20 Things That Fail a Home Inspection: What You Need to Know About a Failed Inspection
A failed inspection means the home has one or more significant issues that could impact safety, function, or value. While inspections don’t always have pass/fail grades like a test, certain problems require repairs or remediation before buyers, lenders, or insurers will approve the sale or coverage.
Homebuyers often seek a
home inspection near Chicago to identify potential problems before committing to a purchase. Sellers might also proactively hire home inspection companies near me for a pre-listing inspection to identify and fix issues ahead of time.

20 Things That Fail a Home Inspection
When buying or selling a home, the home inspection is one of the most important—and stressful—steps in the process. A failed home inspection doesn’t necessarily mean the sale is doomed, but it can lead to costly repairs, delays, or even a buyer walking away.
So, what are the most common things that fail a home inspection? Here are 20 issues that often raise red flags and what you can do about them.
1. Roof Damage
Missing shingles, sagging areas, leaks, or deteriorating flashing can lead to water damage. Roof repairs or full replacements are among the costliest fixes noted during an inspection.
2. Foundation Cracks
Major cracks or signs of foundation settlement can indicate structural issues that require an engineer's assessment and costly remediation.
3. Outdated Electrical Wiring
Knob-and-tube wiring or overloaded circuits are common inspection fail points. Improper or unsafe electrical systems are not only a hazard—they’re a deal-breaker for many buyers.
4. Plumbing Issues
Leaks under sinks, corroded pipes, low water pressure, and inadequate drainage can signal aging or faulty plumbing systems that need replacement.
5. Mold & Mildew
Any visible mold, especially in basements or attics, is a major concern due to potential health risks and moisture problems.
6. Water Damage
Stains on ceilings or walls may indicate active or past water intrusion—especially from roof leaks, broken pipes, or poor drainage.
7. HVAC System Problems
Old or poorly maintained heating and cooling systems may not pass inspection. Dirty filters, lack of service records, or insufficient output are common issues.
8. Pest Infestations
Signs of termites, rodents, or carpenter ants can result in a failed inspection. Structural damage from pests can be serious and expensive to repair.
9. Poor Drainage or Grading
Improper slope around the home can cause water to collect near the foundation, increasing the risk of basement leaks and structural damage.
10. Structural Deficiencies
Sagging floors, cracked walls, and uneven door frames can point to deeper structural issues. Inspectors will flag any signs of shifting or instability.
11. Failing Windows & Doors
Broken seals, rotting wood, and poor insulation can all reduce energy efficiency and compromise home security.
12. Asbestos or Lead Paint
In older homes, these hazardous materials are inspection fail triggers. Remediation may be required for safety and compliance.
13. Broken or Unsafe Stairs & Railings
Loose railings, uneven steps, or staircases that don’t meet code can be safety violations and are common deal-breakers.
14. Fireplace & Chimney Defects
Blocked flues, cracked masonry, or creosote buildup can prevent safe use and require professional cleaning or repair.
15. Insufficient Insulation
Lack of proper insulation in the attic or crawl space can make the home inefficient, leading to higher energy bills and buyer hesitation.
16. Appliance Malfunctions
Built-in appliances that don’t work properly—especially those that will stay with the home—can show poor maintenance.
17. Inadequate Ventilation
Poor attic or bathroom ventilation can lead to moisture buildup and long-term mold issues. This is a big red flag for inspectors.
18. Exterior Damage
Rotting siding, peeling paint, or cracked stucco can allow water intrusion and decrease curb appeal—often flagged as a maintenance issue.
19. Gutter & Downspout Problems
Clogged or missing gutters can cause water to pool near the foundation, increasing the risk of erosion or basement leaks.
20. Code Violations
DIY renovations or additions that don’t meet local code requirements will almost always fail inspection, requiring professional correction.

How to Prepare for a Home Inspection
Repair Roofing Problems
Inspect your roof for missing or damaged shingles, leaks, or signs of wear such as curling or blistering. Repair or replace damaged shingles and seal any gaps to prevent water intrusion. A leaking or deteriorated roof is a critical red flag that often results in a failed inspection.
Improve Drainage
Proper grading and drainage around your home’s foundation are essential to prevent water accumulation that can cause structural damage. Make sure gutters and downspouts direct water away from the foundation. Consider adding soil or regrading landscaping if water tends to pool near your home’s base.
Seal Windows and Doors
Drafts caused by poorly sealed windows and doors can affect energy efficiency and signal maintenance issues to inspectors. Use caulk or weather stripping to seal gaps and cracks around frames and sills. Make sure all windows and doors open, close, and lock properly for both functionality and security.
Check Smoke and Carbon Monoxide Detectors
Safety devices like smoke alarms and carbon monoxide detectors are mandatory in many jurisdictions and critical for passing inspection. Test each device to ensure it’s working, replace batteries, and install additional units if needed according to local building codes.
Clear Gutters and Downspouts
Clogged gutters can lead to water overflow and damage to your home’s exterior and foundation. Regularly clean gutters and downspouts to ensure they’re free of debris and functioning correctly. Consider installing gutter guards to reduce maintenance.
Address Mold and Water Damage
Mold or signs of water damage are serious concerns during an inspection. Investigate any musty odors, discoloration, or water stains on walls, ceilings, or floors. Address the root causes of moisture intrusion, fix leaks, and use professional remediation services to remove mold safely.
Clean and Declutter
A clean, organized home shows inspectors and potential buyers that the property has been well cared for. Remove clutter from countertops, floors, and closets to allow easy access to inspection areas like electrical panels, HVAC units, and crawl spaces. Clean floors, windows, and bathrooms thoroughly to create a positive impression.
Consider a Pre-Inspection by Professionals
Hiring reputable home inspection companies near me to conduct a mock or pre-inspection before listing your home is one of the smartest preparation steps. These experts can uncover hidden problems that might otherwise cause your home to fail the official inspection. This advance notice gives you time to fix issues proactively, increasing the chances of a smooth inspection and sale.
By taking these practical steps and working with experienced home inspection companies near me, you can greatly increase the likelihood of passing your home inspection and selling your property quickly and confidently. Preparing well is key to avoiding costly delays and last-minute repairs.
What Happens If Your House Doesn't Pass Inspection?
If your house receives a failed inspection, the next steps usually involve negotiation between buyer and seller. The buyer may:
- Request repairs or replacements.
- Ask for a price reduction or credit.
- Walk away from the deal.
For sellers, it means deciding whether to fix the issues, adjust the price, or sell “as-is.” In some cases, lenders or insurance companies may refuse to approve financing or coverage until problems are resolved.
How to Pass a Home Inspection
Passing a home inspection is about being proactive and thorough. Here’s a quick checklist:
- Conduct a Pre-Inspection: Hire a local expert for a pre-inspection.
- Fix All Safety Hazards: Address electrical, structural, or fire risks.
- Maintain Clean and Functional Systems: HVAC, plumbing, and electrical should be in good shape.
- Document Repairs: Keep records of any upgrades or fixes.
- Be Present During Inspection: Address inspector questions honestly.
- Provide Access: Make sure all areas are accessible and free of clutter.
Finding the Right Home Inspection Services
When searching for a home inspection near me, look for certified, experienced professionals with positive reviews. The right inspector will provide a detailed report and be available to answer your questions.
If you’re a seller, contacting home inspection companies near me for a pre-listing inspection can save time and headaches down the road.
Don’t Let a Failed Inspection Derail Your Home Sale or Purchase
A failed inspection doesn’t have to spell disaster. Knowing the common things that fail a home inspection and taking proactive steps to fix them can smooth the path to a successful sale or purchase. Sellers who invest in pre-listing inspections and repairs position themselves to sell faster and at a better price, while buyers benefit from transparency and peace of mind.
If you’re worried about passing an inspection or need help finding trusted home inspection companies near me, start early and be thorough. Your home’s condition is key to a smooth transaction—and your next chapter.
Looking for reliable home inspection services in Chicago?
Whether you’re buying, selling, or maintaining your property, True Blue Home Inspections is here to help! With deep knowledge of vibrant neighborhoods like Rogers Park, Edgewater, Uptown, Lincoln Square, North Center, and Lakeview, we provide personalized service to ensure your home is safe, sound, and ready for whatever’s next.
Contact True Blue Home Inspections today to schedule your comprehensive inspection and gain peace of mind across Chicago’s north side neighborhoods!