When it comes to home inspections, the question of “What can cause a house to fail an inspection?” is a common one for both buyers and sellers. Inspections don’t always result in a simple pass or fail outcome, but certain issues identified in the report can raise concerns and potentially lead to buyers backing out of a deal.
A passing inspection typically means that only minor issues, such as cosmetic defects or inexpensive repairs, are noted. On the other hand, a failing inspection report often highlights major, costly, or time-consuming repairs that may deter potential buyers.
9 things that fail a home inspection
Whether you’re buying a home in Austin, TX, or selling a house in Portland, OR, certain issues are commonly viewed as “failing” the home inspection. Sellers should be prepared for negotiations surrounding these potential repairs.
1. Structural or foundation repairs
Structural issues like foundation cracks, shifting walls, or sloping floors can be major red flags for buyers. The severity of these issues can vary by region, with some areas being more prone to certain types of structural problems.
Common structural red flags:
- Foundation cracks or settling: Small cracks are common, but larger cracks can indicate instability.
- Bowed or leaning walls: Signs of pressure from soil or water.
- Uneven or sloping floors: Possible foundation or support beam issues.
- Sticking doors and windows: Could be a result of shifting frames.
National cost ranges:
- Minor crack repairs: $250–$800
- Average foundation repair: $2,200–$8,100
- Severe cases: $10,000–$20,000+
Structural repairs typically require professional intervention, permits, and significant costs, which can be daunting for buyers.
2. Aging or damaged roof
An aging or damaged roof can lead to extensive water damage and mold growth if not addressed promptly. Issues like missing shingles, worn roofing materials, and poor flashing can compromise the integrity of the home.
Common roof red flags:
- Missing or damaged shingles: Vulnerability to leaks.
- Worn or curling shingles: Indicates roof deterioration.
- Poor flashing: Leading cause of water intrusion.
- Sagging rooflines: Potential structural weakness.
- Improper drainage: Can direct water towards the foundation.
National cost ranges:
- Minor roof repairs: $150–$1,500
- Average roof replacement: $5,800–$12,000
- Premium materials: $15,000–$30,000+
3. Outdated or failing plumbing
Plumbing issues, such as leaks, outdated piping materials, and poor water pressure, can lead to significant damage if left unaddressed. Hidden plumbing problems can result in mold growth, wood rot, and structural issues.
Common plumbing red flags:
- Leaky pipes or fixtures: Potential for water damage.
- Outdated materials: Prone to corrosion and failure.
- Low water pressure: Indicates underlying issues.
- Slow drainage or backups: Linked to clogs or damaged lines.
- Water stains: Visible signs of leaks.
National cost ranges:
- Minor leak repair: $150–$350
- Pipe replacement: $500–$2,000
- Whole-home repiping: $4,000–$15,000+
- Sewer line repair: $3,000–$7,500+
Re-plumbing can be a costly endeavor, requiring not only pipe replacements but also repairs to walls, paint, and other finishes.
4. Old electrical systems
Outdated electrical panels like Zinsco or Federal Pacific can pose serious safety hazards, including the risk of fires. Remedying electrical issues often involves evaluating the entire system and addressing outdated wiring materials.
Common electrical red flags:
- Outdated panels: Unable to handle modern electrical loads.
- Exposed wiring: Fire hazard.
- Lack of GFCI outlets: Safety concern in wet areas.
- Aluminum or knob-and-tube wiring: Outdated and unsafe wiring types.
- Overloaded circuits: Signs of electrical issues.
National cost ranges:
- GFCI outlet installation: $130–$300 each
- Electrical panel upgrade: $1,200–$3,500
- Rewiring a home: $6,000–$20,000+
Electrical repairs are essential for safety, even though they may not be as visually appealing as other home improvements.
5. Old or failing heating, ventilation, and air conditioning (HVAC)
Heating and cooling systems, if old or poorly maintained, can lead to costly repairs and potential safety hazards. Issues like lack of maintenance records, uneven heating/cooling, or damaged components can signal the need for HVAC system replacement.
Common HVAC red flags:
- Old units: Lifespan typically 15-20 years.
- Poor maintenance: Lack of servicing.
- Uneven heating/cooling: Potential system problems.
- Unusual noises/smells: Signs of mechanical issues.
- Improper installation: Inefficient systems.
National cost ranges:
- Annual servicing: $150–$500
- Furnace replacement: $3,000–$7,500
- Central AC replacement: $4,500–$12,000
6. Water damage and mold
Water damage and mold can be significant issues in a home inspection, as they indicate underlying problems that may not be immediately visible. Moisture-related issues can weaken the structure of the home and pose health risks to occupants.
Common moisture red flags:
- Water stains: Signs of leaks.
- Musty smells: Indicates mold presence.
- Warped wood: Result of water exposure.
- Mold growth: Potential health hazard.
- Salt deposits: Basement/crawlspace moisture.
National cost ranges:
- Water damage cleanup: $1,200–$5,000
- Mold remediation: $1,500–$6,000+
- Structural damage repairs: $10,000+
7. Drainage and grading
Poor drainage around the home can lead to water intrusion and structural issues. Addressing drainage problems may involve simple fixes like cleaning gutters or more extensive solutions like yard regrading.
Common drainage red flags:
- Pooling water: Near the foundation.
- Improper slope: Yard or driveway issues.
- Clogged gutters/downspouts: Inefficient drainage.
- Basement leaks: Related to exterior water flow.
National cost ranges:
- Gutter cleaning: $150–$350
- Gutter replacement: $1,000–$2,500
- Yard regrading: $1,500–$5,000+
8. Pest and insect damage
Pest infestations, such as termites or rodents, can cause significant damage to a home. Treating the infestation is only part of the cost, as repairing structural damage can be expensive and time-consuming.
Common pest red flags:
- Termite tunnels: Foundation damage.
- Hollow wood: Indicates pest activity.
- Frass: Evidence of wood-destroying insects.
- Presence of rodents: Attic or crawlspace infestations.
- Carpenter ants: Structural damage indicators.
National cost ranges:
- Termite inspection: $75–$150
- Termite treatment: $600–$2,500
- Structural repairs: $2,000–$8,000+
9. Safety and code violations
Safety hazards and code violations can impact the sale of a home, even if they seem minor. Unpermitted work, missing safety features, or improper installations can lead to future complications and additional costs.
Common safety red flags:
- Smoke/CO detectors: Essential safety features.
- Missing railings: Staircase safety concerns.
- Unpermitted work: Building code violations.
- Inadequate egress: Emergency exit issues.
- Improper ventilation: Safety hazards.
- Insufficient insulation: Energy efficiency concerns.
National cost ranges:
- Smoke/CO detector installation: $50–$200 each
- Railing additions: $500–$2,000
- Unpermitted work corrections: $1,000–$10,000+
What happens if you fail the home inspection?
If significant repairs are needed based on the inspection report, buyers may request credits or negotiate with the seller. Addressing safety-related issues is typically expected, while disagreements may arise over costly but functional items like an aging roof or HVAC system.
Buyers and sellers should be prepared to compromise and find solutions that work for both parties, considering the safety and financial implications of the necessary repairs. In the end, understanding the importance of addressing inspection findings is crucial for a successful real estate transaction.