CAN INSPECTIONS AFFECT THE H NS AFFECT THE HOUSE VALUE?
The short answer is, “yes they can,” but do not count on it too much. Thinking of the inspection phase as another chance to revisit price is not a good strategy. It's not often that the house inspection to greatly affects the sale price. That price has generally been negotiated prior to the inspection and the inspection is only used to validate and verify the home’s apparent condition. The role of the home inspection is to protect the buyer from inheriting major issues with his purchase. Home appraisal, on the other hand, makes sure that a lender does not pay more than he should. During the appraisal, the specialist determines the market value of the house based on its square footage, the number of rooms, bathrooms, lot size, the garage and other features. 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 focus on home conditions. If those conditions are not obvious, the home appraiser will not factor them into the market price of the home. For example, a tilted porch and wet basements are highly noticeable, and can be reflected in the appraisal; however, not-to-code electric wiring and condition of the insulation or foundation may not. Some mortgage guarantors require certain home inspections along with the appraisal, as they have specific requirements to qualify for a particular loan program. A property that possesses certain red flags cannot be approved until all of them are eliminated. A trustworthy and reliable home inspector is priceless.
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