Your Home Inspection
The process of inspecting a home is becoming more normal as time goes on. Pre-Purchase inspections used to be no more than walking through the house while viewing it in the selection phase…Now however…Many different and in some cases required inspections need to take place before possession is given and before loans are made final.
Comprehensive interior and exterior inspections made by qualified/licensed home inspectors range in cost from a few hundred to a few THOUSAND dollars depending on the homes age, condition, location…Normally however $400-$500 is enough to cover what’s needed.
Mechanical, electrical, appliances, plumbing, roof, termite (WDO), 4-Point, windstorm mitigation, pool…all are inspected for functionality. Simply, is the system or device working as designed? If yes, it passes…if not then it’s a defect that the seller/owner may have to cure (depending on the contract terms) prior to closing.
The standard Florida purchase/sales contract obligates the seller/owner to repair defects as outlined by your written inspection report summary up to certain limits. 1.5% of the purchase price is normal for “non-warranted” items and an additional 1.5% for WDO (termite, dry rot, damp rot) repair. Simply, if your inspection reveals LESS that those limits the seller must make repairs and furnish receipts from service providers at close…Some items can be completed by a “handyman” but A/C, roof, WDO and most electrical issues need to be addressed by licensed contractors.
As-Is contracts exist as well and they benefit the buyer in that if there is so much (literally) as ONE dollar in necessary repairs, the buyer can walk away. However it also allows the seller to sell without making repairs at all and if your lender requires something to be addressed…we may have a big problem. Many buyers don’t understand As-Is and frankly many sellers don’t either. Sellers think they are saying “I’m not fixing anything” and that’s fine but the verbiage allows an easy exit to the contract with no loss on the buyer’s part. TCREG will walk you through the implications of both types of contract. Certain houses may be good for as-Is and others may not.
Lenders will in some cases require “clear” roof and WDO reports before issuing a clear to close notification. This is common on Govt loans (FHA,VA) and becoming something that lenders are asking for even with conventional loans. We insist on “clear reports” in any case for your piece of mind and protection.