Buyer’s Inspections Vs Appraisal Inspections

If you’re not buying and selling houses all the time some of the terminology can get confusing. I’m here to solve one mystery today! Hi! I’m Sherri Echols, Broker Associate with RE/MAX Bryan – College Station. I’d like to explain the difference between a buyer’s inspection, and an appraisal inspection.

Once a contract is all negotiated and signed, the buyer has the right to have inspections performed on the house. The typical inspections in our area are first, a general inspection which looks over the whole house from the roof to the foundation and all the parts in between. The inspector will document issues and problems and will raise a red flag for things beyond his true scope of expertise. These things include roof, foundation, and some electrical and plumbing issues that might not be visible without some demolition or digging. The next type of inspection is the HVAC inspection. This expert goes over the heating and cooling system and recommends repairs if they find problems. The third is a wood destroying insect inspection. This expert will examine the house for any conditions that might entice wood destroying insects to take up residence, and for evidence of any wood destroying insects who already have moved in. A buyer uses these inspections to negotiate repairs.

Of the three inspections, the Wood Destroying Insect Inspection is required by certain lenders or loan types such as FHA, USDA, and VA loans. For these loans and conditions must be fixed, and if evidence of any wood destroying insects is found they must be treated and everything damaged in treatment must be repaired and documented before closing.

An appraisal inspection is a different animal. The appraiser looks over the property to determine an appraisal value. For these special loans, the appraiser looks to make sure the home is safe with a good roof, heat and air conditioning, and that the water is potable. If the property uses a well, the water will have to be tested. If there is a septic system, it will also have to be inspected. Appraisers have a special handbook that gives them their inspection guidelines. The appraiser inspection protects the buyer from unsafe living conditions and the lender from a house that is not up to par. A contract can be terminated if the property does not pass this inspection and the seller is not willing to remedy the findings.

I hope this has explained the difference for you. Give me a call if you have questions, I’m glad to talk about it until you understand! As always make it a great home buying and selling day.

Inspection Vs Appraisal
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