On a new Miami Home Loan purchase or a Refinance, an inspection plays a critical element if financing is involved. The inspection is generally done prior to an appraisal and will give the new buyer some items that may need repair in order to get a clean appraisal. It will also alert the seller of key items they may need to fix, replace, or repair prior to the appraisal to help them get the best price for their property.
If the pricing for a property is done correctly by completing a comparable study, or, doing a BPO, then the pricing for the property should be the same value as the appraiser determines, right? That does not always seem to happen. In my recent research of attending several inspections and appraisals, for our Miami Home Loan blog, I’ve realized the better maintained the house, generally, the closer to the asking price the appraiser finds the property value. So, I’ll show you some examples and offer some tips to get the best appraisal to sell a property, and, give a Miami Home Loan buyer, or a Refinance a great appraisal experience.
There are several areas the inspector reviews and reports on to give the buyer areas of concern, or, areas, where the property might need improvement to meet standards. I’ll provide the major areas with some photos to clarify the inspection requirements.
This includes many little things. The main idea here is nothing should allow anyone to get hurt in the property. Little items like the carpet spikes left in the edges of a room where the carpet is removed and not replaced should be removed.
There should be no exposed wiring, or,no large cracks in the sideway, think “trip and fall” liability suits, or anything else that could cause a potential new Miami Home Loan buyer, or a refinance person to get hurt. So, keep a lookout for anything that looks like a potential hazard.
Roof and Attic
The roof inspection is a critical area that is used by the insurance company to determine the life of the roof and condition when making an insurance decision. If the roof has less than 5 years of life, many insurance companies will not insure the property.
The inspectors also now inspect the workmanship of the roof to determine if the proper spacing of nails is property completed, and, if the proper size of nail used in the roof construction.
They will check to see if the joints and cross beams are strapped according to the new code, which reduces the cost of home insurance.
Another important inspection is that of all the fascia boards around the roof. This will confirm if there are any rotten boards, outstanding repair issues, or, anything that might require repair to an appraisal to eliminate the need to do the repairs at a later time.
FHA appraisals in particular are required to comment on any repair issues of this type so the new owner does not immediately have this type of repair to contend with when they move into a new property.
An added benefit is the new buyers can determine the level and type of insulation to decide if they want to add some additional insulation for heating and cooling purposes to help reduce their cooling costs without having to go into the attic themselves.
This standard inspection will insure the toilets are working property, the drains are drain correctly, and that the water flow is sufficient. Otherwise, additional research will be required to confirm all plumbing features are in proper working order.
This section also describes the condition of the water hearter and the various plumbing components, which, should all be in good working order.
Many times the inspector will note the house amperage or line service capability entering the house. This alerts the potential buyer if they house has adequate power for current or any anticipated future additions. It also tells the potential buyer if the service has been updated and what kind of breaker box is in the house.
The inspectors normally check the “polarity” of the electrical plugs to confirm the house is wired correctly; if not, this could be a safety issue, and could damage some electronic equipment depending on the sensitivity of the equipment to be used with a specific plug.
The inspector will also note if there are any exposed wires, such as where light fixtures were removed from a various rooms and not replaced. They could be capped and and pass an appraisal, but, no exposed wiring is allowed. This would not only be an aesthetic concern, but, another safety hazard as well.
The air conditioning system has its own section in these inspections. Living in the tropics can be fun, but, it still gets hot here in S. Florida.
So, the life expectancy, the mechanical condition of the units, the general maintenance, and the operational condition are all checked on an inspection. They check to see the condition of the coils and mechanical units.
Another part of the report talks about the exterior of house, the condition of the wood, bricks, or stone, and any concerns the inspector may see that need further investigation, or, that the exterior is in good condition with normal wear. In this section it normally talks about the type of the products used, including the condition of the doors and windows, and, if they are hurricane rated or not.
You will also see from the visual inspection if any windows are broken, need repair or replacement, and if they are all up to code. Windows cannot be replaced by plywood or any other creative South Florida treatment.
This is where the shutters, their condition, and, their hurricane rating is discussed, so the potential buyer knows the condition and quality of the shutters. Making sure each external opening is covered is also a critical factor in getting the best insurance coverage possible.
County and Legal Property Considerations
Included in this section is an legal description, a property drawing, and, if the appraiser may notice any additions to the property not show in the county records, if those records are available. The inspector will confirm the number of rooms is consistent with the legal characteristics described in the county records. This is a critical determination to investigate if any additions have been added without permitting. Illegal additions are an issue in various communities in S. Florida, and, generally will need correction before the new homebuyer purchases the property.
That is a brief overview of the process and what the inspector looks for in each of the major areas when they are investigating a property for Miami Home Loan or a refinance inspection. Of course there are additional areas that may be included depending on the inspector, and, if the buyer is looking for any additional data on a specific area of the property. Review the documents well, ask questions, make repairs as needed, and, then your next step, the appraisal should go well.
As always, if you have any questions on your Miami Home Loan, or Miami Refinance, send me an email or call me at 305.525.6742.