A home inspection is a vital step for buyers in the home buying process and a possible source of stress for home sellers.
In a typical As-Is contract the buyer will have an inspection contingency. It is a clause that allows the buyers usually up to 15 days to have their chosen inspector check the house over for defects. A 4 point inspection will include the roof, HVAC systems, plumbing and electrical. They will also check for possible structural problems, moisture (mold) and of course the appliances.
It is also a good idea to inspect for wood destroying organisms (WDO) such as termites. This is usually an optional inspection at an added cost to the buyer. If the home is on the water in South Florida the seawall should be inspected. This is a very specialized inspection and also an extra expense for the buyer. They will check for settling, erosion, cracking and corrosion from the salt water.
Insurance Discounts
According to Florida Statute 626.0629, insurance companies are required to offer Florida homeowners "discounts, credits, or other rate differentials..." for construction techniques that reduce damage and loss in windstorms.
Home-owners can have what is know as a wind mitigation inspection done to qualify for those discounts. The inspector will confirm if the roof was installed correctly to codes that were updated in 1994 and 2002. They will confirm whether the proper nails or screws were used and the correct distance apart. Were the roof trusses attached using the correct methods and hardware. They will look to see if windows and door openings are protected from wind borne debris. Protection can include either accordion storm shutters, corrugated metal panels, and impact resistant glass.
Should the Buyer Be Present at the Inspection?
Yes, I would recommend that the buyer be present at the inspection. Whether I am representing the buyer or the seller I always try to be there to see first hand things that will end up in the inspectors detailed report. The inspectors I work with usually give an overview of the most important issues that they find after they are done. This is a great time to ask the inspector questions, like the scope and cost to fix the issue. If the seller or the sellers agent is also present we can all say we saw the same thing. This will prevent miscommunication down the road after the report is finished.
After The Inspection
The home inspector will draw up a detailed report with photos that will show the defects in the home. Included in the report will be an estimate for the needed repairs. Unless the home is brand new they will always find something. The least I have ever seen was about a $1500 repair estimate.
Typical defects found are exposed wiring, outdated electric panels, mold, termite damage, obsolete hot water heaters and air conditioners.
With the As-Is contract, if defects are found, the buyer now has the option of either moving forward with the sale, cancelling the sale, asking for repairs to made or renegotiate the purchase price. This can be a difficult period, especially if something major is discovered. It may take several opinions and some negotiation before it is all settled or the contract falls apart. I have trusted contractors like electricians and roofers I can rely on to rebut exaggerated repair claims if necessary. I may have been lucky, but I don't recall ever having a deal completely fall apart due to the inspection. It has been close. Some buyers will use the inspection to get a better price in the end.
I recommend to sellers they have their home inspected prior to putting it on the market. It prevents surprises that could stall or kill a sale. Not to mention the stress that goes along with it. Inspectors and buyers tend to over-estimate many repair costs. Having your own inspection done gets you out ahead of any issues. You don't necessarily need to get everything fixed, but knowing what the repairs will cost can save you from having to renegotiate a contract.
Typical cost for inspections
Single family home $550
Condo $250
WDO $125
Wind Mitigation $150
Sea Wall $350
Related:
3 Steps To Getting Top Dollar For Your Home
Pre-Marketing Inspections - Are They Worth It?
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