A thorough examination of a property by a professional

Before or after you make an offer on a home, it's a good idea to cover all your bases by requesting a property inspection. Make sure that you hire an experienced professional who has nothing to gain from finding a problem with a property. You might also want to watch the inspection to fully understand the property's condition and to find out what, if any, repairs need to be made. The cost to inspect an average-sized home is between $250 and $300.

If the property doesn't pass the inspection with flying colors, you can either ask the seller to make the needed improvements or you can withdraw your offer - that is, if you included a contingency clause in the purchase agreement.

See: Contingency