You think you’ve finally found your dream home and your offer has been accepted, which means the next big step is the home inspection. You’re already well on your way through the home buying process.

Because purchasing a home is one of the largest financial investments most buyers will ever make, a comprehensive home inspection is one of the most important steps before closing. A professional home inspection can reveal hidden issues that aren’t always visible during a casual walkthrough, including structural concerns, safety hazards, or deferred maintenance. Identifying these potential problems early can help buyers avoid costly repairs, unexpected expenses, and issues that could impact the home’s safety, value, and long-term livability.

From structural defects to pest infestations, certain warning signs noted in a home inspection report can point to serious underlying issues that every buyer should take seriously. These home inspection red flags may impact the property’s safety, structural integrity, and overall value if left unaddressed. Below are the top five home inspection red flags every buyer should watch out for before moving forward with a purchase.

The foundation is the home’s central support system, responsible for keeping the entire structure stable and level. Because every part of the house relies on it, foundation problems are among the most serious home inspection red flags a buyer can encounter. If left unaddressed, foundation issues can affect walls, floors, doors, windows, and even the roof over time.

Warning signs to look out for include:

• Large, horizontal cracks in walls, ceilings, or floors

• Uneven or sloping floors, especially if the floor noticeably inclines to one side

• Doors and windows that don’t close properly, stick, or show visible gaps

• Sagging walls or ceilings

Once the home inspection report is available, review it carefully for any mention of foundation concerns. Inspectors may use terms such as “cracks in the foundation,” “uneven flooring,” “settling,” or “structural movement.” While small, vertical hairline cracks are often less concerning, they can become a red flag if they are wide enough to fit a coin or show signs of expansion over time. Any foundation-related findings should be discussed directly with your home inspector for clarification.

Foundation repairs can be costly, typically ranging from $5,000 to $40,000, depending on the severity and complexity of the issue. In some cases, foundation problems can compromise the overall structural integrity of the home. That’s why it’s critical to have any suspected issues evaluated by a qualified foundation expert before deciding whether to move forward with the purchase.

Another major home inspection red flag to watch for is water damage or poor drainage, as these issues often signal deeper structural or maintenance problems. Uncontrolled moisture inside or around the home can warp wood, cause paint to peel, promote mold growth, and even weaken the home’s structural components over time.

Warning signs to look out for include:

• Brown or yellow water stains on ceilings and walls

• Peeling, bubbling, or blistering paint

• Musty or damp odors, especially in basements or crawl spaces

• Water pooling near the home’s foundation or along exterior walls

Water stains discovered during a home inspection can be a major financial red flag, as leaks and water damage are often expensive and time-consuming to repair. If a home has experienced flooding, excess moisture may remain trapped in the structure, increasing the risk of mold growth and potentially compromising the foundation. Additionally, a history of water damage or flooding can make it more difficult—or more expensive—to obtain homeowners insurance or certain types of coverage, potentially leading to unexpected costs and complications after closing.

Plumbing is one of the most essential systems in any home, yet it’s often overlooked until serious issues arise. Many common plumbing problems uncovered during a home inspection are caused by cracked or leaking pipes, outdated plumbing materials, or inadequate water pressure throughout the home. Left unresolved, these issues can quickly lead to water damage and costly repairs.

Warning signs to look out for include:

• Leaks affecting faucets, pipes, toilets, or under sinks

• Consistently low or fluctuating water pressure

• Signs of water damage in bathrooms, kitchens, or near the foundation

• Visible rust, corrosion, or deterioration on exposed pipes

Minor plumbing issues, such as replacing components in a running toilet or fixing a small leak, are usually inexpensive and easy to address. However, more serious plumbing problems often require a significant investment of time and money. Plumbing repairs can range from $150 to $1,000 or more, depending on the severity of the issue and whether pipe replacement is needed. Because plumbing systems are used daily throughout the home, neglected problems can quickly escalate into widespread water damage, mold growth, and expensive long-term repairs.

Electrical issues are among the most serious and dangerous home inspection red flags in a residential property. Faulty wiring and outdated electrical systems aren’t just costly to repair—they can pose significant safety risks, including house fires, electrocution hazards, and unexpected power failures throughout the home.

Warning signs to look out for include:

• Exposed, damaged, or frayed electrical wiring

• Burn marks, discoloration, or warmth around outlets and light switches

• Improper splicing, loose connections, or taped wires from DIY electrical work

• Sparking, popping, or buzzing sounds when plugging in appliances

• Old fuse boxes or outdated electrical panels that no longer meet current safety standards

Older homes are especially prone to electrical problems, as wiring systems may not be designed to handle the demands of modern appliances and technology. If a home inspection reveals unsafe or faulty electrical components, the system may need to be repaired or fully replaced to comply with current electrical codes before moving in. In many cases, homeowners insurance providers also require electrical systems to be inspected or updated before issuing or maintaining a policy.

Lastly, another major home inspection red flag to watch for is evidence of termites, mice, carpenter ants, or other pest infestations in or around the home. While these pests may seem like a minor nuisance at first, they can lead to serious structural damage, material deterioration, and potential health risks if left untreated.

Warning signs to look out for include:

• Chewed vents, gnaw marks, droppings, or visible nests

• Wood that sounds hollow when tapped, indicating internal damage

• Mud tubes running from the foundation up exterior or interior walls

• Crumbling, soft, or damaged wood near the foundation, attic, or crawl spaces

Home inspection reports that note termite activity or pest infestations should immediately raise concern. Although termites are small, they can cause extensive damage to a home’s structure over time. Extermination is only the first step—repairing termite damage can be costly, with average expenses ranging from $3,000 to $4,000, depending on the severity and extent of the damage.

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How to handle home inspection red flags

When your home inspection report uncovers major problems or other potentially concerning issues in the property you’re considering, don’t panic—there are still several options available. Start by consulting licensed professionals for additional assessments and work closely with your real estate agent to determine the best course of action. From there, you can:

• Negotiate repairs with the seller, especially for safety hazards or structural concerns.

• Request a price reduction to cover the estimated costs of necessary repairs.

• Walk away from the deal if the issues are too extensive or costly to manage.

No home is perfect, but knowing how to identify and evaluate inspection red flags empowers you to make an informed decision. Determine which issues are manageable and which may be deal-breakers based on your timeline, budget, and risk tolerance. Taking these steps ensures you’re investing in a home that’s safe, structurally sound, and aligned with your long-term goals.