Getting Through Inspections and Appraisal When Selling in Florida

Once you accept an offer, two events decide whether the sale keeps moving: the buyer’s inspections and, if the buyer is financing, the lender’s appraisal. Both happen on a schedule set by your contract, and both can lead to renegotiation. Knowing what each one looks at, and preparing for both, makes the weeks between contract and closing a lot calmer.

How inspections fit into the contract

Most Florida residential contracts give the buyer an inspection period, a set number of days after the contract is signed to have the property inspected. What the buyer can do with the results depends on the contract form you signed. Under some forms the buyer may cancel for any reason during the inspection period; under others, the seller agrees to make certain repairs up to a set amount. Read your contract, or ask us, so you know which applies.

The inspection period deadline is firm. Buyers have to complete inspections and act within it, which means you’ll get access requests early.

Inspections buyers commonly order in Florida

General home inspection. Roof, structure, electrical, plumbing, HVAC, appliances, windows, doors and more.
Wood-destroying organism (WDO) inspection. Termites and other wood-destroying insects, and evidence of prior treatment.
Four-point inspection. Roof, electrical, plumbing and HVAC. Many insurers request this on older homes.
Wind mitigation inspection. Documents wind-resistant features, which can affect the buyer’s insurance premium.
Septic and well. For homes not on city sewer or water.
Others as needed. Pool, dock or seawall, mold, radon, survey, or a structural engineer.

How to prepare for inspections

Make access easy. Clear paths to the electrical panel, water heater, attic hatch, A/C air handler, and under sinks. Unlock gates, sheds and outbuildings. Leave remotes and keys out.

Leave utilities on. Inspectors need water, power and gas to test systems.

Fix small items in advance. Burned-out bulbs, dripping faucets, running toilets, missing outlet covers, stuck windows and broken screens each become a line item on a report.

Have records ready. Roof, A/C and water heater ages, permits, invoices, warranties, termite treatment records, septic pump-out records, and any existing wind mitigation report.

Be away. Inspections go more smoothly when sellers aren’t present.

After the inspection: repair requests

If the buyer’s inspection finds issues, the buyer may ask for repairs, a credit, a price reduction, or may decide to cancel within the inspection period if the contract allows. Common outcomes:

Repair before closing, by a licensed contractor where required. You can check a license through the Florida DBPR license search.
Credit at closing, where the contract and the buyer’s lender allow it.
Price adjustment.
No change, if you decline and the buyer decides whether to proceed.

Respond to requests promptly and in writing. If a report reveals something you didn’t know about, it may become a known fact you’d need to disclose to another buyer if this sale falls through. Our seller disclosure guide explains why.

The appraisal

If the buyer is financing, the lender orders an appraisal to confirm the property supports the loan. The appraiser inspects the home and compares it with recent comparable sales, adjusting for differences in size, condition, lot, location, and features.

How to prepare:

Have the home clean and accessible, as for a showing.
Give your agent a list of improvements with dates and approximate costs, to share with the appraiser.
Have the survey and any permits for additions available.
Make sure details like square footage and bedroom count are consistent with the Lake County Property Appraiser record, or have documentation explaining the difference.

If the appraisal comes in low

A low appraisal doesn’t automatically end a deal, but it changes the math. The lender lends based on the lower of price or appraised value, so the buyer has to cover the difference or the price needs to change. Depending on the contract, the options usually include:

The buyer pays the difference in cash.
The seller reduces the price.
The parties meet in the middle.
The buyer requests a reconsideration of value, with additional comparable sales for the lender to review.
The buyer cancels, if the contract includes an appraisal contingency that allows it.

Pricing the home with good comparables from the start is the most reliable protection against a low appraisal.

Seller checklist

Know your inspection period deadline and contract terms.
Fix small, visible items before listing.
Gather receipts, permits, warranties and inspection reports.
Clear access to mechanical equipment and the attic.
Leave utilities on.
Prepare a list of improvements for the appraiser.
Respond to repair requests promptly and in writing.

We’ll help you through it

Inspections and appraisals are where many deals get renegotiated. At RLW Realty we help sellers prepare in advance, read the reports, and weigh the options when requests come in. If you’re getting ready to sell in North Lake County, give our Umatilla office a call.