The Importance of a Home Inspection


Hey everybody Marianne Knowles here with Team Knowles Tampa Bay at Lipply Real Estate and today we're talking about inspections and why they're so important. So let's get into it.

More Competitive Year Coming for Buyers

Here we are still the beginning of 2024 and experts are predicting that this year and next is going to be much more competitive for buyers seeing that mortgage rates are dropping. A lot of buyers especially some of my customers are asking if their offer will look stronger if they waive the inspection. Now, as your agent, and as your adviser, I always suggest not to do that and here are some reasons why.

If You Need to Get a Mortgage

If you are planning on getting a mortgage your lender will require for you to get what's called a four point inspection. This is the inspection that's going to look at all the heavy ticket items like your AC, your plumbing, the roof, and the electrical in order for you to have home insurance.  You do have to have a four point inspection and those heavy ticket items need to "pass". It's not really a pass fail situation but they do need to be in working order. So again if you are getting a mortgage it probably wouldn't be in your best interest to try to wavie that inspection period because you do need to get the four point inspection.

Due Diligence Period

Now let me again start by saying that I'm in the State of Florida. So this is all state of Florida purchase and sales contract terms. But here a buyer gets a 15-day due diligence period. During this due diligence period he or she can do whatever they want as far as inspections. You can do your fourpoint. You can do your home inspection. You may want to do mold, you may want to do wood destroying organisms. There's so much that you can do when it comes to your due diligence period. A lot of buyers, especially cash buyers, they feel as though it's not necessary because they really just want to get their offer accepted. But as your agent there's other terms in that contract that can still make your offer appear stronger and still keep that safety net of your inspection period intact in that contract. If let's say during your due diligence period you decide that you do not want to continue with the contract. You have an out because you're protected during that due diligence trial time. However if you waive that inspection period and let's say something should go wrong during the transaction - like you simply just change your mind and you did waive that inspection period, unfortunately you wouldn't be able to get your escrow deposit back because you did waive it and therefore you don't have that protection period.

Possible Other Negotiations

Now even if you really do believe that there's nothing wrong with the home and that the home inspection isn't necessary it allows myself or another realtor to really go to bat for you and make negotiations happen. You may end up getting something in this deal that you didn't expect just by allowing your realtor to make negotiations for you. So once again you want to keep your inspection period even if it's not the full 15 days. This will give you some protection. It will give you a little bit of a stronger offer since you are going to be cutting that inspection period but it would also give your realtor a chance to make some negotiations for you that you weren't expecting. But at the end of the day you want to maintain that you still have that contingency embedded in the contract.

This is just a quick video - just me coming out here saying not to waive that inspection period. But if you have any questions please feel free to reach out I'm always happy to help. Take care.

Marianne Knowles, REALTOR - Lipply Real Estate - 813-720-9201

Post a Comment