A home inspection assesses a property’s systems and structure, like the electrical wiring, foundation, and roof. While there’s no such thing as a "failed" home inspection, the findings could affect the final sale price — or let the buyer back out of the deal altogether.
Every house has flaws, but some are more serious than others. Significant issues like water damage, pests, and mold are things that fail a home inspection. That is, they may be deal breakers for the buyer.
Sellers typically repair items that pose safety or legal issues before listing their homes unless they’re selling as is. Also, most buyer-seller contracts detail that certain parts of the property, like the roof, will be in good condition before closing.
While technically not required, property inspections are a critical part of the home-buying process. A home inspection will uncover less obvious issues and give the buyer peace of mind.
An experienced real estate agent can help a buyer or seller navigate the inspection process, including what to do when the home inspection fails. If you don't have an agent already, we can connect you with vetted, experienced realtors in your area. Just fill out a short form to get started.
Common home inspection issues that risk losing the sale
1. Foundation problems
Foundation issues range from gaps around doors to structural instability and can hurt a home’s value. While fixing a foundation crack may only cost about $250, more serious problems could cost up to $20,000.[1]
Warning signs:
- Cracks on exterior or interior walls and ceilings
- A leaning or tilted chimney
- Floors that sag or are uneven
- Cabinets that are separated from the wall
- Doors and windows that don’t open or shut correctly
- Bowing walls
2. Roof problems
Replacing shingles is one thing, but replacing the entire roof could cost up to $8,000.[2] Factors such as the type of roof, material, size, and even the time of year may up the price. You might also need to repair water damage in the attic due to leaks.
Warning signs:
- Damaged or missing shingles
- Missing flashing
- Visible water damage on the roof and in the attic
- Signs of decay
- Sagging or weak spots
3. Plumbing issues
A bad home inspection could also turn up problems with the plumbing or pipes. While the repair costs will vary based on the issue, the plumber you use, and the materials needed, you could pay $75–5,000.[3]
Warning signs:
- Exposed leaking pipes
- Stains, mildew, and other signs of water
- Sounds of dripping or running water
- Low water pressure
4. Drainage problems
Water should be diverted from the house to prevent flooding, mold, mildew, and other issues. Fixing minor drainage concerns can cost $500, while more significant repairs could be $18,000 or more.[4]
Warning signs:
- Gutters that overflow
- Flooding in the yard
- Water pooled around the home
- Leaks in the basement
- A musty smell
- Mold and mildew
5. Code violations
Building code violations often get overlooked as things that fail a home inspection. The seller should disclose these, but you should also review your city’s building codes with your agent. Repair costs will depend on the type of code violation.[5]
Warning signs:
- Improper electrical wiring
- No GFCI outlets
- No wiring in permanent kitchen structures like an island
- Misplaced smoke alarms
- Missing egress windows
- Unstable floor supports
- Bathroom fans that don’t vent to the outside
- Evidence of asbestos or lead paint
6. Mold
Mold is among the biggest home inspection fails because it can spread easily and lead to health concerns. The cost to remove mold largely depends on where it is — as little as $500 in the bathroom or basement or up to $20,000 in a wall.[6]
Warning signs:
- Physical mold
- Standing water
- A musty smell
7. Pests
Termites are often the main culprit, but other pests can also hurt your home inspection by posing a safety risk and making the house less structurally sound. The removal cost depends on the critter. For instance, termite fumigation could cost up to $8,000.[7]
Warning signs:
- Rodent droppings
- Nests
- Holes or gnaw marks
- Wood that has buckled or has visible tunnels
- Swollen ceilings or floors
8. Asbestos and other toxic materials
Among the top home inspection fails is the presence of toxic materials like asbestos, lead paint, carbon monoxide, and radon. You could pay $1,000–4,000 to remove asbestos[8] and $1,478–5,520 to remove lead paint.[9] Radon mitigation often costs less than $1,500.[10] You may need to repair your furnace to fix the carbon monoxide leak, costing $200–1,500.[11]
Warning signs:
- Detected radon or carbon monoxide
- The home was built before the early 1980s
- Asbestos (or vermiculite) insulation
- Vinyl flooring, millboard, or corrugated roofing
- Cracked, wrinkled, or peeling paint
9. Electrical issues
Electrical issues are common home inspection issues that pose serious safety risks. They’re commonly found in faulty wiring, outdated systems, or setups in which multiple wires use a single breaker. Smaller jobs cost a couple hundred dollars, but rewiring a house could top $11,400.[12]
Warning signs:
- Wiring that’s faulty, damaged, or exposed
- An outdated or damaged electrical panel
- Overloaded breakers
- Outlets or switches that don’t work
10. HVAC issues
Some HVAC issues can lead to safety hazards. The home inspector will check that the system works properly, has good ventilation, and doesn’t leak carbon monoxide or other dangerous toxins. The cost depends on the service needed. You could pay up to $7,500 for a new AC unit, $5,400 for a new furnace, and $9,000 for a new boiler.[13]
Warning signs:
- Ductwork cracks
- Refrigerant leaks
- Loose electrical connections
- Noises like squeaks or bangs in the unit
- The smell of gas
- Signs of carbon monoxide
11. Window and door issues
Broken or warped windows and doors are seemingly simple things that can fail a home inspection as they may indicate a more serious problem with the foundation. You could pay $2,000 or more to fix windows, depending on the damage.[14] Repairing a door could cost up to $700, while replacing one could top $6,000.[15]
Warning signs:
- Doors and windows that don’t open or close easily
- Broken locks
- Large space at the top of closed doors
- Broken windows
- Windows and doors that let in outside air or water
12. Structural problems
Other structural issues could scare buyers away. These are the house's bones, and any concerns pose a safety risk. You may need to hire a structural engineer, which could cost $500–2,000 for the assessment alone.[16]
Warning signs:
- Sagging roof or rafters
- Sagging or sloping floors
- Cracks in brick or mortar, on walls, or around windows and doors
- Rotten wood
- Damp subfloors
What to do when a home inspection comes back with issues
Next steps for the buyer
Buyers who receive a bad home inspection have several options:
- Ask the seller to make the repairs. A home inspection contingency in the purchase and sale agreement gives you more leverage for this request. A buyer’s agent can negotiate with the seller on your behalf.
- Ask to lower the sale price. If the seller can’t or won’t make the repairs, ask that they give you a credit for the work or reduce the purchase price.
- Cancel the deal. If the seller won’t budge, a home inspection contingency lets you cancel the sale without penalty.
- Get a second opinion. Every inspector is different, so consider getting a second inspection. Of course, you’ll have to pay for it, which could be $250–400 or more.
🛠 What are reasonable vs. unreasonable buyer requests after an inspection?
What's considered reasonable to repair may depend on the individual buyer's or seller's perspective, but these requests are generally considered reasonable:
- Presence of lead paint, mold, or high radon levels
- Major electrical panel defects
- Major drainage issues
- HVAC problems
- Major structural issues (roof, foundation)
- Plumbing and water heater issues
- Termite or other pest extermination
- Well water problems (low water pressure or volume)
These requests may be viewed as unreasonable:
- Loose fixtures (faucets, doorknobs)
- Aesthetic repairs like wall colors or light fixtures
- Curb appeal improvements
- Minor cracks in the driveway, sidewalks, walls, or basement
- Outdoor buildings (shed, garages)
- Renovating or updating a room (kitchen, bathroom)
- Daily wear and tear
Next steps for the seller
If you’re selling the home as is and the buyer has agreed to this, you’re not required to make any repairs.
Otherwise, you’ll need to take responsibility for at least some of the issues the home inspection uncovers. Your listing agent can walk you through your best options.
- Make the repairs. If your schedule and budget allow, fix the repairs that are required for the buyer to go through with the sale.
- Offer a seller credit. Provide a set amount of money for the buyer to use for repairs. Cover closing costs equal to the repair amount, tack the credit onto the final sale price, or pay out of pocket.
- Offer something of value. Buyers may be willing to tackle the repairs in exchange for large appliances like refrigerators, washers, or dryers.
- Provide a home warranty. These generally cover one year from sale and cost just a few hundred dollars. They protect against potential future problems, which helps you keep your costs low.
Bottom line
All home inspections uncover at least some issues. But even with red flags, if the buyer doesn’t want to back out, they can negotiate with the seller to find a solution.
Sellers who want to learn how to pass a home inspection can work with their agent to determine the important repairs to make before selling. This often includes getting the foundation, roof, and major systems in working order. Knowing what not to fix when selling a house is equally important, as this can save sellers significant time and money.
Home inspections can be tricky, and buyers and sellers will benefit from experienced help. Both parties should find a real estate agent to negotiate for their best interests and reach a good deal.
FAQ
Does a house have to pass inspection to be sold?
No. You can’t pass or fail a home inspection, although some issues will be more serious than others. It’s up to the buyer to determine their deal breakers.
What do inspectors look for?
Home inspectors check the property’s major structures and systems. The scope varies by inspector but generally includes HVAC, plumbing, and electrical systems. They also assess structural components such as the roof, attic, basement, foundation, walls, ceilings, floors, windows, and doors.
What is the biggest red flag in a home inspection?
It depends on the property, but major structural and foundation issues are often the most serious concern because they affect the home’s safety.
What is a deal breaker in a home inspection?
Any problem that could make the home structurally unsound or threaten the owner’s health and safety is a deal breaker.
Do sellers usually fix everything on home inspections?
No. While some repairs, like removing lead paint, may be mandatory, sellers can choose what to fix. They can also issue credits for the buyer to pay for repairs.
Who pays for the home inspection if the deal falls through?
The buyer pays for the home inspection regardless of whether they purchase it.
