My Blog

Do I need a house inspection when my bank is having the house appraised?

Yes! I highly recomend that anyone purchasing a house should have a home insection done by a certified home inspector. A house appraisal is an independent evaluation of the current market value of a house or property. In general, the purpose of an appraisal is to set the current value of a house so that a lender may determine how much it can loan to the buyer. The appraiser looks at similar properties in the area and the prices at which they were sold to set the value of the house.

A house inspector conducts a thorough evaluation of the houses major systems and structural integrity. Whereas the appraiser is typically working for the bank, the house inspector is working for the buyer. The house inspector identifies items that need replacement or repair prior to closing, which can save you thousands of dollars.

U.S. Department Of Housing And Urban Development (HUD) requires buyers sign a Consumer Notice advising them to get a house inspection in addition to a house appraisal before purchasing a house with a FHA mortgage. Additionally, HUD now allows homebuyers to include the costs of appraisal and inspection in their FHA mortgage.

Appraising a haunted house…..

Upon my inspection of the rear yard I found the landscaping to be littered with tombstones from the family graves. I noted the external factor as I measured the perimeter of the house. I took my photo of the rear of the house and noticed a face looking back at me from the attic window. When I removed the camera from my eye the face was gone. Thinking to myself the house was supposed to be empty, I rang the door bell before I entered. I heard footsteps scattering around in the house so I rang the doorbell again and knocked on the door this time. Nobody answered so I went inside. As I stepped in the foyer, the wood floods creaked and I noted the hard wood flooring in below average condition. Spider webs all over the place I noted that there might be an infestation and it should be checked out by an expert in that field. I entered the kitchen and noted that it was dated because of the cooking facilities only included an open fireplace and a cooking pot for witches brew. I took my photos and moved on to the basement. In the basement I found more spider webs again noting the infestation. The utilities were not existent so I made comments on the function obsolescence. I also noted that the basement was finished as a torture chamber and that the bars to hold its occupant did not allow external access. Moving back upstairs to the top floor, I entered the full bath on the top floor. Again dated, the bath was another witches brewing pot. I marked in my notes the dated features and moved on to the attic. As I suspected there was a ghostly figure in a rocking chair with her back towards me. She was rocking back and forth in the chair and asked me to approach. As I did she began to ask how much is my house worth, and then mysteriously disappeared. I left the house wondering how I was to complete the appraisal report, there were no comparable sales to be found. What kind of adjustments should be made for the grave yard, the ghosts, and the condition of the house. Thinking to myself I should have declined this job, I then woke up and realized it was just a Halloween Daydream………

Have a great day and remember that safety come first, we wish you a happy, fun and most of all a safe Halloween…….

From the staff at Veracity Realty Services……..

I sent out an e-flyer as an ad to try and promote more business. I got a lot of feedback from that e-flyer both negative and positive. The negative was that we don’t make numbers for lenders so I thought that might be a good topic open for discussion.

Most of you already know that as a courtesy to my clients, I provide a free service so that your clients wont waste there money on an appraisal that they won’t get the loan on. I do a paper search which is not considered to be an appraisal, but it gives you a range of value of where the value of what the property will appraisal for. This of course is subject to inspections, because certain external, condition, or locational factors may affect the valuation process.

The thought behind the appraised value coming in at what the property is actually worth, and not the number that you need to make the deal is for your protection. It is not our job to make deals but to protect your investment in your client. The paper search that we do cost us both time and money however, we do it for free to better serve you. If the value isn’t there and we don’t get the job, we lose.

I’ve attached a copy of the e-flyer below and would appreciate any comments on this topic.

“At Veracity Realty Services, llc, we’re not number-hitters. That’s not why our clients, like you, hire us. You hire us to be candid, professional and independent.

That’s really the role of any appraiser in the mortgage market: We’re like auditors are for publicly traded companies. During the recent historic mortgage and housing boom, too many of our colleagues fell into the trap of “working the numbers.”

At Veracity Realty Services, llc, we’re here to help you make a responsible, fully informed decision on whether to make a loan, and for how much. We can’t provide a more important service to any of our clients than to sometimes say “no,” you’re taking too much risk if you make the loan you’re being asked to make.

Confidence – your confidence in us, your borrowers’ confidence in you, the country’s confidence in its economy – that’s what the appraisal profession brings to the mortgage process. And that’s what we strive to bring you every single time you engage our services. “

We want to thank you for the opportunity to serve you and look forward to continuing to do so.

Hello all,

Just a short entry this week.

Id like to take the time to thank all of our clients for there continued support and let you know that we have now expanded our capabilities to serve you better. We are now qualified to do FHA appraisals in the State of New York and are waiting for results in Pennsylvania. So please start sending in those FHA orders as now we are prepared to handle them. I will keep you updated and informed about our status in PA.

Thanks again for your business