Yahoo Finance I’m a Real Estate Expert: 7 Costly Issues That Will Make Your Home Fail Inspection
A home inspection isn’t always required, depending on the type of mortgage, lender guidelines and state regulations, but it is recommended. Home inspections can uncover potential issues and risks, saving homebuyers money and hassle. So, if you’re planning to sell your home, you can expect potential buyers to opt for an inspection.
Find Out: 10 Housing Markets That Will Plummet in Value Before the End of 2024
Learn More: Become a Real Estate Investor for Just $1K Using This Bezos-Backed Startup
Jordan Woolf, CEO of the real estate investment company We Buy Houses In Bama, said he’s a professional homebuyer whose goal is to identify costly issues that could cause a house to fail inspection and influence its market value. For all issues Woolf provided, he has quoted ballpark figures. He said that actual costs can vary depending on location and severity.
Here are seven issues that can cause your house to fail a home inspection, according to Woolf.
Major Foundation Problems
According to Woolf, cracks in the foundation, uneven floors or signs of water damage around the foundation can indicate serious structural issues, posing a safety hazard and deterring buyers. He said that repairs can cost tens of thousands of dollars.
However, the actual cost, Woolf said, depends on the severity.
“Minor cracks might be manageable, but major repairs are expensive,” he said. “I might consider getting an engineer’s evaluation before deciding.”
If you decide to sell a house “as is” without repairing the foundation problems, Woolf estimates having to reduce your selling price by $20,000-$50,000.
Check Out: 3 Florida Cities Where You Can Buy Homes For $100,000 or Less
Read Next: Cheapest Places To Buy a Home in Every State
Wealthy people know the best money secrets. Learn how to copy them.
Roof Issues
“Signs of leaks, missing shingles or outdated roofing materials all point to potential future problems,” Woolf explained.
If you want to repair it, Woolf said he would likely factor the repair cost into the asking price.
“Most buyers would prefer a move-in-ready house with a new roof,” he said.
If you decide to sell the house without repairing the roof issues, Woolf estimates you’ll have to reduce the selling price by $5,000-$15,000.
Discover More: Barbara Corcoran: 3 Cities To Invest In Real Estate Now Before Prices Skyrocket
Widespread Plumbing Issues
“Leaking pipes, outdated plumbing systems or signs of sewage backups are major red flags,” Woolf said. “Extensive repairs or replacements can cost thousands and pose water damage risks.”
Woolf said that major plumbing problems are a significant concern for buyers, and depending on the extent of the damage, repairs might be more cost-effective than a large price reduction.
However, if you decide to sell the house “as is,” Woolf estimates that you’ll have to reduce the selling price by $5,000-$10,000.
Faulty Electrical System
“Aluminum wiring, overloaded circuits or outdated panels pose safety hazards and require upgrades,” Woolf said. “Electrical safety is crucial. I would likely fix the system before selling, especially if it’s a complete rewiring job.”
Woolf said that rewiring a house can cost upwards of $20,000, depending on the size and complexity.
If you choose to sell your house with a faulty electrical system, Woolf estimates that you’ll have to reduce the price by $5,000-$15,000.
Mold Growth
“Visible mold, especially black mold, is a health concern and requires professional remediation,” Woolf explained.
If you’re planning to fix the problem, Woolf said that the cost depends on the severity of the mold and can range from a few thousand to tens of thousands of dollars.
If you’re planning to do a price reduction, Woolf said that you should base it on the remediation cost.
“I would get quotes and factor the cost into the price reduction or fix it beforehand,” he recommended.
Explore More: 8 Places Where Houses Are Suddenly Major Bargains
HVAC System Issues
“A failing furnace or air conditioner is a significant expense for the buyer,” Woolf said.
“Depending on the age and repairability, I might consider replacing it or offering a credit to the buyer.”
If you’re planning to fix the issue, replacements can range from $3,000 to $10,000 depending on the system size and type, according to Woolf.
If you’re not planning to replace, Woolf estimates reducing the selling price by $2,000-$5,000.
Presence of Termites or Other Pests
“Evidence of termite infestation requires professional treatment, which can be costly depending on the severity,” Woolf said. “Untreated infestations can lead to structural damage.”
Woolf explained that if you’re planning to fix the problem, he recommends getting quotes for the pest treatment and factoring the cost into the price or addressing it before selling.
If you’re planning to reduce the selling price of your home instead of doing the treatment, he said you should consider basing the reduction on the treatment cost.
What To Do About Less Severe Issues?
But what if the home inspection issues aren’t that severe?
“For less severe issues, I might sell as-is and disclose the problem, allowing the buyer to factor in repair costs during negotiations,” Woolf said. “The goal is to find a balance between fixing major issues and maximizing profit. Consulting a local contractor before listing will provide a clearer picture of repair costs and potential price reductions.”
More From GOBankingRates
6 Things to Try This Week if You're Behind on Your Savings Goals
4 Reasons Retired Women Need More Money Than Men -- And What To Do About it
This article originally appeared on GOBankingRates.com: I’m a Real Estate Expert: 7 Costly Issues That Will Make Your Home Fail Inspection
