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Articles and Advice

What To Do If Your Dream Home Fails Inspection

Did your dream home fail inspection? It's not the end of the world, and here's why.

As a buyer, it's easy to become emotionally invested in a home, especially when you find one that meets all of your criteria.  However, it's so important to ensure your offer includes a home inspection contingency and to keep your emotions in check until the home inspection report comes back. A home may seem like a dream come true on the surface, but the home inspection report may transform it into a nightmare.

A home inspection usually takes place within the first 10 days under contract. The report will usually outline minor defects to major structural issues and everything in between. If there are serious issues such as foundation damage, roof damage, or mold in the basement, you'll likely need to negotiate with the seller on how to remediate the issues. If your dream home fails the home inspection, that doesn't necessarily mean all hope is lost. Don't panic. Instead, your real estate agent can help guide you through these steps:

  • Request For The Contingency Period To Be Extended
    If it turns out the home has numerous problems, you'll likely need some time to wrap your head around them. First thing is first — ask your real estate agent to request to extend the contingency period. If granted, you'll have some extra time to carefully calculate the costs of the necessary repairs.
  • Determine Your Ideal Solution
    Just because a home fails the inspection contingency doesn't mean the deal has to fall through. In most cases, it just means you and the seller will need to negotiate a solution. Once you've reviewed the report and calculated the repair costs, determine if you want the seller to have the repairs completed before closing or if you'd rather close sooner and have the seller reimburse you for the repair costs. Your real estate agent can help you with the negotiation process.
  • Consider How Much You're Willing to Invest
    If the seller flat out refuses to make the repairs or reimburse you for the costs, then you'll need to seriously consider how much you're willing to pay for the home. If it's truly the home of your dreams and you have some extra funds to invest, paying for the repairs out of pocket may be worth it to you. If not, then be prepared to walk away. Remember, during the contingency period, you still have the opportunity to walk without losing any money. Luckily, in the majority of cases, buyers and sellers can reach a resolution.

While it's true that a failed home inspection can sometimes derail a home sale, deals are more likely to fall through due to an unwillingness to negotiate on how to remediate the situation. The best thing you can do is keep emotions in check, calculate the cost of repairs, and attempt to negotiate with the seller. Depending on the cost and the severity of the repairs, there is a good chance you can come to a resolution before walking away from the deal.

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The Abby Nelson Team
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Disclaimer: All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information on this site was last updated 03/03/2026. The listing information on this page last changed on 03/03/2026. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of Bright MLS (last updated Tue 03/03/2026 9:24:02 AM EST) or (last updated Tue 03/03/2026 9:35:23 AM EST). Real estate listings held by brokerage firms other than Delta Agent Sites may be marked with the Internet Data Exchange logo and detailed information about those properties will include the name of the listing broker(s) when required by the MLS. All rights reserved.
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