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Top Reasons Why Homes Fail Inspection
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Discover common problems revealed by home inspections and what buyers can do if an inspection fails.
A home inspection is one of the most powerful tools for home buyers—no matter what the inspector’s report reveals. If there aren’t any problems, buyers can proceed with confidence that their new home and its systems are sound. If an inspector identifies problems, the buyers have an opportunity to reassess the home and whether they want to go ahead with the purchase. Here’s a quick overview of the top reasons homes fail inspection and what happens if a problem is found.
Top reasons homes fail inspection
For simplicity, we’ll divide problems into three categories: Structural, Systems, and Pests and Toxicity.
Structural problems could include:
- Foundation flaws such as cracks, troublesome tree roots and uneven settling or lack of steel reinforcement
- An aging, damaged or deteriorating roof
- Missing flashing or shingles
- Damaged siding
- Rotted wood
- Improper grading that doesn’t allow water to move away from the house
- Evidence of water damage or mold
- Doors or windows that are broken or don’t work properly
- Floors that slope or sag
- A damaged chimney
An inspector will look for these types of problems with a home’s systems:
- Issues with the HVAC, which can range from gas leaks to improper installation of ductworks or flues
- Electrical problems such as a hot outlet or the need for an upgraded system
- Plumbing problems, including leaky pipes or low water pressure
- Appliances that don’t work properly
Pest and toxicity reasons for home inspection failure include:
- Termite damage
- Evidence of pest infestations, such mice, rats, bats or carpenter ants
- Asbestos in homes built before 1981
- Lead paint in homes built before 1978
- The presence of radon or carbon monoxide
Also, any work that doesn’t comply with local building codes can mean a failed home inspection.
What happens if a home fails inspection
A home inspection that identifies problems doesn’t necessarily mean the deal is off. Buyers who receive an inspection that fails have three options:
1. Request a concession
When an inspection reveals a problem, buyers can ask the sellers for a concession, which would mean the buyer is granted a credit on the purchase price equal to the cost of making the repair. In this scenario, the buyer would correct the problem after the deal closes.
Buyers must determine if the scope of the problem is worth asking for a concession in consideration of their finances, possible delay and current market conditions.
2. Request seller to fix the problem(s) before closing
Often, problems can be remedied by the seller to keep the deal on track. Things like a fixing a leaky faucet or installing GFCI outlets in a kitchen are relatively quick to do and sellers usually agree to handle small repairs.
If a deal falls through because of an inspection reason, the seller is back to square one. They have to relist, show the home and find another buyer. The possibility of this hassle can motivate the seller to make a concession or fix the problem.
3. Walk away from the deal
Buyers who write a purchase offer with a contingency for a satisfactory inspection may decide they don’t want to deal with problems uncovered by an inspection and walk away from the deal.
Ready to buy a home?
If you’re ready to buy a new house, consider a Consumers home mortgage with competitive rates. Plus, you’ll receive the best service around from local lending officers who look forward to helping you get into the house of your dreams.
Consumers helps thousands of members finance land, first and second homes, and home improvement projects each year. We’d love to help you with a mortgage or home equity line of credit; contact us online or call us at 800.991.2221.
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Consumers home loans
We’d love to help you with a mortgage or home equity line of credit.