Tips & Trends for the Flagstaff Real Estate Market:
Past Articles [July 2003]
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Appraisals and Inspections
An appraisal and a home inspection have some similarities, but they are two distinct functions in a real estate transaction. The services provided by an appraiser and a home inspector ensure that your property meets certain, basic criteria. The appraisal assures the market value for the buyer and the lender. The home inspection focuses on the physical elements of the property and doesn't consider the value.
An appraisal is usually ordered and required by a lender to estimate the value of a property to ensure that the house is marketable in the event the buyer should default on the loan. An appraisal considers the age of the home, its condition, floor plan, amenities, square footage, the size of the lot, improvements, location, and the recent sales of any comparable homes.
The home inspection identifies items that need to be repaired or replaced and estimates the useful life of major systems, equipment, and the structure itself. The inspection doesn't comment on or ascertain cosmetic imperfections, nor does it assign a value to the property or any of its elements. A home inspection does not include a termite inspection. This inspection is required by most lenders, and is performed by a qualified professional.
Most buyers will have a home inspected after escrow is opened and will ask the seller to correct those deficiencies that they feel important before closing. Sellers can avoid having numerous items showing up on the inspection report if they take care of known defects before the inspection.
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“Mary Monday made the experience of selling my home a genuine pleasure. It delights me to know there are true professionals left in the world.”—BS |
