Via builderonline.com All properties bought or refinanced with an FHA loan have to be appraised by a HUD-approved home appraiser. When purchasing a property with a conventional loan product, the appraiser focuses on determining the market value of the home; however, with an FHA-insured loan, the appraiser not only determines market value but also inspects the home to ensure it meets certain minimum property standards. Requiring appraisers to take on home inspection-type duties to ensure standards are met appears to blur the line between appraisals and home inspections and has raised questions among consumers, agents and appraisers.
“The appraiser’s job is to observe, analyze and report to the underwriter that the property meets HUD’s minimum property requirements,” said Wagar. “The danger is that consumers can mistake the role of the appraisal for that of an inspection.”
Panelist John Anderson, a Realtor® and appraiser with Twin Oaks Realty Inc., Minneapolis, Minnesota, agreed there is confusion about whether and how appraisals are different from home inspections. “There is growing confusion among consumers about whether they also need a home inspection,” he said. “An appraisal makes sure a home meets FHA minimum standard requirements; it is different from a home inspection and does not replace it. Buyers should still get an inspection, and it’s often required by the lender.”
There are many who feel the new rules blur the roles of home inspectors and appraisers asking one to do more than they may be trained for, and resulting in a poorer job doing the inspection than is warranted. The problem may be that many states do not have or require inspections or fail to license or otherwise certify inspectors. In such cases, it makes sense for the FHA to seek some assurances that appliances work and are not “just there.”
For Example Utan is just now going through the process of deciding how it hopes to deal with the issue of home inspections.
(KUTV) You hire them to check out the most important investment of your life: your home. But what does it take to be a home inspector? As our Matt Gephardt found, not-necessarily a whole lot.
This story began, as many of my stories do, with a call from someone who is upset. This someone hired an inspector who, he thinks, missed a few things; things that are going to be expensive for him to repair.
We began investigating where we often start — state records — looking into whether or not the inspector was properly licensed. What we found: zero home inspectors are licensed in our state. It’s not required.
So, an inspector versus a homeowner: who is right and who is wrong? Here in Utah it’s nearly impossible to say.
By state law, there are many jobs that require a person to have a license to do the job: construction, nursing, even cutting hair all require a license. To get a license, a worker has to meet certain requirements, like being trained and passing tests. And that worker is also subject to state oversight. But one job that requires no license, home inspectors.
“A person can just say, ‘Hey, I’ve decided to become a home inspector.’ ” said Ryan Kirkham, president of the Utah Association of Realtors. In 23 years in the business, he says he’s seen a lot of sub-par inspection reports.
A couple of issues about liability arose in the following article from Alaska about who is responsible when an inspector is in the home, via lockbox, unatteneded by the Realtor.
A critical step in selling or buying a home is the home inspection. This is when a qualified home inspector visits to determine if a property has any structural, mechanical, electrical, or code issues. The resulting report is important in the pending sale.
So who is looking out for the buyer, or the seller, during the home inspection? Perhaps you think the respective real estate agents would serve this purpose. However, this may not be the case.
Consider the technological advances that can change how home inspections are conducted. In the not-so-long-ago past, a home inspector was met on site by the real estate agent to allow access to property. The key might be kept outside the front door in a lockbox accessed with a specially made key.
In some areas, the ability of Appraisers is not the only question. Home inspectors, tend to be generalists. While they may know a few tricks of the trade when it comes to inspecting HVAC equipment, a professional may be more reliable when it comes to doing a Furnace Inspection or for a Boiler.
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