subject: The Benefits Of Real Estate Inspections [print this page] Before a bank will finance a property purchase, it must receive a complete property inspection report, completed by qualified, licensed appraisers and structural inspectors. Some people do both, but usually it's two separate reports. It is also mandated by local and federal real estate laws. If any defect is found, it must be disclosed to all parties, only then can a sale go forward.
First, an appraiser must do a comparison of the property in relation to similar properties in the surrounding area, the closer the better. This takes into account the square footage, floor plan, number of rooms, and whatever amenities the property offers, such as garage or swimming pool. The appearance and demographics of the block, such as what state of repair in adjacent properties. A check of recent asking and selling prices in the immediate area is a must.
Then the exterior of the property itself. Older homes are often made of sturdier materials, and offer more aesthetic features. If they are in desirable areas they will command high prices. All outdoor elements that project curb appeal, including the roof, siding, trim, windows. Does the lawn look healthy? Perhaps the soil composition won't allow for a healthy lawn, a potentially expensive headache.
Next, an inspection of all systems, like heating and air conditioning, water heater, plumbing, and electrical outlets. Ceilings must be checked for signs of prior leaks. A structural inspection is more thorough, covering the foundation, basement, crawl space, and attic for signs of termite damage, a sagging structure, seeping water. Inspecting for mold is mandatory, it often hides under kitchen and bathroom sinks. Although all this inspecting may be tedious and take time, this will clarify the valuation of the property, and provide a list of needed repairs. Then all parties can negotiate accordingly.
