Things that “Fail” a Home Inspection

Are you buying or selling a house? You might be wondering what can make a home fail the inspection process – and cause the buyer to back out of the purchase. Well, the notion that a home can “fail” an inspection is actually incorrect.

Contrary to what many people believe, there is no grading or pass/fail system. The home inspector simply evaluates the condition and quality of the home objectively – and then informs both the buyer and seller of his or her findings.

However, if a glaring issue is found, the seller may be held responsible to fix it before the home can be legally sold. For instance, if asbestos or mold is found in the home, or there is a code violation or other serious safety issue.

Additionally, buyers may be allowed to invoke their home inspection contingency and walk away from the transaction if a major issue is found. What kind of inspection findings are the most common deal breakers? Find out now!

The Most Common Home Inspection Problems

A qualified, professional home inspector will take an in-depth look at the physical systems and essential components of a home, and evaluate them for soundness and quality. Curious what the most common culprits are in a home inspection? Here’s a quick list.

• Roof and gutter issues (leaks, damaged/clogged gutters, etc.)
• Faulty wiring/electrical problems
• Poor grading or drainage around the home
• Dampness or mold/mildew in basements
• Cosmetic wear and tear (peeling wallpaper, dirty/damaged carpets, cracked driveways/walkways, etc)
• Plumbing issues such as leaks, clogged drains, poor flow
• Inadequate ventilation or insulation
• HVAC problems

Depending on the home, one, none, or all of these issues could be present. But whether you’re a buyer or a seller, don’t panic – most home inspection findings are not deal breakers, and will simply require you to negotiate a proper rate for the home, based on what the home inspector presents.

What Happens If I Get A Bad Home Inspection Report?

Both a home buyer and seller will get a copy of the home inspection report, once the inspector has completed a thorough inspection. This report typically includes a high-level overview of the condition of the home, as well as a checklist that will show each individual system and component of the home has been checked.

If you end up with a bad home inspection report – either for a home you want to buy, or for the home you’re selling – don’t worry. It’s USUALLY not that serious, unless of course, hazardous issues like lead paint or asbestos were found.

In most cases, a home inspection report is simply used to help determine the proper price for a home, and a negotiation tool in many cases. If your home is worth $300,000, and it needs $30,000 of repairs, you could simply sell it for $270,000 – and the buyer will be happy and confident in moving forward. The same is true of the buyer – you can use the noted issues to negotiate and request credits to their asking price.

Keep a level head. Most homes, even brand new homes, have at least a few issues – whether they’re minor, like a failing water heater – or more serious, like a leaky roof. As long as the home is safe, you simply must agree to meet your buyer or seller at the proper price – or make the repairs prior to closing.

Home Inspection Deal Breakers

Home inspection deal breakers will vary, largely based on the person buying a home. Buyers searching for a “turn-key” ready home may back out due to minor cosmetic issues or a roof that will need replacing in the near future.

On the other end of the spectrum, a buyer with a high risk tolerance or who is looking for a “fixer-upper” may not shy away from serious issues such as structural flaws, a cracked foundation, and other such problems. The seller will likely have to agree on a price reduction, but the home could still be sold.

However, there are a few home inspection findings that are consistent deal breakers. Most buyers back out of a transaction when the following are present:

• Has multiple serious code violations (an unapproved addition, for example)
• Lead or asbestos of any kind
• Knob-and-tube wiring
• Black mold
• Termites that have damaged structural components
• A compromised foundation
• A seriously damaged roof

Again, this is very dependent on the buyer’s mentality. If the buyer is agreeable, it is possible for the seller to negotiate a reduced price based on the costs of needed repairs – or to perform them on their own, prior to the home being sold.

Purchasing a home is a huge decision, so take your time and think about your own personal preferences, and determine what is – and is not – a home inspection deal breaker. This will help you negotiate more effectively, and know when to walk away if your needs aren’t met.

Tricks To Pass A Home Inspection

If you’re a homeowner looking to get ready for a home inspection, and you’re looking for tricks on how to pass a home inspection, we’ve got bad news – there’s no way to hide major issues with your home.

A qualified and professional home inspector will certainly uncover them, and trying to “fool” an inspector or a buyer by covering up a major flaw doesn’t exactly look good, and could cause the buyer to abandon the purchase completely. Your best approach for a smooth transaction is keeping everything transparent. Build rapport with your potential buyer and let them know you are willing to negotiate price or fix issues prior to closing.

However, don’t be afraid. If you’re concerned about your home “failing” inspection, the best thing you can do is to be prepared and proactive with your home maintenance. Keep your home in good shape, and fix any potential issues once you put it on the market.

Home Inspections – When To Walk Away

There’s no “hard-and-fast” rule. We’d recommend asking your home inspector what their professional, objective view of a home and its value is. Would they feel comfortable purchasing the home? If they think the home is in relatively good shape, maybe you can overlook some of those flaws – depending on YOUR needs. But if there are serious issues, always be prepared to invoke your contingency clause and walk away. Buying a “money pit” is not worth it!

Know What To Expect From Home Inspections!

The process of having a home inspected is relatively simple – whether you’re buying or selling. So check out this guide, get ready for a home inspection, understand what you’re getting into, and be prepared. For more information, contact us right away, or schedule your own home inspection.