Every real estate deal has a nervous stretch, and for most of them it's the home inspection. The buyer has fallen in love with the house, the seller is already packing, and then a report shows up with 40 items on it.
I've been on every side of that report: as a broker, as a consultant, and as the general contractor who gets called to fix what the inspector found. Here's what I've learned about which problems really kill deals, which ones shouldn't, and how both buyers and sellers can get through it.
Deal-Killer #1: Mold
Mold kills deals more than anything else, by far. It's a health concern, it scares buyers, and it should be remediated before a home ever goes on the market. Waiting until the inspection to deal with it is too late and too risky.
And don't assume a brand-new home is safe.
The biggest mold problem I've seen was in a new construction home. The roof trusses had been delivered and left sitting out in the weather for a long time before they were installed. By the time they went up, they were covered in mold.
The buyer's inspector found it. The builder had it sprayed and treated, and the buyers went ahead with the purchase. But I always wonder: when you spray something like that after it's installed, do you really get into every nook and cranny?
The frustrating part is that it was completely avoidable. If the builder had simply covered the lumber with plastic or a tarp while it sat on the site, none of it would have happened.
If you're buying new construction, pay attention while the house is being built. Is the lumber covered on site? Is anything sitting in the rain? Use the pre-drywall walkthrough to look at the framing before it's hidden behind walls.
Deal-Killer #2: Big Systems Near the End of Their Life
After mold, the most common deal-killers are the big-ticket systems: the age and condition of the roof, the HVAC system, the furnace, and the water heater. Add in the overall move-in condition of the home.
Buyers paying top dollar expect a well-maintained, move-in-ready house, not one where several major systems are about to need replacing. When an inspection shows that everything is near the end of its life, buyers either ask for big credits or walk away.
Not sure how long these systems typically last? Our Home Lifespan House walks through it.
Deal-Killer #3: Plumbing a Seller Won't Address
Sometimes the deal isn't killed by the problem itself. It's killed by a seller who refuses to deal with it.
I worked with a for-sale-by-owner townhome listed at $900,000. The home had polybutylene piping, the gray plastic plumbing that was the subject of major class action lawsuits because of how often it leaks.
The seller was adamant about not making any repairs whatsoever, and wouldn't offer any credits either. So the buyer moved on to an end unit in the same subdivision that had recently been replumbed. Needless to say, they bought the end unit.
The seller didn't lose the sale to the pipes. He lost it to the house down the street.
That's the lesson for sellers. Buyers almost always have other options. When there's a real, known problem like polybutylene, refusing to fix it or offer a credit doesn't protect your price. It just sends your buyer to your neighbor.
What Sellers Really Owe You
Now the other side. Buyers can blow up deals too, usually by treating the inspection report like a wish list.
Realistically, here's what a seller owes you:
- A working HVAC system and furnace
- Working electrical
- Working plumbing
- A roof that doesn't leak
That's it. Everything else, like worn paint, worn carpet, unfinished hardwood floors, or an outdated kitchen or bathroom, is cosmetic. It's negotiable, not a legitimate demand.
Before you push hard on repairs, put yourself in the seller's seat. If you already asked for 3% toward closing costs, or you offered below the listing price, handing them a long repair list on top of that can sour the whole deal. Knowing the difference between "must-fix" and "nice-to-have" keeps you from losing a house over something minor.
Choosing a Home Inspector
Clients ask me all the time what I think of their home inspector. I'll be honest: as a contractor, I still haven't found one I'd call truly great. Many inspectors are former tradespeople, like a plumber, electrician, framer, or HVAC technician, who know their own trade well but have only general knowledge of everything else.
What I tell people is to look for an inspector through ASHI, the American Society of Home Inspectors. To earn ASHI's top designation, ASHI Certified Inspector, an inspector has to pass a national exam and complete at least 250 paid inspections that meet ASHI's standards. That doesn't guarantee perfection, but it means they've seen a lot of houses.
You can look up inspectors and confirm their certification level in ASHI's online directory, rather than trusting a logo on a website.
Even Good Reports Can Be Wrong
An inspection report isn't the final word. Inspectors make mistakes, and sometimes a second opinion saves the deal.
On one deal, the inspector reported the home's water pressure at 140 PSI. That's far too high and would mean a real plumbing problem.
We brought in a separate plumbing inspector, and the pressure was well within normal range. The only explanation we could come up with was that the first inspector read his gauge upside down.
The seller was very upset with their agent for having to pay for two plumbing inspections. But without that second opinion, the buyer might have asked for an expensive repair, or walked away, over a problem that didn't exist.
If an inspection turns up something major and expensive, it's reasonable to have a licensed specialist confirm it before anyone makes big decisions. A plumber for plumbing, an electrician for electrical, a roofer for the roof.
Quick Inspection Checklist
For sellers:
- Remediate any mold before you list.
- Know the age of your roof, HVAC, furnace, and water heater.
- If you have a known problem like polybutylene piping, plan on fixing it or offering a credit.
For buyers:
- Hire an ASHI Certified Inspector and verify it in the directory.
- Focus your requests on HVAC, furnace, electrical, plumbing, and roof leaks.
- Treat cosmetic items as negotiable, not required.
- Get a specialist's second opinion on any major, expensive finding.
The Bottom Line
Most deals that die at inspection didn't have to. Sellers who fix the real problems before listing, and buyers who focus on what actually matters, get to the closing table. The ones who dig in over cosmetic items, or refuse to address a real problem, usually end up watching the other party walk away.