The role of the home inspection is to protect the buyer from inheriting major issues along with his purchase. Home appraisal, on the other hand, ensures a lender does not pay more than they should. During the appraisal, the appraiser determines the market value of the house based on its square footage, the number of rooms, bathrooms, size of the outside territory, and the garage. 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 aren’t obvious, the home appraiser won’t factor them into the market price of the home. For example, a tilted facade and moldy basement are highly noticeable, and will be reflected in the appraisal; however, not-to-code electric wiring and condition of the insulation or foundation will not. Some mortgage guarantors require home inspection along with the appraisal, as they have specific requirements of what should and shouldn’t be in the house. A property that possesses any of the red flags can’t be approved until all of them are eliminated. If inspections are made properly, you’ll be able to know your future house’s exact conditions. Be absolutely sure that you have a trustworthy and reliable home inspector on your side, as essentially, the whole deal now depends on him. • • •
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