You probably know that home inspections are often part of the homebuying process.

But do you know why they’re so important — or what they mean for your home purchase or sale?

Home inspections can play a big role in whether your homebuying (or selling) efforts are successful.

Are you hoping to buy or sell a house soon? Here’s what you should know about how a home inspection might impact your goals.

Inspections aren’t required. A home inspection is generally encouraged for buyers, but it’s not required. In a hot market, buyers might waive their right to an inspection to win a bidding war. But be careful: This could hurt you financially if you find yourself having to make large repairs and renovations.

The results can influence your deal — and your price. If the inspector finds issues, the buyer will often want to renegotiate. They might ask the seller to make repairs before closing or offer a lower price point to account for them. If they have an inspection contingency, a buyer can even pull out of the deal without losing earnest money.

You have to pay for an inspection. Home inspection costs vary by market and inspector, but they typically cost between $250 and $500 per property. Since the inspection is for the buyer’s benefit, they cover this cost out of pocket, usually as part of the closing costs.

Sellers sometimes get pre-listing inspections. By getting one before the home hits the market, sellers can identify any problems that could hold back their sale. In many cases, sellers are required to disclose any issues their inspector finds if they haven’t been fixed.

If you’re preparing to buy or sell a home, get in touch today to start working with an experienced real estate professional.