Some examples of the most common problems that should be considered are roof repair or replacement, pipe repair or replacement, fixing any leaks, and upgrading the electrical wiring for older homes, sometimes for homes 30+ years old, but definitely for homes that are older than 50 years. CAN INSPECTIONS AFFECT THE HOME’S VALUE? HOME INSPECTIONS VS. HOME APPRAISALS The short answer is yes, they can, and sometimes they do—but don’t bet on it or expect it. It’s not a good strategy to think of the home inspection period as another chance to revisit pricing and head back to the negotiation table. It’s not often that the house inspection greatly affects the sale price. This piece has usually already been negotiated prior to the inspection, and the inspection is used to validate the home’s apparent condition. The role that the home inspection process plays is to protect you from inheriting major issues along with your purchase. Home appraisal, on the other hand, is all about the home’s value, and ensures a lender does not pay more than they should. During the appraisal process, the appraiser determines the market value of the house based on items such as its square footage, the number of bedrooms, the number of bathrooms, the existence and size of the yard, and the existence and size of the garage, if applicable. The appraiser uses analytic data based on home features, comparable sales (“comps”) in the area, and other pricing factors to set a value, or market price, and makes his summary based on complex mathematical calculations. Home inspections, however, focus on home conditions — not value. If those conditions aren’t obvious, the home appraiser won’t factor them into the market price of the home. For example, a bulging wall or a moldy basement are highly noticeable, and will be reflected in the appraisal; however, electric wiring that’s
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