A home inspection plays a crucial role in both purchasing and selling a property.
It can uncover critical issues—some expected, others not—that affect the safety, livability, and value of the home. So what happens when the inspection reveals more problems than anyone anticipated?
Whether you’re buying or selling, a “bad” inspection doesn’t have to derail the entire deal. Here’s how to move forward with clarity and confidence.
Get started with GO Mortgage.What does a home inspection include?
Think of a home inspection as a health checkup for the property. The inspector performs a visual and functional assessment of the home’s systems and structure. This includes:
- The roof and chimney
- Foundation and crawl spaces
- Plumbing and drainage
- Electrical panels and wiring
- HVAC system
- Windows, doors, and insulation
Importantly, inspectors don’t evaluate cosmetic concerns, make repair estimates, or guarantee compliance with local building codes. Their job is to offer an objective report on the home’s current condition and flag issues that may require attention now or in the near future.
For a full overview of what a home inspection covers, visit the American Society of Home Inspectors.
Common reasons homes “fail” an inspection
Homes technically don’t “fail” an inspection—the report simply lists observed deficiencies. But serious findings can trigger a buyer to back out or demand repairs. Common red flags include:
- Roof damage or missing shingles
- Mold or mildew in basements, attics, or HVAC systems
- Foundation cracks or uneven settling
- Non-functioning or outdated electrical panels
- Plumbing leaks or poor water pressure
- Broken HVAC components
- Water damage or poor drainage
- Chimney deterioration or fire hazards
Even newer homes can reveal issues from poor construction or local climate wear. That’s why inspections are essential for all property types.
Seller tips: What to do after a bad inspection report
As a seller, seeing a lengthy inspection report can be discouraging, but it doesn’t have to be the end of the road. Here are several ways to respond:
Make the repairs
If the issues are straightforward (e.g., a leaky faucet or damaged gutter), consider fixing them before closing. This can keep your current deal intact and prevent you from having to disclose unresolved issues to future buyers.
Lower the sale price
For larger or more expensive problems that can’t be fixed before closing, offer a price reduction that allows the buyer to handle the repairs post-sale. This can appeal to buyers who want control over how work is done.
Offer a home warranty
If repairs aren’t urgent but could become an issue later, a one-year home warranty provides buyers with peace of mind. It’s a relatively low-cost way to maintain trust and advance the deal.
Request a second opinion
Do you think the inspector overreached or made an error? You can hire another licensed inspector for a second opinion to clarify the true scope of the issue.
Work with your real estate agent
Some repairs may not be deal-breakers. Your agent can help determine which items are non-negotiable for the buyer and guide you toward a fair and mutually beneficial compromise.
Buyer advice: How to respond to inspection findings
As the buyer, it’s important to remain calm when the inspection reveals problems. It’s rare to find a home—especially an older one—without at least a few issues. What matters is how you prioritize and respond.
Here’s what you can do:
- Request repairs for major concerns, especially those affecting safety or livability
- Negotiate a credit toward your closing costs if you’d prefer to handle repairs yourself
- Walk away if major structural, mold, or environmental issues arise and can’t be resolved
Be aware that asking the seller to fix cosmetic issues, such as paint chips or loose doorknobs, may be perceived as unreasonable.
Focus on what impacts the property’s long-term integrity and your peace of mind.
When to renegotiate or walk away
Every situation is unique, but some issues are big enough to reconsider your offer:
- Extensive water damage or mold
- Structural movement or foundation cracking
- Unsafe wiring or outdated electrical systems
- Evidence of pest infestations
- Plumbing or septic system failure
If the seller won’t make the necessary repairs or offer concessions, and you’re still within your inspection contingency period, you have every right to walk away with your earnest money intact.
Are you unsure of your timeline? Discover the steps involved in buying a house and learn how contingencies safeguard your investment.
What to do if the lender requires repairs before closing
In some cases, it’s not just the buyer or seller who has a say in post-inspection negotiations—your lender might step in, too.
If the home has issues that affect habitability or safety, such as an inoperable HVAC system or a damaged roof, the mortgage lender may require the repairs to be completed before the loan can close.
This is particularly common with government-backed loans, such as FHA, VA, or USDA, which have stricter property condition guidelines.
If your appraisal or inspection flags any deficiencies, the underwriter may withhold final loan approval until the issues are resolved.
Here’s how to respond:
- Work with the seller to clarify who is responsible for making the repairs
- Ask your real estate agent about amending your purchase agreement to reflect the lender-required fixes
- Communicate with your loan officer early to avoid last-minute delays
At GO Mortgage, we help you navigate these situations quickly so your home purchase stays on track. Being proactive can save you both time and frustration at closing.
How to prepare for inspection as a seller
If you’re selling your home, proactive preparation can prevent surprises and give buyers more confidence.
Here’s how to prep like a pro:
- Make small repairs ahead of time (e.g., replace filters, fix leaky faucets)
- Clean and declutter crawl spaces, basements, and utility areas
- Ensure all lights and appliances are functional
- Provide documentation for recent repairs or system upgrades
- Consider getting a pre-inspection to identify and address issues early
Transparency can foster trust and facilitate a smooth transaction.
Partner with experts for a smooth experience
A tough inspection doesn’t have to ruin your home purchase or sale. Stay calm, understand your options, and work with the right team of professionals—starting with a mortgage advisor you can trust.
At GO Mortgage, we guide you through every step of the homebuying process, from preapproval to final closing—even when unexpected inspection results arise.
Ready to move forward with confidence? Talk to a GO Mortgage loan officer today and let us help you navigate the journey with clarity and care.
Whether you’re dealing with repairs, negotiations, or just starting your home search, we’re here to support you at every turn.