Here in South Florida, insurance companies require a 4 point inspection to be conducted on the house prior to insuring the home. This inspection covers HVAC (heating, ventilation, air conditioning), plumbing, roof and electrical. The purpose of this inspection is to ascertain whether there are conditions of the home that may present a future liability to them. The 4 point inspection is a separate inspection from the standard home inspection, but typically performed at the same time by a licensed inspector.
Over the past year, insurance companies have become increasingly stringent with their requirements and buyers are paying the price. I have had several deals over the past few months where buyers have had to go in and fix problems with the seller’s house before they even got to the closing table in order to pass the 4 point inspection.
If the buyer is unwilling to correct the problems on their own, they would be unable to get a mortgage and be released from the contract (assuming there is a financing contingency). At this point, the seller may decide to fix the issues to save the deal but in some cases they may not have the means or may be unwilling to do so.
The scenario places the buyer at a disadvantage because in today’s market there are often multiple offers on a home and the seller may want to move on to a cash buyer who doesn’t need to secure financing (and therefore, insurance) right away. Understandably, buyers are extremely leery of making repairs on a home that they do not own, but it is sometimes the only way possible to successfully complete the transaction.
This is the perfect example of why it is essential to use the services of an experienced realtor who can help you navigate the tricky waters of a real estate purchase or sale. With over 90 transactions in 2012, my team has the knowledge and experience to help buyers and sellers successfully get to the closing table.
I am a Coconut Grove real estate specialist. Over the past 3 years, I have earned the distinction of selling the most number of homes in Coconut Grove. If you would like to schedule a buyer or seller meeting with me, please feel free to call me directly at 305-342-1623 or send me a note here.
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