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No house is perfect.
There will be items that come up on an inspection report when you’re selling your home that will make you scratch your head.
Yet, major issues will prevent your home from passing the test. It’s these kinds of repairs and how you decide to handle them that can make or break your contract.
- Common Things That Fail a Home Inspection
- What Happens If You Fail a Home Inspection?
- Does a House Have to Pass Inspection to Be Sold?
- What Are My Options If My House Failed Inspection?
Common Things That Fail a Home Inspection
Here are some common health and safety issues that cause homes to fail inspection reports:
1. Roofing Issues
Roofing problems, such as leaks, missing shingles, or sagging areas, can significantly impact a home inspection and deter potential buyers. A compromised roof not only poses immediate risks of water damage and structural issues but also suggests neglect or lack of maintenance, which may raise concerns about the overall condition of the property.
Signs of Roofing Issues:
- Missing or damaged shingles
- Leaks or water stains on ceilings
- Sagging or uneven areas on the roof
- Clogged or damaged gutters and downspouts
2. Plumbing Issues
Plumbing problems, ranging from leaks to poor water pressure, can fail a home inspection and dissuade potential buyers due to the immediate health and safety risks they pose. Water damage resulting from plumbing issues can compromise the integrity of the structure and lead to mold growth, creating an unhealthy environment.
Signs of Plumbing Issues:
- Leaks under sinks or around toilets
- Water stains on walls or ceilings
- Slow drainage in sinks or tubs
- Rust or corrosion on pipes or fixtures
3. Foundation Issues
Foundation problems, such as cracks or uneven settling, are serious concerns that can fail a home inspection and discourage potential buyers. A compromised foundation not only affects the structural integrity of the home but also leads to a myriad of issues, including uneven floors, sticking doors or windows, and water intrusion.
Signs of Foundation Issues:
- Cracks in the foundation walls or floors
- Uneven or sloping floors
- Doors or windows that stick or don't close properly
- Water damage or mold in the basement or crawl space
4. Electrical Issues
Electrical issues, such as outdated wiring or faulty components, can fail a home inspection and deter potential buyers due to safety concerns and the potential for fire hazards. A malfunctioning electrical system poses immediate risks to occupants and may require extensive repairs or upgrades to ensure safety and compliance with building codes.
Signs of Electrical Issues:
- Outdated or damaged electrical panels
- Overloaded circuits or tripping breakers
- Non-functioning outlets or switches
- Exposed wiring or DIY electrical work
5. Building Code Violations
Building code violations discovered during a home inspection can raise red flags for potential buyers and lead to hesitation or even withdrawal from the purchase agreement. Violations indicate that the property may not comply with safety standards and regulations, posing risks to occupants and potentially resulting in legal consequences for the buyer.
Signs of Building Code Violations:
- Improperly installed or non-permitted renovations
- Unsafe staircases or railings
- Inadequate smoke or carbon monoxide detectors
- Missing or faulty emergency exits
6. Floor Joist Issues
Floor joist issues, such as rot, sagging, or improper installation, can fail a home inspection and deter potential buyers by signaling structural instability and potential safety hazards. Sagging or uneven floors not only detract from the aesthetics of the home but also raise concerns about the integrity of the structure and the need for costly repairs.
Signs of Floor Joist Issues:
- Sagging or uneven floors
- Signs of wood rot or termite damage
- Cracks or gaps between floorboards
- Weak or springy areas
7. Window & Door Issues
Window and door issues, such as damage, poor sealing, or improper installation, can fail a home inspection and deter potential buyers. Drafty windows and doors can lead to increased utility bills and discomfort for occupants, while damaged or improperly installed units may pose safety risks and require costly repairs or replacements.
Signs of Window & Door Issues:
- Cracked or broken windowpanes
- Difficulty opening or closing windows and doors
- Drafts or air leaks around frames or seals
- Signs of water damage or mold near windows and doors
8. Chimney Damage
Chimney damage, including cracks, deterioration, or blockages, can fail a home inspection and deter potential buyers due to safety concerns and the potential for fire hazards. A damaged chimney not only compromises proper ventilation but also poses risks of carbon monoxide exposure and chimney fires.
Signs of Chimney Damage:
- Cracks in the chimney masonry or flue liner
- Loose or missing chimney caps or crowns
- Signs of water damage or rust on the chimney exterior
- Creosote buildup or blockages in the chimney flue
9. Termites & Pests
Termite infestations and pest problems can fail a home inspection and deter potential buyers by causing extensive damage to the structure and raising concerns about the property’s integrity and safety. Visible signs of termite tunnels, rodent droppings, or insect infestations not only detract from the aesthetics of the home but also suggest underlying issues that may require costly treatments and repairs.
Signs of Termites & Pests:
- Visible termite tunnels or damage to wooden structures
- Droppings, nests, or signs of chewing from rodents or insects
- Holes or entry points around the foundation or exterior walls
- Signs of pest activity in attics, basements, or crawl spaces
10. Asbestos
Asbestos-containing materials, commonly found in older homes, can fail a home inspection and deter potential buyers due to health concerns and the potential for costly abatement. Exposure to asbestos fibers can lead to serious respiratory illnesses, including lung cancer and mesothelioma.
Signs of Asbestos:
- Vinyl flooring or insulation materials that may contain asbestos
- Textured ceilings or walls (popcorn ceilings) that may contain asbestos fibers
- Damaged or deteriorating insulation around pipes or ductwork
11. Lead Paint
Lead-based paint, commonly used in homes built before 1978, can fail a home inspection and deter potential buyers due to health risks, particularly for young children and pregnant women. Exposure to lead paint dust or chips can lead to lead poisoning, causing developmental delays and cognitive impairments.
Signs of Lead Paint:
- Chipping, peeling, or deteriorating paint on interior or exterior surfaces
- Lead paint disclosure forms provided by the seller
12. Elevated Radon Levels
Elevated radon levels in a home can fail a home inspection and deter potential buyers due to health concerns associated with radon exposure. Radon, a radioactive gas found in soil and rock, can seep into homes through cracks and openings in the foundation, posing risks of lung cancer.
Signs of Elevated Radon Levels:
- Concentrations of radon gas above recommended levels
- Presence of radon mitigation systems to reduce radon levels, indicating previous issues or concerns regarding radon gas
13. Mold Problems
Mold growth in a home can fail a home inspection and deter potential buyers due to health concerns and the potential for costly remediation. Exposure to mold spores can trigger respiratory issues and worsen allergies, prompting buyers to seek properties with mold-free environments.
Signs of Mold Problems:
- Visible mold growth on walls, ceilings, or other surfaces
- Musty odors or signs of water damage
- Excess moisture or humidity in basements, bathrooms, or crawl spaces
14. HVAC Issues
HVAC issues, such as malfunctioning heating or cooling systems, can fail a home inspection and deter potential buyers due to concerns about comfort, energy efficiency, and maintenance costs. A poorly functioning HVAC system not only compromises indoor comfort but also leads to increased utility bills and potential health risks.
Signs of HVAC Issues:
- Inadequate heating or cooling performance
- Dirty or clogged air filters
- Leaks or damage to ductwork
- Signs of rust, corrosion, or malfunctioning components
15. Drainage Problems
Drainage problems around a home can fail a home inspection and deter potential buyers due to concerns about water damage, foundation issues, and mold growth. Poor drainage can lead to water pooling around the foundation, causing structural damage and creating an environment conducive to mold growth.
Signs of Drainage Problems:
- Standing water or puddles near the foundation
- Improper grading or sloping around the property
- Clogged or damaged gutters and downspouts
- Signs of water intrusion or moisture damage in basements or crawl spaces
What Happens If You Fail a House Inspection?
Failing a house inspection can lead to renegotiation of terms, such as repairs or price adjustments, or even cancellation of the sale if issues are significant or unresolved.
Does a House Have to Pass Inspection to Be Sold?
While a house doesn't necessarily have to pass inspection to be sold, its condition can significantly impact the sale. Buyers often use inspection reports to negotiate repairs or adjust the purchase price. Nonetheless, you do have options.
What Are My Options If My House Failed Inspection?
If major issues are found on your inspection report, action will have to be taken before the buyer who’s under contract will purchase the home. You can negotiate a new price, take care of the repairs, or call the whole thing off and start over.
Make a Deal or Call it Off
If your house fails inspection, you can negotiate with the buyer on the contract or decide to part ways.
The easiest thing to do would be to adjust the selling price. You could give the buyer a repair credit that covers the cost of correcting what’s wrong with the home. To come up with a fair amount, you should get a few estimates on the work that needs to be done.
You could also negotiate items that you were going to take with you, but could leave behind to make up for the cost of repairs. Maybe the buyer likes your furniture. Perhaps you don’t need to take the washer and dryer after all. Whatever the case, it’s worth looking into some sort of trade if you don’t want to pay for repairs.
If the buyer added a home inspection report contingency, they can back out of the deal if they’re unsatisfied and get their earnest money returned. If this happens, you will be required to disclose the details of the inspection with future potential buyers in most cases.
Fix Health & Safety Issues That Failed Home Inspection
Your next option is to make the requested repairs.
If you decide you’re willing to fix issues in the inspection report that are preventing the sale of the house, you’ll need to get a few things straight with the buyer. Find out if it’s acceptable to do the repairs yourself or if you must pay a professional. Also, decide if you’re addressing all of the issues or just mandatory ones.
How to Pass a House Inspection After Failure
If you pay for repairs to be done, it’s advisable to get at least three quotes from trustworthy contractors. You will also have to agree on a deadline with your buyer that gives enough leeway for a re-inspection before closing. Assuming all goes well, your house will likely pass inspection the second time, and then you can proceed with the sale.
Put Your Home Back on the Market
If you don’t want to offer a credit for repairs, pay to have the work done, or fix the issues yourself, the contract will likely become null and void.
This means you can put your home back on the market, but you should know the fact that it was once under contract will be a red flag to potential buyers. As mentioned above, you will have to disclose the inspection report and possibly explain why you didn’t go through with repairs the first time.
Most buyers do not want to take on major repairs when buying a home. So if you change your mind and fix the issues after the first deal falls through, you should note that in the listing. This will show the next potential buyer you’re serious about making a new deal.
It takes time, money, and effort to fix major issues with a home. However, after failing a home inspection, your house is likely to sell faster after making repairs than it would as-is—plus you could probably raise your asking price.
Sell Your Home to a Cash Buyer
Just thinking about all of the work you’d have to do after failing a house inspection is exhausting. Luckily, there’s a quick and easy way to offload your house without lifting a finger.
Sell your home to a cash buyer.
You won’t have to barter your belongings just to get out of paying for repairs. You don’t need to fix any major issues with a house that is soon going to become someone else’s property. You won’t be relisting the home and going through the inspection process all over again.
A cash buyer will not only purchase your home as-is, but there won’t be any more waiting, negotiating, or contemplating. After you accept the cash buyer’s offer, the sale can be done in as little as seven days.
House Failed Inspection? Sell Your House Fast for Cash to New Again Houses
Now you know what to do when your home doesn’t pass inspection and why selling your house to a cash buyer is a great alternative to dealing with the fallout.
You can go back and forth on negotiations with the buyer until you reach an agreement on a lower price or completion of repairs. Or you can break the deal altogether, put your home back on the market, and go back to square one.
