19 Red Flags To Watch For During The Home Inspection

The home inspection is an essential part of buying a home because it documents the property’s condition before closing the sale. A licensed inspector will examine the home and note major and minor flaws, damage and health hazards. Fixing significant flaws can be expensive, so it’s important to know about them as soon as possible to avoid inheriting unexpected problems.

“There are definitely some inspection issues you can accept and others you might want to run from,” says Matt Schwartz, branch manager of Southlake Mortgage and co-founder of VA Loan Network in San Antonio. “Minor things like cosmetic repairs or small cracks in sidewalks aren’t usually deal-breakers. But major structural issues, foundation problems, or extensive water damage? Those are serious red flags that could mean costly repairs down the line, so it might be best to walk away.”

1. Roof Damage

You might not be able to see roof damage from the ground or inside the attic, but the home inspection should detect such problems. A few damaged or worn shingles are one thing, but repairing significant roof problems can be very expensive. If the inspector reports serious problems with the roof, you may want to renegotiate the purchase price or cancel the sale.

Estimated cost of roof replacement:

2. Foundation Problems

Problems with the home’s foundation also may be difficult to spot, but foundation issues can cost you.

“The No. 1 thing to walk away from is foundation issues,” says Rebecca Hidalgo Rains, CEO and designated broker at Integrity All Stars, a real estate firm in the Phoenix area. “They cause so many problems to a house, and if they have foundation issues, you are walking into a money pit. The foundation connects to everything, and they are always expensive fixes.”

Estimated cost of foundation repair:

3. Grading Or Drainage Issues

Grading is the slope of the land surrounding the foundation. Proper grading means the ground slopes away from the foundation to keep rainwater from collecting in the home, causing leaks, damage, and foundation problems.

Estimated cost of grading a yard:

4. Damaged Siding Or Paint

It’s much easier to spot damage to the home’s siding or faded and chipped paint. The cost of repainting or replacing the siding depends on the size of the home. If the home needs repainting, consider asking the seller to do it before closing.

Estimated cost of repainting a home exterior:

5. Cracked Drywall Or Other Cosmetic Defects

Drywall expands and contracts with temperature, leaving it vulnerable to cracking over time. Asking the seller to seal and repaint any cracked walls should be reasonable. Beware of diagonal cracks at corner windows or doors, as this can indicate the foundation has moved.

Estimated cost of drywall repair:

6. Faulty Windows Or Doors

Doors and windows that fail to open, close or seal can be more than a nuisance – they can run up your energy bill. Make sure the inspector checks all windows and doors to make sure they work.

Estimated cost of door replacement:

7. Termite Damage

Termites can cause severe damage to the wood structure of your home. Significant termite damage can weaken a home’s structural integrity and cause it to collapse.

Estimated cost of termite treatment:

8. Electrical Problems

Aging electrical wiring can be unsafe and a major headache to fix. If you’re looking to buy an older home, make sure the inspector examines the electrical system and tests all the lights and outlets.

Estimated cost of rewiring a house:

9. Plumbing Issues

Plumbing issues can cause a mess and be expensive to fix. Make sure the inspector examines all the sinks, toilets, tubs, showers and drains. You may want to hire a plumber to run a scope through the pipes. Significant plumbing issues may be a deal-breaker for many buyers.

“If you have to redo all of your plumbing because you scoped it and the pipes are corroding, it’s best to walk away,” Hidalgo Raines says. “Always hire someone to scope your house. It will be a costly fix if your plumbing is corroding.”

Estimated cost of plumbing repair:

10. Sewer Problems

Keep an eye out for any signs of flooding in the basement, as this could indicate the house has problems with the sewer. This can occur when the main sewer line is blocked or damaged by roots. If you notice flooding or standing water in the yard, consider ordering a scan of the sewer line to get a closer look.

Estimated cost of sewer line replacement:

11. HVAC Concerns

The condition of the heating, venting and air conditioning system has a huge impact on your energy bill and the quality of life you’ll enjoy in a home. If the air conditioner or furnace filters are dusty and dirty, they may need to be cleaned or replaced. HVAC equipment that is not properly maintained can break down, leading to costly repairs.

Estimated Cost of HVAC Repair:

12. Mold

Mold can accumulate anywhere there’s enough moisture. It’s not a big deal if you see it in the bathtub or sink, but mold on the walls or ceilings suggests a broken pipe. A house with mold can pose health risks, such as nasal and sinus congestion, coughing, eye irritation and breathing problems.

Estimate cost of mold remediation:

13. Water Damage

A leaking pipe or foundation crack can lead to expensive problems like mold. Untreated water damage can reduce the home’s value, pose health risks, threaten the home’s structural integrity, and make the home vulnerable to pests. Some warning signs of water damage include damp air, musty smells, peeling paint, wood rot and uneven flooring.

Estimated cost of water damage restoration:

14. Moisture In The Attic

Everyday moisture from the shower, washing machine and dishwasher can collect in the attic. Humidity levels above 40% can rot wood, rust exposed nails and cause mold to grow. If you notice moisture on the windows or dark stains on the roof boards, those can be signs of excessive moisture in the attic.

Estimated cost of professional attic cleaning:

15. Insufficient Insulation

A home lacking enough insulation can lead to cold floors, drafts and high energy bills. It can also cause water leaks and frozen pipes. If you live in a hot area, you’ll struggle to keep your home cool. According to the North American Insulation Manufacturers Association, roughly 90% of homes are underinsulated.

Estimated cost of attic insulation:

16. Asbestos Is Found

Asbestos was a common building material until it was found to harm human health. If a home was built before the 1950s, it may contain asbestos. People can be exposed to asbestos by inhaling particles in the air or accidentally ingesting them. If you’re exposed to asbestos, the microplastic fibers can get stuck in your lungs and cause scarring and lead to cancer.

Estimated cost of asbestos removal:

17. Basement Problems

Make sure the basement is inspected for signs of water damage, cracks in the foundation or pests. A basement that is improperly sealed can be prone to flooding, so you’ll certainly want to know if this is an issue before closing.

Estimated cost of basement waterproofing:

18. Damaged Decks And Patios

If the outdoor space of a home includes a porch or patio, the inspector should note their condition. Outdoor spaces are exposed to the elements, so expect decks and patios to weather and wear out more quickly.

Estimated cost of deck repair:

19. Unpermitted Work

Many renovations and additions require permits before work can begin. Permits ensure that the work meets building codes and safety standards to protect both the workers and home inhabitants. If you find that parts of the home were renovated or added on without permits, you’ll want to make sure it meets building and safety codes before buying it. The city or county where the home is located may require a home built without permits to be demolished. The owner also could be fined, and you’d be unable to get a homeowners insurance policy for the home.

Estimated cost of building without a permit: $500 per day

How To Handle Home Inspection Red Flags

Did your home inspection detect one or more red flags? Here’s what to do next:

Consider Getting A Second Opinion

You could get a second opinion and order another inspection from a different inspector. However, you would have to foot the bill. Home inspections usually cost $300 to $500, though they can cost more for larger homes.

Ask The Seller To Make Repairs

If the inspection reveals red flags, you can ask the seller to make repairs before closing. You will have more leverage if your purchase and sale agreement includes a home inspection contingency, which means you can back out of the deal without penalty.

“Handling inspection issues with the seller can be tricky, but it helps to approach it as a negotiation,” Schwartz says. “If the issues are significant but you’re still interested in the home, you can ask the seller to either fix them before closing or offer a credit. Sellers don’t always agree, but many will work with you to keep the deal on track.”

Renegotiate The Price

If the seller is unwilling to make repairs, another option is to renegotiate the price. Provide the seller with repair estimates and deduct that amount from the agreed-upon purchase price. If it’s clear that some work will be needed and you have a home inspection contingency in your purchase agreement, the seller may be more willing to agree to knock down the price.

“If you are remodeling, use these red flags to negotiate a better price on the house,” Hidalgo Rains says.

Cancel The Sale

If inspection results are a deal-breaker, you can always cancel the sale. If you have a home inspection contingency, you can cancel the sale without penalty and get your earnest money deposit refunded. If you don’t have an inspection contingency, you may lose the deposit and possibly face legal action if you cancel the sale. However, a home purchase is already a significant investment, and the deposit you lose may cost you less than the problems you would’ve inherited.

FAQ

Let’s look at the answers to some frequently asked questions about home inspection red flags.

The Bottom Line

If you’re buying a home, the inspection is a vital opportunity for better understanding its condition. While it’s normal for a home to have minor imperfections, more significant issues often can be challenging to spot and require expensive repairs. Take advantage of the home inspection to learn about the home you’re buying, and keep an eye out for these red flags.