Appraisals are for lenders, Home Inspections are for buyers.
Be an Informed Buyer
It is your responsibility to be an informed buyer. Be sure that what you buy is satisfactory in every respect. You have the right to carefully examine your potential new home with a qualified home inspector. You may arrange to do so before signing your contract, or may do so after signing the contract as long as your contract states that the sale of the home depends on the inspection.
Why a Buyer Needs a Home Inspection
A home inspection gives the buyer more detailed information about the overall condition of the home prior to purchase. In a home inspection, a qualified inspector takes an in-depth, unbiased look at your potential new home to:
- Evaluate the physical condition: structure, construction, and mechanical systems;
- Identify items that need to be repaired or replaced; and
- Estimate the remaining useful life of the major systems, equipment, structure, and finishes.
Appraisals are Different from Home Inspections
An appraisal is different from a home inspection. Appraisals are for lenders; home inspections are for buyers.
An appraisal is required to:
- Estimate the market value of a house;
- Make sure that the house meets FHA minimum property standards/requirements; and
- Make sure that the property is marketable.
FHA, which is part of the U.S. Department of Housing and Urban Development (HUD), requires lenders to obtain appraisals of properties securing FHA-insured loans.
Home Appraisals - Home Inspections
Don B. Hatfield
Independent Home Inspector
The FHA/HUD/VA inspector/appraiser is required to make sure the property meets minimum standards.
The FHA appraisal process will note property deficiencies that are readily observable and found not in compliance with HUD’s minimum property requirements/standards (Handbook 4905.1 REV-1 and Handbook 4910.1).
A FHA inspection is not the same as a home inspection report from an Independent Home Inspector.
About FHA Home Inspections
FHA helps individuals and families become homeowners by providing lenders with mortgage insurance for certain loans.
FHA does not guarantee the value or condition of your future home, and FHA does not perform home inspections. If you find problems with your new home after closing, FHA cannot give or lend you money for repairs, nor can it buy the home back from you.
That’s why it is so important for you, the buyer, to get an independent home inspection. Ask a qualified home inspector to thoroughly examine the physical condition of your future home and give you the information you need to make a wise decision.
A Qualified Independent Home Inspector:
As the homebuyer, it is your responsibility to carefully select a qualified home inspector and pay for the inspection.
What to look for in finding a qualified home inspector.
- State regulatory authorities. Some states require licensing of home inspectors. In Indiana you will need to make sure your inspector is a Licensed Home Inspector such as: Donald B. Hatfield / Licensed Home Inspector Indiana License # HI00900035
- Professional organizations. Professional organizations may require home inspectors to pass tests and meet minimum qualifications before becoming a member. (Such as InterNACHI which turns down more than 60% of the inspectors who want to join InterNACHI because they can't pass the exam Prerequisites for membership, they must pass InterNACHI's Online Inspector Examination (free) with a score of 80% or better. they must complete InterNACHI's Ethics Obstacle Course (free). they must take InterNACHI's Standards of Practice Quiz (free). )
What does a Full Home Inspection cover?
Our Residential Home Inspections include a visual examination of the; Roof, Exterior, Basement, Foundation, Crawlspace & Structure, Heating, Cooling, Plumbing, Electrical, Fireplace, Attic & Insulation, Doors, Windows & Interior. A home inspection is intended to assist in evaluation of the overall condition of the dwelling. The inspection is based on observation of the visible and apparent condition of the structure and its components on the date of the inspection. Review our Standards of Practice for complete details.
When purchasing a home
You want to make sure you have a clause in your purchase agreement that allows you to have an inspection and that you have the right to terminate the agreement if you find the home in unsatisfactory condition. This clause should specify the terms to which both the buyer and seller are obligated. A professional inspection can give you an escape hatch from a contract on a defective house. If the contract is written contingent on an acceptable inspection, any defects in the home must be either repaired or monetarily compensated for. If you are not satisfied, you have the option to cancel the contract. It is important to have the home inspected within a few days after the purchase agreement is signed.
Our inspections are reasonably-priced
Buying a home is probably the most expensive purchase you will ever make. The cost of a home inspection is very small relative to the home being inspected. The additional cost of hiring a certified inspector is almost insignificant. As a home buyer, you have recently been crunching the numbers, negotiating offers, adding up closing costs, shopping for mortgages and trying to get the best deals. Do not stop now. Do not let anyone talk you into skimping here. Our inspections are reasonably-priced. Call for a free quote. Don Hatfield of DBH Home & Property Inspections, LLC 765-301-4565
What Really Matters
Buying a home? The process can be stressful. A home inspection is supposed to give you peace of mind, but often has the opposite effect. You will be asked to absorb a lot of information in a short time. This often includes a written report, checklist, photographs, environmental reports and what the inspector himself says during the inspection. All this combined with the seller's disclosure and what you notice yourself makes the experience even more overwhelming. What should you do?
Relax. Most of your inspection will be maintenance recommendations, life expectancies and minor imperfections. These are nice to know about. However, the issues that really matter will fall into four categories:
- Major defects. An example of this would be a structural failure.
- Things that lead to major defects, such as a small roof flashing leak.
- Things that may hinder your ability to finance legally occupy or insure the home.
- Safety hazards, such as an exposed, live buss bar at the electric panel.
Anything in these categories should be addressed. Often a serious problem can be corrected inexpensively to protect both life and property (especially in categories 2 and 4).
Most sellers are honest and are often surprised to learn of defects uncovered during an inspection. Realize that sellers are under no obligation to repair everything mentioned in the report. No home is perfect. Keep things in perspective. Do not kill your deal over things that do not matter. It is inappropriate to demand that a seller address deferred maintenance, conditions already listed on the seller's disclosure or nit-picky items.
Call 812.201.5099 for a Full Home Inspection, serving
Indiana Home Inspection Service- An Independent Home Inspector also serving Fishers Indiana, Carmel Indiana, Greenwood Indiana, Noblesville Indiana, Franklin IN Plainfield IN Crawfordsville IN Greencastle IN Brownsburg IN Lebanon IN Martinsville IN Mooresville IN Westfield IN Avon IN Danville IN Zionsville IN Brazil IN Clinton IN Ellettsville IN Cicero IN Attica IN Rockville IN Spencer IN Covington IN Pittsboro IN Veedersburg IN Cloverdale IN Thorntown IN Fairview Park IN Cayuga IN Montezuma IN Seelyville IN Ladoga
Vigo, Vermillion, Park, Clay, Tippecanoe, Montgomery, Putnam, Fountain, Monroe, Morgan, Owen, Johnson, Marion, Hamilton, Hendricks & Boone Counties