In New England, an inspection usually uncovers minor wear and tear, but there are four major issues that consistently cause buyers to walk away or lenders to deny a loan:
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A Failed Title V (Septic) & New Nitrogen Rules: Massachusetts law requires a passing Title V inspection within two years of a sale. If it fails, repairs or replacements can range from $20,000 to $50,000 on the Cape.
Additionally, if your home is in a newly designated Nitrogen Sensitive Area (NSA), you must disclose this to the buyer. Even if a system is “working,” new environmental laws may require an upgrade to high-tech nitrogen-filtering systems unless your town has a “Watershed Permit.” Most banks won’t move forward until these issues are cleared or a plan is legally in place.
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Moisture or Mold in the Basement: With the coastal humidity, any sign of standing water or active mold growth is a major deterrent.
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Aging Roofs: With insurance companies becoming much stricter, the buyer may find the home uninsurable if a roof has less than 3-5 years of “useful life” left.
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Outdated Electrical: Specifically “Knob-and-Tube” or certain older panels (like Federal Pacific) which many modern insurance carriers want replaced before providing coverage.