Home Value | Home Inspectors | Licensed Inspectors | Home Valuation | Property InspectorHome InspectionA home inspection is required by mortgage lenders and credit lenders to establish a property's market value. That is the price it would bring if offered in an open and competitive real estate market. Too often though this concept is irrelevant in real home inspection. | CMAs are not Home Inspections. Comparative market analysis, or CMA, is conducted to help real estate agents determine a realistic asking price. A CMA is an informal assessment of a home's market value. Normally, it is conducted establish a reasonable listing price on a home for sale. The home price is established by comparing the home to similar properties that have sold in the area within the past year.
|
With news stories of botched home inspections, and home inspectors claims that they feel pressured to inflate or deflate their estimates, you might feel less confident in your local home inspector's valuation of your home or the one you'd like to buy. Fortunately, the industry does have real estate inspection guidelines that diminish the possibility of inspector error, whether it is a condition in the home that went overlooked or that an inspector was under financial or business pressure to alter their estimates. The USPAP guidelines provide some reliability in home valuation practices. Further training at the state level encourages greater objectivity and consistency in evaluations. Skewing of home inspection can arise for a number of factors, some of which are not completely hard facts. An expected major job loss event in a city or community may or may not impact on home valuation in that community. The ethnic, national or racial profile of a neighborhood may also cause skewing in home valuation. Although it may be illegal, the reputation of a community may play a role in dollar estimates. Residential properties often consist of a house or dwelling and the land it is on. It takes skill to estimate the exact value of the home itself. There are other reasons for home inspection errors too such as a lack of access to relevant property information. Also inspectors are more affected by the past in performing their inspection whereas the real estate market itself is driven by the future and speculation. That can make the home inspection business a controversial one. This is why you would be wise to check the valuation of other nearby properties to the one being appraised. This may force the inspector to look at the inspection more deeply, when they may actually have just done a quick estimate or an inspection based on outdated information. In some areas of the country, home prices may be far ahead of inspections. This can certainly affect anyone seeking a mortgage or a line of credit on the sale of their home. The inspection may be lower by as much as 10,000 dollars than actual current selling prices. Sometimes these inspections can cause a sale to be lost. If you feel your inspection was carried out poorly, or was late in being done, you can contact your local state inspector board for action on the matter. | 
