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A home appraisal and a home inspection are two entirely different things. The purpose of the appraisal
is to determine, for the lender, that the home is worth at least as much as is being paid for it. The purpose of
a home inspection is to determine the condition of the house as regards the need for repairs to keep the
property in good operating condition.
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The standard California purchase agreement gives the homebuyer 17 days after acceptance of the offer to
conduct their investigations of the property. In addition to a general home inspection, there are many specific
inspections that can be carried out. The buyer must decide which, if any, they wish to have. Sometimes the
general home inspection report will recommend a more rigorous inspection of a particular item by a specialist.
Here are some of the specific inspections that could be appropriate.
- Roof
- Mold
- Plumbing
- Electrical
- Environmental
- Pool/Spa
- Soil/Structural
- Well
- Pet urine and stains
At the very least it is highly recommended for a buyer to have a general home inspection conducted by a
professional home inspector. At a cost of around $250 this is a very worthwhile precautionary measure. In a
home inspection the systems and structure of the home are examined visually. The inspector cannot see inside
walls and will not disassemble things for a look inside. The buyer does not have to be present during the inspection
but it is a good idea to attend. There will be a written report but it is even better to have the inspector actually
point out the problems.
If you are a seller you may want to fix a few simple things prior to the inspection. Leaking faucets and cracked
windows are two examples that a buyer is not going to find acceptable. Exposed wiring in the garage is often found
by an inspector and is a safety proplem, it might be better to simply remove it. It is also a good idea to change out
the filter in the forced air heating/cooling unit.
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It can be worthwhile for a seller to have a home inspection done prior to putting their house on the market.
This can eliminate nasty surprises during escrow and allow the seller more time to make repairs. It can also be
a positive selling point.
There are two professional societies: ASHI - The American Society of Home Inspectors and NAHI - The National
Association of Home Inspectors. Both have Standards of Practice and Codes of Ethics, it is recommended to
choose an inspector who is a member of one of these organizations.
Download NAR Report: 10 Questions to Ask a Home Inspector
After the home inspection the buyer may wish to submit a Request for Repairs to the seller. The seller
is under no obligation to make the requested repairs and may choose to make all of them, some of them or none
of them. Equally the buyer is under no obligation to proceed with the sale knowing there are things wrong with
the house and the seller will not fix them. This is a time of negotiation.
It is customary for the seller to purchase a one year home warranty for the buyer. Sometimes the buyer may
elect to acquire additional coverage at their own expense. With the combination of a home inspection and a
home warranty it is tempting to think that nothing could go wrong. In reality the home inspection does not
include every possible problem and the home warranty does not cover everything so it can happen that
problems still crop up after the close of escrow which the buyer must take care of at their own expense.
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It is also customary for the seller to provide a termite inspection report. This inspection is not only to
check for a live infestation of termites but also the conditions that may lead to an infestation. The report
provides for two types of findings: Section 1 is for problems that must be corrected and Section 2 is
for problems that may be optionally corrected.
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