What the listing price does not tell you.
A property listing shows you rooms, a price, and a location. It does not show you the roof's remaining life, whether the foundation is moving, what the flood risk looks like, or whether the wiring meets current standards. The gap between what a listing presents and what the property actually is can be worth tens of thousands of dollars, and the time to close that gap is before you commit, not after.
Inspection is not appraisal
These two get confused constantly, and the confusion has consequences. A home inspection examines the physical condition of the property for the buyer's benefit: roof, foundation, electrical, plumbing, HVAC, structure, moisture, and everything else that can break or fail. An appraisal estimates the property's market value for the lender's benefit: what the property is worth as collateral for the loan. A property can appraise at full value and still have a failing septic system, outdated wiring, or a roof that needs replacement within two years.
The bank's appraisal does not tell you whether the house is in good physical condition. The inspection does, and attending the inspection when possible lets you see the systems, ask questions, and understand the report in context rather than reading it cold.
Disclosures and hidden risks
Federal law requires lead-based paint disclosure for most housing built before 1978. Disclosure means the seller must share what they know and provide a federal pamphlet. It does not mean every older home is tested. Flood risk follows a similar pattern: a property outside a high-risk zone can still flood, and standard homeowners insurance generally does not cover flood damage. These are risks worth investigating before you own them.
The reading below covers these and several more. The worksheet asks you to list the investigation steps you have taken or would need to take for a specific property, and to note which ones are still open.
Deferred maintenance is not a discount. It is a cost that was postponed by the previous owner and will be paid by the next one.
Condition changes affordability
A low purchase price on a property with a twenty-year-old roof, aging HVAC, and unknown plumbing is not a bargain until you add the repair cost to the purchase cost and check whether the total is still affordable. Module 2 built your housing cost picture. This module adds the layer that makes ownership costs real: what the property actually needs, not just what the listing says it costs.
The reading for this module
This is the core reading for the module. Take it with your earlier work beside you.
List your due-diligence steps.
List the investigation steps you would take (or did take) before committing to a property. Note which ones you completed and which remain open. If you are not currently buying, use a property you might consider and note what you would need to check before making an offer.