Biggest home inspection red flags and what they cost

What is the biggest red flag in a home inspection?

The biggest red flag is a problem that's expensive and hard to price before your inspection window closes. Foundation movement, water getting into the house, a failing roof and a broken sewer line top the list. A Federal Pacific panel, old aluminum wiring and high radon come next, because they add fire or health risk to the bill. If one of these is on your report, get a specialist's number on it first, then decide.

Key takeaways

• The number of items on your report doesn't matter much. One bowing foundation wall outweighs forty small fixes.
• The big-ticket red flags run from a few hundred dollars (sealing a crack) to $40,000 (piering a sinking foundation).
• A red flag becomes a reason to walk away when the cost is large and still unknown as your deadline hits.

Which red flags matter most?

Inspectors call these material defects. The InterNACHI Standards of Practice (InterNACHI is the International Association of Certified Home Inspectors) define one as a problem that "may have a significant, adverse impact on the value of the property, or that poses an unreasonable risk to people." Scuffed paint and a loose hinge don't count. These do:

• Horizontal or sweeping foundation cracks, or a wall pushed out of line. InterNACHI calls this kind of crack "potentially serious, as it indicates that the vertical supporting member ... is bent or broken". More in foundation crack on your report.
• Water in the basement or active leak stains. "Wet basements can cause problems that include peeling paint, toxic mold contamination, building rot, foundation collapse, and termite damage." See water in the basement.
• A sagging roof deck, cracked rafters or leaks seen from the attic. These "can compromise your roof's ability to shed water properly and may indicate serious structural concerns".
• Signs of sewer backups, or a sewer line nobody scoped. You own the pipe from the house to the city main, and a scope is "not required by InterNACHI's Home Inspection Standards of Practice", so you have to order one.
• A Federal Pacific panel with Stab-Lok breakers. The Consumer Product Safety Commission (CPSC) found that "Commission testing confirmed that these breakers fail certain UL calibration test requirements." See Federal Pacific panel on your report.
• Solid aluminum wiring in a house built before 1972. The CPSC says those homes "are 55 times more likely to have one or more wire connections at outlets reach" fire hazard conditions than homes wired with copper. See aluminum wiring on your report.
• Radon at 4 pCi/L or higher. The Environmental Protection Agency (EPA) says to "fix your home if your radon level is 4 picocuries per liter (pCi/L) or higher".

Old supply pipe belongs on the list too. See polybutylene pipes and galvanized pipes.

What does each red flag cost to fix?

These are national ranges. Your local labor rates will move every one of them, so get 2 to 3 bids on the foundation, sewer and roof, which swing most with scope.

The foundation rows show why the specialist matters. The same crack can be a $200 seal or a $40,000 piering job, and only a structural engineer can tell you which.

My inspection found a lot of issues. Should I walk away or negotiate?

Usually negotiate. A long report full of cosmetic items and small fixes is normal. A short report with a bowing foundation wall is not.

Start by pulling every red flag off your report and getting a specialist to price each one:

• Foundation: a structural engineer
• Sewer: a sewer scope from a plumber
• Panel or wiring: a licensed electrician
• Radon: a mitigation contractor

Then price the rest of the list so the small items add up to a real figure. Kept prices every line of an inspection report for $79, usually under 4 hours. With a total in hand, decide what to ask for using what to ask for after a home inspection and repairs vs. credit vs. price reduction.

Walk when a red flag's cost is large and still unknown as your window closes. When to walk away after a home inspection and can you back out after inspection cover how. Your contract sets the deadline and the terms, so confirm the date with your agent.

What gets flagged in a home inspection?

The inspector flags material defects: problems that hurt the home's value or put people at risk. Two things are left out on purpose. The Standards of Practice list "the presence of airborne hazards, including radon" and "correction, replacement or repair cost estimates" as things the inspector isn't required to determine.

So your report can name a red flag with no price attached, and radon can go unreported unless you order a test. To sort out the report's severity words, see how to read a home inspection report.

What is the riskiest part of a home inspection?

What the inspector can't see. A standard inspection covers accessible areas only, so the sewer line under the yard, the inside of the walls and the air in the basement sit outside it.

Order a sewer scope if the house has mature trees near the line or the report mentions backups. Order a radon test if your inspector doesn't include one.

What things will fail a home inspection?

Nothing, technically. A home inspection has no pass or fail grade. InterNACHI describes it as "a non-invasive, visual examination of the accessible areas of a residential property". You decide which findings are deal breakers.

Is a small electrical finding still a red flag?

Treat every electrical finding as a job for a licensed electrician. A double-tapped breaker is a smaller line than a Stab-Lok panel, but an electrician should decide what each one needs. Same for any gas smell: have your gas utility or a licensed plumber check it.

If your report has a red flag, a long list behind it and a window that's closing, get every line priced by Kept: $79 per memo, usually under 4 hours.

Sources

• InterNACHI Standards of Practice
• InterNACHI, Inspecting Foundation Walls and Piers
• InterNACHI, Waterproofing Basements
• InterNACHI, Attic and Roof Inspection
• InterNACHI, Sewer Scope Inspections
• CPSC, FPE circuit breaker investigation
• CPSC, Repairing Aluminum Wiring
• EPA, A Citizen's Guide to Radon
• Fixr, foundation repair cost
• HomeAdvisor, basement waterproofing cost
• HomeAdvisor, roof replacement cost
• HomeAdvisor, sewer line replacement cost
• HomeAdvisor, electrical panel cost
• Homewyse, aluminum wiring repair cost
• EPA, how much can a radon mitigation system cost?
• CostHelper, polybutylene pipe replacement cost