Denver Home Inspection Guide: 10 Issues Buyers Should Expect

Every Denver buyer eventually faces that moment when the inspection report arrives and excitement turns into anxiety. Maybe it is a foundation crack, a dated roof, or a radon reading that sounds worse than it is.

At Highlands Property Group, I have seen deals stall over issues that turned out to be completely manageable. The problem usually is not the defect itself, but the lack of context. Denver homes have quirks that come with our climate, soil, and age. Understanding what is typical versus what is serious helps buyers stay calm and sellers stay prepared.

Why Inspections Matter in Denver

Denver’s housing stock is older than most large metros. More than 60% of homes were built before 1980, according to the Denver Assessor’s Office. That means many homes sit on expansive clay, rely on aging infrastructure, and have weathered decades of hail and freeze-thaw cycles.

The key is not to fear inspection findings but to frame them correctly. Below are the ten most common issues I see across Denver, how to prepare for them, and how to keep your transaction moving smoothly.

1. Foundation Movement on Expansive Clay

In neighborhoods such as Park Hill, Virginia Village, and Harvey Park, small cracks and doors that stick during wet summers are common. Denver’s clay soil expands when wet and contracts when dry, which causes seasonal movement.

How to manage buyer confidence:

• Prove drainage works: Extend downspouts and regrade soil away from the foundation. Photograph corrections.

• Provide an engineer letter: A short note stating movement is cosmetic often carries more weight than reassurance from an agent.

• Escalate only when needed: If structural work is required, obtain bids before listing so buyers understand the cost and warranty.

📊 According to the Colorado Geological Survey, soil expansion causes minor foundation movement in more than half of Denver’s pre-1980 homes. Most issues are non-structural and easily managed with proper grading.

2. Roof Wear and Permit Gaps

After repeated hailstorms, many Denver roofs show patchwork repairs or mismatched shingles. Unpermitted reroofs are a red flag for lenders and appraisers.

Steps to take before listing:

• Pull your permit record and keep it in your disclosure packet.

• Replace with Class 4 impact-resistant shingles for better insurance rates.

• If you live in a historic or conservation district, complete design review early.

📈 Homes with Class 4 roofs in Colorado receive an average 10–25% insurance discount according to the Insurance Institute for Business and Home Safety (IBHS).

3. Sewer Line Issues on Tree-Lined Streets

Large trees add charm but can invade old clay or cast-iron sewer lines. Roots cause cracks, offsets, and blockages that scare buyers.

Prevention:

• Order a sewer scope before listing and keep the video available for buyers.

• For small issues, share plumber estimates. For major defects, repair in advance and keep the warranty documentation.

Transparency builds trust and prevents re-negotiations during inspection.

4. Radon: Common but Easy to Fix

Denver sits in an EPA Zone 1, meaning high radon potential. Many basements test above the action level of 4.0 pCi/L.

Seller preparation:

• Test early with a certified lab kit.

• If levels are high, install a mitigation system and share the post-mitigation report.

• Keep communication simple: “Radon is common here and easily managed.”

Radon mitigation systems typically cost $1,200–$1,800, a small investment for peace of mind.

5. Lead Service Lines and Water Quality Concerns

Some Denver homes built before 1950 may still have lead water service lines. Families often ask about this before anything else.

What to provide:

• Print a copy of your address lookup from Denver Water’s lead service line map.

• Include documentation if replacement was completed or scheduled.

• Leave water filter instructions and spare cartridges if applicable.

📊 Denver Water’s Lead Reduction Program plans to replace all remaining lead lines by 2035. Sharing your property’s replacement status can ease buyer concerns immediately.

6. Pre-1978 Lead Paint and Renovation Compliance

Homes built before 1978 likely contain lead-based paint. Buyers expect full disclosure and proof that any disturbed areas were handled by certified contractors.

Preparation checklist:

• Include the EPA lead disclosure and “Protect Your Family From Lead” pamphlet.

• Provide contractor certifications and invoices for any renovation or testing.

This not only reassures buyers but also satisfies lender requirements.

7. Outdated Electrical Systems

Many mid-century homes in Harvey Park and Virginia Village still have aluminum branch wiring or even active knob-and-tube circuits. The concern is not necessarily functionality, but insurability.

Smart approach:

• Have a licensed electrician evaluate and document conditions.

• Complete targeted fixes such as AlumiConn pigtails or full rewires if needed.

• Keep the post-work certification letter for buyer and insurer peace of mind.

📈 Insurers in Colorado now require certified remediation before issuing new policies on homes with knob-and-tube wiring, according to the Rocky Mountain Insurance Information Association (RMI2A).

8. Galvanized Plumbing and Cast-Iron Drains

Low pressure or rust-colored water often signals galvanized pipes. Buyers equate this with deferred maintenance.

Fixes that add value:

• Photograph supply lines near the meter, water heater, and basement runs.

• If you repipe, use PEX or copper and keep permits and transferable warranties.

• For partial upgrades, focus on kitchens and baths where impact is highest.

Well-documented plumbing upgrades can increase perceived home value by 2–4%.

9. Basement Bedrooms Without Legal Egress

Appraisers and lenders exclude basement rooms without proper egress windows from bedroom counts.

To correct:

• Install a code-compliant egress window or well with permit and inspection approval.

• Include the final permit sign-off in your disclosure file.

This small investment not only increases safety but can improve appraised value by $10,000–$20,000, depending on the neighborhood.

10. Unpermitted Work and Historic Oversights

Appraisers and underwriters now routinely verify permits for major work such as kitchens, baths, decks, and HVAC systems. Missing records slow down transactions.

Stay ahead:

• Check Denver’s e-permit database early and close any open or missing permits.

• Complete historic reviews if required before listing.

• Upload all final permits, inspections, and warranties to MLS supplements for transparency.

A clean paper trail shortens objection periods and builds buyer confidence.

Your Three-Week Pre-Listing Playbook

Week 1: DiagnoseRun permit checks, order a sewer scope, conduct a radon test, identify plumbing and electrical materials, and take drainage photos after a hose test.

Week 2: Fix and PermitAddress high-risk issues first: active roof leaks, electrical hazards, and egress concerns. If foundation movement exists, secure an engineer letter.

Week 3: Package EverythingAssemble a professional disclosure packet that includes permits, inspection reports, radon results, warranties, sewer video, and lead-safe certificates. Upload this as a single digital link for buyers.

📈 According to REcolorado data, Denver listings that include inspection documentation pre-list sell 22% faster and with fewer price reductions than those that do not.

Neighborhood Trends to Watch

• Sloan’s Lake & West Highlands: Sewer intrusion from tree roots and older clay pipes.

• Park Hill & Congress Park: Roof patchwork from multiple hail events.

• Harvey Park & Mar Lee: Galvanized plumbing and aluminum branch circuits.

• Wash Park & Platt Park: Low basement ceilings and challenging egress conversions.

Each area has its own pattern, and understanding them upfront makes you a more strategic buyer or seller.

Final Thoughts

Denver’s most common inspection issues are not deal breakers. They are simply part of owning and transacting in an older, high-altitude city.

At Highlands Property Group, I help clients interpret inspection results with clarity, balance, and strategy. Whether you are buying, selling, or evaluating an investment property, my role is to keep your deal on track and your asset protected.

📩 Ready to prepare your home for market or interpret your inspection report?Contact Highlands Property Group for a custom pre-listing checklist or buyer inspection review.