Can Inspections Affect the House Value?
The short answer would be “Yes, they can”, but do not count on it too much.
The role of the home inspection is to protect the buyer from inheriting major issues along with his purchase. Home appraisal, on the other hand, makes sure that a lender does not pay more than he has to.
During the appraisal, the specialist determines the market value of the house basing on its square footage, the number of rooms, bathrooms, size of the outside territory and the garage.
He is interested in analytic data and makes his summary based on complex mathematical calculations. Home inspections, as we already know, focus on home conditions.
If those conditions are not obvious, the home appraiser will not consider them.
For example, tilted facade and moldy basements are highly noticeable and will be reflected in the appraisal, but squeaky doors and inside water pipes will not.
Some mortgage guarantors require home inspection along with the appraisal, as they have specific requirements towards what should and should not be in the house.
A property that possesses any of the red flags cannot be approved until all of them are eliminated. But in most cases, a home appraisal cannot vaguely influence the home value. If inspections are made properly, you will be able to know your future house’s exact conditions.
Make certain that you have a trustworthy and reliable home inspector on your side, essentially, the whole deal now depends on him. Do not panic if you find a lot of written issues in his report, and do not take it too lightly as well. All you need to do is to read it carefully, then give it a good thought.
At the end of the day, some of the written problems may appear minor or cheap and easy to fix, some of them will not matter, as you are probably going to make some renovations, and some will not matter as much as for you to refuse to buy the house of your dreams.