Visited a few homes? Check!
Made an offer? Check!
Offer accepted? Yeah buddy!
What next, Mrs Landingham?
Now comes a crucial time in your buyer's journey where you will look to two professionals to assess the value and condition of the property. Enter the appraiser and inspector.
The appraiser determines the value of the property, usually by comparing it to similar homes in the area. As part of the appraiser's report, they look at properties sold within the last six months, usually within a mile , that have the same use and life expectancy of the home you are purchasing.
They also look at health and safety items, such as heat, water, flooring and windows, taking all of these into account when determining how much the house is worth. Other factors include property size, repair needed, and seasonal or location data (think floodplain or fire danger).
Typically, the appraisal fee is paid by the buyer and is ordered buy the buyer’s mortgage lender. Since the home itself is the collateral for the lender, they require an appraisal as a safeguard to ensure a worthy investment.
“But wait,” you might be thinking, “aren’t things like water and heat the purview of the home inspection?”
While it may seem like the two professionals cross paths in their duties, the inspector’s job is to report on the condition of the house, allowing you the buyer to be better informed on what you may face after purchase.
In addition to windows, flooring and roofing, home inspectors are trained to evaluate the condition of the foundation and crawl spaces, and find other hazards such as mold growth, electrical, and plumbing issues, including leaks or worn pipes.
In California, home inspectors are not required to be licensed, but instead are regulated buy a trade act.
The inspection does not produce a pass/fail grade for the home. Instead, inspectors provide a report of their findings with recommendations on how to remediate any crucial issues. Please note - there may be scenarios where a home inspection is not required.
Which should come first? In most cases, it’s a good idea to get an inspection prior to the appraisal, as the inspection may surface issues that cause you to reconsider the purchase.
For more information about appraisals and inspections, please reach out to your local real estate professional. They will also have resources for these professionals in the greater Modesto area.