CAN INSPECTIONS AFFECT THE H NS AFFECT THE HOUSE VALUE?
The short answer is “Yes, they can,” but don’t count on it too much. Thinking of the inspection period as another chance to revisit price isn’t a good strategy. It’s not often that the house inspection greatly affects the sale price. That has generally been negotiated prior to the inspection and the inspection is used to validate the home’s apparent condition. 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, lot size, 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 leaning 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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