Many sellers might not realize that they have the option to get a pre-listing home inspection, and usually those who do know, tend to opt-out of getting one. Which is understandable, having a home inspection that they pay for themselves before ever putting their house on the market can seem like a tough decision to make! But it’s one that should not be avoided.
In general, the home buyer adds the completion of a successful home inspection as a contingency to an offer on a home. Once they are ready to buyers conduct the inspection, they have the power to negotiate with the seller regarding who pays for any necessary repairs, and they even have the power to walk away from the deal altogether. Leaving you out hundreds of thousands of dollars, or back to the drawing board.
When sellers have a pre-listing home inspection, they can get ahead of issues a buyer might find in the home and reduce the likelihood a deal will fall through. A pre-listing inspection serves many benefits not only for the seller, but also for their agent.
A “Four Point Inspection” focuses only on four main areas of interest in a home:
The inspection and report describes the condition and age of these elements.
Most Insurance companies have become increasingly reluctant to issue Homeowner Insurance Policies on older homes (usually 25 years old or more).
Their concern is that there may be conditions in an older home that could become a liability to them. For instance; a home with a roof nearing the end of its reliable 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 in an older home. 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.
There is no industry wide standard form for a Four Point Inspection. Some insurance companies provide their own forms; however, most insurance companies will accept forms from companies that perform home inspections provided that they are filled out by qualified individuals. Insurance companies want these forms filled out by certain qualified individuals such as a licensed Home Inspector, Professional Engineer, Electrician, General or Roofing Contractor.
The insurance companies do not want large reports that contain other information. They want only specific information about the HVAC, plumbing, electrical system and roof in a short one or two page signed document. Before you pay for a home inspection you should research with your insurance company if they will require a Four Point Inspection Report. You can end up paying twice for much of the same service and information gathering.
A wind mitigation inspection looks at seven key areas of your roof to determine its ability to withstand strong winds and water intrusion. During a storm (yes, even a typical summer thunderstorm), heavy winds can push rain against your home, where, being water, it will find its way into any crack or crevice. Your roof is the first line of defense against wind, which is why wind mitigation inspections focus on your roof.
The inspection report will examine seven areas:
Obviously, the newer, stronger, and better constructed your roof is, the more protection it can provide against wind damage.
By far, the most popular reason for getting a wind mitigation inspection is to save money on your insurance premiums! Your carrier should provide you with insurance discounts for a “passing grade.” The more wind-resistant features your roof has, the deeper your discount.
These items will all get you extra “credits” that your insurance company will turn into discounts.