Yes, I always recommend a home inspection.  Our dosclosures to buyers also recommend inspectons.  I always provide the client with at least 3 home inspectors to contact and ask them to decide.  The inspectors I provide are ones  I know of personally or who have been highly recommended by agents I respect.

Personally I look for an inspector who is thorough and takes a lot of pictures.  I know that is something my clients want too.  I also look for an inspector who has been in the business for at least 5 years.  That isn't always necessary, but is something my clients request.  The inspector I use the most is easily reached on the phone and will discuss his findings with me and the client as necessary.  Price of the inspection is usually important to my clients, but I want the best available regardless of price.  As far as a negotiating tool, an inspection is helpful, but not necessary.  I use an inspection primarily to inform and protect both buyers and sellers.  Even when I know a home will be sold "as is" an inspection will let buyers know exactly what they are in for.

Having a great home inspector is essential!  We are not able to "steer" clients to a particular inspector, but can offer them a list of names, stating that these are inspectors who have worked with us in the past.  Usually, the client does not know an inspector and wants the agent to set up the inspection, of course. 

Quality of the inspection is certainly the most important factor, rather than cost, although most inspectors here do not differ in price that much.  If you take into account the many thousands of dollars a good inspection can save a client, the price of an inspection is so little!

Certainly the results of the inspection can have a great impact on negotiations, as the cost of repairs can be a significant factor affecting both the buyer and the seller.  Many factors may influence what particular repairs are requested, but obviously the cost of the repair is a primary consideration.

I like a home inspector not be an alarmist.  I want him to go over the major functional problems with the homes, but when explaining the problems with the home especially the minor ones I want him to define which is a real problem, and which is something you do not have to worry about.  I know because of liability they do not like to do that, but I prefer an inspector that is nice, fair, and honest.