What's An Inspection?
It's been said that the #1 largest purchase you'll make in your lifetime is buying a home. If that's the case, why would not want to make sure you know the accurate condition of the home before you buy it. Since you're not a builder or expert at home construction, it's prudent to hire a professional that will personally inspect the home and provide a written report of the condition and any defects within the home. I've had many customers ask me if it's worth the expense and cost to do an inspection. The simple answer is always YES! You don't try to save $400.00 when you're spending $400,000.00.
Once you find a home that you're interested in and decide to submit an offer, we're going to include a contingency within the contract that allows for a professional inspection of the entire property, inside and out. If the home is safe, we can continue with the next steps in the buying process. But, if issues or any significant defects are identified, you'll have the right to cancel the contract and get a refund of your escrow deposit. If you're still committed to the home, another option is to try and negotiate with the seller to repair or compensate you for the issues. If successful, the seller may be required to fix the problems before closing, or they might offer you a credit and have you fix it directly after closing. Regardless of the options, you will always have a right to walk away from any property during the inspection contingency period.
It's important for you to get familiar with the primary types of home inspection options that are available, or my be "required" to be performed by the lender or homeowners insurance company.
Most Commons Inspections
Residential Home Inspection:
A home inspected during a residential inspection is an evaluation of the overall condition of the primary components, inside and outside of the property and is beneficial to both the home buyers and home sellers, as well as the real estate professionals. It helps all the parties involved in the home sale to understand the condition & functions of the various systems and components of the home, as well as any maintenance issues related to home ownership. The residential inspection will focus on the following items:
- Structural elements, foundation, framing, roof trusses, etc.
- Plumbing systems
- Roofing
- Electrical systems
- HVAC Air Conditioning systems
- Cosmetic condition, paint, siding etc.
Four-Point Inspection:
A "Four Point" Inspection focuses primarily on four main areas of interest in a home:
- HVAC (Heating, Ventilation and Air Conditioning)
- Electrical wiring and panels
- Plumbing connections and fixtures
- Roof
Why you may be required to get a four point inspection?
Insurance companies have become increasingly reluctant to issue homeowner insurance policies on older homes (usually 20+ years old or more). Their common concern is that there may be conditions in an older home that could become a liability and claim risk. For instance; a home with a roof nearing the end of its useful service life may fail while under the policy and the homeowner may seek reimbursement from their insurance company for damages to the home or its contents. Similar concerns extend to the condition of the HVAC, electrical and plumbing systems. If these elements are in poor condition, in need of being updated or replaced, or were improperly installed, they may fail and cause fire or water damage to a home. Newer homes are assumed (by the insurance companies) to not have these problems as frequently as older homes. As such, a requirement for binding a new homeowners policy may require you to perform a four point inspection and have the report sent to the insurance agent for review "before" a new policy can be bound on the property.
WDO Termite Inspection:
Although commonly referred to as a termite inspection, a WDO stand for "wood destroying organisms", and a proper WDO inspection looks for evidence of infestation by termites (subterranian & dry wood types), wood decay, wood destroying beetles, as well as evidence of past infestations, damage to wood, conditions conducive to infestation, and finally evidence of past treatment. Normally performed by a licensed pest control company, upon completion of the inspection, the inspector will provide a written report detailing the results and if any active termites were present, evidence of damage or past treatments, and the type of termites identified. Certain loan types including VA loans may require a WDO inspection report as part of the loan requirements.
UMVI Wind Mitigation Inspection:
A wind mitigation inspection, also known as uniform mitigation verification inspection (UMVI), is an extremely thorough examination of your home and your roof. It determines how likely damage is to happen to your home and roof in the event of a hurricane or heavy storm with high levels of wind. A wind mitigation inspection also lets home insurance companies know how well your home can withstand hurricane-strength winds — and can help you save up to a significant amount on your home insurance premiums. The inspector will provide a written report and pictures which you will send to your insurance agent for review. Hopefully your home will meet all the requirements to qualify for a premium discount.
Other Specific Inspections:
- Pool (structural, deck, equipment, heating and enclosure)
- Mold
- Water Test
- Radon Gas
- Foundation
If you're selling a home, you should also want to know about any potential hidden problems or issues before your house goes on the market. It's extremely likely a buyer's inspector is going to find them at the worst possible time, which could derail your contract and transaction. Past experience has shown that identifying and correcting any issues prior to listing a home will net you more money at closing rather than negotiating with the buyer once you're in the middle of the transaction.
If you have any questions or would like to get additional information regarding inspections, please contact Joe Bornstein, 877-333-2811.
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