What Is A Home Appraisal?
to the Appraisal Institute, the role of the home appraiser is to
"provide a professional opinion, usually an estimate of market
value, to be used in making real estate decisions." Typically,
appraisers are employed by lenders to estimate the value of real
estate involved in a loan transaction. An appraiser hired by a
lender works in the best interest of their client, the lender.
What Is A Home Inspection?
inspection is an objective visual examination of the physical
structure and systems of a house. Home inspectors are usually
employed by the prospective homebuyer. A home inspector hired by a
buyer works in the best interest of their client, the homebuyer. An
appraisal is not a home inspection and a home inspection is not an
appraisal. Keep in mind that the approval / acceptance of a home by
a lender is not an endorsement of the home's physical condition.
Real Estate Industry And U.S. Department Of Housing And
Urban Development (HUD) Stress Need For Home Inspections:
effort to increase public awareness of the need for homebuyers to
get a professional home inspection before purchasing any property,
has been launched by the real estate industry and HUD.The
comprehensive consumer and industry-wide education effort is
spelled out in a Memorandum of Understanding among HUD, the
Mortgage Bankers Association of America (MBA) and the National
Association of Realtors (NAR) to support the Homebuyers Protection
Initiative announced June 10, 1999 by HUD Secretary, Andrew
HUD Emphasizes Value Of Home Inspections
its initiative will improve home appraisals for more than 1 million
families who purchase homes each year with mortgages insured by the
Federal Housing Administration (FHA) and is designed to protect
consumers from buying homes with major undetected defects. It
specifies that homebuyers will sign and date a "Consumer Notice" a
new informational form, before they purchase a home with an FHA
mortgage. The form advises them to get a home inspection in
addition to an appraisal.
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