One of the most common questions home buyers and sellers ask is, “What will fail a home inspection?” The truth is, home inspections are not pass or fail—they are an evaluation of a home’s condition. A home inspector provides a detailed report identifying any issues, but they don’t “pass” or “fail” a house.
However, certain issues can impact a sale, especially if the buyer is using an FHA, VA, or USDA loan. These loans often require repairs before the lender will approve financing. Understanding the most common home inspection red flags can help buyers, sellers, and homeowners avoid costly surprises.
🏡 Do Home Inspections Have a Pass or Fail System?
No. A home inspection is not a test—it’s an assessment of a property's condition. However, certain serious issues can:
✔ Cause loan denial if the home does not meet FHA, VA, or USDA loan requirements.
✔ Lead to costly repairs that buyers may want the seller to address before closing.
✔ Scare off buyers if the home has structural, safety, or major system problems.
🚨 Common Loan-Required Repairs Include:
❌ Structural damage (foundation issues, major roof problems)
❌ Electrical hazards (exposed wiring, outdated panels)
❌ Plumbing failures (leaking pipes, sewer backups)
❌ HVAC system defects (unsafe heating or cooling systems)
❌ Pest infestations (termites, rodents)
❌ Water damage & mold growth
Let’s explore the top issues that can cause trouble during a home inspection.
🚨 Common Problems That Can Impact a Home Sale
1️⃣ Structural Issues & Foundation Problems
A home’s foundation and structure are among the most important aspects of an inspection. Inspectors look for:
✔ Cracks in the foundation
✔ Uneven or sagging floors
✔ Bowing basement walls
✔ Shifting or settling of the house
💰 Impact: Severe foundation issues can cost $10,000+ to repair and may prevent mortgage approval for FHA and VA loans.
2️⃣ Roof Damage & Leaks
A failing roof can cause water damage, mold growth, and structural issues. Inspectors check for:
✔ Missing or damaged shingles
✔ Roof leaks or soft spots
✔ Poor flashing & drainage
✔ Signs of past repairs or temporary fixes
💰 Impact: If a roof is near the end of its life expectancy, lenders may require a replacement before approving financing.
3️⃣ Electrical Safety Hazards
Old or faulty electrical systems can be fire hazards. Inspectors look for:
✔ Outdated wiring (knob & tube, aluminum wiring)✔ Faulty circuit breakers or overloaded panels✔ Exposed wires or improperly grounded outlets✔ Non-GFCI outlets near water sources
💰 Impact: Many loan programs require electrical issues to be repaired before closing.
4️⃣ Plumbing Problems & Sewer Line Issues
A home’s plumbing system should be free of leaks, water pressure issues, or drain backups. Inspectors check:
✔ Leaking pipes or corrosion
✔ Low water pressure
✔ Clogged or slow drains
✔ Old sewer lines (clay, cast iron)
🚨 Pro Tip: A sewer scope inspection can detect hidden damage before it leads to expensive repairs!
💰 Impact: Plumbing problems may require pipe replacements ($3,000-$10,000+), and backed-up sewer lines can be a major dealbreaker.
5️⃣ HVAC System Defects
A home’s heating and cooling system must be in safe working order. Inspectors check:
✔ Age and condition of furnace & AC unit
✔ Proper airflow and ventilation
✔ Gas leaks or carbon monoxide risks
✔ Dirty or clogged ductwork
🚨 Tip: A furnace older than 20 years or an AC unit that no longer works may require replacement before closing.
💰 Impact: A new HVAC system can cost $5,000-$12,000—buyers may negotiate repairs or credits.
6️⃣ Mold & Environmental Hazards
Health hazards like mold or asbestos can delay a sale if not addressed properly.
✔ Mold – Found in damp areas like basements, attics, or crawl spaces.
✔ Asbestos – Found in older homes (pre-1980) in insulation, flooring, or ceilings.
💰 Impact: VA, FHA, and USDA loans may require professional mitigation before approval.
7️⃣ Pest & Termite Infestations
A termite or rodent infestation can cause significant structural damage. Inspectors check for:
✔ Termite tunnels & wood damage
✔ Signs of rodent nests or droppings
✔ Wood rot or insect activity in basements & crawl spaces
💰 Impact: Some lenders require a wood-destroying insect inspection (WDI) before closing.
🏡 Can You Sell a Home That “Fails” an Inspection?
✔ Yes! A bad inspection doesn’t mean the deal is over. Sellers have options:
✅ Negotiate repairs – Fix the major issues before closing.
✅ Offer seller credits – Reduce the price to cover repair costs.
✅ Sell as-is – Some buyers will take on repairs themselves.
🚨 Important: If a buyer is using an FHA, VA, or USDA loan, certain repairs may be required before closing.
🛠️ How to Avoid Inspection Deal Breakers
🔍 1️⃣ Get a Pre-Listing Inspection (For Sellers)
✔ Find and fix major issues before buyers see them.
✔ Avoid last-minute surprises & delays.
✔ Price your home realistically based on its condition.
🔧 2️⃣ Perform Regular Home Maintenance
✔ Fix small problems before they become big ones.
✔ Maintain your roof, HVAC, plumbing, & electrical systems.✔ Keep your home dry & well-ventilated to prevent mold.
🛠️ 3️⃣ Work With Trusted Inspectors & Contractors
✔ Hire certified inspectors who know Pittsburgh homes.
✔ Use licensed contractors for necessary repairs.
✔ Document repairs to show buyers & lenders the improvements.
📍 Need a Home Inspection in Pittsburgh?
At Keystone Castle Inspections, we provide:
✅ Comprehensive Home Inspections
✅ Thermal Imaging & Sewer Scope Inspections
✅ Detailed Reports Delivered in 24 Hours
✅ InterNACHI Buy-Back Guarantee
📅 Schedule Your Home Inspection Today!
📲 Call/Text: (412) 204-6149
🔹 Don’t let home inspection surprises derail your sale—be prepared! 🔹