Inspections, Appraisals, and Surveys: What is the difference?

Buying a home is a big investment and you should feel confident that your investment will be a good one, because once the property is transferred from seller to buyer at closing, the home belongs to the buyer with all its wonderful aspects and all its flaws.

No properties are perfect, that is why there are several inspections that can occur during the course of a home purchase. They are: a home inspection, an appraisal of value, a wood infestation report (WIR or Termite Letter), a land survey and a final homeowner inspection. Not all of these happen with every purchase, but a few are mandatory for the mortgage lender.

At the time the offer to purchase a property is written the buyer can request to have a professional home inspection performed on the property within a definite time. A home inspection is an all-encompassing inspection of the properties condition and the fee is usually paid by the buyer. A written report will cover features of the house such as electrical wiring, plumbing, roofing, insulation, as well as structural features of the home and it may unveil issues that are not noticeable to the buyer’s, or the seller’s eye. Often these problems are correctable. If not the buyer may decide to withdraw the offer within the time frame.

An appraisal of value is performed by a State Licensed Real Estate Appraiser and is ordered directly by lender. The type of loan determines the type of appraisal that is completed. An appraiser will inspect the home to determine its value by using current sales data within the neighborhood of the home and compare homes and properties similar to the subject. If the home does not appraise for at least the amount of the purchase price, the buyer and seller may need to renegotiate the offer. With the assistance of an experienced REALTOR©, the home should be listed at or near the market value at the beginning of the selling process.

A WIR or wood infestation report is performed by a certified inspector with a pest treatment company. The inspector will look for and note any previous damage or current infestation of wood destroying insects, like termites or beetles or organisms like mold. If current infestation is found then it must be treated prior to closing.

A land survey is sometimes required when boundaries of the property are unknown. A licensed Land Surveyor will survey the property, stake the boundaries and deliver a written plat of the property.

A final home inspection, or final walk through is done by the buyer and is usually accompanied by their real estate agent before closing. During this inspection the buyer is encourage to look thoroughly at the home to make sure it is what they have expected. Real estate agents are not professional inspectors so they will accompany the buyer as a courtesy.

When the inspections have been completed and approved by the buyer, the purchase can proceed to a closing of the sale.

At Azalea Real Estate in Grand Bay we can help you from first showing to closing. We can answer your questions and help guide you through the home purchase. Why not take advantage of our years of experience? Visit www.mygrandbayhome to preview homes or contact Aleta Boudreaux, REALTOR© at 251-656-4576

 

©Aleta Boudreaux, 2016

 

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