So what are Home Sale Deficiencies? After a ratified contract, a buyer will typically have a home inspection done as part of the terms of the contract. This inspection is designed to identify material issues with the property and to help the buyer make an informed decision about moving forward with the purchase.
Our standard Virginia home inspection agreement outlines what items can be asked for by the purchaser if they choose. These items are referred to as deficiencies.
Below is the direct text from Virginia’s Home Inspection Agreement:
“Deficiencies” as used in this Addendum are those items that could negatively affect the decision of a reasonable person to purchase the Property. Deficiencies will not include cosmetic items, matters of preference, or grandfathered systems or features that are properly functioning but would not comply with current building codes if constructed or installed today. If a system is near, at, or beyond its projected life and properly functioning, such system will not be deemed a Deficiency as defined herein.
What This Means in Practice
This language is important because it limits what a buyer can reasonably request after a home inspection. Not every issue noted in a home inspection report qualifies as a contractual deficiency.
In general, deficiencies are focused on material defects — items that impact:
- Safety
- Structural integrity
- Major systems (roof, HVAC, plumbing, electrical, foundation, etc.)
- Habitability of the home
Examples of common items that may be considered deficiencies include:
- Active roof leaks or significant roof failure
- Electrical hazards (exposed wiring, unsafe panels, fire risks)
- Plumbing leaks causing water damage
- Non-functioning HVAC systems
- Structural movement, foundation cracks with evidence of failure
- Mold or moisture intrusion affecting living areas
- Safety hazards such as missing stair railings or non-working smoke detectors (in some cases)
What Is NOT Considered a Deficiency
The agreement is equally clear about what does not qualify as a deficiency. Buyers cannot use the inspection to renegotiate over routine, cosmetic, or expected conditions.
Items that are typically not deficiencies include:
- Cosmetic issues (paint, carpet wear, minor drywall cracks, dated finishes)
- Matters of personal preference (style, colors, layout)
- Properly functioning systems that are older
- “Grandfathered” systems that were legal when installed but do not meet today’s codes
- Components that are near or past their typical life expectancy but are still operating correctly
For example, a 20-year-old HVAC system that is still working is not automatically a deficiency, even though it may be near the end of its expected lifespan.
Why This Matters for Buyers and Sellers
Understanding what qualifies as a deficiency helps keep negotiations realistic and professional.
For buyers, it ensures requests are focused on meaningful issues that affect safety, value, and functionality — not minor or cosmetic concerns.
For sellers, it provides protection from being required to repair or credit for items that are normal wear and tear or part of owning an older home.
The Bottom Line
Home inspections are an important part of the due diligence process, but the contract clearly defines the scope of what can be requested. Deficiencies are intended to address material issues, not to create a wish list of upgrades or cosmetic improvements.
If you are buying or selling a home, having a clear understanding of how deficiencies are defined can help avoid unnecessary conflict and keep the transaction moving smoothly.
