Home Inspection Red Flags Every First-Time Buyer Should Know

The home inspection report just came back — and it’s 46 pages long. 😳 Sound familiar?

If you’re buying your first home, seeing that thick PDF in your inbox can feel like a gut punch. Pages of photos, technical terms, and minor flaws can make it seem like your dream home is falling apart. But here’s the truth: almost every home — even new construction — has issues on an inspection report. Here’s what home inspectors look for and how to interpret the findings.

The key is learning what’s normal, what’s negotiable, and what’s a serious red flag.

Common Home Inspection Findings That Aren’t Red Flags

Inspectors are trained to document everything — not just big-ticket items. Many of the most common findings are not dealbreakers, especially in older homes.

Here are examples of issues that might seem scary but are usually manageable:
  • Older HVAC systems or water heaters nearing the end of their life
  • Minor roof repairs, like loose flashing or cracked shingles
  • Small drywall cracks from natural settling
  • Missing GFCI outlets in kitchens or bathrooms
  • Appliances that still work but are outdated

These are common wear-and-tear items that don’t necessarily mean the home is in bad shape. In fact, many of them can be used to negotiate repairs or a seller credit. Read our full guide to what closing costs include and how to budget for them — you may be able to roll repairs into the deal.

Home Inspection Red Flags That Should Raise Concern

While cosmetic or aging items are expected, there are certain findings that warrant deeper consideration or expert evaluation. These issues could affect your safety, budget, or the home’s structural integrity:

  • Foundation movement or large horizontal cracks
  • Active roof leaks or major signs of water intrusion
  • Mold in attics, crawlspaces, or basements
  • Serious electrical hazards, like exposed wiring or overloaded panels
  • Termite damage or structural wood rot

Any of these could result in significant repair costs, or worse — health and safety issues after you move in. If these show up on your inspection, your next step may be to hire a specialist (like a foundation expert or licensed electrician) for a second opinion.

What Should You Do If a Red Flag Shows Up?

Don’t panic. A red flag doesn’t always mean you have to walk away — but it does mean you need to gather more information and lean on your real estate agent to guide you.

Here’s what you can do:
  • Get quotes for repair costs from licensed professionals
  • Talk to your agent about whether to ask the seller for repairs, credits, or price reductions
  • Use your inspection contingency to walk away if the problem is too big to take on

What If the Seller Won’t Budge?

If you’re facing a seller who refuses to negotiate or fix a major issue, you have a choice to make. Is the repair worth it to you in the long run? Can you afford it upfront — or would it put your budget at risk?

Your agent’s job is to help you make an informed, confident decision — not pressure you into staying in a deal that doesn’t feel right.

buy a home
What to Do: Don’t panic — every home has something.
Most issues are fixable with the right plan, budget, and guidance. A long home inspection report doesn’t automatically mean the house is a lemon. Most issues are common and can be addressed after you move in or during negotiations. But when you see major red flags, take them seriously — and don’t be afraid to ask questions, request expert opinions, or walk away if needed.

Ask your agent to walk you through the summary, highlight urgent repairs, and prioritize what really matters to your safety and investment. You only get one chance to do this right. Make it count.

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