What you should know before buying a resale. .

Despite the slowing economy, the overall outlook for the real estate market in many parts of America remains positive, due to the continuous drop in mortgage rates. Before "losing your conviction" and giving in to the frenzy of this market--which often includes multiple bids and above-asking-price offers--flash back to "The Money Pit," a film dealing with the trials and tribulations a couple goes through after buying an old, run-down mansion. For today's house hunters, it represents an off-screen reality which they should try to avoid at all costs. "The only way for prospective homeowners to be sure that they are not buying their very own `money pit' is to have a professional home inspection before they close on a house," advises John Hendricks, director of the National Institute of Building Inspectors (NIBI), Bound Brook, N.J.

A home inspection is much more than a walk-through of a house, flipping on light switches, turning on the kitchen tap, and poking a head into a closet or storage area. "It's a thorough, methodical look at the house--both inside and outside--to determine if it's structurally compromised and if all the major systems, such as heating and plumbing, are in satisfactory working order," explains Hendricks. "It should take at least two hours to inspect the average house properly. A simple walk-through, cursory inspection of the property will never provide homebuyers with the information they need to make an intelligent purchase decision." Here's a rundown of some of the areas a professional checks when inspecting the average home:

Grading. "Improper grading around the perimeter of the house creates more water problems inside of the house than any other single factor," stresses Joe Cummins, technical director of NIBI. The inspector begins by checking the general grading around the property and the degree of slope at the foundation of the home. Does it have an adequate slope so that rainwater will drain away? Or, will it encourage seepage through the foundation. If need be, the inspector will advise the buyer on where the grading should be improved to increase drainage and decrease potential waste seepage problems, particularly in homes with basements.

The foundation. Inspectors check the home's entire foundation for signs of cracking. In most cases, settlement cracks will be noted somewhere in the home's foundation, out most will be within tolerable limits. Extensive cracking could signal a need for concern. An inspector can...