Inspection & Appraisal
INSPECTION
A full inspection of the home is essential to avoiding unwanted surprises or expenses. A detailed inspection should examine, from roof to foundation, the systems and physical structure of the house.
A Home Inspection Generally Covers:
- Exterior: walls, roof, decks, chimney, drainage conditions, etc.
- Interior: windows plumbing, electrical panel, appliances, heating/cooling systems and areas like the crawlspace, foundation and attic
- Structural pest inspection
Additional Items to Consider:
- Sewer scope or septic inspection if applicable
- Lead-based paint for homes built before 1978
*Note: Your real estate agent may be able to recommend a licensed inspector who can provide you with a detailed, photographed inspection report.
APPRAISAL
Appraisers are members of the Multiple Listing Service (MLS), like real estate agents, but they must abide by additional guidelines that minimize risk to the buyer’s lender.
Once you have found a home you like, an appraisal is needed before moving forward. An appraisal takes a close look at the home’s qualities, such as location and condition, and eligibility for federal guarantees if applicable. The lender can determine the value of the house once the appraisal is completed. The lender may ask the seller to do repairs before moving forward, or they may determine it does not meet requirements and decline the loan.
Stricter practices have resulted in improved appraisal standards over the last decade, but most loan applications still result in a successful closing.
*Note: A good agent can protect you by recognizing qualities in a home that may become appraisal concerns, prior to writing the offer.
