Common Environmental Risks Home Inspectors May Miss During Real Estate Transactions

Key Takeaways

• A home inspection is when a professional assesses a property’s condition to uncover potential issues, helping buyers and sellers make informed decisions before closing a sale.
• Many home inspections overlook environmental hazards, like the presence of mold, asbestos, lead, underground storage tanks (USTs), radon, and flood risks, many of which are not visible without targeted testing.
• More thorough environmental testing is typically required for older or complex properties, buildings in high-risk areas, or whenever unusual odors, stains, or USTs are identified.
• Realtors should help clients determine when they need to consult environmental professionals to ensure there are no environmental risks that could impact property value, safety, and long-term maintenance costs.

Spotting Hidden Environmental Risks in Real Estate

When people are considering whether or not to buy or sell a home, they usually think about things like curb appeal or square footage. However, it is equally important to explore environmental risks that the property may present, as they may play a role in the property’s safety, maintenance requirements, and overall value.

Realtors who understand these risks should know when to go beyond a traditional home inspection and consult an environmental professional for more thorough testing, making them better equipped to guide clients. If your realtor is at the home inspection, they can help spot potential red flags, ask informed questions, and connect clients with specialists if there are lingering concerns.

This comprehensive guide highlights common environmental risks that standard pre-sale home inspections may overlook. By reading through the information below, you can learn when it is best to consult an environmental professional to build more confidence in your real estate transaction.

What is a Home Inspection?

Home inspections are professional-led evaluations of a property’s structure and systems to find potential issues. Home inspections are customary before the purchase of a home to give buyers and sellers confidence in their transaction. 

These inspections are performed by a certified and trained professional home inspector to ensure the information collected is dependable. However, since these professionals are tasked with assessing the entire property, they may not have the time, knowledge, or tools needed to uncover certain environmental risks. In turn, they may miss information that could impact the home’s value, safety, or maintenance needs. 

Thankfully, you can guarantee all environmental risks are uncovered by having a trained environmental professional survey your property. In fact, realtors may advise their clients to schedule an appointment with a specialist if they feel anything is overlooked or if any environmental red flags are raised during the initial inspection.

Should Your Realtor Be at the Home Inspection?

Yes, it is vital to have your realtor at your home inspection. Inspectors are simply there to point out issues, but real estate agents are responsible for translating those findings into negotiation strategies, repair requests, or credits that contribute to a fair real estate transaction. 

Some advantages realtors can offer clients by being present at home inspections are:

• Help with contextualizing issues – They can help clients determine what is minor and what is major, giving clients insight into what problems may cost them more money in the long run.
• Protected timelines – Realtors can stay in touch with all parties involved to help keep inspection contingencies and paperwork on track.
• Coordination with specialists – Real estate agents can quickly reach out to qualified professionals in their network if the home inspector flags problems that require tasks like mold testing, roofing work, or a sewer scope.

While your agent should not interfere with the inspector or give technical opinions that are outside of their wheelhouse, their presence can ensure their clients get clear guidance, faster problem-solving, and more substantial leverage during the buying process. If your realtor cannot attend, you should ask for a debrief over the phone or via video chat, so you can still benefit from their insight.

Top 5 Environmental Risks Home Inspectors May Miss

Without the assistance of environmental specialists, home inspectors may miss the five issues below while surveying a property before a real estate transaction.

1. Mold and Moisture Issues

Mold is known to thrive in damp environments, making it a noteworthy concern in properties with moisture issues, such as leaks, poor ventilation, flooding, and high indoor humidity.

During inspections, the presence of mold may be overlooked, as this type of fungi can hide in hard-to-reach areas where moisture may linger, such as:

• Behind walls
• Under flooring
• In crawl spaces
• In attics

If left undetected, mold can compromise indoor air quality, damage building materials, and ultimately necessitate professional mold remediation, which can add unplanned costs.

All parties involved in home inspections should look beyond visible surfaces, because musty odors, water stains, or signs of previous repairs may also suggest a moisture problem. If any of these clues are present, realtors should encourage clients to investigate more after the initial home inspection and have a specialist help them identify mold in the home.

2. Asbestos and Lead-Based Materials

Houses built before 1980 preceded the strict asbestos regulations that prevent the fibrous material from being used in present-day construction projects. Some examples of places where asbestos may still be found in these older properties include:

• Insulation
• Siding
• Floor tiles
• Textured ceilings

Similarly, lead-based paint and plumbing were commonly used before being phased out, and may still be found in older homes. Unfortunately, lead can hinder children’s neurological development, while prolonged exposure to asbestos fibers can cause respiratory issues; however, these materials may not pose immediate risks unless they are disturbed.

Since lead and asbestos cannot always be identified visually, they are often overlooked during a standard home inspection. Professional asbestos testing and lead testing are the best ways to determine whether or not these materials are present. You should check the age of the building and its renovation history—if the home predates modern regulations, professional testing is recommended before major work begins.

3. Underground Storage Tanks and Chemical Contaminants

Properties that were once used for farming, industrial activities, heating oil storage, or similar purposes may still contain underground storage tanks (USTs). As time elapses, USTs can corrode and leak petroleum or other chemicals into the surrounding soil.

Beyond cleanup costs and safety concerns, UST-fueled soil or groundwater contamination can trigger regulatory obligations and reduce property value. Because tanks are buried out of sight, their presence is not always detected during home inspections, making residential tank sweeps and soil testing essential, especially if the property’s historical use, permits, or past assessments suggest the presence of a UST. Even if a tank has been removed, residual contamination may still be present.

4. Radon Gas

Radon is a naturally occurring radioactive gas released from soil and rock. It can seep into homes through cracks or openings in the foundation and accumulate in enclosed spaces. Long-term exposure to high radon levels can lead to an increased risk of lung cancer; however, there are many ways you can lower radon levels after detection.

Still, radon is often missed during standard home inspections because it has no color, odor, or taste. Therefore, the best way to know whether levels are elevated is by using a reliable form of radon gas testing. Professional-led testing is especially important in regions where radon levels are known to be higher.

5. Flood Zones and Water Contamination

Homes in low-lying ground adjacent to a body of water or properties with localized drainage issues, stormwater runoff, or failing septic systems can experience problems that lead to water damage.

Sometimes, traditional home inspections do not accurately illustrate a property’s vulnerability to structural damage, mold growth, and potential exposure to waterborne contaminants from flooding because the tools inspectors use typically only provide general guidance. For example, FEMA flood maps do not fully illustrate neighborhood-specific risks or give information on historical flooding events.

So, realtors and homeowners should have a professional look at drainage patterns on the property and review local flood history. It is also essential to look into installing stormwater management devices like bioswales or purchasing flood insurance before finalizing the real estate transaction.

When to Call an Environmental Professional

To rule out environmental risks, many situations call for expertise beyond that of a general home inspector. Some examples of scenarios that warrant help from an environmental professional are:

• Complex or older properties – Homes with unknown histories or multiple prior uses may need to be surveyed by a specialist to avoid environmental surprises.
• High-risk areas – Properties near industrial zones, floodplains, or areas that have a history of contamination deserve closer scrutiny from an environmental professional.
• Real estate transactions – Lenders or cautious buyers may require a Phase I Environmental Site Assessment to get more detailed insight than what is offered during a traditional home inspection.
• Suspicious findings – Unusual odors, unexplained stains, USTs, or unpermitted renovations in older homes should be explored further through professional testing.

Protecting Your Clients and Your Deals

One of the most important roles a realtor can play is helping clients feel safe and informed as they move through their real estate transaction. By having a realtor at the home inspection who knows when to contact an environmental professional, clients can prevent surprises after closing.

Reliable realtors know that it is crucial to prioritize early detection because identifying issues before closing can minimize delays, avoid unexpected expenses, and ensure regulatory compliance.

If you are trying to buy or sell a property in or near Portland, Oregon, you can turn to Alpha Environmental Services for professional support. Partnering with our trained environmental specialists can provide buyers and sellers with more insight into their property’s condition, building a sense of confidence that facilitates fair negotiations.

Realtors, buyers, and sellers in the greater Portland area should contact Alpha Environmental for thorough inspections, testing, and expert guidance on environmental risks that can help with navigating real estate transactions.