Home Inspectors Share 10 Red Flags That Are Clear Signals To Walk Away

Home inspectors are a key part of the home buying process as they help potential buyers avoid wasting money by making them aware of any defects or issues on the property. In its simplest form, an inspector's job is to inform customers about the condition of the home, enabling them to make an informed decision about whether to buy or walk away. 

However, there are some issues that might be so expensive that the home purchase becomes a bad deal. Here are 10 issues home inspectors say may be signs that a home is not worth the price.

Structural damage may include things like issues with the walls, cracked or crumbling foundation, and more. "A major structural issue has [the] potential to be very expensive to correct — much more so than replacing a system such as a roof surface or an electrical system," says Chuck Gravely, Vice President of Technical Standards & Development at Pillar to Post Home Inspectors.

While Gravely says that almost anything can be fixed, potential buyers looking to make smart homeowner moves will have to decide with their realtors if it makes sense to go forward with an offer when those fixes will be pricey.

Gravely explains that buying a home where one of the major systems, like the furnace or air conditioning, will need to be replaced in the near future is an expected part of home ownership. However, if multiple systems are nearing that expiration date, buyers may want to rethink making an offer.

"If there are multiple systems that all are at the end of their life cycle, that could point to what we might call deferred maintenance and you as the buyer might have to do some catch-up," he says.

Water damage is not always a deal-breaker, according to Andreis Bergeron, Vice President of Sales at RedAwning, a platform for short-term rental owners and managers, but mold often is.

"If an inspector finds black mold behind drywall in several places, that likely means long-standing leaks and lack of remediation," he says. "This is not just a health hazard, but also a recurring maintenance cost in humid markets."

An old roof is not necessarily a problem, Bergeron says, but a failing roof is. "If shingles are lacking, there's evidence of sagging, or multiple layers of shingles are stacked on, instead of going back with proper replacement, you're looking at a full tear-off," he says.

Bergeron estimates that if there is also compromised attic insulation and leaks in structural material, homeowners could be looking at repairs costing in the six figure range.

"Knob-and-tube wiring and aluminum branch circuits or overloaded panels are liabilities — full stop," Bergeron says, citing a property he recently reviewed where an inspector discovered scorching around the panel due to do-it-yourself wiring spliced into antiquated circuits.

"It isn't only building code infractions; it's arson in the making," he adds. "Repairing it involves tearing out walls and rebuilding."

If there's an issue with the septic system, the cost and time needed to fix it may make a home into an unattractive buy, Bergeron says.

"You don't have to live in a house with a septic system that backs up every time it rains," he continues. "Installing a new septic system — particularly on a parcel with less-than-ideal drainage or zoning — can be very invasive and take a long time." According to Bergeron, he's seen deals in rural areas fall through over these very issues time and time again.

A home might have a range of plumbing issues — and many are not a worthy cause to walk on a home deal. A leaky faucet might be a quick fix, but other issues with sinks, toilets, showers, and drains can lead to water damage, rotting, and a host of other expensive issues.

Some termite and pest damage can be minor and easily dealt with, but serious cases will cost you a lot of time and stress to fix, Bergeron says.

"Structural damage from them often means that beams and joists are compromised beyond repair … What makes this a walk-away case is how invasive and expensive it is to gain access to the affected areas," he adds. Fixing the damage could mean lifting the structure and reframing major sections.

Inspectors may not be able to completely evaluate a home's insulation, since they'll be looking for issues or red flags that are visible (rather than inside the walls) — but they can inspect a home's visual insulation in the attic and give you a report.

Lacking insulation can create a host of problems, from drafts and high energy bills to frozen pipes in the winter and trouble keeping the home cool in the summer.

If the home you're looking at has a basement, there are a few things the inspector may find down there that could be cause to walk (or at least negotiate on the price tag).

To help pay for your bills, it's important to start your homeowner journey without any unexpected expenses — like water damage, pests, or a basement that is improperly sealed and can be prone to flooding.

Homeownership is a key step for many Americans looking to build wealth, but it's important to get a thorough inspection so that your new home doesn't become a money pit instead.

As Gravely explains it, your inspector's job isn't to tell you whether to walk or not, but to give you the facts so you can make a smart decision for your financial future. "Our job is to give home buyers a clear understanding of the condition of the home so they can use that information to make a smart, confident decision," he says.