Why Should I Spend The Money For A Home Inspection When My Mortgage Company Is Going To Inspect The Property?

Home English FAQs Real Estate Massachusetts

Why Should I Spend The Money For A Home Inspection When My Mortgage Company Is Going To Inspect The Property?

According to one area broker/owner of a realty office, the chief confusion for consumers these days is that many believe an appraisal and a home inspection are the same thing. However, appraisals are used to determine the market value of the house you are going to buy which is the figure on which the mortgage lender bases its decision about the money it can safely lend you. When you obtain a home inspection you are evaluating your investment. Home inspectors, acting on behalf of who retained them, search for possible physical defects with the structure, roof, basement, mechanical equipment such as heating, air conditioning, electrical systems, sewage, plumbing, exterior drainage, and check for termite and other wood destroying insect infestation and/or damage.

The offer to purchase or the purchase and sale agreement controls the buyer's right to make these inspections, the time within which they must occur, when and how the findings must be exchanged, and the sellers obligations to correct discovered defects. The offer to purchase and the purchase and sale agreement typically allows buyers to terminate the agreement unless the seller makes the required repairs. It also usually permits sellers to cancel the contract if an inspection for infestation and/or damage by termites or other wooddestroying insects reveals a treatment or repair problem exceeding a certain amount of money (or the buyer can accept the property with a credit for the previously agreed amount).

Thus, not only are home inspections much different than the appraisal a mortgage company obtains, but they must be handled with particular care in light of the effect they may have on the anticipated sale of the property.

Other Massachusetts Real Estate FAQs

Q: Does The Sale/Purchase Become Final When We Signed The Purchase And Sale Agreement?
A: Not yet. First, the terms of the purchase and sale agreement have to be performed by each of the seller and the buyer. The offer to purchase and/or the purchase and … More
Q: What Happens If We Can't Get A Mortgage After We've Signed The Agreement Of Sale And The Inspections Are Completed?
A: The first step to homeownership should be to get preapproved (not just prequalified) in writing for a mortgage. As a buyer, it defines your price range and … More
Q: We're Buying A "Fixer-Upper" And Plan On Having Someone Do Extensive Remodeling, Is There Anything We Should Keep In Mind?
A: Massachusetts has very little in the way of protections against parties who buy "fixeruppers". We have a law that requires that there be smoke detectors installed … More
Q: What Happens At The Closing?
A: Massachusetts recognizes that lawyers and not closing companies or title companies are qualified to do real estate closings. Thus, in the vast majority of cases a … More
Q: What Are Comprehensive Permits, And How Are They Used To Create Affordable Housing?
A: A comprehensive permit is issued by a municipality to a developer who proposes to build housing in which at least 25% of the units are affordable to lowincome … More
Q: How Does Dhcd Differ From The U.S. Department Of Housing And Urban Development?
A: DHCD is a state agency, and HUD is a federal agency. Both agencies are concerned with public and assisted housing as well as community development. In many instances, … More
Q: What Resources Are Available To Developers Of Affordable Housing?
A: A variety of resources are available to stimulate the private production of affordable housing. These include the Low Income Housing Tax Credit Program, the HOME … More