4 Home Inspection Issues That Should Be Deal-Breakers

When buying a house, it's important to make your offer contingent on a home inspection. After all, you don't want to get a mortgage and purchase a place only to find out there are serious issues. Undiscovered problems could drain your bank account, so you want to find out up front all that might be wrong with the home.

In some cases, an inspection may turn up problems. Sometimes these are solvable, but in other situations, you may decide you want to walk away from the purchase altogether. Here are four examples of situations where canceling your purchase could be your best option.

1. Foundation problems

The national average cost of foundation repair is $4,500, but This Old House reports that costs can range from $2,000 to $7,500. It can also be difficult to determine the full extent of the necessary repair costs ahead of time when dealing with cracks or other foundation issues.

Since a problem with the foundation can affect the structural integrity of the home, it may be a good idea to walk away if an inspection shows major issues.

2. Major mold damage

Mold is a huge problem if it shows up in an inspection. For one thing, it can be expensive to deal with; the national average cost of mold remediation is $3,500, with prices typically ranging from $1,500 and $9,000.

Mold can also be a health issue and do serious damage to the structural integrity of the home. You don't want to take a chance on moving somewhere that could be unsafe for you and your loved ones, especially since there could be more mold in hidden locations than is visible on an inspection. If you spot a mold issue, you should seriously consider canceling your sales contract.

3. Serious electrical issues

A minor electrical problem isn't necessarily a deal-breaker. But if there are major issues with a home's wiring, it could cost tens of thousands of dollars to fix -- especially if you have to start tearing up walls to access faulty wires.

Electrical issues are also a major safety hazard, as your home could be at risk of catching on fire. And, if you start doing electrical work on an older home, you may need to bring it up to modern building code standards, which could add even more to your cost.

If you don't want to take a chance on uncertain expenses and a major safety risk, you may want to make electrical issues a deal-breaker.

4. Termites

The cost of repairing termite damage averages $3,000 but could go as high as $37,500 or more. It can be hard to eliminate these pests from your home, and they can do serious damage to its structural integrity until they are removed from a property.

Since it can be difficult to determine the extent of the damage deep within the walls, it makes sense to cancel a contract when signs of termite activity are present.

While it can be disappointing to walk away from a home you love, your personal finances are often far better off if you cancel a deal when these major issues arise rather than potentially taking on huge costs after moving in.