The Top 5 Home Inspection Red Flags to Look Out For Before Buying

You’ve found your dream home, had your offer accepted, and are heading into the inspection — congrats! You’re halfway there. But even houses that look move-in ready can be hiding issues or will need repairs — and some problems are more serious (and expensive) than others.

A good home inspector looks at a home’s systems and around the property to ensure everything is in working order, safe, and livable. But the biggest red flags found during a home inspection are almost always those that could be extra costly to fix or reveal more than you bargained for. 

Whether you’re buying in San Antonio, TX where foundation issues run rampant, or looking at homes in Charleston, SC, where past flooding could be at play, here are the biggest red flags to look out for once the home inspection report comes back.

1. Structural problems

One of the main things to look out for when buying a home is problems with the foundation, especially if there are horizontal cracks, says Redfin real estate agent David Palmer. “If I see those, it’s an immediate stop. At the very least, you’re going to need a foundation expert to take a look.”

If the cracks are vertical, it’s not as worrisome — “unless it’s large enough to stick a coin into. Then it’s time to call in an expert. Foundations can be very expensive,” Palmer says.

What’s a structural red flag? Old wooden foundations, sloping in the home, or sagging and cracks in the walls could also be signs you’re in for complicated (and spendy) structural problems after purchase.

2. Water damage and past flooding

Water stains on the ceiling or bad musty smells in a basement could mean leaks, roof problems, or bad sewer line drainage. Water in the home can warp wood, peel paint, and even weaken the structure of the house.

Past flooding could also be the cause of excess moisture in the home, but at that point you’re not just dealing with water damage. Floods can leave behind hidden mold, damage to electrical systems, and compromise the integrity of the foundation. 

If a home has been flooded, it can sometimes make it harder to get affordable homeowners insurance, or certain types of coverage altogether — so not only are you out the cost of fixing the problem, but you could be in for even more headaches during closing.

3. Pests and rodents

Another red flag that can pop up during a home inspection is signs of mice, termites, or other pests known to your location, like carpenter ants in heavily forested areas.

“When walking around the perimeter of a home, I’m going to be looking at the vents into the crawl space to see if there’s any holes chewed into it,” advises Palmer. 

Pests and rodents might just seem annoying at first, but they can cause structural damage, deterioration, and health risks, and could be an ongoing problem or happening unaware behind the scenes.

4. Roof and chimney issues

A roof has an expiration date, and even if it’s been replaced somewhat recently, it’s still a good idea to make sure it’s in decent condition and hasn’t been damaged or improperly installed. 

If the home you’re looking at has a chimney, it’s also crucial to add a fireplace and chimney inspection to the regular home inspection to make sure it’s structurally sound and free of debris that could spark a sudden fire. 

“I’m looking for waves in the roofline, discoloration that gives me an idea of how old the roof may be, and at the chimney — is it deteriorated or falling apart?” says Palmer.

5. Outdated or unsafe electrical systems

Older homes are especially susceptible to wiring and electrical systems that just no longer work with modern appliances. Fire is a real risk when putting strain on tired circuits or when knob and tube or aluminum wiring is present.

Homes with faulty wiring or otherwise unsafe electrical might need to be fully replaced, likely even before moving in. Homeowners insurance policies often want this box to be checked before issuing a policy, and many lenders need proof of insurance before approving the mortgage — leading to an expensive and potentially stressful closing.

>>See More: Most Common Home Inspection Problems

The bottom line

Red flags that pop up in the home inspection report aren’t just cosmetic or easy fixes; they’re usually complicated and costly. When structural issues, water damage, pests, electrical, or roof problems pop up, there could be even more going on beneath the surface. 

“It’s like a string on a sweater: you start going down that rabbit hole and things could start to get more and more expensive,” says Palmer. “One of these things could be just the first sign of further damage.” 

With an inspection contingency in place, buyers have the option to walk away if the issues seem too overwhelming or expensive. Otherwise, negotiating credits or a price reduction with the seller is a way to hang on to the deal without too much loss out-of-pocket — or as a last resort, buying the home anyway knowing there will be more money invested into repairs.

FAQs about home inspection red flags

What would be considered a structural red flag?
Structural red flags could look like large foundation cracks, sagging or uneven floors, bowing walls, shifting chimneys, or doors and windows that don’t sit well in their frames. If you see these it could mean there’s underlying movement or damage that needs to be professionally repaired.

What would cause a house to fail a home inspection?
Technically, a house doesn’t pass or fail an inspection. The home inspection report just lists issues. But major, expensive items like foundation problems, unsafe wiring, roof failure, severe water damage, or unpermitted work can be serious enough that a buyer might decide not to go ahead with the home.

When should you walk away after a home inspection?
You should consider walking away if the inspection brings up repairs that are too expensive or risky to fix, like major structural damage, chronic water problems, widespread mold, or other costly or unsafe problems the seller won’t cover. If the cost or stress outweighs the value, it’s better to move on.

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