How do I pass a home inspection for sale?

Editorial team Published on

You cannot technically "pass" or "fail" a home inspection, but you can prepare your house to minimize red flags and keep your sale on track.

✅ Fix Easy DIY Items

  • Replace burned-out light bulbs.
  • Fresh batteries in smoke and CO detectors.
  • Swap dirty HVAC filters for clean ones.
  • Caulk around tubs, sinks, and windows.
  • Clear running toilet leaks and faucet drips.

⚠️ Clear Critical Access Points

  • Clear 4 to 6 inches of space around the exterior perimeter.
  • Ensure clear access to the electrical panel and water heater.
  • Unlock gates, sheds, and electrical boxes.
  • Remove stored items from the attic and crawl space entrances.
  • Take pets out of the home during the visit.

💡 Tackle Major Pre-Inspection Repairs

  • Repair active plumbing leaks or roof shingle damage.
  • Install missing GFCI outlets in wet areas.
  • Ensure downspouts direct water away from the foundation.
  • Service the HVAC system professionally.
  • Consider a Pre-Listing Inspection to catch hidden defects early.

What is the biggest red flag in a home inspection?

The biggest red flag in a home inspection is major structural or foundation damage, followed closely by severe, hidden water intrusion and mold.

While inspectors find many issues, structural failures and chronic water damage threaten the safety of the home and cost the most to fix.

Major Red Flags to Watch For

  • Foundation Cracks: Horizontal cracks, shifting walls, or uneven and sloping floors mean the main support of the house is failing.
  • Water Damage and Leaks: Active pipe leaks, rotting wood, and stained ceilings often point to expensive hidden damage and toxic mold.
  • Dangerous Electrical Wiring: Outdated setups like knob-and-tube wiring, aluminum branch circuits, or overloaded panels create severe fire hazards.
  • Failed Roofs: A roof at the end of its useful life with sagging rafters or rotting sheathing leads to fast, costly replacement bills.
  • Poor Drainage: Grading that slopes toward the foundation forces water into the basement and erodes the structure over time.

For more details, read this guide on Biggest Home Inspection Red Flags by Graddy Real Estate.

How to sell a house that won't pass inspection?

You can legally sell a house that fails or will not pass inspection by listing the property "as-is" and adjusting your sales and marketing strategy.

Sell As-Is

  • List the home as-is so buyers know you will not make major repairs.
  • Be honest and provide a thorough seller's property disclosure form detailing all known defects.
  • Price the home below market value to account for the necessary repairs and attract interested buyers.

Target Cash Buyers and Investors

  • Market the home to real estate investors, flippers, or cash buyers who buy homes in any condition.
  • Skip traditional financing hurdles by working with cash buyers who do not require a lender-mandated inspection to approve a loan.
  • Use platforms or local agents specializing in distressed properties for a fast closing.

Offer Credits or Concessions

  • Offer a repair credit or price reduction at closing instead of fixing the problems yourself.
  • Set up an escrow holdback where funds for repairs are put aside at closing for the buyer to fix the home later.

Is it hard to pass the home inspector exam?

Yes, the National Home Inspector Exam (NHIE) is considered challenging and difficult to pass on the first try, with national first-time failure rates estimated around 45% to 55%.

Exam Overview

  • Format: 200 multiple-choice questions (four hours to complete).
  • Scoring: Scaled score ranging from 200 to 800, with 500 required to pass.
  • Cost: Around $225 per attempt, plus a 30-day waiting period if you need to retake it.
  • Content: Covers property and building inspections (63%), analysis of findings and reporting (25%), and professional responsibilities (12%).

Why People Struggle

  • Application over Memorization: The test requires you to apply real-world knowledge of home systems, codes, and interrelationships rather than just recalling basic terms.
  • Mental Fatigue: Sitting for a proctored, 4-hour computer-based exam with 200 scenario-based questions leads to heavy fatigue.
  • Underestimation: Many test-takers fail because they rely on field experience alone without studying specific technical standards or test-taking strategies. You can prepare using resources like a Mometrix Practice Test to gauge your readiness.

What can ruin a home inspection?

Major structural damage, expensive system failures, and hidden environmental hazards can ruin a home inspection by halting a sale or forcing buyers to walk away.

Major Structural and Roof Defects

  • Foundation shifts: Large cracks, sloping floors, or stuck doors and windows indicate deep structural settling.
  • Roof failure: Leaks, rotting support beams, or roofs near the end of their 20-year lifespan threaten safety and block insurance approval.
  • Water damage and mold: Persistent moisture behind walls signals poor grading, bad drainage, or active leaks that trigger costly remediation.

Outdated or Dangerous Systems

  • Hazardous wiring: Outdated knob-and-tube or aluminum wiring create severe fire risks.
  • Failing plumbing: Corroded galvanized or polybutylene pipes cause leaks and low water pressure.
  • Expired HVAC: Furnaces or air conditioners past their expected life expectancy cost thousands to replace.

Preparation and Access Issues

  • Turned-off utilities: Inspectors cannot test systems like the HVAC or water heater if the power or water is off.
  • Blocked access: Piles of clutter, locked doors, or blocked electrical panels prevent inspectors from doing a thorough job.

How Should You Prepare for a Home Inspection When Selling?

9 related questions found

Do sellers usually fix everything on home inspections?

No, sellers usually do not fix everything on a home inspection report. An inspection is a detailed status report, not a mandatory to-do list, and repairs are generally open to negotiation between the buyer and the seller.

What Sellers Usually Fix

  • Safety and Health Hazards: Issues like exposed wiring, gas leaks, radon, or mold.
  • Major Structural Defects: Severe problems with the foundation, roof, or load-bearing framing.
  • Failed Major Systems: Broken HVAC units, major plumbing leaks, or non-functioning water heaters.
  • Lender-Required Repairs: Certain government-backed loans (like FHA or VA) mandate fixing safety or structural flaws before closing.

What Sellers Usually Decline

  • Cosmetic Flaws: Minor paint chips, scuffed floors, or outdated fixtures.
  • Normal Wear and Tear: Minor aging of components that are still operational.
  • Minor Maintenance: Small things like squeaky doors or cracked switchplates.

Common Ways to Negotiate

  • Repair Credits: The seller gives the buyer a credit at closing so the buyer can hire their own contractors.
  • Price Reduction: Lowering the overall purchase price of the home instead of doing the physical work.
  • Direct Repairs: Having the seller fix specific agreed-upon items before the final sale.

As there is a consensus on Reddit, buyers should prioritize major safety or structural items and avoid asking for minor cosmetic fixes to keep negotiations smooth.

What is a deal breaker in a home inspection?

A home inspection deal breaker is a severe, costly, or dangerous problem that causes a buyer to walk away from a house purchase or demand major price credits.

Major Structural and Foundation Damage

  • Cracked or bowing foundations: Horizontal or major stair-step cracks indicate shifting soil or structural failure that can cost tens of thousands to fix.
  • Sagging or sloped floors: This points to compromised framing or joists beneath the home.

Severe Water Intrusion and Mold

  • Active flooding or basement leaks: Chronic moisture leads to rotting wood and expensive grading or drainage fixes.
  • Extensive mold growth: Hidden or widespread mold creates health hazards and requires costly professional remediation.

Hazardous or Outdated Electrical Systems

  • Obsolete wiring: Knob-and-tube or aluminum wiring poses severe fire risks and often causes insurance companies to deny coverage.
  • Defective electrical panels: Outdated or recalled breaker boxes need immediate replacement to be safe.

Plumbing and Sewer Line Failures

  • Damaged sewer lines: Tree root intrusion or collapsed underground lines lead to messy backups and expensive replacements.
  • Failing pipe materials: Polybutylene or rusted galvanized pipes can burst without warning.

Roof and Environmental Red Flags

  • Expired or leaking roofs: A roof requiring immediate replacement within one to two years can cost over $10,000 and complicate loan approval.
  • Environmental hazards: High levels of carcinogenic radon gas, asbestos materials, or active termite infestations threaten safety and property value.

What is the number one reason a house doesn't sell?

The number one reason a house doesn’t sell is that it is priced too high for the current market.

Why Overpricing Kills a Sale

  • Ignored Listings: Buyers compare similar properties online. If your asking price is higher than nearby homes with similar features, buyers will skip your listing completely and not even schedule a tour.
  • Overcoming Flaws: Real estate experts note that a lower price can compensate for other flaws like outdated kitchens, bad photos, or poor staging. However, an inflated price makes minor issues hard to overlook.
  • Chasing the Market: Pricing too high initially leads to extended time on the market. This often forces future price reductions that signal desperation to buyers, reducing your leverage.

Other Common Contributing Factors

  • Poor Presentation: Cluttered spaces, bad staging, and low-quality listing photos turn buyers off before they see the home's potential.
  • Deferred Maintenance: Unfixed repairs or a messy yard create a negative first impression of the home's overall condition.
  • Ineffective Marketing: Relying only on a yard sign without targeted digital advertising or professional media limits your pool of buyers.

Do you lose earnest money if an inspection fails?

Generally, you do not lose your earnest money if a home inspection fails, provided you cancel the contract within the agreed inspection contingency timeframe.

How Inspection Contingencies Work

  • Protected refund: A standard inspection contingency (or due diligence period) allows a buyer to test and examine the home.
  • Right to walk away: If the report reveals major problems and the seller refuses to fix them, you can terminate the agreement and get your full deposit back.
  • Negotiation tool: You can use inspection findings to ask for repairs, lower the purchase price, or walk away cleanly.

When You Could Lose Earnest Money

  • Missed deadlines: If you miss the specific date or time limit written in the contract to object or cancel, the contingency expires.
  • Waived contingency: If you chose an "as-is" offer or waived the inspection contingency entirely to make your offer stronger, you lose the legal right to back out over inspection flaws.
  • Failure to sign release: Even if you cancel on time, escrow companies usually require both the buyer and seller to sign a release form before returning the funds, which can cause delays during a dispute.

What not to fix before selling your home?

Skip major renovations and cosmetic upgrades that do not return their cost when you sell your home.

Major Remodels

  • Full kitchen and bathroom overhauls: These cost tens of thousands of dollars but rarely return their full price. Buyers often prefer to choose their own custom designs.
  • Partial or half-finished projects: Incomplete upgrades confuse buyers and make them worry about hidden defects.
  • Luxury additions: Pools, expensive room additions, or high-tech smart systems lose money on the sale.

Working Appliances and Systems

  • Functional old appliances: If the stove, refrigerator, or washer works fine, do not replace it just for style. Buyers expect older gear or plan to upgrade it themselves.
  • Old but working HVAC or roof: Do not replace a functional roof or furnace simply due to age. Offer a cash credit or lower the listing price instead.

Minor Cosmetic Flaws

  • Hairline cracks: Skip minor drywall cracks, tiny nail holes, or small driveway cracks.
  • Old wallpaper or dated carpet: Unless the carpet has heavy stains or bad odors, a deep professional cleaning is enough.
  • Over-personalized landscaping: Avoid expensive new plants or custom gardens; just keep the lawn cut and neat.

You can consult a local expert via HomeLight for tailored advice on your specific property before spending money on repairs.