No, a home cannot really fail an inspection. A professional home inspection is an examination of the current condition of your home. It is not an appraisal, which determines market value, or a municipal inspection, which verifies compliance to local codes and standards. A home inspector will not pass or fail a house. A home inspection describes the physical condition of a property and indicates what may need repair or replacement. You may decide that the issues with the home are greater than you wish to deal with, but that is left to you to decide based on many factors.