Why do I need a home inspection when my bank is having the house appraised?
Home Inspections vs Home Appraisals
The home buying process can be very confusing and stressful. Not only do you need to consider things such as price and location, you also have to worry about whether the house itself has any hidden problems that could become costly surprises down the road.
As a professional Home Inspector, it’s our job to be as thorough as we can be without performing an evasive inspection. The Home Inspection is an unbiased, professional overview of the condition of the house. Although we may greatly reduce the risk of buying a house, we cannot possibly eliminate it, since it is visual in nature and not destructive. Inspectors cannot see through walls or predict future performance. The inspection report provides you with an expert assessment on the condition of the structure and various systems within it. This will give you peace of mind knowing you did everything you could to make the right decision on what is likely the largest single purchase you’ll ever make.
Additional items and systems unique to a particular home may also be inspected. When the inspection is complete, we will document all discoveries in the inspection report and advised of any problems observed during the time of the inspection. You will also be informed about any routine or periodic maintenance that should be performed, as well as to answer to any questions you may have. The objective of the inspection is to inform you about the condition of the home and what items warrant further investigation and/or repair or replacement.
Do I need a home inspection when my bank is having the house appraised?
The answer is…Yes! A home appraisal is an independent evaluation of the current market value of a house or property. In general, the purpose of an appraisal is to set the current value of a house so that a lender may determine how much it can loan to the buyer. The appraiser looks at similar properties in the area (Comparables) and the prices at which they were sold to set the value of the house.
U.S. Department of Housing And Urban Development (HUD) requires buyers sign a Consumer Notice advising them to get a home inspection in addition to a house appraisal before purchasing a house with a FHA mortgage. Additionally, HUD now allows home buyers to include the costs of appraisal and inspection in their FHA mortgage. However, most inspectors request to be paid at the time of the inspection.