As a first-time home buyer, you may feel overwhelmed by the process of finding, financing, and closing on your dream property. One of the most important steps is to work with home inspectors and appraisers, who can help you assess the condition and value of the home you want to buy. Here are some of the best ways to work with these professionals and avoid common pitfalls.
You don't want to rely on the seller's or the lender's recommendations for inspectors and appraisers, as they may have a conflict of interest or a bias. Instead, do your own research and find qualified and reputable professionals who have experience in your market and your type of property. Ask for referrals from your agent, friends, or family, and check their credentials, reviews, and samples of their work.
The lender is selecting the appraiser so there's nothing as far as that for agents to control. As far as inspectors, I always use experienced ones usually with ASHI designation. I have three or four I like that take time with my buyers, always provide multiple options.
Finding a reliable home inspector is crucial for home buyers to ensure a thorough assessment of the property. Here's advice on how to find a reliable home inspector: Check licensing and credentials Ask for/check recommendations Read online reviews Confirm inspector has errors/omissions insurance Confirm what is in scope; particularly hard to reach areas like attics, crawlspaces. Ask about the availability of specialty services such as mold/allergy testing, radon testing, water tests, wood destroying insect inspections, thermal imaging, etc. Ask about follow-up services post-inspection. Ensure the inspector has experience with the type of home being purchased; old homes, Smart IoT equipped homes, etc.
Before the inspections and appraisals take place, make sure you are ready and informed. Review the contract and the disclosure statements, and note any issues or questions you have. Schedule the inspections and appraisals as soon as possible, and plan to attend them if you can. Bring a checklist, a camera, and a tape measure, and ask the inspector and the appraiser to explain their findings and recommendations. Don't be afraid to ask questions or request clarifications.
For listing agents, prep an info packet for the appraiser and leave it at the home. Don't be there and act like an expert, that is not needed or a good idea. For inspections, always have the buyer attend. For sellers, clean up, change air filters and ensure the home looks well maintained. Don't be there, let the inspector and buyer have time.
The inspection and appraisal results can have a significant impact on your deal. If the inspection reveals major defects or safety hazards, you may have the right to request repairs, a price reduction, or a cancellation of the contract. If the appraisal comes in lower than the agreed price, you may have to renegotiate the terms, pay more cash, or walk away from the deal. Consult with your agent and your lawyer, and weigh your options carefully.
After the inspections and appraisals are done, you should receive detailed reports from the inspector and the appraiser. Review them carefully, and make sure they are accurate and complete. If you find any errors or omissions, contact them and request corrections. If you agreed on any repairs or contingencies, verify that they are completed and documented. Keep copies of the reports and receipts for your records.
The inspection and appraisal experience can be a valuable learning opportunity for you as a first-time home buyer. You can gain insights into the condition and value of your home, as well as the market trends and standards. You can also identify areas where you can improve or maintain your home in the future. Use the feedback from the inspector and the appraiser to make informed decisions and plan ahead.
Congratulations! You have successfully worked with home inspectors and appraisers, and you are ready to move into your new home. Celebrate your achievement, and enjoy your new space. Remember to keep in touch with your inspector and appraiser, and ask them for advice or referrals if you need them. They can be valuable allies in your homeownership journey.
Seek to understand the language & rules by which appraisers must operate. For example, if an appraised value is felt to be low, first understand why the appraiser came to their conclusion. Sometimes, to do this, you need to take the appraisal report and ask another appraiser for their opinion. For example, I've seen some appraisals where the comparable sales were used because the appraisal rules dictated that these comps must be used (proximate, in same condo complex, etc) - even though the results made no sense - the appraised value was dictated by the rules. Other times, an appraiser failed to look at something that should have been considered, and when shared with the appraiser, w/i context of the rules, the value was adjusted.