While it’s possible to list a house in any condition, drawing buyers can be a difficult challenge.
If the property can’t pass a four-point inspection, it isn’t eligible for insurance and won’t qualify for a bank loan. A four-point inspection assesses the performance, safety and reliability of the four major systems, including roof, electrical, plumbing and HVAC. It identifies any risks and potential longevity of the equipment. A Florida-licensed inspector certifies that these four systems are working as intended and show no signs of deficiencies or hazards. The process takes about three hours to complete and can cost anywhere from $325 to $425. While a thorough inspection is crucial to the saleability of the property, it frequently brings costly problems to attention. A roof that’s older than fifteen years requires a passing inspection to obtain insurance. Even if the inspection verifies five or more years of dependable life from the roof, insurance companies typically reject coverage due to age. Roofing replacement is a significant investment. Plumbing systems consist of septic, pipes, drains, water heaters and fixtures. Leaky pipes result in water damage and mold growth, which don’t contribute to quick sales. An electric system that fails to meet code or cover modern demands is an expensive problem. Electrical panels that are improperly wired or frayed wires need to be repaired. A new electrical panel can cost anywhere from $500 to $1000. An outdated heating/cooling unit becomes a major investment and hassle. Deteriorating structural components, a settling foundation or termite damage are common concerns that undermine a listing and get in the way of a bank loan. An alternative is a cash buyer. Companies that buy properties for cash don’t require inspections or repairs.