We were featured in the Compass Market Report Q3 2021
As the Florida building inspection resource for the real estate giant, Compass, we wanted to provide a behind the scenes on this Compass Market Report Q3 2021. Below is our answers to questions that had asked us in doing research for this report as well as some additional explanation.
Compass Florida: Considering the influx of out-of-state buyers moving to Florida, tell us more about the required four-point inspections and why this is such an important step when purchasing a new home.
This is a great question. A crucial principle for a buyer to understand is that Florida insurance underwriting will be determining the insurability of the home with the potential for declining insurance or offering a cost prohibitive premium. If problems or old components are found within the electrical, roofing, plumbing, or AC system, this could be at issue. Consider asking a seller ahead of time, especially if purchasing an older property, if they are willing to have repairs, replacement performed if insurability becomes an issue. You can read more about this on our website gohomeinspection.com on the Four Point inspection page under “Our Services”.
Some additional information I’d like to add to this; it is very helpful for all in the transaction to accept that in the State of Florida, issues that come up on the 4 Point inspection are not to be view solely as negotiation. Rather these repairs or replacements are legal requirements. It is not the inspector, buyer, or realtor enforcing this, but the insurance company. In these cases, the seller does well to accept that reality and if the home is to be sold, some repairs may simply be required. Some common requirements: Roof must have serviceable life left. If the roof is close to 25 years old, all parties should be ready to face a roof replacement. Some old style electrical panels may need replacement. Also, certain kinds of water piping often must be replaced to sell. Some of these are galvanized piping and polybutylene. Also, check the age of the water heater; if near or over 20 years old, replacement will likely be required. You can review the 4 Point form here.
Compass Florida: Given the fast-paced inventory in today’s market, do you believe sellers should prioritize a pre-listing inspection? Why or why not?
We are starting to notice a shift with buyers holding out more on going into contract on a home. If sellers have to do more to attract buyers, this is where a prelisting inspection that is publicized by the realtor can attract serious buyers to the property. Issues already identified can be disclosed and negotiated before even going into contract. What this means is no deal killers arising at the midnight hour of the transaction. This also means selling the home for more since most buyers negotiate when entering the contract, but then negotiate a second time once receiving an inspection report. Doing a home inspection well in advance to understand what problems will be identified during the transaction, using this to attract more serious buyers with a “pre-inspected” home, and selling for more by eliminating a second negotiation will make you wish you never sold a home without a pre-listing inspection.
Some additional information I’d like to add to this; Generally speaking, having your home “pre-inspected” before putting it on the market is considered a must. That might sound strange as in many areas a pre-inspected home is almost unheard of; but I say a must because EVERY high producing realtor I have ever known who sells their own home has their home pre-inspected. In a market where buyers have multiple options, a seller will sell their home for more, the buyer will negotiate less, and there will be far less last minute fall-outs if an inspection report is provided to serious buyers BEFORE going into contract.
This information is straight to you from the Compass building inspection resource, Michael Gaurnier, ACI, Inc. Happy home buying in sunny South Florida!
