Top 10 Home Inspection Red Flags to Know

A home inspection can make or break a real estate deal. Whether you’re buying or selling, what turns up during that walkthrough could affect price, negotiation, and even the sale itself. That’s why knowing the top 10 red flags found during home inspections is essential for every serious buyer—and an opportunity for proactive sellers to get ahead of objections.

From hidden water damage to faulty wiring, not all issues are visible to the untrained eye. This guide walks you through the most common red flags inspectors encounter, how they’re evaluated, and what they might mean for your transaction. If you’re navigating the housing market, this information could save you thousands—and your peace of mind.

✔️ Checked?	Inspection Item	Quick Summary
☐	Foundation Cracks and Structural Issues	Cracks or movement in foundation indicating serious structural risks.
☐	Roof Damage or Deterioration	Leaking, worn-out materials, or signs of roof failure.
☐	Electrical System Problems	Old wiring, unsafe breaker panels, or DIY electrical work.
☐	Plumbing Defects and Leaks	Leaks, pipe corrosion, or poor water pressure issues.
☐	HVAC Malfunctions or Old Systems	Old or non-functioning heating/cooling systems.
☐	Poor Drainage or Grading Issues	Water pooling or improper slope causing foundation risks.
☐	Termite or Pest Infestations	Signs of damage from wood-destroying insects.
☐	Mold and Mildew Presence	Musty smells or visible mold from leaks or poor ventilation.
☐	Asbestos, Lead Paint, and Hazards	Environmental hazards in older homes that require disclosure and remediation.
☐	Improper Renovations or Unpermitted Work	Renovations done without permits or against code.

Why Home Inspections Are Critical in Real Estate Deals

Home inspections aren’t just a formality—they’re a safeguard. Whether you’re buying or selling, a thorough inspection can be the difference between a smooth closing and a failed deal. For buyers, it’s a chance to uncover hidden risks before committing to a major investment. For sellers, it’s an opportunity to fix red flags in advance and negotiate from a stronger position.

In many cases, inspections lead to price renegotiations, repair credits, or even deal cancellations—but they also create transparency and build trust. In high-stakes markets like Las Vegas, where competition is fierce and inventory moves fast, skipping the inspection is a gamble few can afford.

A home inspection is a non-invasive, visual assessment of a property’s physical condition performed by a licensed inspector. It covers major systems like roofing, plumbing, HVAC, electrical, foundation, and more. The goal is to identify safety concerns, deferred maintenance, and potential repair needs before closing.

The inspector provides a written report with findings, which becomes a key tool in negotiating repairs or price adjustments.

Typically, the inspection occurs after an offer is accepted, but before closing, during the contingency period. This gives the buyer a set window (usually 7–10 days) to inspect the home and decide how to proceed—accept as-is, renegotiate, or walk away.

Sellers who conduct pre-listing inspections can also address issues in advance, reducing surprises and increasing buyer confidence.

In most cases, the buyer pays for the inspection, since it’s performed for their benefit. However, sellers can choose to pay for a pre-inspection to identify and resolve issues proactively. Inspection costs vary by region and size of the home but generally range from $300 to $600.

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1. Foundation Cracks and Structural Issues

Foundation problems are often a buyer’s worst nightmare—and with good reason. The structural integrity of a home starts from the ground up. If the foundation is compromised, everything built on top of it is at risk. During an inspection, even small cracks can trigger big concerns, so it’s critical to understand what’s serious—and what’s not.

Not all cracks are deal-breakers. Hairline vertical cracks in basement walls or concrete slabs are often caused by normal settling and are usually harmless. But horizontal cracks, stair-step patterns in brick or block, and cracks wider than 1/4 inch may point to real structural shifts. Bulging walls or separation around windows and doors are also red flags.

Professional inspectors look for signs like sloping floors, sticking doors, or gaps between walls and ceilings. If any of these symptoms appear alongside visible cracking, they may recommend evaluation by a structural engineer—a specialist who can determine if the foundation is shifting, sinking, or bowing.

Some foundation issues can be repaired with epoxy injections or minor reinforcement. Others may require underpinning, piers, or complete wall stabilization—projects that can easily run $10,000 to $30,000 or more, depending on severity and soil conditions.

Serious foundation problems often lead to deal renegotiation or cancellation. Buyers may walk, or request steep discounts. Sellers who know about issues in advance can either disclose and price accordingly—or invest in repairs before listing to preserve leverage.

2. Roof Damage or Deterioration

A roof may not be the most glamorous part of a home, but it’s one of the most expensive systems to ignore. During an inspection, signs of roof damage or deterioration are major red flags—especially if there’s evidence of past or active leaks.

Curled shingles, granule loss, sagging areas, rusted flashing, or visible patches all indicate a roof nearing the end of its lifespan. Inside the home, brown ceiling stains, water marks in the attic, or soft spots can signal roof failure even before a leak is obvious.

Most Las Vegas homes use asphalt shingles, which typically last 20–25 years. Tile roofs may last longer—up to 40 years—but they’re also more expensive to repair. Metal and flat roofs each come with their own inspection points, especially regarding drainage and expansion joints.

If the roof is over 15 years old, most inspectors will note it as an item for further evaluation or replacement planning.

Many insurers are reluctant to write or renew policies on homes with older or damaged roofs. In some cases, buyers may be denied coverage until repairs are made—or pay significantly higher premiums. For sellers, this means delayed closings if roof condition isn’t addressed upfront.

3. Electrical System Problems

Few issues carry more risk than electrical problems. From fire hazards to blown deals, outdated or poorly maintained systems are a top concern for home inspectors and buyers alike—especially in older homes.

Homes built in the 1960s and early 70s may have aluminum wiring, which can loosen over time, overheat, and pose serious fire risks. Many insurers won’t cover homes with aluminum unless it’s been professionally modified with special connectors.

Old fuse boxes, undersized panels, or overloaded circuits may not meet modern electrical demand. If the panel can’t support today’s appliances or has safety recalls (like certain Federal Pacific or Zinsco models), it will likely show up in the report—and raise red flags for lenders.

Unpermitted additions, exposed wires, or amateur “fixes” are immediate safety concerns. Inspectors spot this quickly, and buyers often request licensed electrician evaluations. In severe cases, rewiring can cost thousands—and delay closing until resolved.

4. Plumbing Defects and Leaks

A home’s plumbing system is mostly hidden—but when something goes wrong, it can lead to visible damage, expensive repairs, and even health concerns. Plumbing defects are one of the most common—and disruptive—issues found during home inspections.

Older homes may still have galvanized steel pipes, which corrode from the inside and restrict water flow over time. These pipes are also prone to leaks and can affect both water pressure and water quality. Replacing them with modern materials like PEX or copper is often necessary.

Inspectors check under sinks, behind toilets, around water heaters, and in basements or crawl spaces for discoloration, warping, or soft spots. Even slight staining on ceilings or walls can indicate a past or active leak that might lead to bigger problems if ignored.

Where there’s moisture, mold often follows. Damp drywall, musty odors, or visible spores behind vanities and appliances are immediate concerns. Mold remediation can be expensive and may require professional abatement, especially if it spreads into HVAC systems or insulation.

5. HVAC Malfunctions or Old Systems

Your heating and cooling system isn’t just about comfort—it’s about cost and safety. Inspectors pay close attention to HVAC condition, especially in hot climates like Las Vegas where AC is essential for livability.

Most HVAC systems last 10–15 years with regular maintenance. If a unit is over that threshold—or shows signs of rust, noise, or uneven performance—it will likely be flagged for replacement. Buyers may use this as leverage in price negotiations.

Dirty filters, blocked vents, and dusty or leaky ducts not only reduce system efficiency—they can indicate neglect. Poor air circulation and inconsistent temperatures may also suggest deeper mechanical issues that require professional servicing.

Old systems lack modern efficiency standards, which means higher utility bills and more frequent repairs. For buyers, this adds long-term costs; for sellers, it’s a reason to consider servicing the system or offering repair credits to avoid deal delays.

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6. Poor Drainage or Grading Issues

One of the most overlooked red flags during home inspections is drainage. Improper grading or faulty water redirection may not seem urgent—until it leads to foundation damage, mold, or flooding. Especially in areas prone to heavy rain or flash floods, like parts of Las Vegas, water control is non-negotiable.

Inspectors look for signs of standing water near the home’s perimeter. If water pools after rain, it could be slowly undermining the foundation. Over time, this increases the risk of cracks, shifting, and long-term structural damage.

Clogged gutters, missing downspouts, or poorly directed runoff can push water directly toward the home. A good system should carry water at least 5–10 feet away from the foundation. Any failure in this area is a red flag that’s relatively easy—but essential—to fix.

Moisture stains, musty odors, or efflorescence (white mineral deposits on walls) are common signs of water intrusion in basements or crawl spaces. Even in desert climates, poor grading can create pockets where water seeps into the lower structure, leading to mold and rot.

7. Termite or Pest Infestations

Termites are silent but destructive. They can eat away at wood framing, flooring, and even furniture—undetected for years. Home inspectors keep a sharp eye out for signs of infestation, especially in warm-weather states like Nevada where pests thrive year-round.

Tell-tale signs of termite activity include hollow-sounding wood, buckling floors, blistered paint, or the presence of mud tubes—narrow, dirt tunnels that run along walls or foundations. These tubes protect termites as they travel and are a red flag for active colonies.

Termites are drawn to moisture, so they’re often found near leaking pipes, under sinks, or in crawl spaces. Wooden decks, fences, or tree stumps near the home can also act as highways into the house.

If infestation is confirmed, treatment can range from spot applications to full-house fumigation—costing anywhere from a few hundred to several thousand dollars. Annual inspections and soil treatments can prevent future damage, and sellers may consider pre-listing termite clearance for peace of mind.

8. Mold and Mildew Presence

Mold isn’t just an eyesore—it’s a red flag for deeper moisture issues and a potential health risk for buyers. Inspectors take mold seriously, especially in areas with previous water damage or poor ventilation. Even minor signs can derail a deal if not addressed quickly and transparently.

Common signs include black or green spots on walls, ceilings, or around windows; peeling paint; or a musty odor, especially in bathrooms, basements, or attics. Surface mold may be superficial, but inspectors check for deeper growth inside drywall or under flooring.

Mold thrives in damp, poorly ventilated areas. It’s commonly found around leaking pipes, under sinks, near HVAC systems, or behind poorly sealed windows. In humid or flood-prone homes, even a small roof or plumbing leak can create ideal mold conditions.

Professional mold remediation can range from $500 to $6,000+, depending on the size and location of the problem. If mold is present, buyers may request remediation before closing—or walk away entirely. Sellers who fix it proactively often gain back buyer trust and reduce friction during negotiations.

9. Asbestos, Lead Paint, and Other Environmental Hazards

Homes built before the 1980s often carry hidden environmental dangers like asbestos, lead paint, or even radon. These materials were once common, but are now heavily regulated due to their health risks. During inspections, their presence can raise serious concerns.

Asbestos was used in insulation, floor tiles, popcorn ceilings, and pipe wraps. Lead-based paint was common in homes built before 1978. If your property falls in this age range, inspectors may flag materials for further testing—even if they appear undisturbed.

Both substances are linked to serious health problems. Asbestos fibers, when airborne, can cause respiratory diseases and cancer. Lead exposure, especially in children, can affect brain development and behavior. Even minimal contact is cause for concern.

In most states—including Nevada—sellers are legally required to disclose known environmental hazards, including asbestos or lead. Failing to disclose can lead to liability even after the sale. Buyers may request abatement, price reductions, or walk away if tests confirm presence.

10. Improper Renovations or Unpermitted Work

Home upgrades can increase value—but when they’re done without proper permits or professional standards, they can become serious liabilities. Unpermitted work is a common red flag in inspections, especially in flipped homes or older properties with DIY renovations.

Extra bedrooms, converted garages, or even added bathrooms that weren’t permitted by local building authorities may not meet code—and can’t be legally counted in the home’s square footage. If uncovered, buyers may ask for price reductions or require retroactive approval (which isn’t always possible).

Improper wiring, unsafe plumbing, or structural changes done without code compliance can pose safety hazards. Inspectors often flag materials or workmanship that doesn’t follow local standards—especially in visible areas like breaker panels or under sinks.

Unpermitted work can affect your homeowner’s insurance—or void coverage altogether if a claim arises. It can also delay closing, complicate appraisals, or cause legal issues down the line. Sellers are advised to disclose all known modifications and provide any documentation if available.

Conclusion

A home inspection isn’t about scaring buyers—it’s about empowering them. The red flags you discover don’t always mean “walk away”—they mean look closer, ask questions, and negotiate wisely. For sellers, these same red flags can be an opportunity: to fix issues proactively, build trust, and justify your asking price.

Whether you’re preparing to sell or preparing to buy, knowing what to look for puts you ahead of the game. And you don’t have to do it alone.

I’m Mehnaz Afsari, a licensed real estate agent in Las Vegas. I work closely with experienced inspectors to guide my clients through the inspection process, protect their interests, and turn red flags into smart decisions.

📞 Need help interpreting an inspection report? Or want a pre-sale walkthrough before listing? Let’s talk.

READ MORE: How to Sell Your Home Fast

FAQ

Can I still buy a home with red flags in inspection?
many red flags can be repaired or negotiated. The key is understanding the severity and getting accurate repair estimates before closing.

Should the seller fix issues found during inspection?
Often, yes. Sellers may offer repairs or credits to keep the deal moving. In competitive markets, buyers may accept some issues “as-is” if the price reflects them.

How much does a home inspection usually cost?
Most inspections range from $300 to $600, depending on the size and age of the home. Specialty inspections (e.g., mold, roof, foundation) may cost extra.

What happens if serious problems are found?
Buyers can request repairs, negotiate the price, or even cancel the deal based on the inspection contingency. A strong agent helps guide this process calmly and clearly.

Is a home inspection mandatory when buying?
it’s strongly recommended. Skipping it can lead to unexpected costs, safety risks, and buyer’s regret.