Inspections, appraisals, and due diligence

Florida inspections are different

If you've bought a home in another state, you have a frame of reference. Florida adds a few wrinkles most first-time buyers don't see coming:

• Roof age matters enormously. Insurance carriers increasingly refuse to write policies on roofs older than 15 years — even if the shingles look fine. A 14-year-old roof on a contract home can blow up your homeowner's insurance quote a week before closing.
• Wind mitigation is a line item. A separate report (wind mitigation) documents hurricane straps, roof geometry, opening protection, and secondary water resistance. Each feature earns you insurance discounts.
• 4-point inspections (roof, electrical, plumbing, HVAC) are required by most insurers for homes over 25-30 years old.
• Sinkhole and CS/CCRS testing may come up in certain submarkets.
• Termite inspection (WDO) is a standard addendum and is often required by lenders.

Budget $400-$900 for a standard home inspection, plus $100-$200 each for wind mitigation, 4-point, and WDO reports. Pool? Add $125. Septic? $200-$400. Well? $150. Dock/seawall? $350-$600 from a specialist.

The Florida home inspection checklist

A thorough inspection should cover, at minimum:

Exterior

• Roof age, condition, underlayment if visible, flashing
• Soffit, fascia, gutters
• Stucco condition, cracks, efflorescence
• Windows and doors — seal condition, impact-rated?
• Exterior paint, wood rot
• Deck, pavers, driveway

Interior

• Walls, ceilings, visible moisture staining
• Flooring (tile, wood, luxury vinyl — all common in FL)
• Doors, windows, operation
• Attic — insulation depth, visible moisture, pest activity
• Crawl space (less common in FL than slab)

Electrical

• Panel type (avoid Federal Pacific, Zinsco — these are insurance red flags)
• Age of panel
• GFCI protection in kitchens, baths, garages, exterior
• Grounded outlets throughout
• No aluminum branch wiring in mid-century homes

Plumbing

• Visible leaks
• Water heater age (replace at 12-15 years)
• Supply line material — polybutylene pipe is a red flag requiring replacement
• Drain material
• Main shutoff location and function

HVAC

• Age (expected life 12-18 years in Florida)
• Efficiency (SEER rating)
• Ductwork condition
• Air handler location (garage is fine; attic is common but hot)

Pool (if applicable)

• Pump, filter, heater condition
• Salt vs. chlorine system
• Pool cage screen and frame
• Tile, coping, deck condition
• Leaks (pressure test is extra)

Wind mitigation: the report that pays for itself

Separate from the main inspection. The wind mitigation form (OIR-B1-1802) documents eight key features:

1. Roof covering — compliance with FBC 2001 or later
2. Roof deck attachment
3. Roof-to-wall connection (clips, single wraps, double wraps)
4. Roof geometry (hip vs. gable — hip earns more)
5. Secondary water resistance (peel-and-stick)
6. Opening protection (impact glass, shutters)
7. Gable end bracing
8. Reinforced garage door

Each earns a credit on your homeowner's insurance premium. On a $900K home, a strong wind mit report can save $2,000-$4,500 per year. Always run this before closing — and always ask the seller for a recent one if they have it.

4-point inspection: what insurers actually care about

If the home is 25+ years old (common in Dr. Phillips, College Park, Winter Park), insurers will demand a 4-point:

1. Roof — age, material, condition, remaining useful life
2. Electrical — panel, wiring type, main service amperage
3. Plumbing — pipe material, visible leaks, water heater age
4. HVAC — age, operation, efficiency

Fail a 4-point and your options narrow fast: either the issue gets fixed pre-closing, or you're stuck with a surplus-lines carrier (expensive) or Citizens (the state insurer of last resort, with rising rates and coverage limits). On older homes, schedule the 4-point early — not 3 days before closing.

Reading the inspection report like a pro

A 70-page inspection report is scary. Most of it is noise. Here's how we triage:

Walk-away items (rare but real):

• Active structural issues (foundation settlement, major cracks, sagging roof)
• Extensive mold (not cosmetic mildew — actual HVAC-spread mold)
• Major electrical deficiencies (aluminum branch, Federal Pacific panel, no ground)
• Major plumbing (polybutylene throughout, main sewer line collapse)
• Undisclosed termite damage affecting structure
• Sinkhole evidence

Serious-but-negotiable items:

• Roof approaching 15 years
• HVAC approaching end of life
• Pool equipment near end of life
• Water heater 12+ years
• Window seals blown
• Stucco cracks needing repair

Cosmetic / normal wear:

• Minor drywall cracks
• Outdated fixtures
• Paint touchups
• Scuffed floors

Your agent helps you categorize. Then you either:

1. Accept the home as-is
2. Request repairs prior to closing (seller fixes)
3. Request credits at closing (you get cash to fix yourself)
4. Request a price reduction
5. Terminate and get your EMD back

Pro tip: credits at closing beat seller-completed repairs 90% of the time. You control the vendor, the quality, and the scope.

The appraisal — the other shoe

Your lender orders an appraisal (you pay, usually $550-$750). An appraiser visits the home, measures, photographs, and compares to 3-5 recent sales. Their value becomes the ceiling your loan can be based on.

Three outcomes:

1. Appraises at or above offer → smooth sailing.
2. Appraises below offer, within your gap coverage → you close, cover the gap in cash.
3. Appraises far below offer → you either renegotiate, waive the appraisal contingency (risky), or walk.

If an appraisal comes in low, your agent can:

• Request a Reconsideration of Value (ROV) with additional comps
• Challenge clear methodology errors
• In rare cases, order a second appraisal (with lender approval)

Most low appraisals aren't wrong — they're conservative. The agent's real job at that moment is to evaluate whether the original offer was justified. If it was, fight. If it wasn't, renegotiate.

The survey, title, and HOA documents

Three documents to request and read before closing:

1. Survey — boundary lines, encroachments, easements, setbacks. Critical for waterfront, pool, or anything near a lot line.
2. Title commitment — what you're really buying. Liens, restrictions, unpaid assessments. Your title company produces this; read the exceptions section carefully.
3. HOA/CDD documents — by-laws, declarations, financials, reserve study, meeting minutes. Florida law (Chapter 720) gives you a limited review period to terminate if the HOA docs aren't acceptable. Don't waste it. Read the financials, the reserve study, and the last two years of meeting minutes — that's where you find special assessments, litigation, and governance drama.

The bottom line

Due diligence is not a box to check — it's the phase where most buyers make their biggest money-saving decisions. Slow down, read, ask questions, and don't let the listing agent's timeline rush you past something that doesn't sit right.

Up next: Closing day — what actually happens, wire fraud prevention, and the Florida homestead filing deadline you cannot miss.