It is so nice dealing with professionals.  The inspection process was informative, and the report was delivered to my email the same day.  I highly recommend this service!        -  Marco S., San Diego

Blog Home Buying 101 HUD agrees - Home Buyer Inspections are Important
HUD agrees - Home Buyer Inspections are Important
Home Buying 101
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Though this article may be particularly helpful to those who will be purchasing a home with the help of the FHA, all home buyers may benefit from this information. All potential home buyers need to know what the difference between a home inspection and home appraisal is. Additionally, it is important to understand the true purpose of a home inspection, how to select an inspector, and why a home inspection is necessary.

hillcrest-condoMost all buyers choose to get a home inspection when buying a houseThe Need for Home Inspections In San Diego

There is a huge difference between buying just any home and buying one that is in great condition. The main purpose of home inspections is to determine what the condition of the home actually is. The home inspector remains impartial, and will take an in-depth look at various elements of the home. Part of the job of the home inspector is to do the following:
  • Evaluate the overall condition of the home, including the structure and all mechanical systems
  • Identify specific items that will need to be either repaired or completely replaced
  • Estimate how much longer major systems will last
Once the home inspection is complete, the individual who ordered the inspection will be provided with a detailed report. This written report will be lengthy, and should provide everything you need to know about the present condition of the home.

The Difference Between A Home Buyer Inspection and Appraisal

Appraisals are for the purpose of providing the estimated value of the home. This information may be more important to lenders than it is to buyers, as no lender will want to issue a loan that exceeds the market value of the home.
Before the FHA will insure a loan, an appraisal will need to be done. There are three reasons for this.
  • To determine what the market value of the property is
  • To ensure that the property meets minimum health and safety requirements
  • To determine the marketability of the property
Though a FHA appraisal may note deficiencies, these may not completely match those that are pointed out in a home inspection. There can be a difference between minimum standards and what you may consider excellent condition. For this reason, the appraisal should never take the place of a home inspection.

FHA Home Inspections

One of the main purposes of the FHA is to provide lenders with insurance on the mortgage. FHA does not make any guarantees in regard to either the condition or the value of the home. The FHA also does not perform any home inspections. Should problems be discovered after the purchase, the FHA will not be able to help. It will be entirely up to you to decide whether or not to pay for a home inspection. Most home buyers no longer consider the inspection process to be optional.

The Bottom Line

Written contracts for San Diego home purchases should include a contingency in the contract that states that the offer can be retracted without penalty should the home inspection reveal serious problems. In most cases, the buyer will need to pay for the home inspection. While you may feel that even one more expense in relation to the home purchasing process it too much, it is very unwise to not know the true condition of the home prior to completing the purchase.

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Darin Redding
Written on Monday, 24 March 2008 13:34 by Darin Redding

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