Can I fail a home inspection? You never have to have a home inspection. They are for the buyers benefit only. The buyer can locate the safety issues in the house before he/she buys the home. Usually, the home inspection is used as a bargaining tool for price.
Let's clarify something right there, there is no such thing as a pass or fail. No, home inspections are not a pass or fail. Some older homes that are not up to current codes, as far as safety, would be noted. A Ground Fault Circuit Interrupter (GFCI) is one of these safety instruments. It is helps against electrocution in homes. GFCIs should be in the bathrooms, kitchens, and garages. It is required to be in all wet areas. Older homes may not have them if they were built in 1975. GFCIs were not required then. The home may have partial electrical safety, but not outside outlets. We note those things because they are a big safety item. These things will be written up as a hazard, but you never fail an inspection.
I only know of one home that I inspected that did not sell. Basically, it was an argument over price. At the end of the inspection, the home inspector lays out what he saw in a house. Then he gives the buyers a good verbal explanation of what shape the house is in. He gives them a report, and basically, it is used as a bargain chip. The buyer can tell the owner that they want certain safety items taken care of. The bad wiring that the husband did because he didn't know what he was doing could be resolved before the house is sold. It may work, but it is not safe. People will bargain. They can get a price of how much it would cost to get the repair done, and basically take it off the price of the home. The home owner can also get the repairs done by a licensed contractor, show them the receipt, and then it is all set and squared away. There are things that the buyer will live with. A lot of homes, even the new homes, are poorly designed. There is very bad drainage around the home. This could cause terrible problems in your foundation. It is hard to know these problems exist if you do not get someone who knows what to look for.
