Three kinds of inspection that can “fail”
People say a house failed inspection about three different things, and each has different consequences.
| Inspection | Who orders it | What a bad result means |
|---|---|---|
| Buyer’s home inspection | The buyer, under an inspection contingency | A negotiation: repair, credit, or the buyer cancels |
| FHA or other lender appraisal | The buyer’s lender | Required repairs before the loan can close |
| City or county point-of-sale | The city or health district, before transfer | Corrections required or assumed, depending on local rules |
A home inspector has no power to pass or fail a house. The report lists defects and safety concerns, and the buyer decides what to do with it. Lender and municipal inspections carry more weight because they can actually hold up the closing.
When the buyer’s inspection report scares the buyer off
Most purchase agreements give the buyer a window to inspect and then accept, ask for repairs, or cancel. Long reports with dozens of items are normal on older houses, and many of the items are minor. Sort the report into three piles:
- Safety and structure: roof leaks, foundation movement, electrical hazards, gas or carbon monoxide issues, failing septic.
- Systems near the end of life: an old furnace, water heater or roof.
- Maintenance: caulking, loose railings, missing outlet covers.
The first pile is what usually kills deals. If one of those items drove your buyer away, our pages on foundation problems, roof damage and old wiring cover each in depth.
FHA appraisal repairs and lender conditions
An FHA appraisal is partly an inspection. HUD’s handbook requires, among other things, that the roof have at least two years of remaining life and that there be no visible frayed or exposed wiring. When the appraiser finds a problem, the loan is approved subject to repairs, and the work generally has to be finished before closing.
That leaves the seller paying for work on a house that’s still under contract, with no certainty the buyer closes. If the list is short and cheap, doing it may save the deal. If it’s long, you may be better off putting the house back on the market with the repairs priced in, or selling to a buyer who isn’t using that loan. The FHA appraisal repair requirements guide lists what appraisers check.
City point-of-sale inspections in Summit County
Most of Northeast Ohio has no city point-of-sale inspection, but a few Summit County communities do, according to a 2025 title-agency list:
- Twinsburg: exterior only, $50, based on the International Property Maintenance Code, about 5 to 7 business days. Condos are exempt.
- Macedonia: exterior only, $75.
- Northfield Village: exterior only, $100, plus a $50 occupancy permit.
Separately, Summit County Public Health requires a point-of-sale inspection for any home with a septic system or private well, and its results don’t prevent the transfer. Rules for corrections, escrows and buyer assumption vary by city, so call the city before you agree to anything. The point-of-sale inspections guide covers each community, and selling a house with septic problems covers a failed septic report.
What you owe the next buyer
Once you’ve read an inspection report, you know things you may not have known before. Ohio’s disclosure law asks sellers to report what they actually know about material defects, so a serious finding generally belongs on the form for the next buyer.
If you’ve already given a disclosure form to another buyer, R.C. 5302.30 provides for amendments, and a buyer who receives an amendment after making an offer can rescind within three business days, as long as it’s before closing and within 30 days of acceptance. That’s why disclosing late is risky and disclosing early is cheap. The Ohio disclosure form guide explains who’s exempt.
Fix it, credit it, or sell as-is
After a deal falls through, you have the same three choices as before, with better information:
- Fix the big items and relist with receipts. This fits when the house is otherwise in good shape and the repairs are known.
- Price the repairs in and disclose them, so the next buyer’s inspection holds no surprises.
- Sell as-is to a buyer who won’t need a lender’s repair list.
If the house is in good condition apart from one or two fixable items, listing again will likely net you more. When the report is long or the money for repairs isn’t there, send us the report and the address for a written offer on the house as it stands.
