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, 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 are not obvious, the home appraiser will not 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; not-to-code electric wiring and the condition of the insulation or foundation are less obvious and will not likely be factored into an appraisal. Some mortgage guarantors require home inspection along with the appraisal, as they have specific requirements of what should and should not be in the house. A property that possesses any red flags cannot be approved until all of them are eliminated. If inspections are made properly, you will be able to know your future house’s exact condition. Make certain that you have a trustworthy and reliable home inspector on your side — at this point, the whole deal may well depend on his assessment.
77
Powered by FlippingBook