help reduce risk and ensure informed investment decisions.

📊 How It’s Calculated or Applied

While not calculated with a formula, the inspection report typically includes:

• Roofing and structure
• HVAC, electrical, and plumbing systems
• Interior/exterior conditions
• Safety hazards or code violations

Inspectors often use checklists and grading systems to standardize assessments.

✅ Pros

• Identifies costly repairs in advance
• Increases buyer/seller transparency
• Supports insurance and loan approvals

⚠️ Cons

• Can delay deals if issues are found
• Adds upfront costs to transactions
• Not all issues may be detected in one inspection