Appraisals and Inspections

Ken, I like how you helped your sellers to get realistic with their price.  It's tough to be the bad guy and have to tell them to lower their asking price!  That's why a good appraisal really helps, it is an objective opinion.

As you pointed out there is a world of difference between a home inspection and an appraisal. The home inspection is an important part of the purchase process for a home purchaser. It's even more important in today's market with all the bank owned and short sale transactions happening. Banks don't care about the condition of the property, their concerns is getting as much as possible. There have been major changes with appraisals over the past few years. Lenders are moving to the point where they can't choose the appraiser. This is being done so they won't be able to place "undue influence" on the appraiser to come in with the value. In today's market it can make sense to get an appraisal up front to help determine the listing price. But be aware that with the market constantly changing the appraised value could change baaed on new comps in the area or differences in appraisers opinions between the original appraisal date and the date the appraisal based on a contract is done. It should be noted that the appraisal done for the seller cannot be used for the purchasers loan.

I have had more than 1 client ask to hire their own appraiser; on behalf of the bank.  Sorry it doesn't work that way.  But I have often had an appraiser do an appraiser for the seller or owner to help them realize the value.

Occasionally people will think that the bank will send out someone to make sure there is nothing wrong with it. That appraiser guy, you know.

It seems to be becoming more prevalent here in a still-declining market that the appraisal is now done first. After all, if it won't appraise, there's usually no going forward unless it's an all-cash offer by some foreigner who simply wants a piece of America at whatever cost.

In some cases, with these vacant foreclosures, both the appraisal and the inspection are being paid for by the buyer before a purchase offer is ever made on the property. It's been a 180° turn from what it was just three years ago. Appraisers are quite happy because they now have no obligation to a bank to come in with the right price, and home inspectors are busier than ever (my marketing guru is also a home inspector).

these are both critical inspections, the qualty of the house and the quality of the price someone is going to pay,  -  have a great week

It seems anymore we spend a lot of time sweating both inspections and apprisals.  I have a home inspection scheduled tomorrow morning at 9 am on the Falls Church/McLean border.  I suspect there will be some minor issues as it is original owners and built in 1976.  As a new twist the owners are not leaving during the inspection.  Oyyyy!

I sometimes get called to do an appraisal because of the confusion between the two. Fortunately, the kind of questions I ask lead them to the correct conclusion that there is a difference between the home inspection and the appraisal. Quite often I'm also able to schedule the home inspection because of my helpfulness in getting them on the right track for the appraisal.