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Tuesday, 18 October 2011

Appraisals are NOT Home Inspections - be careful

Appraisals are NOT Home Inspections - be careful

When you obtain financing for a property, if you are purchasing the property, the lender will want an appraisal to determine if the value is good enough to lend against. If the value is not good, then the bank may say NO or may lend less money than you are requesting, which means you must use your own cash towards purchasing the property.

The appraisal does not tell the bank that their is a leaky water pipe, or that their is mold in the basement, or a crack in the foundation or the shingles on the roof need repair. 

So, if you buy a house what are you to do? Well, you can hire a home inspection company. You will find them on the internet. Look for good feedback and hire that firm. The home inspection company will let you know what is materially wrong with the house so that you can either negotiate a lower price from the vendor or look for another house to buy. 

As with the appraisal cost, the cost of the home inspection is normally paid by you.

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