The obvious, and not so obvious, reasons you need a home inspection and how it actually saves you money.

It Provides an "Out"
A quality home inspection can reveal critical information about the condition of a home. This makes the buyer aware of what costs, and maintenance the home may require. If a buyer isn't comfortable with the findings of the home inspection, it usually presents one last opportunity to back out of the offer to buy.  This step is important when purchasing a property because it may save you thousands. 

Negotiating Tool
 Home inspection reports present an opportunity to ask for repairs or request a price reduction from the seller. Work with your realtor to understand what requests can and should be made to negotiate a better deal.  This is where the cost of an inspection almost always pays for it self.

Safety
A home inspection can detect safety issues like radon, and mold. Make sure that your home-buying contract states that should such hazards be detected, you have the option to cancel the offer to buy.