Many sellers are reluctant to spend money on inspections before the sale, especially since most lenders require an appraisal at the buyers expense before closing. In parts of the country where termites are common, most lenders also require a termite inspection and may require a certified property inspection - also at the buyers expense.

Inspections are essential in establishing true market conditions and obtaining inspections before a property is offered for sale can be to the sellers advantage. In addition to helping establish a realistic price, inspections can usually take care of any problems before they arise. 

There are three basic inspections most properties undergo before a sale: the appraisal, a certified home inspection and a termite inspection. In the case of a commercial property or a very large private residence, a prospective buyer or seller may wish to have a civil engineer perform an inspection.

The Appraisal

A certified appraisal is a powerful tool, especially in determining the value of a property in the current marketplace. Mortgage lenders rely on appraisals to ensure their investments are secured. But the appraisal cannot answer all the questions about a property.

For example, an appraiser may find evidence of insect infestation, but appraisers are not typically pest control experts. It is likely, therefore, that the appraisal report will point out the evidence observed and recommend an expert be consulted. Or, if a home has floors that are not level, the appraisal should alert the reader to the condition and recommend contacting an expert.

Appraisers collect a great deal of information about their markets. Their reports are designed to inform the reader of current market conditions, as well as legal and physical descriptions of the property that is the subject of the appraisal. The appraisal inspection should also uncover deficiencies that will likely affect the marketability of a property. Still, there is always room for a second opinion.

This is where the certified home inspection is of  value.

Certified Home Inspections

The certified home inspector, often a licensed contractor, is trained to uncover deficiencies in a property.

A thorough inspector will analyze each system in a property and will spend as much time as necessary onsite to uncover any deficiencies that exist. The result should be a report outlining all observable flaws, as well as many potential problems.

The Pest Control Inspection

Both the appraiser and the property inspector should find evidence of infestation if it exists, but it will take an expert to determine if insects are actively eating away at your investment. Property owners can be a good source of information concerning previous treatments, especially if records have been retained. But if the property is in the South, a termite inspection will usually be a condition of a mortgage.

Regardless of the type of inspection required, it is important to rely on reputable professionals. Often, your real estate agent can recommend a good inspector, appraiser or pest control expert. Friends who own real estate may also be able to make a recommendation.  Your investment of time will be rewarded with peace of mind if not a better real estate investment.

Some real estate firms offer a home warranty package. Why? Because it is good business. No one wants to make the largest purchase of their life only to discover they must immediately spend more money to correct deficiencies. Properties with warranties typically sell closer to the asking, or list, price, and often are on the market for less time than properties with no warranty. A recent inspection, with records of repairs to correct any deficiencies uncovered by the inspector, can have much the same effect.