A Home Inspection is not an Appraisal.
Some purchasers mistakenly believe that a home inspection is unnecessary because the appraiser has 'inspected' the house. Appraisers are trained and licensed to provide the lender with an estimate of the market value of the house. During the appraisal process, a very limited inspection is conducted to help support the valuation report. A home inspection is a far more detailed process intended to assess the condition of major systems in the house per the ASHI Standards. A qualified home inspector is trained in the art of evaluating the physical condition of the house.
What Does the Federal Government Say About Home Inspections?
HUD insured mortgages require that the purchaser sign a disclosure document regarding the importance of a home inspection, and how it differs from a home appraisal.
HUD Caution Document:
This form is from an actual HUD foreclosure contract. If HUD thinks home inspections are that important, it's worth considering having an inspection for your own transactions. HUD also published the following document:
'Ten Important Questions to Ask Your Home Inspector'
Please visit HUD to access this document at:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/insp/inspfaq
'Ten Important Questions to Ask Your Home Inspector'
Please visit HUD to access this document at:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/insp/inspfaq