Paying for Inspections

16 years ago

Hello all - newbie 1st-time buyer here.

I have a "good faith estimate" from my credit union (non-binding). Part of the closing costs is an "appraisal / collateral assessment".

I have two questions:

1. Is this the same thing as a home inspection? Or is that something additional to this line item?

2. Is this paid at the time of inspection? Or is it paid at closing?

If it matters, this is in Oregon - Marion County.

Thanks all.

Allison

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Comments (3)

logic
16 years ago
The appraiser is hired by the lenderÂand the appraisal is done for the lender...they choose the appraiserÂ.. but you foot the bill.

An appraisal and a home inspection are two entirely separate functionsÂÂ.as an appraiser determines market value of the home...but the home inspector inspects the home for visual evidence of defects and safety issues in terms of the homes systems, structure, roof etc.

You hire the home inspectorÂÂ.as he/she works only for the buyer.

Your state requires home inspectors to be certifiedÂ.. and they utilize the ASHI (American Society of Home Inspectors) standard of practice.

In hiring a home inspector, get at least 3 referrals from your attorney or family/friends. Check referencesÂÂand familiarize yourself with what is and is not included in the inspection, in order that you fully understand what to expect the inspection to cover.

A home inspection on an average home in average condition should take at minimum 2.50 hoursÂ..usually more.

Although same day check lists and/or computerized reports sound "state of the art", they are at best the bare minimumÂÂand by far the least informative. Hire an HI who provides a full narrative reportÂthat he writesÂÂ.not one that is mostly padded with boiler plate. Ask to see the pre-inspection agreement up front, in order that you know what the HI is and is not including and/or excluding, before you hire.

DonÂt hire by priceÂÂas not all HIÂs are created equalÂÂand invariably the lowest bidder will provide the minimum of time, effort and information.

Chances are buying a home will be the biggest investment that you will ever make. Spend at least as much time choosing a home inspector as you did in deciding on a home in order to have the best chance of obtaining a professional, thorough inspection.

Below is a link to the Oregon Construction Contractors website for further info.

Best wishes.

Here is a link that might be useful: Oregon Construction Contractors Home Inspectors
sue36
16 years ago
An appraisal is NOT the same thing as a home inspection. A home inspection looks for safety issues and for things on the home in disrepair. An appraisal tells the bank that the home actually exists and generally complies with the description they were given and estimates its value (for LTV ratios).

I had to pay for my appraisal before my closing, not as part of the closing costs. The bank wanted the money up front in case the closing fell through (such as it didn't appraise high enough). You pay the bank for the appraisal (and they pay the appraiser). But you pay a home inspector yourself for an inspection. You get an inspection before you get an appraisal. Usually you get the inspection right after you make the offer.
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bestalikat
Original Author
16 years ago
Thanks logic for that very detailed reply, and for the link. Looks like I have even more research to do before taking the plunge. =)

Thanks sue for your reply as well. I appreciated the info about the timing of the payment.

Paying for Inspections

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logic

sue36

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bestalikat
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Paying for Inspections

Comments (3)

logic

sue36

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bestalikat
Original Author