hen you are buying a is your warning signal that you
home it seems like there are overpaying. There is also
are so many reports and significant information in
inspections needed. You are appraisals that confirm you are
advised to get the home buying what has been advertised
appraised, inspected, checked for by the seller.
termites, surveyed and so on. Why
are there so many different The home inspection is very
reports? important. It is not an
appraisal. The appraisal helps
Each report will tell you confirm the home's value, the
something different although some inspection looks at the home's
clearly have overlaps. But they condition. The professional
all offer something that other inspector checks all systems of
report won't cover. the house, from the foundation to
the roof and most everything
Lenders make loans on the sales between. Do the appliances work?
price or the appraised value -- Does the plumbing leak? How old
whichever is less. The appraisal is the roof and when will it need
is an estimate of value by an to be replaced? Is the electrical
independent third party. This wiring up to code? The home
reduces the lender's risk by inspection report will tell you
assuring that the property is what needs to be repaired and
worth what you are paying for it. what amount the repairs could
As a general rule you do not cost.
often see a “sale” appraisal with
a value higher than the agreed The termite or pest inspection is
upon sales price but it is not also important as your home is
uncommon to see appraised value probably built of wood. Most
less than the sales price. This lenders require a pest inspection
but not all will require a home confirm the property size is what
inspection. You should insist on has been advertised or the side
both inspections to protect your fence belongs completely to the
best interests. You don't want to neighbors. The survey also shows
buy a home just to find out in a any easements, or right of ways
month that termites have for others to use your property.
destroyed the structural safety For example, there is often a
and it will cost you $25,000 to Public Utility Easement on
repair the home. The pest and the property. This gives that utility
home inspections will help the right to enter your property
protect you. and install, maintain or repair
their system.
The survey shows the boundaries
of the property, where the In most cases, here in
improvements are located, the California, the only report you
size of the property and other are likely to have much choice in
factors such as easements and obtaining is the Home Inspection.
encroachments. This information All four reports are valuable,
is important. For example, if the give you different information
current owners have built an and help avoid surprises which
addition that encroaches on the generally are not a good thing in
lot line, a neighbor could demand buying real estate.
its removal. It is also a way to
About the Author:
Julie Jalone is an experienced professional Realtor serving the need of buyers and sellers of residential real estate in the Greater Sacramento area including Placer, El Dorado, Yolo and Yuba counties. Some of the communities served by Julie include Sacramento, Roseville, Rocklin, Lincoln and Granite Bay. Julie is a wife and mother living in Rocklin. For more information see her website, www.jalone.com, which includes listings, local real estate market analysis, news, resources for buyers and sellers and her daily weblog, ”Keep it Real in Sacramento.”
