Real estate transactions are complex, hinging on various variables that arise throughout the purchase and sale process. One of the most pivotal of these details is the home inspection. 

While many inspections conclude with a clean bill of health, there are instances where major issues come to light, creating new implications for both buyers and sellers. 

In this blog post, we will delve into the potential outcomes that may arise when a home inspection uncovers major issues, how they can be handled, and what buyers and sellers should be aware of before the inspection process begins. 

The Return of Inspection Conditions 

At the peak of Toronto’s record-breaking seller’s market only a few years ago, buyers sought out every possible angle in order to make their offer more appealing. In some cases, this meant bypassing this inclusion of conditions altogether – including a home inspection. However, as market conditions have balanced out, buyers have welcomed the return of home inspection conditions as a relatively standard aspect of a buying offer. 

Hoping to achieve a smooth, high-result home sale? Explore these informative resources from our site. 

What Does a Home Inspection Most Commonly Uncover?

Property inspections cover a lot of ground. Therefore, there is a wide range of concerns or potential issues that could be realized as a result of one. Most concerns are maintenance issues and can be dealt with over time after the closing date. However, some of the more serious problems are more common than others. 

The 3 Most Common Issues Uncovered by Inspections


Issues with the home’s electrical system are often uncovered during home inspections. While there are usually fixes available, some solutions are more straightforward than others. Simple fixes include double taps on circuit breakers, replacing missing GFCI plugs, and out of phase wiring. 

More involved fixes may involve electrical panels with fuses, aluminum wiring and knob and tube wiring. Thankfully, solving these kinds of problems can be done relatively quickly with the assistance of a licensed electrician. As a well-connected real estate team, we have several electricians that we regularly work with and can recommend one depending on the complexity of the repair.


Asbestos is another common problem uncovered by inspection. It could be hiding in vermiculite insulation or wrapped around hot water heating pipes and fresh air vents. Occasionally asbestos can be somewhere that’s a little harder to detect, such as drywall which requires a piece of the tile or drywall to be removed and tested off-site at additional costs. 


Mould is typically found in areas that are less ventilated and prone to retaining moisture, such as basements and attics. In some cases, mould can be seen (or smelled) on a simple home viewing. Other times it may not be apparent until the inspection when otherwise off-limits areas are analyzed – like an attic. 

Implications for Buyers

Budget Reassessment

The revelation of major issues during a home inspection can have profound financial implications for buyers. Suddenly, the dream home may require substantial investments in repairs or renovations. The ability to secure financing for the property may also be affected, depending on the severity of the issues. This may force buyers to reassess their budget and potentially renegotiate the sale price or request repairs from the seller.

Negotiation & Contract Adjustments

The discovery of major issues provides buyers with leverage in negotiations. With the guidance of their agent, they may opt to renegotiate the purchase price or request that the seller address and remedy the problems before the sale proceeds. This negotiation process requires a delicate balance, as both parties strive to find a mutually beneficial resolution.

Reevaluation of Purchase Decision

Major issues uncovered during a home inspection can lead buyers to reconsider their decision to purchase the property. The emotional attachment to a home may diminish when faced with the reality of extensive repairs. Buyers may need to weigh the cost of addressing these issues against the overall value and desirability of the property.

Preparing to buy a home? Explore these related posts for helpful anecdotes and insights. 

Implications for Sellers

Impact on Property Value

For sellers, the revelation of major issues during a home inspection can significantly impact the perceived value of their property. Prospective buyers may be hesitant to proceed with the purchase or may demand a reduced price, affecting the seller’s bottom line. It is crucial for sellers to anticipate and address potential issues before listing their property.

Handling Repairs

Buyers often gain leverage when an inspection uncovers major issues. Therefore, in most cases, sellers must decide whether to address the problems themselves or adjust the sale price accordingly. The cost of repairs and the timeline for completing them become critical factors in the negotiation process. Sellers may need to engage contractors promptly to expedite necessary repairs.

Disclosing Risks & Other Concerns

Under Ontario law, sellers are required to formally disclose known issues with the property if they impact its safety or desirability. While buyers will be privy to the results of an inspection done during the transaction, uncovered issues must be disclosed if the seller proactively hires an inspector before they list their home. Failing to disclose major problems uncovered during a home inspection can lead to legal consequences. Sellers must navigate this delicate balance by being transparent about the property’s condition while still positioning it in the best possible light.

Buying or selling in Toronto? Ramsay Real Estate can provide strategic and personalized guidance that leads you toward your ideal result. Click here to contact us by email or call 416.906.8366 to be in touch. 

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