Understanding Home Inspections & Appraisals
Hi everyone, welcome to San Diego County HomeBuyers channel. In this video, we’ll be covering everything you should know about a home inspection and an appraisal in order to raise your level of understanding and increase your confidence on this topic. We will walk through what it means to get an appraisal and an inspection, why you need one, and a quick and easy to follow breakdown of the appraisal process.
My name is Christian, the principal at San Diego County Homebuyers. Please subscribe to our channel if you find this video useful to ensure that you do not miss the next video. Let’s go!
A home inspection is obviously different from a home appraisal, but they are both crucial to the buying and selling process of any property. Home inspection is meant to protect the interest of the prospective buyer while a home appraisal is meant to protects the interest of the lender.
Home inspection is the process of ensuring that a building which is up for sale doesn’t have any structural defects or problems that reduces its market value. It is the process of ensuring that the property is in good condition for occupancy without requiring any major repairs and adjustments. This is usually done by a professional home inspector for a fee. Sometimes, your real estate agent will give you one at no extra fees. Note that a home inspection is not a legally required in the home buying process but it is highly recommended for your own interest. A home inspector will typically spend between two to four hours inspecting the property depending on its size. They check for defects in areas like the roofing and ceiling, electrical, plumbing, cooling and heating systems. If can make the time to be present for the home inspection, that is also highly recommended. An inspection report will be submitted to you afterwards. Please do well to read it because it may contain some health, safety and environmental concerns the inspector may have spotted. As with every opinion, do not expect perfection. It is possible a home inspector may not spot and report every problem or issue. One advantage the report will help bring is a conversation with the seller about bringing the price of the property down if major structural defects are spotted.
Home appraisal on the other hand is the process of determining the real market value of a property to ensuring that a lender does not pay more than what the property is worth. This is similar to the valuation of a building. Every lender or bank who will be responsible for financing the acquisition of a house for you, will have an appraisal done on the property. This is greatly in their interest but also yours as well. The hired appraiser will be tasked with looking for defects that will lower the cost of the building. They also check for the total space of the building, and compare it to the prices of similar buildings in the same or similar location. The report of the appraiser greatly influences the terms of the home loan, as it will help the lender to determine how which type of mortgage loan to give you, its tenure and the percentage of down payment to make. It is very important to get a copy of the appraiser’s report, never forget that. After all, whatever amount the appraiser will charge will be billed to you as part of your home loan processing fees or closing costs. Generally, an appraisal should cost you between $200 to $500.
If you are selling your house, you will need to follow these simple tips to help you get a good appraisal for your property.
1. Try to fix all minor leakages in your roofing and ceiling, make sure your walls have no cracks, and make sure your plumbing system has no leakages. Keep the house generally tidy and ensure that there is no foul smell anywhere in any of the spaces.
2. Keep a record of all major and minor repair works, including receipts for items purchased. They may come in handy if you want to communicate any extra work that’s been done to an appraiser.
3. Do not underestimate the value of your landscaping and the exterior esthetics of your building. Keep it tidy. Make it look welcoming. Fix all broken windows and doors, making sure they can all open and shut seamlessly.
4. Speak to the appraiser about any new social amenities in your area. If there was no entertainment center or shopping mall a year ago, let them know if that has changed.
5. If you are not required to mention the age of your building, do not do so, unless it is in your favor. Do the little amount of prep that you can to make your house look contemporary all the time.
If you are not satisfied with the appraisal report on your house or other type of building, you have every right to bring up any additional information to ensure that your property has been fairly appraised. Do make a comparative analysis with other appraisal reports on similar properties in your neighborhood and bring to the attention of the buyer any discrepancy for further investigations.
Note that the factors that are known to affect the price of your property are location, the size, type and layout of your home, the age of the property and renovations.
Buying and selling a home has become inevitable these days for the average American. Home inspections and appraisals are a very important processes to help you get the best deal even though they do come at a cost.
Hopefully by now, you understand the concepts and the best practices as it pertains to a home inspection and a home appraisal. If you liked it, do subscribe to our channel on youtube.com, if you didn’t like it – subscribe and let us know how we can improve – and follow us on our social media channels for more useful tips like these. You can find us on: Facebook – Twitter – Instagram – Linkedin
If you want to sell or buy a property in San Diego, please feel free to contact us and we will be of great service to you. If you have any questions, feel free to leave them in the comments below so myself or an expert on my team can respond. Thanks for watching! This is Christian from San Diego County HomeBuyers – The real estate team you love & know – we’re the team that knows your home: San Diego
See you on the next one!
FOR MORE INFORMATION ON WE CAN HELP YOU BUY OR SELL A HOME, CONTACT CHRISTIAN WEATHERSPOON BY PHONE AT (619) 500-2444 OR VISIT OUR CONTACT US PAGE AND GET IN TOUCH!