When you’re deep into a real estate transaction, that final property review might seem like just one more box to check before closing. But don’t underestimate its significance. A comprehensive evaluation by a qualified professional can reveal far more than just cosmetic imperfections – it can expose critical issues that impact safety, long-term livability, or costly future repairs.
While it’s true that no home is flawless, certain problems go well beyond standard wear and tear. These aren’t minor fixes, they’re potential dealbreakers. Whether you’re a buyer hoping to make a sound investment or a seller looking to avoid surprises, knowing what to look out for can mean the difference between a confident move and a regrettable purchase.
Wisconsin home inspectors are trained to identify these high-impact concerns and provide the kind of detail buyers need to make informed decisions.
Here are seven major red flags in a property evaluation report that should prompt further inspection, price renegotiation, or in some cases, a serious reconsideration of the deal.
Foundation Cracks and Structural Movement
Cracks in the foundation can range from superficial to severe. Hairline cracks are common and usually not a concern. However, wide, horizontal, or stair-step cracks in basement walls, bulging or leaning walls, or doors and windows that won’t close properly may signal serious foundation movement.
A compromised foundation can lead to costly repairs, sometimes exceeding $10,000 or more depending on severity. If these issues show up in a report, it’s wise to bring in a structural engineer for a second opinion before moving forward.
Dealbreaker Potential: High
Next Step: Ask for a structural inspection and estimate before proceeding. Renegotiate the sale price or walk away if the repair cost is unreasonable.
Roof Problems and Leaks
The roof is your first line of defense against the elements. If the inspection report mentions missing shingles, damaged flashing, sagging areas, soft spots, or active leaks, take note. Roof repairs or replacements can range from $5,000 to $15,000, depending on the material and size.
Water intrusion can also lead to hidden mold growth or rot in the attic, rafters, and insulation. If a roof is nearing the end of its lifespan, expect to either replace it soon or push for a credit at closing.
Dealbreaker Potential: Moderate to High
Next Step: Request a roofing contractor’s evaluation and repair estimate. Use this to adjust your offer accordingly.
Electrical System Deficiencies
Old or poorly maintained electrical systems can pose a fire hazard. Red flags include:
- Outdated knob-and-tube wiring
- Aluminum wiring from the 1960s–70s
- Overloaded circuits or fuse boxes instead of breaker panels
- Unlabeled or double-tapped breakers
- Exposed wiring or DIY electrical work
These aren’t just inconveniences – they’re safety concerns that may not meet modern code. Rewiring a house can be a major project, especially if walls need to be opened up.
Dealbreaker Potential: High
Next Step: Hire a licensed electrician to assess the system and provide a detailed cost estimate.
Plumbing and Drainage Issues
Plumbing concerns may be buried behind walls and floors, but they can cause major problems. Signs to watch for include:
- Old galvanized steel or polybutylene pipes, both prone to failure
- Slow drainage or frequent backups
- Low water pressure
- Water stains on ceilings or walls
- Mold or mildew odors (may suggest leaks)
Water damage is insidious – it can compromise structural elements and lead to mold growth. Sewer line issues or septic problems can also cost thousands to fix.
Dealbreaker Potential: Moderate to High
Next Step: Ask for a licensed plumber’s assessment. Sewer scoping may be a wise investment before finalizing the purchase.
HVAC and Mechanical System Failures
Heating and cooling systems are expensive to replace. If the furnace, boiler, air conditioner, or water heater is past its expected lifespan (typically 10–20 years), plan on budgeting for replacement.
Signs of concern include:
- Noisy operation or uneven heating/cooling
- Poor maintenance history
- Non-functioning thermostats or inconsistent performance
- Corroded components or fluid leaks
Some systems may still work at the time of inspection but are nearing the end of life. An aging or poorly maintained HVAC system isn’t necessarily a dealbreaker—but it should influence your offer.
Dealbreaker Potential: Moderate
Next Step: Ask for service records and consider negotiating a repair or replacement credit if the system is old.
Pest Infestations and Termite Damage
Insect damage, especially from termites or carpenter ants, can be extensive—and expensive. Look for:
- Hollow-sounding wood
- Buckled floors
- Piles of sawdust (frass)
- Mud tubes or droppings
- Evidence of rodents or bats in the attic
Insect damage may be structural, especially if it affects beams, floor joists, or load-bearing components. Even if the infestation is inactive, the cost of treatment and damage repair can add up quickly.
Dealbreaker Potential: High
Next Step: Request a pest inspection and remediation plan. If damage is significant, walk away or negotiate a steep discount.
Mold, Asbestos, or Lead Paint
Health hazards like mold, asbestos, and lead paint (found in homes built before 1978) are serious concerns – especially for families with young children or respiratory conditions.
Mold may indicate active leaks or poor ventilation. Asbestos and lead paint may require professional abatement, which can be both expensive and disruptive.
Look for mentions of:
- Visible mold or water staining
- Asbestos-wrapped pipes or ceiling tiles
- Chipping or flaking lead-based paint
These issues often trigger additional inspections or disclosures. If you’re financing the purchase, they may even affect your mortgage approval.
Dealbreaker Potential: High
Next Step: Consult environmental testing experts and remediation specialists. Get quotes and determine if the cleanup is worth the investment.
Bonus Tip: Trust the Inspector – But Do Your Homework Too
Home inspectors offer a generalist’s overview of a property’s condition, but they are not specialists in every system. A good inspector will flag concerns and recommend further evaluation – but it’s up to you to follow up.
Don’t just skim the summary page of your report. Read it in full, ask questions, and don’t be afraid to bring in additional experts. It’s better to invest in clarity now than to uncover costly surprises later.
Don’t Panic, But Pay Attention
A lengthy inspection report doesn’t necessarily mean a home is falling apart. Most homes – even new ones – have a few items that show up on the list. The key is to differentiate between cosmetic issues and true dealbreakers.
When you spot serious red flags like structural damage, faulty wiring, major water problems, or health hazards, you have a few options:
- Renegotiate the price based on repair costs
- Request repairs or credits from the seller
- Walk away if the risk outweighs the reward
Buying a home is one of the biggest investments you’ll ever make. By knowing what to look for in a home inspection report and taking action based on those findings you’ll protect your investment and your peace of mind.
If you’re not sure how to proceed after a home inspection, consult your real estate agent, a home inspector, or a qualified contractor. Their expertise can help you make the best decision, with confidence.