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Isn’t a home inspection similar to a home appraisal? Not at all – an appraisal differs from a house inspection. A home inspector’s function is to study the structural, electrical, mechanical & plumbing in a home and document any problems or safety issues. Do I need a home inspection as well?
In many cases, this means that a person (who may or may not be an appraiser) collects information on the property via propertyinspection and a computer does the valuation. The person conducting the propertyinspection may not be licensed or have enforceable standards of practice, so the borrower experience can vary widely.
In many cases, this means that a person (who may or may not be an appraiser) collects information on the property via propertyinspection and a computer does the valuation. The person conducting the propertyinspection may not be licensed or have enforceable standards of practice, so the borrower experience can vary widely.
Nine out of 10 times, the intention is to show the property at its best. In most parts of the country, sellers (and agents) are required to document any known defects - whether current or past - to potential buyers. Not only do disclosure documents serve to inform buyers, but they can also protect the sellers from future legal action.
You can also purchase a linked digital version of the eUSPAP and Guidance and Reference Manual and get seamless access across both documents. Fannie Mae sees the appraisal process as “inspection + value.” Next month’s newsletter will have a lengthy article on the issues of the propertyinspector.
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